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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Financial instruments |
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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. |
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Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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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. |
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Basic financial assets |
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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. |
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Other financial assets |
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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. |
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Impairment of financial assets |
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Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
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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. |
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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. |
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Derecognition of financial assets |
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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. |
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Classification of financial liabilities |
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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. |
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Basic financial liabilities |
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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. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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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. |
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Other financial liabilities |
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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. |
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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 though 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. |
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Derecognition of financial liabilities |
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Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. |
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Equity instruments |
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Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
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Creditors
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Critical accounting estimates and judgements |
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Apart from the Packaging recovery notes provided in the accounts, which was immaterial for the overall company, as this was based on figures provided by a specialist consultant in the field, there was no other critical accounting estimates used in the preparation of the account for the year ended 31 May 2020.
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3 |
Analysis of turnover |
2020 |
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2019 |
£ |
£ |
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|
Sale of goods |
24,308,285 |
|
27,424,248 |
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Services rendered |
26,876 |
|
1,096 |
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|
|
|
|
24,335,161 |
|
27,425,344 |
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4 |
Operating profit |
2020 |
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2019 |
£ |
£ |
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This is stated after charging: |
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Depreciation of owned fixed assets |
9,386 |
|
4,253 |
|
Impairment of goodwill |
- |
|
43,628 |
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Auditors' remuneration for audit services |
5,500 |
|
5,500 |
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Carrying amount of stock sold |
22,478,234 |
|
25,397,966 |
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5 |
Director's emoluments |
2020 |
|
2019 |
£ |
£ |
|
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Emoluments |
19,449 |
|
96,086 |
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6 |
Staff costs |
2020 |
|
2019 |
£ |
£ |
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|
Wages and salaries |
212,985 |
|
245,170 |
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Social security costs |
20,777 |
|
21,641 |
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Other pension costs |
50,492 |
|
81,797 |
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|
|
|
|
|
284,254 |
|
348,608 |
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|
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Average number of employees during the year |
Number |
Number |
|
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Administration |
4 |
|
4 |
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|
|
|
|
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7 |
Taxation |
2020 |
|
2019 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
274,346 |
|
309,132 |
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Tax on profit on ordinary activities |
274,346 |
|
309,132 |
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Factors affecting tax charge for period |
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The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
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|
2020 |
|
2019 |
£ |
£ |
|
Profit on ordinary activities before tax |
1,468,649 |
|
1,577,761 |
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|
|
|
|
|
|
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Standard rate of corporation tax in the UK
|
19% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
279,043 |
|
299,775 |
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Effects of: |
|
Expenses not deductible for tax purposes |
(4,697) |
|
9,357 |
|
|
Current tax charge for period |
274,346 |
|
309,132 |
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|
|
|
|
|
|
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8 |
Intangible fixed assets |
£ |
|
Goodwill: |
|
|
Cost |
|
At 1 June 2019 |
3,401,217 |
|
At 31 May 2020 |
3,401,217 |
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|
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|
|
|
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Impairment review |
|
At 1 June 2019 |
157,105 |
|
At 31 May 2020 |
157,105 |
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|
|
|
|
|
|
|
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Carrying amount |
|
At 31 May 2020 |
3,244,112 |
|
At 31 May 2019 |
3,244,112 |
|
|
|
|
|
|
|
|
|
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Goodwill is not being amortised and impairment reviews are carried at the end of the financial year ended. The economic life of goodwill could not be determined.
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|
9 |
Tangible fixed assets |
|
|
|
|
|
|
Office furniture and equipment |
|
Total |
|
|
|
|
|
|
At cost |
£ |
£ |
|
Cost or valuation |
|
At 1 June 2019 |
20,207 |
|
20,207 |
|
Additions |
16,373 |
|
16,373 |
|
Disposals |
(1,226) |
|
(1,226) |
|
At 31 May 2020 |
35,354 |
|
35,354 |
|
|
|
|
|
|
|
|
|
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Depreciation |
|
At 1 June 2019 |
8,992 |
|
8,992 |
|
Charge for the year |
9,386 |
|
9,386 |
|
On disposals |
(1,226) |
|
(1,226) |
|
At 31 May 2020 |
17,152 |
|
17,152 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 May 2020 |
18,202 |
|
18,202 |
|
At 31 May 2019 |
11,215 |
|
11,215 |
|
|
|
|
|
|
|
|
|
10 |
Stocks |
2020 |
|
2019 |
£ |
£ |
|
|
Finished goods and goods for resale |
949,746 |
|
1,070,932 |
|
|
|
|
|
|
|
|
|
|
11 |
Debtors |
2020 |
|
2019 |
£ |
£ |
|
|
Trade debtors |
4,482,716 |
|
2,743,855 |
|
Other debtors |
15,975 |
|
- |
|
Prepayments and accrued income |
13,787 |
|
7,341 |
|
|
|
|
|
|
4,512,478 |
|
2,751,196 |
|
12 |
Investments held as current assets |
2020 |
|
2019 |
£ |
£ |
|
Fair value |
|
Unlisted investments |
513,347 |
|
513,347 |
|
|
|
|
|
|
|
|
|
|
The directors are of the opinion that the difference between the fair value and the historical costs of the unlisted Investments are not material for unrealised profit or loss on unlisted investments to be shown in the Profit and loss account. |
|
|
13 |
Creditors: amounts falling due within one year |
2020 |
|
2019 |
£ |
£ |
|
|
Trade creditors |
2,566,351 |
|
1,985,137 |
|
Corporation tax |
274,468 |
|
309,132 |
|
Other taxes and social security costs |
246,127 |
|
3,014 |
|
Other creditors |
968 |
|
368,334 |
|
Accruals and deferred income |
108,781 |
|
169,128 |
|
|
|
|
|
|
3,196,695 |
|
2,834,745 |
|
|
|
|
|
|
|
|
|
14 |
Share capital |
Nominal |
|
2020 |
|
2020 |
|
2019 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares
|
£1 each |
|
10,225,000 |
|
10,225,000 |
|
10,225,000 |
|
|
|
|
|
|
|
|
|
15 |
Profit and loss account |
2020 |
|
2019 |
£ |
£ |
|
|
At 1 June |
2,556,689 |
|
2,344,568 |
|
Profit for the financial year |
1,194,303 |
|
1,268,629 |
|
Dividends |
(293,581) |
|
(1,056,508) |
|
|
At 31 May |
3,457,411 |
|
2,556,689 |
|
|
|
|
|
|
|
|
|
|
16 |
Dividends |
2020 |
|
2019 |
£ |
£ |
|
|
Dividends on ordinary shares (note 15) |
293,581 |
|
1,056,508 |
|
17 |
Related party transactions |
|
|
Dividend paid from Whatmore Holdings Ltd to Mr Matthew F Nash was £238,131 in 2020 and £868,141 in the accounts for year ended 31 May 2019. A dividend of £750,000 in 2020 and £1,000,000 was paid to Whatmore Holdings Ltd, the parent company, by Bryan W Nash & Sons Ltd for the accounts year ended 31 May 2019.
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|
|
18 |
Controlling party |
|
|
The whole of the ordinary shares were owned by Whatmore Holdings Ltd. Mr Matthew F Nash, the managing director is a shareholder of significant influence in Whatmore Holdings Ltd, hence, Bryan W Nash & Sons Ltd.
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|
|
19 |
Presentation currency |
|
|
The financial statements are presented in Sterling.
|
|
|
20 |
Legal form of entity and country of incorporation |
|
|
Whatmore Holdings Ltd is a private company limited by shares and incorporated in England. |
|
21 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Whatmore House |
|
136 South Street |
|
Dorking |
|
Surrey |
|
England, RH4 2EU |
|
22 |
Reconciliations on adoption of FRS 102 |
|
|
Profit and loss for the year ended 31 May 2019 |
£ |
|
|
Profit under former UK GAAP |
1,268,629 |
|
|
Profit under FRS 102 |
1,268,629 |
|
|
|
|
|
|
|
|
Balance sheet at 31 May 2019 |
£ |
|
|
Equity under former UK GAAP |
12,781,689 |
|
|
Equity under FRS 102 |
12,781,689 |
|
|
|
|
|
|
|
|
Balance sheet at 1 June 2018 |
£ |
|
|
Equity under former UK GAAP |
- |
|
|
Equity under FRS 102 |
- |
|
|
|
|
|
|
|