F.A. Gates & Son Limited - Period Ending 2019-01-31

Registration number: 03691840

F.A. Gates & Son Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2019

Robert Whowell & Partners
Chartered Accountants
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

F.A. Gates & Son Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3
Statement of Directors' Responsibilities	4
Independent Auditor's Report	5 to 8
Profit and Loss Account and Statement of Retained Earnings	9
Balance Sheet	10
Statement of Cash Flows	11
Notes to the Financial Statements	12 to 24

F.A. Gates & Son Limited

Company Information

Directors

K. G. Gates N. A. Gates J. E. Gates

Company secretary

N. A. Gates

Registered office

Westwood House 78 Loughborough Road Quorn Loughborough Leicestershire LE12 8DX

Auditors

Robert Whowell & Partners Chartered Accountants Westwood House 78 Loughborough Road Quorn Loughborough Leicestershire LE12 8DX

Page 1

F.A. Gates & Son Limited

Strategic Report for the Year Ended 31 January 2019

The directors present their strategic report for the year ended 31 January 2019.

Principal activity

The principal activity of the company is that of a garden centre.

Fair review of the business

The directors consider that the company's business has continued to operate satisfactorily and believe that a strong platform is in place to allow for sustained growth within the industry. Their focus continues to be to meet the needs of the customer base by delivering superior quality products; offering excellent value for money; with best-in industry service levels.

The company's aim is to continue to provide a strong platform to allow for sustained growth within the industry.

The company's key financial and other performance indicators during the year were as follows:

	Unit	2019	2018
Turnover	£	6,920,951	6,297,931
Shareholders' funds	£	4,754,465	4,187,512

Principal risks and uncertainties

The company's principal financial instruments comprise bank balances and bank loans. The purpose of these instruments is to finance the company's operations.

In respect of bank balances, the liquidity risk is managed by maintaining a healthy cash balance throughout the year. All of the company's cash balances are held in such a way that achieves a competitive rate of interest.

The liquidity risk in respect of the bank loans is managed by ensuring that there are sufficient funds to meet the repayments.

Approved by the Board on 28 October 2019 and signed on its behalf by:

.........................................
N. A. Gates
Director

Page 2

F.A. Gates & Son Limited

Directors' Report for the Year Ended 31 January 2019

The directors present their report and the financial statements for the year ended 31 January 2019.

Directors of the company

The directors who held office during the year were as follows:

K. G. Gates

N. A. Gates

J. E. Gates

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 28 October 2019 and signed on its behalf by:

.........................................
N. A. Gates
Director

Page 3

F.A. Gates & Son Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

F.A. Gates & Son Limited

Independent Auditor's Report to the Members of F.A. Gates & Son Limited

Opinion

We have audited the financial statements of F.A. Gates & Son Limited (the 'company') for the year ended 31 January 2019, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 January 2019 and of its profit for the year then ended;
•	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
•	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Page 5

F.A. Gates & Son Limited

Independent Auditor's Report to the Members of F.A. Gates & Son Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

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

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
•	the financial statements are not in agreement with the accounting records and returns; or
•	certain disclosures of directors’ remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Page 6

F.A. Gates & Son Limited

Independent Auditor's Report to the Members of F.A. Gates & Son Limited

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 an auditor’s report 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

•

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

•	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Page 7

F.A. Gates & Son Limited

Independent Auditor's Report to the Members of F.A. Gates & Son Limited

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 an auditor’s report 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.

........................................................................
Ian Agar FCA (Senior Statutory Auditor)
For and on behalf of Robert Whowell & Partners, Statutory Auditor

Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

28 October 2019

Page 8

F.A. Gates & Son Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 January 2019

	Note	2019 £	2018 £
Turnover	3	6,920,951	6,297,931
Cost of sales		(4,910,737)	(4,574,589)
Gross profit		2,010,214	1,723,342
Administrative expenses		(1,274,044)	(1,000,082)
Other operating income	4	9,000	9,000
Operating profit	5	745,170	732,260
Other interest receivable and similar income	6	3,891	5,102
Interest payable and similar charges	7	(26,133)	(24,932)
		(22,242)	(19,830)
Profit before tax		722,928	712,430
Taxation	11	(149,975)	(130,786)
Profit for the financial year		572,953	581,644
Retained earnings brought forward		4,187,412	3,620,768
Dividends paid		(6,000)	(15,000)
Retained earnings carried forward		4,754,365	4,187,412

The notes on pages 12 to 24 form an integral part of these financial statements.
 

Page 9

F.A. Gates & Son Limited

(Registration number: 03691840)
Balance Sheet as at 31 January 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	12	4,822,115	4,816,182
Current assets
Stocks	13	1,080,051	780,930
Debtors	14	88,807	40,996
Cash at bank and in hand		1,188,211	1,083,446
		2,357,069	1,905,372
Creditors: Amounts falling due within one year	16	(1,263,681)	(1,174,256)
Net current assets		1,093,388	731,116
Total assets less current liabilities		5,915,503	5,547,298
Creditors: Amounts falling due after more than one year	16	(1,113,038)	(1,322,786)
Provisions for liabilities	17	(48,000)	(37,000)
Net assets		4,754,465	4,187,512
Capital and reserves
Called up share capital	19	100	100
Profit and loss account	20	4,754,365	4,187,412
Total equity		4,754,465	4,187,512

Approved and authorised by the Board on 28 October 2019 and signed on its behalf by:
 

.........................................

N. A. Gates
Director

The notes on pages 12 to 24 form an integral part of these financial statements.
 

Page 10

F.A. Gates & Son Limited

Statement of Cash Flows for the Year Ended 31 January 2019

	Note	2019 £	2018 £
Cash flows from operating activities
Profit for the year		572,953	581,644
Adjustments to cash flows from non-cash items
Depreciation and amortisation	5	200,001	244,025
Finance income	6	(3,891)	(5,102)
Finance costs	7	26,133	24,932
Income tax expense	11	149,975	130,786
		945,171	976,285
Working capital adjustments
Increase in stocks	13	(299,121)	(272,667)
(Increase)/decrease in trade debtors	14	(47,811)	11,218
Increase in trade creditors	16	90,235	1,513
Cash generated from operations		688,474	716,349
Income taxes paid	11	(138,005)	(146,170)
Net cash flow from operating activities		550,469	570,179
Cash flows from investing activities
Interest received	6	3,891	5,102
Acquisitions of tangible assets		(224,834)	(450,907)
Proceeds from sale of tangible assets		18,900	4,000
Cash receipts from repayment of loans		(211,528)	(125,030)
Net cash flows from investing activities		(413,571)	(566,835)
Cash flows from financing activities
Interest paid	7	(26,133)	(24,932)
Dividends paid		(6,000)	(15,000)
Net cash flows from financing activities		(32,133)	(39,932)
Net increase/(decrease) in cash and cash equivalents		104,765	(36,588)
Cash and cash equivalents at 1 February 2018		1,083,446	1,120,034
Cash and cash equivalents at 31 January 2019		1,188,211	1,083,446

The notes on pages 12 to 24 form an integral part of these financial statements.
 

Page 11

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

The principal place of business is:
Somerby Road
Cold Overton
Oakham
Rutland
LE15 7QB

These financial statements were authorised for issue by the Board on 28 October 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Page 12

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of tangible fixed assets The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the tangible fixed assets, and see the policy below for the useful economic lives of each class of asset.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 reporting date and that are expected to apply to the reversal of the timing difference.

Page 13

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land	Nil
Freehold buildings	2% straight line
Motor vehicles	25% reducing balance
Plant and machinery	20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the trade debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account.

Page 14

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Page 15

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

	2019  £	2018  £
Sale of goods	6,920,951	6,297,931

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2019  £	2018  £
Rental income	9,000	9,000

5	Operating profit

Arrived at after charging/(crediting)

	2019  £	2018  £
Depreciation expense	200,001	244,025

6	Other interest receivable and similar income

	2019  £	2018  £
Interest income on bank deposits	3,891	5,102

Page 16

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

7	Interest payable and similar expenses

	2019  £	2018  £
Interest on obligations under finance leases and hire purchase contracts	-	245
Interest expense on other finance liabilities	26,133	24,687
	26,133	24,932

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2019  £	2018  £
Wages and salaries	1,429,530	1,290,439
Social security costs	77,159	70,646
Pension costs, defined contribution scheme	67,321	45,490
	1,574,010	1,406,575

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2019 No.	2018 No.
Administration and support	6	6
Sales	77	77
Marketing	50	50
	133	133

Page 17

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2019  £	2018  £
Remuneration	38,424	38,627
Contributions paid to money purchase schemes	40,445	40,243
	78,869	78,870

During the year the number of directors who were receiving benefits and share incentives was as follows:

	2019  No.	2018  No.
Accruing benefits under money purchase pension scheme	2	2

10	Auditors' remuneration

	2019  £	2018  £
Audit of the financial statements	4,500	4,500

 

Page 18

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

11

Taxation

Tax charged/(credited) in the income statement

	2019  £	2018  £
Current taxation
UK corporation tax	138,975	138,005
Deferred taxation
Arising from origination and reversal of timing differences	11,000	(7,219)
Tax expense in the income statement	149,975	130,786

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2018 - lower than the standard rate of corporation tax in the UK) of 19.00% (2018 - 19.16%).

The differences are reconciled below:

	2019  £	2018  £
Profit before tax	722,928	712,430
Corporation tax at standard rate	137,356	136,502
Effect of expense not deductible in determining taxable profit (tax loss)	-	422
Tax increase (decrease) from effect of capital allowances and depreciation	12,619	(6,138)
Total tax charge	149,975	130,786

Page 19

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

12	Tangible assets

	Freehold property £	Motor vehicles  £	Plant and machinery £	Total £
Cost or valuation
At 1 February 2018	5,796,473	177,060	1,424,593	7,398,126
Additions	61,893	17,422	145,519	224,834
Disposals	-	(49,240)	(5,890)	(55,130)
At 31 January 2019	5,858,366	145,242	1,564,222	7,567,830
Depreciation
At 1 February 2018	1,334,855	96,140	1,150,949	2,581,944
Charge for the year	83,400	25,013	97,384	205,797
Eliminated on disposal	-	(40,848)	(1,178)	(42,026)
At 31 January 2019	1,418,255	80,305	1,247,155	2,745,715
Carrying amount
At 31 January 2019	4,440,111	64,937	317,067	4,822,115
At 31 January 2018	4,461,618	80,920	273,644	4,816,182

13

Stocks

	2019  £	2018  £
Goods for resale	1,080,051	780,930

14

Debtors

	2019  £	2018  £
Trade debtors	61,931	27,947
Other debtors	2,432	13,049
Prepayments	24,444	-
Total current trade and other debtors	88,807	40,996

Page 20

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

15	Cash and cash equivalents

	2019  £	2018  £
Cash on hand	44,880	42,755
Cash at bank	1,143,331	1,040,691
	1,188,211	1,083,446

16

Creditors

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	21	207,770	209,550
Trade creditors		387,222	332,098
Amounts due to related parties	23	131,820	154,601
Social security and other taxes		275,336	268,977
Other payables		11,005	3,790
Accrued expenses		111,553	67,235
Income tax liability	11	138,975	138,005
		1,263,681	1,174,256
Due after one year
Loans and borrowings	21	1,113,038	1,322,786

17	Provisions for liabilities

	Deferred tax £	Total £
At 1 February 2018	37,000	37,000
Additional provisions	11,000	11,000
At 31 January 2019	48,000	48,000

Page 21

F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

18	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £67,321 (2018 - £45,490).

 

19	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: There are no restrictions on the distribution of dividends and the repayment of capital.

20

Reserves

Profit and loss account

The profit and loss reserve represents accumulated comprehensive income for the year and prior periods less dividends paid.

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F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

21	Loans and borrowings

	2019  £	2018  £
Non-current loans and borrowings
Bank borrowings	1,099,490	1,286,473
Hire purchase and finance lease liabilities	13,548	36,313
	1,113,038	1,322,786

	2019  £	2018  £
Current loans and borrowings
Bank borrowings	185,000	185,000
Hire purchase and finance lease liabilities	22,770	24,550
	207,770	209,550

Bank borrowings

Bank borrowings are denominated in £ with a nominal interest rate of 1.35%, and the final instalment is due on 31 December 2026. The carrying amount at year end is £1,284,490 (2018 - £1,471,473). The bank borrowings are secured on the freehold property owned by the company and freehold property owned by a director.

Included in the loans and borrowings are the following amounts due after more than five years:

	2019  £	2018  £
After more than five years by instalments	278,000	463,000

	-	-

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F.A. Gates & Son Limited

Notes to the Financial Statements for the Year Ended 31 January 2019

Borrowings due after five years

Included in bank loans are four separate loans from the same provider all repayable in monthly instalments. These are as follows:

- £319,261 repayable in 5 years 3 months subject to interest at 1.10% over base;
- £66,532 repayable in 6 years 3 months subject to interest at 1.10% over base:
- £168,703 repayable in 6 years 9 months subject to interest at 1.35% over base;
- £729,994 repayable in 6 years 10 months subject to interest at 1.35% over base.

22	Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	22,770	24,550
Later than one year and not later than five years	13,548	36,313
	36,318	60,863

23	Related party transactions

Key management compensation

	2019 £	2018 £
Salaries and other short term employee benefits	38,424	38,627
Post-employment benefits	40,445	40,243
	78,869	78,870

Summary of transactions with other related parties

During the year the directors received dividends of £6,000.

At the balance sheet date the directors were owed £131,820 by the company.
 

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