A. Perry Limited - Limited company accounts 23.2

REGISTERED NUMBER: 00363827 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

A. PERRY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

N G Perry

A B Dunnaker

C J Perry

I J Dunnaker

S L Perry

P Dunnaker

S L Perry

W J B Dougan

SECRETARY:

A J Allen

REGISTERED OFFICE:

Doulton Road

Cradley Heath

West Midlands

B64 5QW

REGISTERED NUMBER:

00363827 (England and Wales)

SENIOR STATUTORY AUDITOR:

Leigh Dudley FCCA

AUDITORS:

Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF THE BUSINESS

The company is a wholly owned subsidiary of Perry & Co Limited. The group structure brings a cohesive corporate structure and allows the standardisation of financial and operating procedures amongst the group as the company continues to strive for the "best in class" operations across all business activities.

The company's sales have reduced by £3.0million in the year to £13.5million. The company can attribute the decline to market conditions normalising after the exceptional circumstances of the COVID-19 pandemic causing a spike in 2021 sales. Despite the fall there is still a growth objective to return to 2021 turnover levels. Continuing the work that has been undertaken in previous years, a customer focused sales culture has been established. The company have endeavoured to improve sales performance through an extended product range and an improved salesforce. The company continues to enter new markets such as Agricultural merchants, garden centres and country stores.

In 2022 the company continued to be one of the largest threaded bar manufacturers and suppliers in the United Kingdom.

Gross profit at 25.2% shows a decrease from 2021 (30.2%) reflecting a broader mix of products at different margin levels. Managing stock levels and working capital have been key in response to falling margins. All supplier prices are continually monitored to ensure value for money.

Changes to the company's website and the rebranding in recent years continues to increase the company's profile with merchandisers. Branded sales stands and merchandisers packaging have reinforced the company's profile and modern customer focused approach.

The company operates from a modern 90,000 square foot warehouse, factory and office facility which will remain the hub of the company's operation for many years to come. The larger warehousing facility has allowed the company to install an efficient storage and picking layout which will also facilitate future growth product lines.

The company continues to invest in Research and Development for new methods of production and many new products, where professional advice is being fully consulted and all appropriate and applicable grants obtained. The focus on efficiency and automation is supported by an automated robotic warehousing system.

Employee relations continue to be exceptionally goods, with the open business culture focusing both on customer service and encouraged employee involvement.

The company's key financial indicators during the year were as follows:

Unit

2022

2021

Turnover

£

13,451,448

16,484,659

Gross profit margin

25.2

30.2

EBITDA

£

478,010

2,105,224

as % of turnover

%

3.6

12.8

Stock turnover

days

149

176

PRINCIPAL RISKS AND UNCERTAINTIES

The mains risks facing the Company are evaluated in regular Board meetings and management meetings. Measures are in place to manage and address risks on a daily basis through the policies and procedures implemented by the Company.

The credit risk on liquid funds is limited as the company uses a major UK clearing bank with which the company enjoys very good relations and with their continuing assistance and support, has utilised funds as necessary for both long-term and short-term funding requirements. The company also continues to make use of various lease and hire purchase agreements.

All credit and liquidity risks are considered and monitored in conjunction with the production of short and long-term cash flow forecasts to ensure all financial obligations are met as they fall due. The company has minimal bad debt risk due to very tight credit control procedures, closely supervised at director level.

Price risk is managed through the company's Product Guide and Price List. Foreign exchange risk is minimal and managed as most purchases are in Sterling.

Based on the information available to the directors at this time and the forecasts prepared, the directors believe sufficient working capital is available and the going concern basis of preparation is appropriate for these financial statements.

ON BEHALF OF THE BOARD:

N G Perry - Director

29 September 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

On 1 April 2022 interim dividends of £60,000 were voted respectively. No final dividend is proposed.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

N G Perry

A B Dunnaker

C J Perry

I J Dunnaker

S L Perry

P Dunnaker

Other changes in directors holding office are as follows:

S L Perry - appointed 22 February 2022

W J B Dougan - appointed 22 February 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Prime, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N G Perry - Director

29 September 2023

Opinion

We have audited the financial statements of A. Perry Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence;

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and other relevant parties.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Leigh Dudley FCCA (Senior Statutory Auditor)

for and on behalf of Prime

Chartered Accountants

Statutory Auditor

161 Newhall Street

Birmingham

B3 1SW

29 September 2023

TURNOVER

3

13,451,448

16,484,659

Cost of sales

10,061,930

11,512,313

GROSS PROFIT

3,389,518

4,972,346

Administrative expenses

3,310,402

3,262,789

79,116

1,709,557

Other operating income

47,888

132,525

OPERATING PROFIT

5

127,004

1,842,082

Interest receivable and similar income

-

6

127,004

1,842,088

Interest payable and similar expenses

6

308,240

312,681

(LOSS)/PROFIT BEFORE TAXATION

(181,236

)

1,529,407

Tax on (loss)/profit

7

(58,565

)

379,914

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(122,671

)

1,149,493

(LOSS)/PROFIT FOR THE YEAR

(122,671

)

1,149,493

OTHER COMPREHENSIVE INCOME

Freehold property revaluation

2,566,294

-

Income tax relating to other comprehensive income

(495,000

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

2,071,294

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,948,623

1,149,493

FIXED ASSETS

Intangible assets

11

42,328

59,815

Tangible assets

12

6,571,703

4,060,961

Investment property

13

900,000

900,000

7,514,031

5,020,776

CURRENT ASSETS

Stocks

14

4,097,468

5,537,624

Debtors

15

3,016,186

3,122,736

Cash at bank and in hand

346,049

434,527

7,459,703

9,094,887

CREDITORS

Amounts falling due within one year

16

6,022,559

7,239,065

NET CURRENT ASSETS

1,437,144

1,855,822

TOTAL ASSETS LESS CURRENT LIABILITIES

8,951,175

6,876,598

CREDITORS

Amounts falling due after more than one year

17

(3,078,890

)

(3,357,295

)

PROVISIONS FOR LIABILITIES

21

(791,475

)

(327,116

)

NET ASSETS

5,080,810

3,192,187

CAPITAL AND RESERVES

Called up share capital

22

60,000

60,000

Revaluation reserve

23

2,071,294

-

Other reserves

23

52,809

52,809

Retained earnings

23

2,896,707

3,079,378

SHAREHOLDERS' FUNDS

5,080,810

3,192,187

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by:

N G Perry - Director

Called up

share

Retained

Revaluation

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2021

60,000

2,114,980

-

52,809

2,227,789

Changes in equity

Dividends

-

(185,095

)

-

-

(185,095

)

Total comprehensive income

-

1,149,493

-

-

1,149,493

Balance at 31 December 2021

60,000

3,079,378

-

52,809

3,192,187

Changes in equity

Dividends

-

(60,000

)

-

-

(60,000

)

Total comprehensive income

-

(122,671

)

2,071,294

-

1,948,623

Balance at 31 December 2022

60,000

2,896,707

2,071,294

52,809

5,080,810

1.	STATUTORY INFORMATION

A. Perry Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

General information and basis of preparing the financial statements

The nature of the company's operations and principal activities are the manufacture and supply of ironmongery and threaded bar.

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, as modified by the revaluation of certain assets. The functional currency of the company is the Pound Sterling and the figures in the financial statements are rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The directors have considered a period of twelve months from the date of approving these financial statements. The directors have prepared profit and cash flow forecasts on a monthly basis, adopting assumptions that are considered appropriate, balanced and achievable. The cash flow forecast has been considered in the light of the available banking facilities that the company has access to.

Given the current trading levels, the information available and sources of funding available, the directors believe the company has sufficient funds and facilities to enable it to prepare these financial statements on a going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirement of paragraph 33.7.

Revenue and other income

Revenue is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies for the recognition of revenue are as follows:

Sale of goods

Turnover from the sale of threaded bar and ironmongery is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Costs include costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land

- no depreciation

Freehold property

- 2%-4% on cost

Plant and machinery

- at variable rates on cost & reducing balance

Fixtures and fittings

- at variable rates on cost & reducing balance

Motor vehicles

- 25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing inventories to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving inventory where appropriate.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leases

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals paid under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expenses, on a straight-line basis over the period of the lease.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution pension scheme for the benefit of its employees. Contributions are expensed as they become payable.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Impairment

Assets not measure at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Judgements and key sources of estimation uncertainty

The company makes judgements and assumptions concerning the future. The key assumptions and other key sources of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below.

Inventory provisioning

The company sells ironmongery products which are subject to changing consumer demands and trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the inventory, as well as applying assumptions for anticipated saleability of finished goods based on recent demand.

Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade and other debtors, management considers specific matters that may exist, the ageing profile of debtors and historical experience.

Grants

Grants are realised when conditions in regards to the grant are met.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of revenue by geographical market is given below:

2022

2021

United Kingdom

98.07%

96.87%

Overseas

1.93%

3.13%

100.00%

100.00%

4.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,011,690

2,058,632

Social security costs

180,782

181,710

Other pension costs

211,072

177,161

2,403,544

2,417,503

The average number of employees during the year was as follows:

2022

2021

Staff and works (including Directors)

71

76

2022

2021

£

£

Directors' remuneration

314,269

240,867

Directors' pension contributions to money purchase schemes

105,996

94,996

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

5

4

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

50,602

49,125

Pension contributions to money purchase schemes

6,000

-

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022

2021

£

£

Other operating leases

1,715

1,502

Depreciation - owned assets

187,404

162,005

Depreciation - assets on hire purchase contracts

106,691

122,864

Computer software amortisation

17,487

12,899

Auditors' remuneration

21,494

22,250

Auditors' remuneration for non audit work

-

13,966

Foreign exchange differences

12,816

(48,630

)

Impairment of stock (within cost of sales)

93,189

(76,781

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank interest

157,453

144,919

Loan charges

62,753

65,544

Loan interest

57,315

59,116

Hire purchase interest

30,719

43,102

308,240

312,681

7.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

(29,752

)

158,880

Adjustment in respect of prior year

1,828

-

Total current tax

(27,924

)

158,880

Deferred tax

(30,641

)

221,034

Tax on (loss)/profit

(58,565

)

379,914

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

(Loss)/profit before tax

(181,236

)

1,529,407

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

(34,435

)

290,587

Effects of:

Expenses not deductible for tax purposes

5,486

389

Income not taxable for tax purposes

(6,241

)

-

Depreciation in excess of capital allowances

2,853

22,827

Utilisation of tax losses

46,623

(116,902

)

Adjustments to tax charge in respect of previous periods

1,828

-

Depreciation on assets not eligible for capital allowances

(14,286

)

(15,185

)

Other

-

1

R&D enhanced deduction

(29,752

)

(22,837

)

Movement in deferred tax on accelerated capital allowances

40,120

136,025

Movement in deferred tax on losses

(70,761

)

85,009

Total tax (credit)/charge

(58,565

)

379,914