Aldridge Security Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00835629 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2018

for

Aldridge Security Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

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:

Patrick Cook

Ainsley Hawkins

Gregg Peyton

Graeme Hall

Michael Hurst FCA

SECRETARY:

Gregg Peyton

REGISTERED OFFICE:

22 Parr Street

London

N1 7GW

REGISTERED NUMBER:

00835629 (England and Wales)

AUDITORS:

Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

The directors present their strategic report for the year ended 31 December 2018.

The results for the year were in line with expectations.

The management of the business and the execution of the company's strategy are subject to a number of risks, but the

following have been identified by the directors as being the main risks that could potentially impact on the company's

operating and financial performance.

1. The economy

The industry is affected by economic cycles and levels of business confidence. The directors have attempted to reduce

this cyclical risk by expanding geographically and increasing customer base.

2. Competition

The company operates in a highly competitive market with the mitigation of risk being achieved by the continuous

review by the directors of competitors and potential opportunities available.

3. Financial - Foreign currency

The company's principal foreign currency exposures arise from trading with overseas companies. Company policy is that

these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign

exchange forward contracts.

The directors continuously monitor the performance of the company and at present consider turnover, stock turnover,

creditors & debtors days, net and gross profit to be their key performance indicators.

Given the current economic conditions, the directors are very pleased with the results for the year.

ON BEHALF OF THE BOARD:

Ainsley Hawkins - Director

17 September 2019

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of wholesale locksmiths and security specialists.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2018 will be £ 7,000,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

Patrick Cook

Ainsley Hawkins

Gregg Peyton

Graeme Hall

Michael Hurst FCA

Other changes in directors holding office are as follows:

Alan Hawkins - resigned 2 February 2018

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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	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 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 ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Ainsley Hawkins - Director

17 September 2019

Opinion

We have audited the financial statements of Aldridge Security Limited (the 'company') for the year ended

31 December 2018 which comprise the Income Statement, 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 31 December 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.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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.

Eric McIntyre FCCA CTA (Senior Statutory Auditor)

for and on behalf of Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

26 September 2019

TURNOVER

35,033,674

32,480,224

Cost of sales

(25,742,584

)

(23,547,527

)

GROSS PROFIT

9,291,090

8,932,697

Administrative expenses

(8,890,341

)

(8,557,429

)

OPERATING PROFIT

4

400,749

375,268

Interest receivable and similar income

62,046

4,828

PROFIT BEFORE TAXATION

462,795

380,096

Tax on profit

5

(74,731

)

(104,125

)

PROFIT FOR THE FINANCIAL YEAR

388,064

275,971

PROFIT FOR THE YEAR

388,064

275,971

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

388,064

275,971

FIXED ASSETS

Tangible assets

7

1,337,329

1,070,213

Investment property

8

-

333,208

1,337,329

1,403,421

CURRENT ASSETS

Stocks

9

5,656,698

4,472,919

Debtors

10

7,642,037

7,629,090

Cash at bank

461,312

7,724,048

13,760,047

19,826,057

CREDITORS

Amounts falling due within one year

11

2,629,386

2,144,782

NET CURRENT ASSETS

11,130,661

17,681,275

TOTAL ASSETS LESS CURRENT LIABILITIES

12,467,990

19,084,696

PROVISIONS FOR LIABILITIES

12

145,991

150,761

NET ASSETS

12,321,999

18,933,935

CAPITAL AND RESERVES

Called up share capital

13

25,000

25,000

Retained earnings

14

12,296,999

18,908,935

SHAREHOLDERS' FUNDS

12,321,999

18,933,935

The financial statements were approved by the Board of Directors on 17 September 2019 and were signed on its behalf by:

Ainsley Hawkins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2017

25,000

18,632,964

18,657,964

Changes in equity

Total comprehensive income

-

275,971

275,971

Balance at 31 December 2017

25,000

18,908,935

18,933,935

Changes in equity

Dividends

-

(7,000,000

)

(7,000,000

)

Total comprehensive income

-

388,064

388,064

Balance at 31 December 2018

25,000

12,296,999

12,321,999

Cash flows from operating activities

Cash generated from operations

1

(127,470

)

1,361,936

Tax paid

(3,155

)

(60,435

)

Net cash from operating activities

(130,625

)

1,301,501

Cash flows from investing activities

Purchase of tangible fixed assets

(596,157

)

(272,171

)

Sale of tangible fixed assets

68,792

-

Sale of investment property

333,208

-

Interest received

62,046

4,828

Net cash from investing activities

(132,111

)

(267,343

)

Cash flows from financing activities

Equity dividends paid

(7,000,000

)

-

Net cash from financing activities

(7,000,000

)

-

(Decrease)/increase in cash and cash equivalents

(7,262,736

)

1,034,158

Cash and cash equivalents at beginning of year

2

7,724,048

6,689,890

Cash and cash equivalents at end of year

2

461,312

7,724,048

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

2018

2017

£

£

Profit before taxation

462,795

380,096

Depreciation charges

266,724

286,347

(Profit)/loss on disposal of fixed assets

(6,476

)

3,083

Finance income

(62,046

)

(4,828

)

660,997

664,698

(Increase)/decrease in stocks

(1,183,779

)

848,722

(Increase)/decrease in trade and other debtors

(12,946

)

219,476

Increase/(decrease) in trade and other creditors

408,258

(370,960

)

Cash generated from operations

(127,470

)

1,361,936

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 31 December 2018

31/12/18

1/1/18

£

£

Cash and cash equivalents

461,312

7,724,048

Year ended 31 December 2017

31/12/17

1/1/17

£

£

Cash and cash equivalents

7,724,048

6,689,890

1.	STATUTORY INFORMATION

Aldridge Security 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

Compliance with accounting standards

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.

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 and depreciation

Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is

provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its

expected useful life, as follows:

Leasehold buildings

Over 10 years

Plant and machinery

10% - 20% on cost

Motor vehicles

20% on cost

Investment property

Fixed asset investments are stated at cost less provision for diminution in value.

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 Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

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

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2018 nor for the year ended 31 December 2017.

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

2018

2017

Management and administration

6

6

2018

2017

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

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

2018

2017

£

£

Depreciation - owned assets

266,725

286,347

(Profit)/loss on disposal of fixed assets

(6,476

)

3,083

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

81,594

81,715

Prior Year Adjustment

(2,093

)

434

Total current tax

79,501

82,149

Deferred tax

(4,770

)

21,976

Tax on profit

74,731

104,125

Reconciliation of total tax charge included in profit and loss

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

explained below:

2018

2017

£

£

Profit before tax

462,795

380,096

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.250%)

87,931

73,168

Effects of:

Expenses not deductible for tax purposes

(2,751

)

580

Capital allowances in excess of depreciation

(3,586

)

-

Depreciation in excess of capital allowances

-

7,967

Adjustments to tax charge in respect of previous periods

(2,093

)

434

Deferred tax charge

(4,770

)

21,976

Total tax charge

74,731

104,125

6.

DIVIDENDS

2018

2017

£

£

Interim

7,000,000

-

7.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2018

36,850

2,352,364

35,000

132,976

2,557,190

Additions

17,305

462,163

30,804

85,885

596,157

Disposals

-

-

-

(95,870

)

(95,870

)

At 31 December 2018

54,155

2,814,527

65,804

122,991

3,057,477

DEPRECIATION

At 1 January 2018

7,370

1,412,228

7,000

60,379

1,486,977

Charge for year

4,827

246,463

4,800

10,635

266,725

Eliminated on disposal

-

-

-

(33,554

)

(33,554

)

At 31 December 2018

12,197

1,658,691

11,800

37,460

1,720,148

NET BOOK VALUE

At 31 December 2018

41,958

1,155,836

54,004

85,531

1,337,329

At 31 December 2017

29,480

940,136

28,000

72,597

1,070,213

8.	INVESTMENT PROPERTY

Total

£

COST

At 1 January 2018

333,208

Disposals

(333,208

)

At 31 December 2018

-

NET BOOK VALUE

At 31 December 2018

-

At 31 December 2017

333,208

9.

STOCKS

2018

2017

£

£

Stocks

5,656,698

4,472,919

The replacement cost of raw materials and consumables as at 31 December 2018 is not considered to be

materially different to their balance sheet amounts.

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

4,618,342

4,690,100

Amounts owed by group undertakings

2,411,099

2,914,455

VAT

41,238

-

Prepayments and accrued income

571,358

24,535

7,642,037

7,629,090

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

1,895,234

1,330,581

Amounts owed to group undertakings

572,123

572,123

Tax

162,029

85,683

VAT

-

84,471

Accrued expenses

-

71,924

2,629,386

2,144,782

12.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

145,991

150,761