Calder Textiles Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01803068 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE 2018

FOR

CALDER TEXTILES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Malcolm Rawson

Tracy Jane Wadsworth

Timothy Booth

REGISTERED OFFICE:

Anchor House

Dewsbury Mills

Thornhill Road

Dewsbury

West Yorkshire

WF12 9QE

REGISTERED NUMBER:

01803068 (England and Wales)

AUDITORS:

Walter Dawson & Son

7 Wellington Road East

Dewsbury

West Yorkshire

WF13 1HF

The directors present their strategic report for the year ended 30th June 2018.

REVIEW OF BUSINESS

We continued to supply specialist woollen carpet yarn, hank dyeing and fibre dyeing services.

Sales have increased by 10% in the year and still remain strong despite a competitive market place, likewise

profitability has increased on the previous year. We continue to invest in fibre dyeing and new machinery to improve

efficiencies in all aspects of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

We anticipate similar performance in the upcoming financial year.

We will continue to develop hank dyeing and other forms of dyeing to remain competitive due to continued strong

competition.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

4th January 2019

The directors present their report with the financial statements of the company for the year ended 30th June 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of yarn spinners.

DIVIDENDS

No dividends will be distributed for the year ended 30th June 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st July 2017 to the date of this report.

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Malcolm Rawson

Tracy Jane Wadsworth

Other changes in directors holding office are as follows:

Timothy Booth was appointed as a director after 30th June 2018 but prior to the date of this report.

Stephen Brough ceased to be a director after 30th June 2018 but prior to the date of this report.

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, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

4th January 2019

Opinion

We have audited the financial statements of Calder Textiles Limited (the 'company') for the year ended 30th June 2018

which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in

Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30th June 2018 and of its profit 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 there is a material misstatement in the financial

statements or a material misstatement of the other information. 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.

Opinion 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 three, 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.

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.

Graham Atkinson FCA (Senior Statutory Auditor)

for and on behalf of Walter Dawson & Son

7 Wellington Road East

Dewsbury

West Yorkshire

WF13 1HF

4th January 2019

TURNOVER

3

11,698,474

10,608,773

Cost of sales

9,772,504

8,910,561

GROSS PROFIT

1,925,970

1,698,212

Distribution costs

636,415

607,771

Administrative expenses

964,205

888,247

1,600,620

1,496,018

OPERATING PROFIT

5

325,350

202,194

Interest payable and similar expenses

6

8,904

13,668

PROFIT BEFORE TAXATION

316,446

188,526

Tax on profit

7

35,049

(39,717

)

PROFIT FOR THE FINANCIAL YEAR

281,397

228,243

PROFIT FOR THE YEAR

281,397

228,243

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

281,397

228,243

FIXED ASSETS

Tangible assets

8

1,058,039

908,151

CURRENT ASSETS

Stocks

9

1,069,687

1,419,503

Debtors

10

3,131,568

3,218,097

Cash at bank and in hand

71,058

-

4,272,313

4,637,600

CREDITORS

Amounts falling due within one year

11

2,694,189

3,183,375

NET CURRENT ASSETS

1,578,124

1,454,225

TOTAL ASSETS LESS CURRENT LIABILITIES

2,636,163

2,362,376

PROVISIONS FOR LIABILITIES

15

56,647

64,257

NET ASSETS

2,579,516

2,298,119

CAPITAL AND RESERVES

Called up share capital

16

112,000

112,000

Retained earnings

2,467,516

2,186,119

SHAREHOLDERS' FUNDS

2,579,516

2,298,119

The financial statements were approved by the Board of Directors on 4th January 2019 and were signed on its behalf by:

Gregory Quinton Bedford - Director

Carol Lesley Brown - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2016

112,000

1,957,876

2,069,876

Changes in equity

Total comprehensive income

-

228,243

228,243

Balance at 30th June 2017

112,000

2,186,119

2,298,119

Changes in equity

Total comprehensive income

-

281,397

281,397

Balance at 30th June 2018

112,000

2,467,516

2,579,516

Cash flows from operating activities

Cash generated from operations

1

707,564

423,483

Interest paid

(6,695

)

(10,843

)

Interest element of hire purchase payments paid

(2,209

)

(2,825

)

Tax paid

(5,202

)

(15,075

)

Net cash from operating activities

693,458

394,740

Cash flows from investing activities

Purchase of tangible fixed assets

(356,219

)

(312,559

)

Sale of tangible fixed assets

5,700

-

Net cash from investing activities

(350,519

)

(312,559

)

Cash flows from financing activities

Capital repayments in year

(36,266

)

(51,204

)

Repayment of group loans in the year

(222,165

)

(53,798

)

Net cash from financing activities

(258,431

)

(105,002

)

Increase/(decrease) in cash and cash equivalents

84,508

(22,821

)

Cash and cash equivalents at beginning of year

2

(13,450

)

9,371

Cash and cash equivalents at end of year

2

71,058

(13,450

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

316,446

188,526

Depreciation charges

206,331

229,185

Profit on disposal of fixed assets

(5,700

)

-

Finance costs

8,904

13,668

525,981

431,379

Decrease/(increase) in stocks

349,816

(35,537

)

Increase in trade and other debtors

(207,803

)

(217,262

)

Increase in trade and other creditors

39,570

244,903

Cash generated from operations

707,564

423,483

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 30th June 2018

30/6/18

1/7/17

£

£

Cash and cash equivalents

71,058

-

Bank overdrafts

-

(13,450

)

71,058

(13,450

)

Year ended 30th June 2017

30/6/17

1/7/16

£

£

Cash and cash equivalents

-

9,371

Bank overdrafts

(13,450

)

-

(13,450

)

9,371

1.	STATUTORY INFORMATION

Calder Textiles 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

5% on valuation

Plant and machinery

-

12.5% per annum on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

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.

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.

Pension costs

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Hire purchase and leasing

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in

the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in

creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over

the period of the leases. The benefits of lease incentives are recognised in the profit and loss account over the

shorter of the lease period and the period to the next rent review at which the rent is expected to be reset to

market rates.

Income recognition

Income is recognised when goods have been delivered to customers such that the risks and rewards of

ownership have transferred to them.

3.

TURNOVER

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

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

3,184,461

2,879,519

Social security costs

32,493

31,919

Other pension costs

182,766

139,869

3,399,720

3,051,307

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

2018

2017

Distribution and selling

2

2

Production

148

144

Administration

8

8

158

154

2018

2017

£

£

Directors' remuneration

301,018

372,231

Directors' pension contributions to money purchase schemes

126,000

148,000

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

Money purchase schemes

5

5

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

66,462

114,397

5.	OPERATING PROFIT

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

2018

2017

£

£

Depreciation - owned assets

206,331

229,185

Profit on disposal of fixed assets

(5,700

)

-

Auditors' remuneration

8,996

8,288

Foreign exchange differences

(6,759

)

2,880

Operating leases

152,411

19,194

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank interest

6,695

1,730

Group support interest

-

9,113

Hire purchase

2,209

2,825

8,904

13,668

7.

TAXATION

Analysis of the tax charge/(credit)

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

2018

2017

£

£

Current tax:

UK corporation tax

42,659

(14,167

)

Deferred tax

(7,610

)

(25,550

)

Tax on profit

35,049

(39,717

)

Reconciliation of total tax charge/(credit) 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:

2018

2017

£

£

Profit before tax

316,446

188,526

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.750%)

60,125

37,234

Effects of:

Expenses not deductible for tax purposes

189

192

Adjustments to tax charge in respect of previous periods

-

(19,369

)

Depreciation on assets excluded from capital allowances

274

284

Research and development enhancement

(21,520

)

(22,088

)

Group loss relief

(4,019

)

(32,311

)

Effect of change in tax rate on deferred tax provision

-

(3,659

)

Total tax charge/(credit)

35,049

(39,717

)

8.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

leasehold

machinery

vehicles

Totals

£

£

£

£

COST

At 1st July 2017

215,802

7,205,571

69,051

7,490,424

Additions

-

336,324

19,895

356,219

Disposals

-

-

(17,061

)

(17,061

)

At 30th June 2018

215,802

7,541,895

71,885

7,829,582

DEPRECIATION

At 1st July 2017

120,639

6,425,238

36,396

6,582,273

Charge for year

10,790

179,792

15,749

206,331

Eliminated on disposal

-

-

(17,061

)

(17,061

)

At 30th June 2018

131,429

6,605,030

35,084

6,771,543

NET BOOK VALUE

At 30th June 2018

84,373

936,865

36,801

1,058,039

At 30th June 2017

95,163

780,333

32,655

908,151

The net book value of tangible fixed assets includes £Nil (2017: £95,058) in respect of assets held under hire

purchase contracts and finance leases. The depreciation charge for the year on those assets amounted to £Nil

(2017: £20,139).

9.

STOCKS

2018

2017

£

£

Stocks

1,069,687

1,419,503

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

2,320,231

2,101,966

Amounts owed by group undertakings

614,989

909,321

Other debtors

-

25,325

VAT

154,612

113,311

Prepayments and accrued income

41,736

68,174

3,131,568

3,218,097