Armstrong Richardson & Co Ltd and Subsid - Limited company accounts 18.2

Armstrong Richardson & Co Ltd and Subsid - Limited company accounts 18.2

ARMSTRONG RICHARDSON & CO.LIMITED - Company Information

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REGISTERED NUMBER: 00206334 (England and Wales)













Group Strategic Report,

Report of the Directors and

Audited

Consolidated Financial Statements

for the Year Ended 31 December 2018

for

Armstrong Richardson & Co Limited
and Subsidiary Company
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2018




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14


Armstrong Richardson & Co Limited
and Subsidiary Company

Company Information
for the Year Ended 31 December 2018







DIRECTORS: Mrs S E Jones
N E M Jones
M D M Jones
C B M Jones
Mrs S E Harriman
M D Sharp
Miss H Thompson





SECRETARY: M D M Jones





REGISTERED OFFICE: 1 Mount Pleasant Way
Stokesley Business Park
Stokesley
North Yorkshire
TS9 5NZ





REGISTERED NUMBER: 00206334 (England and Wales)





AUDITORS: Anderson Barrowcliff LLP
Statutory Auditor
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX
Page 1
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Group Strategic Report
for the Year Ended 31 December 2018

The directors present their strategic report of the company and the group for the year ended 31 December 2018.

REVIEW OF BUSINESS
The group continues to seek growth and capitalise on economies of scale. During the year opportunities arose for the
group to investigate trading in geographical areas where competitors had ceased to operate, the result was an increase in
turnover to £50,169,476 (from £44,393,872 in 2017). Gross profit margin of 15.3% (2017: 15.7%) is considered
satisfactory, whilst overall pre-tax profit of £55,997 (2017: £292,352) reflects the challenges that the group has faced in
trying to achieve organic growth in these new areas

The financial position of the group, at the year end, is considered to be satisfactory.

PRINCIPAL RISKS AND UNCERTAINTIES
The group continues to diversify its operations and is no longer solely dependent upon the UK agriculture industry. As a
result the directors feel that there is no single customer or supplier, the loss of which would seriously affect the business.

KEY PERFORMANCE INDICATORS
Given the straightforward nature of the business, the group's directors are of the opinion that analysis using KPI's is not
necessary for an understanding of the development, performance or position of the entity, and that all relevant financial
information has been disclosed within the financial statements.

ON BEHALF OF THE BOARD:





M D M Jones - Secretary


27 September 2019

Page 2
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Report of the Directors
for the Year Ended 31 December 2018

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

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of agricultural merchants and there has been no
significant change during the year.

DIVIDENDS
An interim dividend of £1.04166 per share was paid on 5 April 2018. The directors recommend that no final dividend be
paid.

The total distribution of dividends for the year ended 31 December 2018 will be £ 18,750 .

FUTURE DEVELOPMENTS
The group expects to continue to improve efficiency and achieve economies of scale in its new premises.

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

Mrs S E Jones
N E M Jones
M D M Jones
C B M Jones
Mrs S E Harriman
M D Sharp
Miss H Thompson

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;
- 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.

Page 3
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Report of the Directors
for the Year Ended 31 December 2018


AUDITORS
The auditors, Anderson Barrowcliff LLP, will be proposed for re-appointment at the forthcoming Annual General
Meeting.

ON BEHALF OF THE BOARD:



M D M Jones - Secretary


27 September 2019

Page 4
Report of the Independent Auditors to the Members of
Armstrong Richardson & Co Limited
and Subsidiary Company

Opinion
We have audited the financial statements of Armstrong Richardson & Co Limited and Subsidiary Company (the 'parent
company') and its subsidiaries (the 'group') for the year ended 31 December 2018 which comprise the Consolidated
Statement of 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 31 December 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.

Page 5
Report of the Independent Auditors to the Members of
Armstrong Richardson & Co Limited
and Subsidiary Company


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 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 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.




Helen Wilson ACA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff LLP
Statutory Auditor
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

27 September 2019

Page 6
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2018

2018 2017
Notes £    £   

TURNOVER 2 50,169,476 44,393,872

Cost of sales 42,489,186 37,441,223
GROSS PROFIT 7,680,290 6,952,649

Administrative expenses 7,800,248 6,829,913
(119,958 ) 122,736

Other operating income 3 312,637 286,507
OPERATING PROFIT 192,679 409,243


Interest payable and similar expenses 5 136,682 116,891
PROFIT BEFORE TAXATION 6 55,997 292,352

Tax on profit 7 23,401 59,435
PROFIT FOR THE FINANCIAL YEAR 32,596 232,917

OTHER COMPREHENSIVE INCOME
Deferred tax movement freehold property - 19,000
Income tax relating to other comprehensive
income
-
-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX
-
19,000
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
32,596
251,917

Profit attributable to:
Owners of the parent 32,596 232,917

Total comprehensive income attributable to:
Owners of the parent 32,596 251,917

The notes form part of these financial statements

Page 7
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Consolidated Balance Sheet
31 December 2018

2018 2017
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 29,907 51,019
Tangible assets 11 7,841,805 7,670,110
Investments 12 - -
Investment property 13 1,900,450 1,900,450
9,772,162 9,621,579

CURRENT ASSETS
Stocks 14 4,174,435 3,519,733
Debtors 15 3,695,158 4,040,368
Cash at bank and in hand 94,165 34,684
7,963,758 7,594,785
CREDITORS
Amounts falling due within one year 16 6,771,447 6,180,133
NET CURRENT ASSETS 1,192,311 1,414,652
TOTAL ASSETS LESS CURRENT
LIABILITIES
10,964,473
11,036,231

CREDITORS
Amounts falling due after more than one
year
17
(3,434,668
)
(3,502,272
)

PROVISIONS FOR LIABILITIES 22 (240,000 ) (258,000 )
NET ASSETS 7,289,805 7,275,959

CAPITAL AND RESERVES
Called up share capital 23 18,000 18,000
Revaluation reserve 24 1,375,949 1,370,671
Other reserves 24 20,821 20,821
Non-distributable reserve 24 390,465 390,465
Retained earnings 24 5,484,570 5,476,002
SHAREHOLDERS' FUNDS 7,289,805 7,275,959

The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on its behalf
by:





M D M Jones - Director


The notes form part of these financial statements

Page 8
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Company Balance Sheet
31 December 2018

2018 2017
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 29,907 51,019
Tangible assets 11 7,772,652 7,596,142
Investments 12 1 1
Investment property 13 1,900,450 1,900,450
9,703,010 9,547,612

CURRENT ASSETS
Stocks 14 4,174,435 3,519,733
Debtors 15 3,752,290 4,103,761
Cash at bank and in hand 85,710 16,572
8,012,435 7,640,066
CREDITORS
Amounts falling due within one year 16 6,753,066 6,156,325
NET CURRENT ASSETS 1,259,369 1,483,741
TOTAL ASSETS LESS CURRENT
LIABILITIES
10,962,379
11,031,353

CREDITORS
Amounts falling due after more than one
year
17
(3,434,668
)
(3,502,272
)

PROVISIONS FOR LIABILITIES 22 (240,000 ) (258,000 )
NET ASSETS 7,287,711 7,271,081

CAPITAL AND RESERVES
Called up share capital 23 18,000 18,000
Revaluation reserve 24 1,375,949 1,370,671
Other reserves 24 20,821 20,821
Non-distributable reserve 24 390,465 390,465
Retained earnings 24 5,482,476 5,471,124
SHAREHOLDERS' FUNDS 7,287,711 7,271,081

Company's profit for the financial year 35,380 233,066

The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on its behalf
by:




M D M Jones - Director


The notes form part of these financial statements

Page 9
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2018

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   

Balance at 1 January 2017 18,000 5,254,363 1,346,393

Changes in equity
Total comprehensive income - 226,917 19,000
Transfer of deferred tax - (5,278 ) 5,278
Balance at 31 December 2017 18,000 5,476,002 1,370,671

Changes in equity
Dividends - (18,750 ) -
Total comprehensive income - 32,596 -
Transfer of deferred tax - (5,278 ) 5,278
Balance at 31 December 2018 18,000 5,484,570 1,375,949
Other Non-distributable Total
reserves reserve equity
£    £    £   

Balance at 1 January 2017 20,821 384,465 7,024,042

Changes in equity
Total comprehensive income - 6,000 251,917
Balance at 31 December 2017 20,821 390,465 7,275,959

Changes in equity
Dividends - - (18,750 )
Total comprehensive income - - 32,596
Balance at 31 December 2018 20,821 390,465 7,289,805

The notes form part of these financial statements

Page 10
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Company Statement of Changes in Equity
for the Year Ended 31 December 2018

Called up
share Retained Revaluation
capital earnings reserve
£    £    £   

Balance at 1 January 2017 18,000 5,249,336 1,346,393

Changes in equity
Total comprehensive income - 227,066 19,000
Transfer of deferred tax - (5,278 ) 5,278
Balance at 31 December 2017 18,000 5,471,124 1,370,671

Changes in equity
Dividends - (18,750 ) -
Total comprehensive income - 35,380 -
Transfer of deferred tax - (5,278 ) 5,278
Balance at 31 December 2018 18,000 5,482,476 1,375,949
Other Non-distributable Total
reserves reserve equity
£    £    £   

Balance at 1 January 2017 20,821 384,465 7,019,015

Changes in equity
Total comprehensive income - 6,000 252,066
Balance at 31 December 2017 20,821 390,465 7,271,081

Changes in equity
Dividends - - (18,750 )
Total comprehensive income - - 35,380
Balance at 31 December 2018 20,821 390,465 7,287,711

The notes form part of these financial statements

Page 11
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2018

2018 2017
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,145,980 1,513,366
Interest paid (100,439 ) (87,742 )
Finance costs paid (36,243 ) (29,149 )
Tax paid (71,801 ) (59,931 )
Net cash from operating activities 937,497 1,336,544

Cash flows from investing activities
Purchase of tangible fixed assets (796,892 ) (681,964 )
Sale of tangible fixed assets 2,900 60,037
Net cash from investing activities (793,992 ) (621,927 )

Cash flows from financing activities
New loans in year 500,000 -
Loan repayments in year (524,778 ) (227,660 )
New HP loans in year 571,160 413,592
Capital repayments in year (336,612 ) (255,506 )
Equity dividends paid (18,750 ) -
Net cash from financing activities 191,020 (69,574 )

Increase in cash and cash equivalents 334,525 645,043
Cash and cash equivalents at beginning of
year
2
(620,853
)
(1,265,896
)

Cash and cash equivalents at end of year 2 (286,328 ) (620,853 )

The notes form part of these financial statements

Page 12
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2018

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2018 2017
£    £   
Profit before taxation 55,997 292,352
Depreciation charges 646,309 549,487
Profit on disposal of fixed assets (2,900 ) (43,597 )
Finance costs 136,682 116,891
836,088 915,133
(Increase)/decrease in stocks (654,702 ) 64,793
Decrease/(increase) in trade and other debtors 345,210 (601,543 )
Increase in trade and other creditors 619,384 1,134,983
Cash generated from operations 1,145,980 1,513,366

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 94,165 34,684
Bank overdrafts (380,493 ) (655,537 )
(286,328 ) (620,853 )
Year ended 31 December 2017
31.12.17 1.1.17
£    £   
Cash and cash equivalents 34,684 51,645
Bank overdrafts (655,537 ) (1,317,541 )
(620,853 ) (1,265,896 )

The notes form part of these financial statements

Page 13
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2018

1. ACCOUNTING POLICIES

General information and basis of preparing the financial statements
Armstrong Richardson & Co Limited is a limited company incorporated in England and Wales. The address of
the registered office is given in the group information on page 1 of these financial statements. The nature of the
group's operations and its principal activities are set out in the Report of the Directors on page 3.

The financial statements have been prepared in accordance with applicable accounting standards including
Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of
Ireland" (FRS102) and the Companies Act 2006 The financial statements have been prepared on the going
concern basis under the historic cost convention, modified to include certain items at fair value. The financial
statements are prepared in Sterling which is the functional currency of the group and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation
The group financial statements consolidate the financial statements of the Company and its subsidiary
undertakings drawn up to 31 December each year.

All intra-group transactions, balances and expenses are eliminated on consolidation.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade
discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have
transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic
benefits associated with the transaction can be measured reliably. This is usually on the dispatch of the goods.

Interest and dividends receivable
Interest income is recognised using the effective interest method and dividend income is recognised as the
group's right to receive payment is established.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised
evenly over its estimated useful life of five years.

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.

Page 14 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

1. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful
life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Long leasehold - 2% on cost
Plant and machinery - 33% on cost and 20% on cost
Motor vehicles - 33% on cost and 20% on cost

Freehold land included within Freehold property has not been depreciated.

Tangible fixed assets are stated at cost or deemed cost less accumulated depreciation and accumulated
impairment losses.

Land and buildings were valued by Robertson Simpson Property Consultants and BNP Paribas Real Estate on a
fair value basis for transition to FRS102. These valuations were incorporated in the financial statements for the
year ended 31 December 2013 and on transition has been treated as the deemed cost.

The group capitalises directly attributable finance costs on tangible fixed assets in the course of construction.
Rates of capitalisation depend on whether a specific loan has been taken out (when the actual interest rate and
interest paid are used), or whether the construction has been financed by general borrowings.

Investment property
Investment properties for which fair value can be measured reliably without undue cost of effort are measured at
fair value at each reporting date with changes in fair value recognised in profit or loss.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all
costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and
condition. Cost is calculated using the first in, first out formula. Provision is made for damaged, obsolete and
slow-moving stock where appropriate.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the
current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax
rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial
statements of current and previous periods. It is recognised in respect of all timing differences, with certain
exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated
in the financial statements that arise from the inclusion of income and expense in tax assessments in periods
different from those in which they are recognised in the financial statements. 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
balance sheet date that are expected to apply to the reversal of timing differences.

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.

Page 15 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

1. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held
under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases
are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element
of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The group operates defined contribution pension schemes. Contributions payable for the year are charged in the
profit and loss.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at
transaction price. Any losses arising from impairment are recognised in the profit and loss account in
administrative expenses.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently,
they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement
constitutes a finance transaction it is measured at present value.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance
sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is
estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an
impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the
impairment loss is a revaluation decrease.

Judgements and key sources of estimation uncertainty
In the application of the group's accounting policies, the directors are required to make judgements, estimates
and assumptions about the carrying amounts 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 of the revision, if the revision affects only that period, or in the period of revision
and future periods if the revision affects both current and future periods.

2. TURNOVER

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

An analysis of turnover by class of business is given below:

2018 2017
£    £   
Sales of goods 50,169,476 44,393,872
50,169,476 44,393,872

Page 16 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

3. OTHER OPERATING INCOME
2018 2017
£    £   
Rents received 269,423 254,645
Sundry receipts 43,214 31,862
312,637 286,507

4. EMPLOYEES AND DIRECTORS
2018 2017
£    £   
Wages and salaries 4,077,542 3,674,864
Social security costs 325,700 286,774
Other pension costs 95,793 54,677
4,499,035 4,016,315

The average number of employees during the year was as follows:
2018 2017

Office and management 16 17
Sales, distribution and processing 187 168
203 185

2018 2017
£    £   
Directors' remuneration 370,883 323,644
Directors' pension contributions to money purchase schemes 24,925 18,972

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

Money purchase schemes 6 6

Information regarding the highest paid director is as follows:
2018 2017
£    £   
Emoluments etc 77,624 77,627
Pension contributions to money purchase schemes 7,707 6,773

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2018 2017
£    £   
Bank interest 26,410 20,096
Bank loan interest 74,029 67,646
Other interest payable 36,243 29,149
136,682 116,891

Page 17 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

2018 2017
£    £   
Depreciation - owned assets 190,608 280,658
Depreciation - assets on hire purchase contracts 434,589 247,718
Profit on disposal of fixed assets (2,900 ) (43,597 )
Goodwill amortisation 21,112 21,111
Auditors remuneration 20,233 20,908
Foreign exchange differences (3,123 ) 734

7. 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 38,400 68,800
(Over)/Under provision in
previous year 3,001 311
Total current tax 41,401 69,111

Deferred taxation (18,000 ) (9,676 )
Tax on profit 23,401 59,435

UK corporation tax has been charged at 19 % (2017 - 19.25 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is
explained below:

2018 2017
£    £   
Profit before tax 55,997 292,352
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2017 - 19 %)
10,639
55,547

Effects of:
Expenses not deductible for tax purposes 1,706 2,229
Capital allowances in excess of depreciation - (1,243 )
Depreciation in excess of capital allowances 6,864 -
(Over)/Under provision in current/prior years 4,192 2,902
on deferred tax
Total tax charge 23,401 59,435

Page 18 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

7. TAXATION - continued

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2018.

2017
Gross Tax Net
£    £    £   
Deferred tax movement freehold property 19,000 - 19,000

There is no expiry date on timing differences, unused tax losses or tax credits.

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent
company is not presented as part of these financial statements.


9. DIVIDENDS
2018 2017
£    £   
Interim 18,750 -

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2018
and 31 December 2018 105,556
AMORTISATION
At 1 January 2018 54,537
Amortisation for year 21,112
At 31 December 2018 75,649
NET BOOK VALUE
At 31 December 2018 29,907
At 31 December 2017 51,019

Page 19 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

10. INTANGIBLE FIXED ASSETS - continued

Company
Goodwill
£   
COST
At 1 January 2018
and 31 December 2018 105,556
AMORTISATION
At 1 January 2018 54,537
Amortisation for year 21,112
At 31 December 2018 75,649
NET BOOK VALUE
At 31 December 2018 29,907
At 31 December 2017 51,019

11. TANGIBLE FIXED ASSETS

Group
Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 January 2018 6,193,805 250,000 2,249,512 1,984,427 10,677,744
Additions - - 142,470 654,422 796,892
Disposals - - (8,695 ) - (8,695 )
At 31 December 2018 6,193,805 250,000 2,383,287 2,638,849 11,465,941
DEPRECIATION
At 1 January 2018 242,887 20,000 1,683,854 1,060,893 3,007,634
Charge for year 62,717 5,000 218,969 338,511 625,197
Eliminated on disposal - - (8,695 ) - (8,695 )
At 31 December 2018 305,604 25,000 1,894,128 1,399,404 3,624,136
NET BOOK VALUE
At 31 December 2018 5,888,201 225,000 489,159 1,239,445 7,841,805
At 31 December 2017 5,950,918 230,000 565,658 923,534 7,670,110

The value of land included in Freehold property which has not been depreciated is £3,079,923.

Included in Freehold property are capitalised interest costs of £141,852.

Page 20 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

11. TANGIBLE FIXED ASSETS - continued

Group

Cost or valuation at 31 December 2018 is represented by:

Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
Valuation in 2011 1,030,067 - - - 1,030,067
Valuation in 2013 (83,008 ) (95,483 ) - - (178,491 )
Cost 5,246,746 345,483 2,383,287 2,638,849 10,614,365
6,193,805 250,000 2,383,287 2,638,849 11,465,941

If the Freehold properties had not been revalued they would have been included at the following historical cost:

2018 2017
£    £   
Cost 5,246,746 5,246,746
Aggregate depreciation 786,139 723,422

Value of land in freehold land and buildings 1,964,438 1,964,438

Freehold property and long leasehold were valued by professional valuers Robertson Simpson Property
Consultants and BNP Paribas Real Estate on a fair value basis on transition to FRS102 as at 31 December 2013.
These valuations have been treated as the deemed cost and are being depreciated from the date of transition.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1 January 2018 365,110 1,206,101 1,571,211
Additions - 634,622 634,622
Transfer to ownership (108,275 ) (159,000 ) (267,275 )
At 31 December 2018 256,835 1,681,723 1,938,558
DEPRECIATION
At 1 January 2018 186,508 297,905 484,413
Charge for year 55,709 378,880 434,589
Transfer to ownership (108,275 ) (159,000 ) (267,275 )
At 31 December 2018 133,942 517,785 651,727
NET BOOK VALUE
At 31 December 2018 122,893 1,163,938 1,286,831
At 31 December 2017 178,602 908,196 1,086,798

Page 21 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

11. TANGIBLE FIXED ASSETS - continued

Company
Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 January 2018 6,193,805 250,000 2,053,662 1,984,427 10,481,894
Additions - - 116,605 654,422 771,027
Disposals - - (8,695 ) - (8,695 )
At 31 December 2018 6,193,805 250,000 2,161,572 2,638,849 11,244,226
DEPRECIATION
At 1 January 2018 242,887 20,000 1,561,972 1,060,893 2,885,752
Charge for year 62,717 5,000 188,289 338,511 594,517
Eliminated on disposal - - (8,695 ) - (8,695 )
At 31 December 2018 305,604 25,000 1,741,566 1,399,404 3,471,574
NET BOOK VALUE
At 31 December 2018 5,888,201 225,000 420,006 1,239,445 7,772,652
At 31 December 2017 5,950,918 230,000 491,690 923,534 7,596,142

The value of land included in Freehold property which has not been depreciated is £3,079,923.

Included in Freehold property are capitalised interest costs of £141,852.

Cost or valuation at 31 December 2018 is represented by:

Freehold Long Plant and Motor
property leasehold machinery vehicles Totals
£    £    £    £    £   
Valuation in 2011 1,030,067 - - - 1,030,067
Valuation in 2013 (83,008 ) (95,483 ) - - (178,491 )
Cost 5,246,746 345,483 2,161,572 2,638,849 10,392,650
6,193,805 250,000 2,161,572 2,638,849 11,244,226

If the Freehold properties had not been revalued they would have been included at the following historical cost:

2018 2017
£    £   
Cost 5,246,746 5,246,746
Aggregate depreciation 786,139 723,422

Value of land in freehold land and buildings 1,964,438 1,964,438

Freehold property and long leasehold were valued by professional valuers Robertson Simpson Property
Consultants and BNP Paribas Real Estate on a fair value basis on transition to FRS102 as at 31 December 2013.
These valuations have been treated as the deemed cost and are being depreciated from the date of transition.

Page 22 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

11. TANGIBLE FIXED ASSETS - continued

Company

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST OR VALUATION
At 1 January 2018 365,110 1,206,101 1,571,211
Additions - 634,622 634,622
Transfer to ownership (108,275 ) (159,000 ) (267,275 )
At 31 December 2018 256,835 1,681,723 1,938,558
DEPRECIATION
At 1 January 2018 186,508 297,905 484,413
Charge for year 55,709 378,880 434,589
Transfer to ownership (108,275 ) (159,000 ) (267,275 )
At 31 December 2018 133,942 517,785 651,727
NET BOOK VALUE
At 31 December 2018 122,893 1,163,938 1,286,831
At 31 December 2017 178,602 908,196 1,086,798

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2018
and 31 December 2018 1
NET BOOK VALUE
At 31 December 2018 1
At 31 December 2017 1

Page 23 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

12. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the
following:

Subsidiary

A R Entertainments Limited
Registered office: 1 Mount Pleasant Way, Stokesley Business Park, Stokesley, North Yorkshire, England, TS9 5NZ
Nature of business: Provision of entertainment services
%
Class of shares: holding
Ordinary 100.00
2018 2017
£    £   
Aggregate capital and reserves 2,093 4,878
Loss for the year (2,785 ) (148 )


13. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 January 2018
and 31 December 2018 1,900,450
NET BOOK VALUE
At 31 December 2018 1,900,450
At 31 December 2017 1,900,450

Fair value at 31 December 2018 is represented by:

£   
Valuation in 2001 182,513
Valuation in 2011 555,950
Valuation in 2013 (347,552 )
Cost 1,509,539
1,900,450

If the Investment properties had not been revalued they would have been included at the following historical
cost:

2018 2017
£    £   
Cost 1,509,539 1,509,539
Aggregate depreciation (30,553 ) (30,553 )

Page 24 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

13. INVESTMENT PROPERTY - continued

Group

Investment properties are included at their fair value at 31 December 2018 using market value valuations by
independent, professional valuers on 28 April 2015 and 18 January 2016. The valuations were undertaken by
Robertson Simpson Property Consultants and BNP Paribas Real Estate.The directors believe these valuations
still accurately reflect their fair value at 31 December 2018.

Company
Total
£   
FAIR VALUE
At 1 January 2018
and 31 December 2018 1,900,450
NET BOOK VALUE
At 31 December 2018 1,900,450
At 31 December 2017 1,900,450

Fair value at 31 December 2018 is represented by:

£   
Valuation in 2001 182,513
Valuation in 2011 555,950
Valuation in 2013 (347,552 )
Cost 1,509,539
1,900,450

If Investment properties had not been revalued they would have been included at the following historical cost:

2018 2017
£    £   
Cost 1,509,539 1,509,539
Aggregate depreciation (30,553 ) (30,553 )

Investment properties are included at their fair value at 31 December 2018 using market value valuations by
independent, professional valuers on 28 April 2015 and 18 January 2016. The valuations were undertaken by
Robertson Simpson Property Consultants and BNP Paribas Real Estate.The directors believe these valuations
still accurately reflect their fair value at 31 December 2018.

Page 25 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

13. INVESTMENT PROPERTY - continued

Company

At the balance sheet date, the company had contracted with tenants for the following future minimum lease
payments:

2018 2017
£    £   
Within one year 47,000 49,000
In the second to fifth years inclusive 161,250 168,250
After five years 320,000 360,000
528,250 577,250

14. STOCKS

Group Company
2018 2017 2018 2017
£    £    £    £   
Stocks 4,072,372 3,431,942 4,072,372 3,431,942
Raw materials 102,063 87,791 102,063 87,791
4,174,435 3,519,733 4,174,435 3,519,733

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2018 2017 2018 2017
£    £    £    £   
Trade debtors 3,433,455 3,785,299 3,420,397 3,778,768
Amounts owed by group undertakings - - 77,569 80,939
Other debtors 187,968 213,138 187,968 202,123
Prepayments 73,735 41,931 66,356 41,931
3,695,158 4,040,368 3,752,290 4,103,761

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2018 2017 2018 2017
£    £    £    £   
Bank loans and overdrafts (see note 18) 803,852 882,940 803,852 882,940
Hire purchase contracts (see note 19) 358,131 276,713 358,131 276,713
Trade creditors 5,067,450 4,514,526 5,059,536 4,506,637
Taxation 38,400 68,800 36,000 67,000
Social security and other taxes 107,189 104,045 107,189 104,045
VAT 3,110 411 - -
Other creditors 116,073 152,155 113,516 142,847
Accrued expenses 277,242 180,543 274,842 176,143
6,771,447 6,180,133 6,753,066 6,156,325

Page 26 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2018 2017 2018 2017
£    £    £    £   
Bank loans (see note 18) 2,634,248 2,854,982 2,634,248 2,854,982
Hire purchase contracts (see note 19) 800,420 647,290 800,420 647,290
3,434,668 3,502,272 3,434,668 3,502,272

18. LOANS

An analysis of the maturity of loans is given below:

Group Company
2018 2017 2018 2017
£    £    £    £   
Amounts falling due within one year or on
demand:
Bank overdrafts 380,493 655,537 380,493 655,537
Bank loans - less than 1 yr 423,359 227,403 423,359 227,403
803,852 882,940 803,852 882,940
Amounts falling due between two and five
years:
Bank loans - 2-5 years 2,634,248 2,854,982 2,634,248 2,854,982

During the year the group breached a loan covenant. The carrying amount of the loan at the year end was
£2,777,350. The covenant has now been removed from the requirements and any breaches regarding this specific
covenant have been waived by the bank.

Page 27 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2018 2017
£    £   
Gross obligations repayable:
Within one year 395,200 306,859
Between one and five years 878,696 712,696
1,273,896 1,019,555

Finance charges repayable:
Within one year 37,069 30,146
Between one and five years 78,276 65,406
115,345 95,552

Net obligations repayable:
Within one year 358,131 276,713
Between one and five years 800,420 647,290
1,158,551 924,003

Company
Hire purchase contracts
2018 2017
£    £   
Gross obligations repayable:
Within one year 395,200 306,859
Between one and five years 878,696 712,696
1,273,896 1,019,555

Finance charges repayable:
Within one year 37,069 30,146
Between one and five years 78,276 65,406
115,345 95,552

Net obligations repayable:
Within one year 358,131 276,713
Between one and five years 800,420 647,290
1,158,551 924,003

Page 28 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

19. LEASING AGREEMENTS - continued

Group
Non-cancellable operating
leases
2018 2017
£    £   
Within one year 39,507 39,507
Between one and five years 46,338 79,845
In more than five years 284,000 290,000
369,845 409,352

Company
Non-cancellable operating
leases
2018 2017
£    £   
Within one year 39,507 39,507
Between one and five years 46,338 79,845
In more than five years 284,000 290,000
369,845 409,352

Page 29 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

20. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2018 2017 2018 2017
£    £    £    £   
Bank overdrafts 380,493 655,537 380,493 655,537
Bank loans 3,057,607 3,082,385 3,057,607 3,082,385
Hire purchase contracts 1,158,551 924,003 1,158,551 924,003
4,596,651 4,661,925 4,596,651 4,661,925

The bank overdraft is secured by a legal charge over the freehold property and fixed and floating charges over
the group's assets.

Included in bank loans are:

A bank loan of £1,668,000 repayable by 60 monthly instalments of £10,731,commencing September 2015 and a
final instalment of an amount sufficient to repay the loan and interest in full. Interest is charged at base rate plus
1.5%. The loan is secured by legal charges over the freehold property to which it relates and fixed and floating
charges over the group's assets.

A bank loan of £1,789,000 repayable by 60 monthly instalments of £12,091,commencing September 2015 and a
final instalment of an amount sufficient to repay the loan and interest in full. Interest is charged at base rate plus
2.2%. The loan is secured by legal charges over the freehold property to which it relates and fixed and floating
charges over the group's assets.

A bank loan of £475,516 repayable by 179 monthly instalments of £9,361 commencing December 2007,
instalments reducing to £1,768 from January 2016. Interest is charged at base rate plus 1%. The loan is secured
by legal charges over the freehold property to which it relates.

A short term bank loan of £500,000 was drawn down in the year, of which £200,000 remained outstanding at 31
December 2018. The balance was due for repayment no later than 31 January 2019. Interest is charged at base
rate plus 2%. The loan is secured by legal charges over the Freehold property and fixed and floating charges over
the group's assets.

The hire purchase contracts are secured over the assets to which they relate.

Page 30 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

21. FINANCIAL INSTRUMENTS

The carrying amounts of the Group's financial instruments are as follows:

2018 2017
£ £
Financial liabilities
Measured at amortised cost
- Bank loans (see notes 17 & 19) 3,057,607 3,082,385
- Hire purchase contracts (see note 18 & 19) 1,158,551 924,003
4,216,158 4,006,388

The expenses attributable to the Group's financial instruments are summarised as follows:

2018 2017
£ £
Expenses
Financial liabilities measured at amortised cost
- Bank loan interest 74,029 67,646
- Hire purchase interest 36,243 29,149
110,272 96,795

22. PROVISIONS FOR LIABILITIES

Group Company
2018 2017 2018 2017
£    £    £    £   
Deferred tax
Accelerated capital allowances 133,000 151,000 133,000 151,000
Revaluation of freehold
properties 76,000 76,000 76,000 76,000
Revaluation of investment
properties 31,000 31,000 31,000 31,000
240,000 258,000 240,000 258,000

Group
Deferred
tax
£   
Balance at 1 January 2018 258,000
Credit to Statement of Comprehensive Income during year (18,000 )
Balance at 31 December 2018 240,000

Page 31 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

22. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1 January 2018 258,000
Credit to Statement of Comprehensive Income during year (18,000 )
Balance at 31 December 2018 240,000

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2018 2017
value: £    £   
18,000 Ordinary £1 18,000 18,000

24. RESERVES

Group
Retained Revaluation Other Non-distributable
earnings reserve reserves reserve Totals
£    £    £    £    £   

At 1 January 2018 5,476,002 1,370,671 20,821 390,465 7,257,959
Profit for the year 32,596 32,596
Dividends (18,750 ) (18,750 )
Transfer of deferred tax (5,278 ) 5,278 - - -
At 31 December 2018 5,484,570 1,375,949 20,821 390,465 7,271,805

Company
Retained Revaluation Other Non-distributable
earnings reserve reserves reserve Totals
£    £    £    £    £   

At 1 January 2018 5,471,124 1,370,671 20,821 390,465 7,253,081
Profit for the year 35,380 35,380
Dividends (18,750 ) (18,750 )
Transfer of deferred tax (5,278 ) 5,278 - - -
At 31 December 2018 5,482,476 1,375,949 20,821 390,465 7,269,711

Page 32 continued...
Armstrong Richardson & Co Limited
and Subsidiary Company (Registered number: 00206334)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2018

24. RESERVES - continued

Retained earnings
Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

Revaluation reserve
The revaluation reserve represents the effect of revaluations of the freehold property and leasehold property on
transition to FRS102.

Non-distributable reserve
Investment properties are measured at fair value with a transfer being made to the non-distributable reserve net
of the related deferred tax, instead of a transfer to retained earnings, to assist with the identification of profits
available for distribution.

25. PENSION COMMITMENTS

The group operates defined contribution schemes. The charge for the year amounted to £95,793 (2017 :
£54,677). The amount outstanding at 31 December 2018 was £12,799 (2017: £5,283).

26. CAPITAL COMMITMENTS
2018 2017
£    £   
Contracted but not provided for in the
financial statements - 188,476

27. RELATED PARTY DISCLOSURES





Sales		 Outstanding
balances due to
the group
£ £

Other related parties
At 31 December 2018 585,736 101,089
At 31 December 2017 562,623 59,173

Outstanding balances due to the group are unsecured and the nature of the consideration to be provided in
settlement is on normal commercial terms.

Key management personnel compensation in the year totalled £395,808 (2017: £342,616).

28. ULTIMATE CONTROLLING PARTY

The group is controlled by the directors by virtue of their equity shareholdings.

Page 33