Weber-Stephen Products (U.K.) Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03518831 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH SEPTEMBER 2018

FOR

WEBER-STEPHEN PRODUCTS (U.K.) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mr H J Herr

Mr L Leenders

Mr A M Reuter

Mr J T Schollmeyer

Mr F J Lepeltier

Ms N M Misch

Mr P J Zadeik

Mr D Broadbent

SECRETARY:

Mr F J Lepeltier

REGISTERED OFFICE:

10th Floor

The Metro Building

1 Butterwick

London

W6 8DL

REGISTERED NUMBER:

03518831 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

The directors present their strategic report of the company and the group for the year ended 30th September 2018.

REVIEW OF BUSINESS

The directors consider the results achieved on ordinary activities before taxation to be satisfactory in view of the global

economy.

Turnover remained consistent at £283m. The gross margin improved slightly to 32.55% (2017: 30.48%).

Reserves increased and the balance sheet position remains strong at over £70m. The directors are confident in the future

outlook of the group.

PRINCIPAL RISKS AND UNCERTAINTIES

The risks and uncertainties faced by the group include the european economic climate, seasonal weather factors and

rising costs.

ON BEHALF OF THE BOARD:

Mr L Leenders - Director

21st June 2019

The directors present their report with the financial statements of the company and the group for the year ended

30th September 2018.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of importers and wholesalers of barbecues and

related products.

DIVIDENDS

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

RESEARCH AND DEVELOPMENT

The group continues to develop improved barbecue equipment and techniques.

FUTURE DEVELOPMENTS

No significant changes to the group's business are anticipated.

DIRECTORS

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

report.

Mr H J Herr

Mr L Leenders

Mr A M Reuter

Mr J T Schollmeyer

Mr F J Lepeltier

Ms N M Misch

Mr P J Zadeik

Other changes in directors holding office are as follows:

Mr T Koos - resigned 20th November 2017

Mr D Broadbent - appointed 20th November 2017

EMPLOYEES

The group encourages employment, training, career development and promotion of disabled people. The aims to

develop good communication with employees and consultation is encouraged.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group 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 group'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

group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr L Leenders - Director

21st June 2019

Opinion

We have audited the financial statements of Weber-Stephen Products (U.K.) Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 30th September 2018 which comprise the Consolidated Income Statement,

Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated

Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and

Notes to the Consolidated 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 group's and of the parent company affairs as at 30th September 2018 and of the group's 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 group 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 group'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 Group

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.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group 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 Group 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 group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 pages three and four, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent 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.

Mark Sunter (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

21st June 2019

TURNOVER

3

282,967,367

279,683,810

Cost of sales

190,856,212

194,429,197

GROSS PROFIT

92,111,155

85,254,613

Distribution costs

217,219

163,759

Administrative expenses

72,779,252

75,184,050

72,996,471

75,347,809

OPERATING PROFIT

5

19,114,684

9,906,804

Interest receivable and similar income

36,547

29,549

19,151,231

9,936,353

Interest payable and similar expenses

6

707,774

585,710

PROFIT BEFORE TAXATION

18,443,457

9,350,643

Tax on profit

7

5,683,171

4,900,097

PROFIT FOR THE FINANCIAL YEAR

12,760,286

4,450,546

Profit attributable to:

Owners of the parent

12,760,286

4,450,546

PROFIT FOR THE YEAR

12,760,286

4,450,546

OTHER COMPREHENSIVE INCOME

Equity difference on foreign currency

639,701

2,242,900

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

639,701

2,242,900

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

13,399,987

6,693,446

Total comprehensive income attributable to:

Owners of the parent

13,399,987

6,693,446

FIXED ASSETS

Intangible assets

9

942,975

1,180,298

Tangible assets

10

5,433,697

5,066,035

Investments

11

-

-

6,376,672

6,246,333

CURRENT ASSETS

Stocks

12

53,124,935

44,386,582

Debtors

13

75,166,222

69,221,532

Cash at bank and in hand

13,221,916

11,264,077

141,513,073

124,872,191

CREDITORS

Amounts falling due within one year

14

73,090,146

69,689,534

NET CURRENT ASSETS

68,422,927

55,182,657

TOTAL ASSETS LESS CURRENT LIABILITIES

74,799,599

61,428,990

PROVISIONS FOR LIABILITIES

16

-

29,378

NET ASSETS

74,799,599

61,399,612

CAPITAL AND RESERVES

Called up share capital

17

2

2

Share premium

18

4,335,163

4,335,163

Equity difference on foreign

currency translations

18

5,247,720

4,608,019

Retained earnings

18

65,216,714

52,456,428

SHAREHOLDERS' FUNDS

74,799,599

61,399,612

The financial statements were approved by the Board of Directors on 21st June 2019 and were signed on its behalf by:

Mr L Leenders - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

190,335

226,539

Investments

11

9,104,109

7,848,054

9,294,444

8,074,593

CURRENT ASSETS

Stocks

12

5,728,824

4,618,426

Debtors

13

4,557,968

4,016,804

Cash at bank and in hand

3,527,749

2,200,592

13,814,541

10,835,822

CREDITORS

Amounts falling due within one year

14

15,969,987

9,448,266

NET CURRENT (LIABILITIES)/ASSETS

(2,155,446

)

1,387,556

TOTAL ASSETS LESS CURRENT LIABILITIES

7,138,998

9,462,149

PROVISIONS FOR LIABILITIES

16

-

29,378

NET ASSETS

7,138,998

9,432,771

CAPITAL AND RESERVES

Called up share capital

17

2

2

Share premium

18

4,335,163

4,335,163

Retained earnings

18

2,803,833

5,097,606

SHAREHOLDERS' FUNDS

7,138,998

9,432,771

Company's loss for the financial year

(2,293,773

)

(838,066

)

The financial statements were approved by the Board of Directors on 21st June 2019 and were signed on its behalf by:

Mr L Leenders - Director

Equity

difference

Called up

on

share

Retained

Share

foreign

Total

capital

earnings

premium

currency

equity

£

£

£

£

£

Balance at 1st October 2016

2

48,005,882

4,335,163

2,365,119

54,706,166

Changes in equity

Total comprehensive income

-

4,450,546

-

2,242,900

6,693,446

Balance at 30th September 2017

2

52,456,428

4,335,163

4,608,019

61,399,612

Changes in equity

Total comprehensive income

-

12,760,286

-

639,701

13,399,987

Balance at 30th September 2018

2

65,216,714

4,335,163

5,247,720

74,799,599

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st October 2016

2

5,935,672

4,335,163

10,270,837

Changes in equity

Total comprehensive income

-

(838,066

)

-

(838,066

)

Balance at 30th September 2017

2

5,097,606

4,335,163

9,432,771

Changes in equity

Total comprehensive income

-

(2,293,773

)

-

(2,293,773

)

Balance at 30th September 2018

2

2,803,833

4,335,163

7,138,998

Cash flows from operating activities

Cash generated from operations

1

10,726,028

14,060,045

Interest paid

(707,774

)

(585,710

)

Equity difference on foreign currency

639,701

2,242,900

Tax paid

(5,278,020

)

(6,025,996

)

Net cash from operating activities

5,379,935

9,691,239

Cash flows from investing activities

Purchase of intangible fixed assets

(97,756

)

(1,092,469

)

Purchase of tangible fixed assets

(3,406,587

)

(2,400,847

)

Sale of tangible fixed assets

45,700

90,890

Interest received

36,547

29,549

Net cash from investing activities

(3,422,096

)

(3,372,877

)

Increase in cash and cash equivalents

1,957,839

6,318,362

Cash and cash equivalents at beginning of year

2

11,264,077

4,945,715

Cash and cash equivalents at end of year

2

13,221,916

11,264,077

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

30.9.18

30.9.17

£

£

Profit before taxation

18,443,457

9,350,643

Depreciation charges

3,122,867

2,579,836

Loss/(profit) on disposal of fixed assets

205,437

(15,250

)

Finance costs

707,774

585,710

Finance income

(36,547

)

(29,549

)

22,442,988

12,471,390

Increase in stocks

(8,738,353

)

(15,896,180

)

Increase in trade and other debtors

(14,844,948

)

(748,932

)

Increase in trade and other creditors

11,866,341

18,233,767

Cash generated from operations

10,726,028

14,060,045

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 September 2018

30.9.18

1.10.17

£

£

Cash and cash equivalents

13,221,916

11,264,077

Year ended 30th September 2017

30.9.17

1.10.16

£

£

Cash and cash equivalents

11,264,077

4,945,715

1.	STATUTORY INFORMATION

Weber-Stephen Products (U.K.) 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 General 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.

Basis of consolidation

The consolidated financial statements include the company and its subsidiary undertakings.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.

Significant judgements and estimates

Preparation of the financial statements requires management to consider any significant judgements and

estimates.

Turnover

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

value added tax and other sales taxes.

Turnover 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 turnover 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.

Goodwill

Goodwill is amortised over its estimated useful life.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

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

Improvements to property

-

20% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost