Company registration number 02401639 (England and Wales)
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
COMPANY INFORMATION
Directors
Mr B M Gates
Mr C D Honer
Mrs S L Honer
Mr M J Neville
Company number
02401639
Registered office
Monarch Works
Elswick Road
Stoke On Trent
United Kingdom
ST4 1EW
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 27
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Principal activities
The principal activity and nature of the Company during the year has been the distribution of electrical domestic appliances.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Review of the business
The business has successfully completed the Transition Period which commenced in 2022 and is detailed within the commentary below.
Throughout this process the business has continued to delivery outstanding customer service across the customer base, our industry leading logistics proposition consistently delivers 100% daily OTIF.
We have enhanced our digital B2B platform The Swift Store which provides our customers with instant availability, product information and accurate pricing, resulting in over 50% of all customers now interacting with us this way.
Our sales teams have been segmented into specific channels, resulting in a more focused sales proposition where the Swift sales teams become experts in their channel. This has transformed the way the business interacts with the customer as well as substantially increasing our service levels.
The Transition Period concluded in Q3 2023 with the company restructuring the board and shareholding.
The revised Swift Leadership Team bring a wealth of experience and complementary skills which in turn provides a robust foundation for the future growth.
The year started with the MDA sector continuing to be affected by the global shortage of electronic chipsets which are a major appliance component especially within Premium cooking. February 2022 then witnessed the Russian invasion of Ukraine which very quickly started to affect the industry with supply issues within the sink sector due to shortages of Nickel and from the end of Q1 an abundance of supplier price increases hit the sector due to a hike of raw materials originating from the Eastern European region.
The impact of the above macro events along with the 2 other events that the sector had to endure in such a short period, these being Brexit and the COVID-19 Pandemic the business decided during Q2 to implement a strategic review of both the supplier base as well specific customer channels.
The review concluded that the major proprietary appliance brands were starting to focus their limited product availability outside of the distribution channel to support the larger retailers as well as directly targeting the consumer to build their own B2C proposition. The result of this was that it was mutually agreed that Swift would cease distributing the BSH product from the end of Q1, resulting in an exceptional (in year) loss of retail sales for the year of £2.5m.
The board also decided that the business should withdraw from the national house builder sector where it has provided a supply and installation service to major house builders and student accommodation developers. The contract team have for some time found it increasingly difficult to secure profitable business and consistent sub contact labour. The result of this decision was an exceptional (in year) loss of £2m in contract sales.
The management team were tasked with the process of building new robust relationships with product sourcing specialists which has enabled the purchasing team to launch a range of exclusive products and brands during late Q2 and Q3. The business has also launched several range extensions from existing key suppliers such as The Franke Group.
Due to the macro events highlighted above and the poor performance of key supplier partners the 2022 turnover dropped to £15.6m from £19.1m in 2021. However, the gross margin as a percentage increased from 17.6% to 18.1%.
Distribution costs saw a decrease of 3.0% (2021 Increase 10.0%) to £1.63m. This was expected given the lower levels of activity in the business. Administration costs increased from £2.2m to £2.3m mainly due to the loan waiver of £264k with the parent entity; Honer Holdings Limited.
Stock efficiency has declined with average stock days increasing to 45.8 days (2021: 34.3 days). This is mainly due new to launching new product lines, which have taken time to establish in the market place.
Debtor days have increased marginally to 37.3 (2021: 36 days).
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Principal risks and uncertainties
1. Competition activity is a perennial challenge for our Company which is discussed at our monthly sales and management meetings.
2. Supplier performance is also factor which we discuss and manage on a weekly basis within our purchasing meeting. The management also meet the top 5 supplier account managers on a weekly basis via VC.
2. Regulatory changes – recent increases in the levels of environmental legislation have seen an increased financial burden on our suppliers, who are in the main passing these costs on to us.
3. Changes in consumer behaviour – stagnation in consumer spending causes uncertainties in our retail sales performance.
4. Technological factors – the rise in on-line shopping has eroded our traditional retail customer base as smaller retail outlets struggle to compete against internet sellers.
5. Exchange rates – although we purchase the vast majority of our goods in the UK in sterling, many of our suppliers manufacture in the Eurozone or in the Far East where they are transacting in US dollars. The continuing weakness of sterling in certain world markets has continued to exert upward pressure on prices from our suppliers.
The significant financial risks and exposures to the Company are in respect of liquidity, interest rates and credit risk. The finance department manages these risks in order to minimise any adverse effects on the Company.
Liquidity risk – the funding policy aims to ensure an appropriate amount of funding to meet current and future requirements. The Company is required to meet the principal bank covenant relating to the level of finance available as a proportion of applicable trade debtors, this governs the level of borrowing at all times.
Interest rate risk – During the year, the Company financed its operations through a finance facility. The Company was subject to the effects of fluctuations in the base rate applied by Praetura Commercial Finance.
Credit risk – the risk of bad debts is mitigated by thorough credit control procedures and the operation of a debt insurance policy with Atradius.
Development and performance
As outlined above, 2022 was a “Transition Year” from a sourcing perspective. For its entire existence Swift have stayed loyal to their proprietary brands, resulting in many successful years of trading with these suppliers. However, the last 3 years of macro events has proved that this can alter very quickly, and it is incumbent on the management team to ensure that the business cannot be left vulnerable in the future.
During Q3, Swift signed an exclusive supply and 3PL (third part logistics) agreement with the new owners of Creda. The brand had been acquired from the Whirlpool Group where it had been shelved for 23 years. During its peak selling period (1978 – 1996) Creda held the position of market leader in the mid-priced appliance sector for the UK across cooking and laundry. The best year showed that Creda held 48% share. The Creda UK launch was set for February 2023 and pre-selling began in Q4 2022.
Other brands brought into the portfolio during this period was New World entry level cooking and De Dietrich premium cooking as well the full Franke Group range of home solution products including their flag ship Mythos Appliances.
It is envisaged that the hard work of the purchasing team would enable the business to finish 2022 with a new resourced product lineup which the sales team can benefit from in 2023.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Key performance indicators
The Company has established robust KPI’s to measure its progress in achieving its business objectives and strategy. The board reviews performance against these measures monthly; the principal performance measures are:
Sales Turnover
The objective is to increase our turnover year on year through adding value via product ranges, pricing and offering industry leading customer service. Sales targets and measured against actual sales on a rolling basis.
Customer service metrics play a major part of daily life within the business and these include: Call Centre effectiveness and speed of response, customer feedback via Customer Satisfaction Surveys and a daily OTIF (on time in full) meeting to review and act on any delivery fails from the previous day.
Gross Margin
Gross Margin targets are set for each product category with the aim to maintain and improve on margins achieved. This is reviewed on an ongoing basis and forms part of the overall process of control and performance management. As reported earlier, gross margin increased from 17.6% in 2021 to 18.1%.
We were able to partially meet our purchasing targets with key suppliers despite the restrictions in volumes as a result of the supply issues, but nevertheless the volumes achieved were at a lower level than in previous years.
Net Profit/EBITDA
Net Profit and EBITDA targets are reviewed by management on a rolling basis. The EBITDA result excluding items directly related to the 2019 acquisition was negative £737k for 2022 (2021: negative £362k). The decrease in sales volume was the key driver of this change.
Working Capital Control
• Cash management: We regularly review and update our short- and medium-term cash-flow projections to ensure that we remain inside our financier’s expectation.
• Stock control: Stock levels are reviewed weekly, thereby highlighting any potential problems in relation to shortages of stock or ageing stocks. Stock turn also remains a key indicator of buying efficiencies. Overall stock held increased by £120k compared to the end of 2021, due to a management decision to increase stocks in anticipation of a quick start to trading in 2023. Stock turn as an annual measure decreased to 8.0 times (10.7 times in 2021).
• Trade Debtor levels: Trade debtor days and levels of overdue debt are reviewed monthly, to enable effective measures to be taken to recover receivables on an efficient and timely basis.
The average-basis debtor day ratio decreased to 37.3 days in 2022 (2021: 36 days).
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
Other information and explanations
Our 2022 results have once again been affected by supply issues and price inflation; this time linked to the Ukrainian War which created huge uncertainty across the customer channels we trade in.
We decided very early in 2022 that we could no longer continue to just sell main brands, as when these suppliers choose to alter their route to market and decide to target the consumer directly it is Swift and our retailers that will ultimately pay the price.
We successfully implemented and delivered our Supplier Transition Plan and I believe that these agreements along with our core principles of the business, positions us in a strong place for a sustained period of growth. Our customer reach continues to improve across the targeted trading channels. The launch of Creda puts us in the heart of the Independent Electrical sector with an exclusive legacy brand.
We have also continued to enjoy growth within our ecommerce channel due to the continued investment within our “pick & pack” proposition delivering a next day solution directly to the consumer on behalf of our customers.
The Swift Team continues to deliver a first-class level of service which holds true to our brand ethos of “Putting the customer at the heart of everything we do”. As always, I would like to take this opportunity to thank every one of our customers for their business and support. I would also like to thank our supplier partners for their continued support and welcome our new trading partners to business.
With the new initiatives highlighted within this report along with the hard work and determination that Team Swift continues to deliver. I remain extremely positive about the longer term and the growth of Swift.
Mr C D Honer
Director
22 December 2023
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B M Gates
Mr C D Honer
Mrs S L Honer
Mr M J Neville
Mr N G Roberts
(Resigned 22 June 2022)
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr C D Honer
Director
22 December 2023
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
- 7 -
Opinion
We have audited the financial statements of Swift Electrical Wholesalers (S-O-T) Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
- 8 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud, The extent to which our procedures are capable of detecting irregularities, including fraud are detailed below.
From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.
In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:
Enquiry of management and those charged with governance around actual and potential litigation and claims;
Reviewing minutes of meetings of those charged with governance, where available;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
- 9 -
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 an auditor's report 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.
Christopher Hession C.A.
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
22 December 2023
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
15,591,064
19,141,852
Cost of sales
(12,773,884)
(15,766,003)
Gross profit
2,817,180
3,375,849
Distribution costs
(1,628,852)
(1,679,202)
Administrative expenses
(2,264,611)
(2,196,029)
Other operating income
18,672
Operating loss
4
(1,076,283)
(480,710)
Interest receivable and similar income
7
28,980
26,479
Interest payable and similar expenses
8
(99,396)
(75,567)
Loss before taxation
(1,146,699)
(529,798)
Tax on loss
9
9,560
Loss for the financial year
(1,146,699)
(520,238)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Loss for the year
(1,146,699)
(520,238)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,146,699)
(520,238)
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
10
18,635
34,467
Tangible assets
11
88,529
133,112
Investments
13
1
1
107,165
167,580
Current assets
Stocks
14
1,601,242
1,479,662
Debtors
15
2,355,647
2,737,116
Cash at bank and in hand
91,408
6,565
4,048,297
4,223,343
Creditors: amounts falling due within one year
16
(5,450,761)
(4,461,278)
Net current liabilities
(1,402,464)
(237,935)
Total assets less current liabilities
(1,295,299)
(70,355)
Creditors: amounts falling due after more than one year
17
(145,244)
(223,489)
Net liabilities
(1,440,543)
(293,844)
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
(1,440,545)
(293,846)
Total equity
(1,440,543)
(293,844)
The notes on pages 14 to 27 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
Mr C D Honer
Director
Company Registration No. 02401639
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
2
226,392
226,394
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(520,238)
(520,238)
Balance at 31 December 2021
2
(293,846)
(293,844)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(1,146,699)
(1,146,699)
Balance at 31 December 2022
2
(1,440,545)
(1,440,543)
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
1
Accounting policies
Company information
Swift Electrical Wholesalers (S-O-T) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Monarch Works, Elswick Road, Stoke On Trent, United Kingdom, ST4 1EW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Honer Holdings Limited. These consolidated financial statements are available from its registered office Monarch Works, Elswick Road, Stoke-onTrent, Staffordshire, ST4 1EW.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% - 33% on cost
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over the period of the lease: 5 years from March 2018
Plant and equipment
25% - 50% on cost
Computers
20% - 50% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Domestic appliances and accessories
15,591,064
19,141,852
2022
2021
£
£
Turnover analysed by geographical market
UK sales
15,518,476
19,053,800
Overseas sales
72,588
88,052
15,591,064
19,141,852
2022
2021
£
£
Other revenue
Interest income
28,980
26,479
Grants received
-
18,672
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
-
(18,672)
Fees payable to the company's auditor for the audit of the company's financial statements
32,213
19,500
Depreciation of owned tangible fixed assets
26,099
71,958
Depreciation of tangible fixed assets held under finance leases
26,272
24,084
Profit on disposal of tangible fixed assets
-
(30,587)
Amortisation of intangible assets
22,582
22,775
Impairment of stocks recognised or reversed
(14,923)
Operating lease charges
69,254
288,908
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Management, clerical and administration
12
16
Selling and distribution
39
42
Total
51
58
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,498,071
1,589,993
Social security costs
163,021
172,655
Pension costs
50,644
56,027
1,711,736
1,818,675
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
122,917
196,417
Company pension contributions to defined contribution schemes
6,060
7,798
128,977
204,215
The number of directors for whom retirement benefits are accruing under money purchase pension schemes amounted to 2 (2021 - 2).
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
28,980
26,479
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
92,700
64,868
Interest on finance leases and hire purchase contracts
6,632
10,699
Other interest
64
99,396
75,567
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
(9,560)
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Loss before taxation
(1,146,699)
(529,798)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(217,873)
(100,662)
Tax effect of expenses that are not deductible in determining taxable profit
8,323
30,190
Adjustments in respect of prior years
(10,045)
Deferred tax rate differences
7,903
(22,408)
Movement in deferred tax not recognised
201,647
93,365
Taxation charge/(credit) for the year
-
(9,560)
Factors that may affect future tax charges
An increase in the UK corporation tax rate was announced in the 2021 Budget which would increase the rate to 25% from 1 April 2023. Existing temporary differences on which deferred tax has been provided may therefore unwind in future periods subject to this increased rate. The rate change has been included in Finance Bill 2021 and was substantively enacted on 24 May 2021 and therefore deferred tax will be calculated using the 25% corporation tax rate.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
10
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2022
557,644
380,259
937,903
Additions
6,750
6,750
At 31 December 2022
557,644
387,009
944,653
Amortisation and impairment
At 1 January 2022
557,644
345,792
903,436
Amortisation charged for the year
22,582
22,582
At 31 December 2022
557,644
368,374
926,018
Carrying amount
At 31 December 2022
18,635
18,635
At 31 December 2021
34,467
34,467
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2022
96,649
126,093
298,455
420,781
941,978
Additions
580
1,575
5,633
7,788
Disposals
(15,668)
(15,668)
At 31 December 2022
97,229
127,668
304,088
405,113
934,098
Depreciation and impairment
At 1 January 2022
82,509
125,517
263,961
336,879
808,866
Depreciation charged in the year
3,988
643
18,572
29,168
52,371
Eliminated in respect of disposals
(15,668)
(15,668)
At 31 December 2022
86,497
126,160
282,533
350,379
845,569
Carrying amount
At 31 December 2022
10,732
1,508
21,555
54,734
88,529
At 31 December 2021
14,140
576
34,494
83,902
133,112
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Motor vehicles
54,734
81,006
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Swift Electrical Distributors Limited
England
Dormant
Ordinary Share Capital
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Swift Electrical Distributors Limited
1
13
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
12
1
1
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 & 31 December 2022
1,837,551
Impairment
At 1 January 2022 & 31 December 2022
1,837,550
Carrying amount
At 31 December 2022
1
At 31 December 2021
1
14
Stocks
2022
2021
£
£
Finished goods and goods for resale
1,601,242
1,479,662
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
15
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,595,136
1,885,803
Corporation tax recoverable
9,356
Amounts owed by group undertakings
654,448
616,685
Other debtors
6,923
Prepayments and accrued income
106,063
218,349
2,355,647
2,737,116
16
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
18
56,130
56,128
Obligations under finance leases
19
22,118
22,118
Trade creditors
3,476,617
2,632,106
Corporation tax
13,563
Other taxation and social security
234,720
182,962
Other creditors
1,387,064
1,385,792
Accruals and deferred income
260,549
182,172
5,450,761
4,461,278
The company's obligations under finance lease are secured against the assets to which they relate.
Other creditors include an invoice finance facility balance of £1,288,211 (2021 - £1,385,792) provided by Praetura Commercial Finance. This is secured against the sales ledger balances.
17
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
18
116,098
172,224
Obligations under finance leases
19
29,145
51,264
Other borrowings
18
1
1
145,244
223,489
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
18
Loans and overdrafts
2022
2021
£
£
Bank loans
172,225
228,352
Bank overdrafts
3
Loans from group undertakings
1
1
172,229
228,353
Payable within one year
56,130
56,128
Payable after one year
116,099
172,225
On 27 March 2019 a debenture incorporating a fixed and floating charge over all current and future assets of the Company was given in favour of Praetura Commercial Financial Limited. All existing debentures held by other parties prior to 27 March 2019 were satisfied at this date.
The finance facility provided by Praetura Commercial Finance attracts an interest charge of 2.75% over the Bank of England base rate subject to a minimum of 0.75%.
Other loans attract an interest rate of 8.90% charged from the first anniversary of the loan advance.
19
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
22,118
22,118
In two to five years
29,145
51,264
51,263
73,382
Finance lease payments represent rentals payable by the company for certain vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,644
56,027
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
SWIFT ELECTRICAL WHOLESALERS (S-O-T) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.01p each
20,600
20,600
2
2
Ordinary share rights
All shares are non-redeemable and rank equally in terms of voting rights, rights to participate in all approved dividend distributions and rights to participate in any capital distribution on winding up.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
275,921
295,918
Between two and five years
1,157,875
200,868
1,433,796
496,786
23
Capital commitments
At 31 December 2022 the Company had committed to the purchase of £Nil of assets (2021: £Nil).
25
Ultimate controlling party
During the year, the Company was under the ultimate control of CD Honer.
Honer Holdings Limited, a Company incorporated in the United Kingdom, is the immediate parent and is the smallest and largest group for which consolidated accounts are prepared. The consolidated accounts of Honer Holdings are available from the registered office address.
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