Eurospan Limited - Limited company accounts 18.2
Eurospan Limited - Limited company accounts 18.2
REGISTERED NUMBER: 00816437 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2018 |
for |
Eurospan Limited |
Eurospan Limited (Registered number: 00816437) |
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 | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Profit & Loss | 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 |
Eurospan Limited |
Company Information |
for the Year Ended 31 December 2018 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
Unit 1B |
Focus 4 |
Fourth Avenue |
Letchworth |
Hertfordshire |
SG6 2TU |
Eurospan Limited (Registered number: 00816437) |
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. |
PRINCIPAL ACTIVITIES & BUSINESS REVIEW |
The principal activity of the Company continued to be that of marketing, selling and distributing academic, |
reference and professional publications on behalf of a group of commercial publishers, associations, societies |
and other non-profit organisations. |
The Company's physical distribution, including warehousing, fulfilment customer services and credit control |
continued to be handled by its subsidiary company, Turpin Distribution Services Limited. |
Asiaspan Limited, a fully-owned Company subsidiary, houses trading within all Asia-Pacific territories, to |
include Central Asia, South Asia, South East Asia, the Far East and Australasia |
The Group recorded turnover of £12.6m for the 2018 financial year. This represents a 4.7% decrease from |
2017 (£13.2m), the decline largely due to competitive pressure and transfer to 'local' sourcing partly reflected |
in growth at the Asiaspan subsidiary. |
The Company achieved post-tax profit of £184,750 (1.4%) compared to £708,493 (5.5%) in 2017. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company's principal risks and uncertainties arise from client retention. The risk is managed through |
securing multi-year or rolling contracts with clients and by investing significant resources in client |
relations.The Company's client retention rate remains in excess of 95%. |
The Company operates in a multi-currency environment for both purchases and sales. Movements in |
exchange rates can therefore pose a risk to the financial performance of the business. The Company uses |
forward contracts and options to manage currency risk affecting costs and revenues. |
In the Company's Asiaspan subsidiary the Directors are mindful of the risk of possible bad debts from |
customers in developing countries in the region and continue to take the necessary steps to limit credit/see |
advance payment where possible. |
KEY PERFORMANCE INDICATORS |
The group is mindful of its obligations to its suppliers and customers. Supplier relationships are highly valued |
and are subject to close scrutiny by Senior Executives. Sales reporting and analytics are provided on a |
monthly basis. Payments for goods and services supplied are always made in a timely fashion. Revenue |
performance versus budget is constantly under review - by client publisher, by region/country/customer and |
by title. |
Eurospan Limited (Registered number: 00816437) |
Group Strategic Report |
for the Year Ended 31 December 2018 |
FUTURE DEVELOPMENTS |
The Group intends to continue with its principal activities as set out above. |
Further expansion of activities is planned in the Asia-Pacific and Latin America geographic regions. |
Turpin Distribution is in the process of implementing a new fulfilment system which will support the |
development of innovative client services. |
Asiaspan will continue to pursue a strategy of growth through product range expansion and the acquisition of |
new customers. |
ON BEHALF OF THE BOARD: |
Director |
27 September 2019 |
Eurospan Limited (Registered number: 00816437) |
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. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2018 will be £ 150,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2018 to the date of |
this report. |
Other changes in directors holding office are as follows: |
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. |
AUDITORS |
The auditors, George Hay Partnership LLP, will be proposed for re-appointment at the forthcoming Annual |
General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Eurospan Limited |
Opinion |
We have audited the financial statements of Eurospan Limited (the 'parent company') and its subsidiaries (the |
'group') for the year ended 31 December 2018 which comprise the Consolidated Statement of Profit & Loss, |
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. |
Report of the Independent Auditors to the Members of |
Eurospan Limited |
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 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditor |
Unit 1B |
Focus 4 |
Fourth Avenue |
Letchworth |
Hertfordshire |
SG6 2TU |
Eurospan Limited (Registered number: 00816437) |
Consolidated Statement of Profit & Loss |
for the Year Ended 31 December 2018 |
2018 | 2017 |
Notes | £ | £ |
TURNOVER | 4 | 12,621,148 | 13,234,786 |
Cost of sales | 7,675,927 | 7,676,382 |
GROSS PROFIT | 4,945,221 | 5,558,404 |
Administrative expenses | 5,051,055 | 5,337,234 |
(105,834 | ) | 221,170 |
Other operating income | 300,645 | 496,163 |
OPERATING PROFIT | 6 | 194,811 | 717,333 |
Interest receivable and similar income | 12,569 | 11,428 |
207,380 | 728,761 |
Amounts written off investments | 7 | 25,691 | (10,459 | ) |
Gain/loss on revaluation of investments | 26,439 | 8,708 |
52,130 | (1,751 | ) |
PROFIT BEFORE TAXATION | 155,250 | 730,512 |
Tax on profit | 8 | (29,500 | ) | 22,019 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
184,750 |
708,493 |
Profit attributable to: |
Owners of the parent | 43,807 | 388,920 |
Non-controlling interests | 140,943 | 319,573 |
184,750 | 708,493 |
Total comprehensive income attributable to: |
Owners of the parent | 215,307 | 615,722 |
Non-controlling interests | (30,557 | ) | 92,771 |
184,750 | 708,493 |
Eurospan Limited (Registered number: 00816437) |
Consolidated Balance Sheet |
31 December 2018 |
2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 1,131,411 | 998,133 |
Tangible assets | 12 | 188,304 | 165,029 |
Investments | 13 | 104,704 | 130,787 |
1,424,419 | 1,293,949 |
CURRENT ASSETS |
Stocks | 14 | 182,368 | 230,143 |
Debtors | 15 | 2,884,669 | 3,032,166 |
Cash at bank | 12,283,331 | 12,719,152 |
15,350,368 | 15,981,461 |
CREDITORS |
Amounts falling due within one year | 16 | 11,586,249 | 11,966,964 |
NET CURRENT ASSETS | 3,764,119 | 4,014,497 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,188,538 |
5,308,446 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(190,000 |
) |
(190,000 |
) |
PROVISIONS FOR LIABILITIES | 20 | (178,590 | ) | (161,747 | ) |
NET ASSETS | 4,819,948 | 4,956,699 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 12,200 | 12,200 |
Capital redemption reserve | 22 | 7,800 | 7,800 |
Retained earnings | 22 | 3,243,115 | 3,349,308 |
SHAREHOLDERS' FUNDS | 3,263,115 | 3,369,308 |
NON-CONTROLLING INTERESTS | 23 | 1,556,833 | 1,587,391 |
TOTAL EQUITY | 4,819,948 | 4,956,699 |
The financial statements were approved by the Board of Directors on 27 September 2019 and were signed on |
its behalf by: |
K P Rhodes - Director |
Eurospan Limited (Registered number: 00816437) |
Company Balance Sheet |
31 December 2018 |
2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Capital redemption reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 153,709 | 232,049 |
The financial statements were approved by the Board of Directors on its behalf by: |
Eurospan Limited (Registered number: 00816437) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2018 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 January 2017 | 12,200 | 3,060,388 | 7,800 |
Changes in equity |
Dividends | - | (100,000 | ) | - |
Total comprehensive income | - | 388,920 | - |
Balance at 31 December 2017 | 12,200 | 3,349,308 | 7,800 |
Changes in equity |
Dividends | - | (150,000 | ) | - |
Total comprehensive income | - | 43,807 | - |
Balance at 31 December 2018 | 12,200 | 3,243,115 | 7,800 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2017 | 3,080,388 | 1,494,620 | 4,575,008 |
Changes in equity |
Dividends | (100,000 | ) | - | (100,000 | ) |
Total comprehensive income | 388,920 | 92,771 | 481,691 |
Balance at 31 December 2017 | 3,369,308 | 1,587,391 | 4,956,699 |
Changes in equity |
Dividends | (150,000 | ) | - | (150,000 | ) |
Total comprehensive income | 43,807 | (30,557 | ) | 13,250 |
Balance at 31 December 2018 | 3,263,115 | 1,556,834 | 4,819,949 |
Eurospan Limited (Registered number: 00816437) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2018 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2017 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | 232,049 | 232,049 |
Balance at 31 December 2017 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2018 |
Eurospan Limited (Registered number: 00816437) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2018 |
2018 | 2017 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 250,841 | (739,578 | ) |
Fair Value adjustment Forward Contracts | (26,439 | ) | (8,708 | ) |
Tax paid | (5,615 | ) | 26,650 |
Net cash from operating activities | 218,787 | (721,636 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (269,473 | ) | (201,199 | ) |
Purchase of tangible fixed assets | (76,820 | ) | (155,931 | ) |
Purchase of fixed asset investments | - | (76,336 | ) |
Sale of intangible fixed assets | 616 | 7,475 |
Sale of tangible fixed assets | - | 499 |
Interest received | 12,569 | 11,428 |
Net cash from investing activities | (333,108 | ) | (414,064 | ) |
Cash flows from financing activities |
Equity dividends paid | (150,000 | ) | (100,000 | ) |
Dividends paid to minority interests | (171,500 | ) | (245,000 | ) |
Net cash from financing activities | (321,500 | ) | (345,000 | ) |
Decrease in cash and cash equivalents | (435,821 | ) | (1,480,700 | ) |
Cash and cash equivalents at beginning of year |
2 |
12,719,152 |
14,199,852 |
Cash and cash equivalents at end of year |
2 |
12,283,331 |
12,719,152 |
Eurospan Limited (Registered number: 00816437) |
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 | 155,250 | 730,512 |
Depreciation charges | 188,926 | 144,460 |
Loss on disposal of fixed assets | - | 40,261 |
Loss on revaluation of fixed assets | 40,720 | 8,708 |
Amounts written off Investments | 25,691 | (10,459 | ) |
Finance income | (12,569 | ) | (11,428 | ) |
398,018 | 902,054 |
Decrease in stocks | 47,775 | 51,724 |
Decrease/(increase) in trade and other debtors | 147,497 | (398,883 | ) |
Decrease in trade and other creditors | (342,449 | ) | (1,294,473 | ) |
Cash generated from operations | 250,841 | (739,578 | ) |
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 | 12,283,331 | 12,719,152 |
Year ended 31 December 2017 |
31.12.17 | 1.1.17 |
£ | £ |
Cash and cash equivalents | 12,719,152 | 14,199,852 |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2018 |
1. | STATUTORY INFORMATION |
Eurospan Limited is a |
company's registered number and registered office address can be found on the General Information |
page. |
The financial statements are presented in sterling which is the functional currency of the company. |
2. | STATEMENT OF COMPLIANCE |
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 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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company all group |
undertakings. These are adjusted, where appropriate, to conform to group accounting policies. |
Accounting policies are applied uniformly throughout the group. Acquisitions are accounted for under |
the acquisition method and goodwill on consolidation is capitalised and written off over five years from |
the year of acquisition. The results of companies acquired or disposed of are included in the profit and |
loss account after or up to the date that control passes respectively. As a consolidated profit and loss |
account is published, a separate profit and loss account for the parent company is omitted from the |
group financial statements by virtue of section 408 of the Companies Act 2006. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
rebates, value added tax and other sales taxes. |
Sale of goods |
Turnover from the sale of books 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 will flow to the company and the costs |
incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on |
despatch of the goods. |
Sale of services |
Turnover from services is in respect of management fees and despatch cost recoveries charged to |
publishers for the distribution of their products, fees charged for journals that are distributed in the |
following year are deferred less an allowance for initial processing work. |
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. |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation |
and accumulated impairment losses. Cost includes costs directly attributable to making the asset |
capable of operating as intended. |
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 Consolidated |
Statement of Profit & Loss, 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. |
Taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
The financial statements are presented in Sterling (GBP), which is also the functional currency of the |
Group. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's |
pension scheme are charged to profit or loss in the period to which they relate. |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Debtors |
Short term debtors are measured at transaction price less impairment losses for bad and doubtful |
debts. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including |
bank loans, are measured initially at fair value, net of transaction costs, and are measured |
subsequently at amortised cost using the effective interest method unless the effect of discounting |
would be immaterial, in which case these are stated at cost. |
Forward Contracts |
Under FRS 102 these contracts are considered "other financial instruments" and are therefore |
included in the accounts at their fair value. The basis for determining fair value is the use of |
'mark-to-market' valuations provided by the financial institutions the contracts are with. |
Investments |
Shares in group companies are held at cost. In the opinion of the directors, the values of the shares in |
the subsidiaries are well in excess of their cost. No fair value adjustment is possible as there is no |
readily ascertainable market value for these investments. |
Quoted investments are revalued at market value each year at the balance sheet date. |
4. | TURNOVER |
5. | EMPLOYEES AND DIRECTORS |
2018 | 2017 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2018 | 2017 |
Finance, IT and administration | 24 | 26 |
Marketing | 22 | 22 |
Distribution & Customer Services | 51 | 52 |
The average number of employees by undertakings that were proportionately consolidated during the |
year was 62 (2017 - 63 ) . |
2018 | 2017 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
5. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2018 | 2017 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2018 | 2017 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Computer software amortisation |
Auditors remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences | ( |
) | ( |
) |
7. | AMOUNTS WRITTEN OFF INVESTMENTS |
2018 | 2017 |
£ | £ |
Amounts written off |
investments | 25,691 | (10,459 | ) |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
8. | TAXATION - continued |
Reconciliation of total tax (credit)/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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Loss on disposal | - | 7,750 |
Sundry tax adjusting items | (7,425 | ) | (18,147 | ) |
Deferred tax provision | 16,843 | 12,819 |
Losses carried forward | 21,949 | 22,503 |
Fair value adjustments | 4,881 | (2,013 | ) |
Total tax (credit)/charge | (29,500 | ) | 22,019 |
The fair value adjustments to forward contracts are taxable in the year they arise. |
9. | INDIVIDUAL STATEMENT OF PROFIT & LOSS |
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. |
10. | DIVIDENDS |
2018 | 2017 |
£ | £ |
Interim |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
At 1 January 2018 |
Additions |
Disposals | ( |
) |
At 31 December 2018 |
AMORTISATION |
At 1 January 2018 |
Amortisation for year |
At 31 December 2018 |
NET BOOK VALUE |
At 31 December 2018 |
At 31 December 2017 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2018 | 141,928 | - | 1,001,925 | 653,621 | 1,797,474 |
Additions | - | 62,665 | - | 14,155 | 76,820 |
At 31 December 2018 | 141,928 | 62,665 | 1,001,925 | 667,776 | 1,874,294 |
DEPRECIATION |
At 1 January 2018 | 141,928 | - | 847,519 | 642,998 | 1,632,445 |
Charge for year | - | 8,952 | 30,072 | 14,521 | 53,545 |
At 31 December 2018 | 141,928 | 8,952 | 877,591 | 657,519 | 1,685,990 |
NET BOOK VALUE |
At 31 December 2018 | - | 53,713 | 124,334 | 10,257 | 188,304 |
At 31 December 2017 | - | - | 154,406 | 10,623 | 165,029 |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2018 |
Additions |
At 31 December 2018 |
DEPRECIATION |
Charge for year |
At 31 December 2018 |
NET BOOK VALUE |
At 31 December 2018 |
At 31 December 2017 |
13. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in other |
participating | Listed |
interests | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2018 | 76,336 | 99,349 | 175,685 |
Impairments | (13,684 | ) | - | (13,684 | ) |
Dividends received | - | (392 | ) | (392 | ) |
At 31 December 2018 | 62,652 | 98,957 | 161,609 |
PROVISIONS |
At 1 January 2018 | - | 44,898 | 44,898 |
Provision for year | - | 12,007 | 12,007 |
At 31 December 2018 | - | 56,905 | 56,905 |
NET BOOK VALUE |
At 31 December 2018 | 62,652 | 42,052 | 104,704 |
At 31 December 2017 | 76,336 | 54,451 | 130,787 |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
13. | FIXED ASSET INVESTMENTS - continued |
Company |
Interest |
Shares in | in other |
group | participating | Listed |
undertakings | interests | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2018 | 76,336 | 189,435 |
Impairments | (13,684 | ) | (13,684 | ) |
Dividends received | - | - | (392 | ) | (392 | ) |
At 31 December 2018 | 62,652 | 175,359 |
PROVISIONS |
At 1 January 2018 | - | - | 44,898 | 44,898 |
Provision for year | - | - | 12,007 | 12,007 |
At 31 December 2018 | - | - | 56,905 | 56,905 |
NET BOOK VALUE |
At 31 December 2018 | 62,652 | 118,454 |
At 31 December 2017 | 76,336 | 144,537 |
The group or the company's investments at the Balance Sheet date in the share capital of companies |
include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
14. | STOCKS |
Group | Company |
2018 | 2017 | 2018 | 2017 |
£ | £ | £ | £ |
Stocks | 182,368 | 230,143 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2018 | 2017 | 2018 | 2017 |
£ | £ | £ | £ |
Trade debtors | 1,823,785 | 1,665,237 |
Other debtors | 16,977 | 26,362 |
Sundry Debtors and Prepayments | 934,927 | 1,206,438 |
Tax | 26,119 | 26,119 |
VAT | 82,861 | 108,010 |
2,884,669 | 3,032,166 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2018 | 2017 | 2018 | 2017 |
£ | £ | £ | £ |
Trade creditors | 2,405,744 | 2,254,326 |
Amounts owed to group undertakings | - | - |
Tax | 15,017 | 66,975 |
Other creditors | 7,957,723 | 8,403,471 |
Sundry Creditors and Accruals | 336,540 | 273,176 |
Taxation & Social Security | 112,064 | 155,223 |
Accruals and deferred income | 759,161 | 813,793 |
11,586,249 | 11,966,964 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2018 | 2017 |
£ | £ |
Deposits held | 190,000 | 190,000 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
Group |
Non-cancellable |
operating leases |
2018 | 2017 |
£ | £ |
Within one year | 210,310 | 367,655 |
Between one and five years | 349,551 | 616,240 |
559,861 | 983,895 |
Subsequent to the balance sheet date, Turpin Distribution Services Limited, a subsidiary of Eurospan |
Limited, entered into a new lease for its trading premises with a total commitment of £1.65m spread |
over 5 years. |
Company |
Non-cancellable |
operating leases |
2018 | 2017 |
£ | £ |
Within one year |
Between one and five years |
19. | FINANCIAL INSTRUMENTS |
The carrying amounts of the group's financial instruments are: |
2018 | 2017 |
Financial Assets |
Debt instruments measured at amortised cost |
- Trade debtors | 1,823,785 | 1,665,237 |
- Amounts due to group undertakings | - | - |
- Cash | 12,269,050 | 12,719,152 |
- Other debtors | 978,024 | 1,372,319 |
Financial Liabilities |
Measured at fair value through profit and loss |
- Foreign exchange contracts | 26,439 | 8,708 |
Measured at amortised cost |
- Trade creditors | 2,405,744 | 2,254,326 |
- Amounts owed to group undertakings | - | - |
- Other creditors and accruals | 9,545,905 | 10,064,385 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2018 | 2017 |
£ | £ |
Deferred tax | 178,590 | 161,747 |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2018 | 161,747 |
Provided during year | 16,843 |
Balance at 31 December 2018 | 178,590 |
The deferred tax provision is expected to unwind in subsequent years following large capital |
expenditure in this and previous periods. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
Ordinary | £1 | 12,200 | 12,200 |
22. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2018 | 3,349,308 | 7,800 | 3,357,108 |
Profit for the year | 43,807 | 43,807 |
Dividends | (150,000 | ) | (150,000 | ) |
At 31 December 2018 | 3,243,115 | 7,800 | 3,250,915 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2018 | 1,626,786 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2018 | 1,630,495 |
23. | NON-CONTROLLING INTERESTS |
Minority Interests at the start of the period amounted to £1,587,390, the movement in the year after tax |
and dividends decreased minority interests by £30,557, the closing balance as at 31 December 2018 |
was £1,556.833. |
Eurospan Limited (Registered number: 00816437) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2018 |
24. | PENSION COMMITMENTS |
The group operates defined contribution schemes. The assets of the schemes are held separately |
from those of the group in independently administered funds. The pension cost charge represents |
contributions payable by the group to the funds and amounted to £174,910 (2017 £167,069). |
25. | CAPITAL COMMITMENTS |
2018 | 2017 |
£ | £ |
Contracted but not provided for in the |
financial statements | 274,005 | 274,005 |
26. | RELATED PARTY DISCLOSURES |
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. |
Key management personnel of the entity or its parent (in the aggregate) |
2018 | 2017 |
£ | £ |
Aggregate remuneration | 596,528 | 549,202 |
27. | GENERAL INFORMATION |
Eurospan Limited is a limited company incorporated in England. The addresses of its registered office |
and principal place of business are disclosed on page 1. |
The principal activity of the company and group is an order fulfilment service for products in a variety of |
media. |