Coquet Island Shellfish Limited - Limited company accounts 18.2

REGISTERED NUMBER: 04874060 (England and Wales)

Coquet Island Shellfish Limited

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 30th April 2019

Page

Company information

1

Strategic report

2

Report of the directors

3

to

4

Report of the independent auditors

5

to

6

Income statement

7

Other comprehensive income

8

Balance sheet

9

Statement of changes in equity

10

Cash flow statement

11

Notes to the cash flow statement

12

Notes to the financial statements

13

to

21

Directors:

J C Cook

T Newton

Mrs S A Wilson

R Mark

Secretary:

T Newton

Registered office:

Coquet Enterprise Park

Amble

Morpeth

Northumberland

NE65 0PE

Registered number:

04874060 (England and Wales)

Auditors:

Rennie Welch Audit Limited

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

The directors present their strategic report for the year ended 30th April 2019.

Review of business

After relocating in the last financial period, the company inherited staff at the new site which created an

overload in certain production areas. The company has now managed this down to create efficiencies whilst

focus has been placed on the more profitable langoustines production using King scallop production as a

factory filler. With the extra space the company expects further growth during the next financial period.

Results for the year

The results for the year show a profit on ordinary activities before tax of £515,945 (2018: £419,892). The

Board are satisfied with the performance for the financial year taking into consideration the acquisition costs

and organisational changes.

The board monitor the progress of the company by the following KPIs:

2019

2018

Turnover

15,362,458

£13,128,349

GP

9.93%

9.75%

ROCE

35.27%

36.81%

Principal risks and uncertainties

Funding and liquidity risk

The company manages its cash and borrowing requirements in order to minimise interest expense whilst

ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company has sufficient funding arrangements in place with their bankers to ensure the growth of the

business can be maintained.

Market and economic risk

The company is exposed to the uncertainties surrounding Brexit. The company is taking appropriate steps to

reduce impact on the business. The impact on the business is difficult to measure as it depends on the terms

of any deal reached with the EU.

The company's international trade exposes it to currency risk. The company manages currency exposure by

making appropriate FX hedges.

On behalf of the board:

J C Cook - Director

1st November 2019

The directors present their report with the financial statements of the company for the year ended 30th April 2019.

Principal activity

The principal activity of the company in the year under review was that of shellfish and seafood processing.

Dividends

The directors recommend an ordinary dividend of £156.75 per A ordinary share and £25,080 per C ordinary

share.

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors

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

this report.

J C Cook

T Newton

Mrs S A Wilson

R Mark

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Report of the directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law

the directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company

law the directors must not approve the financial statements unless they are satisfied that they give a true and

fair view of the state of affairs of the company and of the profit or loss of the company for that period. In

preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

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

company and enable them to ensure that the financial statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for

the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he 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 company's auditors are aware of that information.

Auditors

The auditors, Rennie Welch Audit Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

On behalf of the board:

J C Cook - Director

1st November 2019

Opinion

We have audited the financial statements of Coquet Island Shellfish Limited (the 'company') for the year

ended 30th April 2019 which comprise the Income statement, Other comprehensive income, Balance sheet,

Statement of changes in equity, Cash flow statement and Notes to the cash flow statement, Notes to the

financial statements, including a summary of significant accounting policies. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30th April 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 Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

company in accordance with the ethical requirements that are relevant to our audit of the financial statements

in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

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

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic report and the Report of the directors, but does not include the financial statements and our Report

of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. If,

based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

the audit, we have not identified material misstatements in the Strategic report or the Report of the directors.

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

report to you if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page three, the directors are

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

view, and for such internal control as the directors determine necessary to enable the preparation of financial

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the company or to cease

operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the auditors that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our

Report of the auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the auditors and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company's members as a body, for our audit work, for this report, or for the opinions we

have formed.

Gillian Adamson BSC (Hons) CA CTA (Senior Statutory Auditor)

for and on behalf of Rennie Welch Audit Limited

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

5th November 2019

Turnover

3

15,362,458

13,128,349

Cost of sales

(13,837,290

)

(11,847,758

)

Gross profit

1,525,168

1,280,591

Administrative expenses

(992,265

)

(850,787

)

Operating profit

5

532,903

429,804

Interest receivable and similar income

583

-

533,486

429,804

Interest payable and similar expenses

7

(17,541

)

(9,912

)

Profit before taxation

515,945

419,892

Tax on profit

8

(109,362

)

(95,618

)

Profit for the financial year

406,583

324,274

Profit for the year

406,583

324,274

Other comprehensive income

-

-

Total comprehensive income for the year

406,583

324,274

Fixed assets

Intangible assets

9

433,043

487,174

Tangible assets

10

554,372

563,371

Investments

11

30,000

30,001

1,017,415

1,080,546

Current assets

Stocks

12

402,886

608,107

Debtors

13

2,136,705

1,859,521

Cash at bank and in hand

393,263

8,814

2,932,854

2,476,442

Creditors

Amounts falling due within one year

14

2,439,498

2,389,325

Net current assets

493,356

87,117

Total assets less current liabilities

1,510,771

1,167,663

Creditors

Amounts falling due after more than one year

15

(262,976

)

(334,507

)

Provisions for liabilities

19

(9,796

)

(1,740

)

Net assets

1,237,999

831,416

Capital and reserves

Called up share capital

20

80,501

80,501

Capital redemption reserve

21

22,000

22,000

Retained earnings

21

1,135,498

728,915

Shareholders' funds

1,237,999

831,416

The financial statements were approved by the Board of Directors on 1st November 2019 and were signed on its behalf by:

R Mark - Director

J C Cook - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st May 2017

80,501

404,641

22,000

507,142

Changes in equity

Total comprehensive income

-

324,274

-

324,274

Balance at 30th April 2018

80,501

728,915

22,000

831,416

Changes in equity

Total comprehensive income

-

406,583

-

406,583

Balance at 30th April 2019

80,501

1,135,498

22,000

1,237,999

Cash flows from operating activities

Cash generated from operations

1

463,133

263,598

Interest paid

(17,541

)

(9,912

)

Tax paid

(53,983

)

(153,499

)

Net cash from operating activities

391,609

100,187

Cash flows from investing activities

Purchase of intangible fixed assets

-

(541,304

)

Purchase of tangible fixed assets

(46,699

)

(609,843

)

Sale of tangible fixed assets

2,000

-

Interest received

583

-

Net cash from investing activities

(44,116

)

(1,151,147

)

Cash flows from financing activities

New loans in year

375,000

500,000

Loan repayments in year

(444,303

)

(55,697

)

Amount introduced by directors

-

1,265

Amount withdrawn by directors

(12,100

)

-

Net cash from financing activities

(81,403

)

445,568

Increase/(decrease) in cash and cash equivalents

266,090

(605,392

)

Cash and cash equivalents at beginning of year

2

(917,136

)

(311,744

)

Cash and cash equivalents at end of year

2

(651,046

)

(917,136

)

1.	Reconciliation of profit before taxation to cash generated from operations

2019

2018

£

£

Profit before taxation

515,945

419,892

Depreciation charges

109,423

107,689

Profit on disposal of fixed assets

(1,595

)

-

Finance costs

17,541

9,912

Finance income

(583

)

-

640,731

537,493

Decrease/(increase) in stocks

205,221

(480,192

)

Increase in trade and other debtors

(265,084

)

(507,685

)

(Decrease)/increase in trade and other creditors

(117,735

)

713,982

Cash generated from operations

463,133

263,598

2.	Cash and cash equivalents

The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in

respect of these Balance sheet amounts:

Year ended 30th April 2019

30.4.19

1.5.18

£

£

Cash and cash equivalents

393,263

8,814

Bank overdrafts

(1,044,309

)

(925,950

)

(651,046

)

(917,136

)

Year ended 30th April 2018

30.4.18

1.5.17

£

£

Cash and cash equivalents

8,814

18,436

Bank overdrafts

(925,950

)

(330,180

)

(917,136

)

(311,744

)

1.	Statutory information

Coquet Island Shellfish Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the

consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and

other similar allowances, and is stated net of VAT.

Revenue from sale of goods is recognised when all the following conditions are satisfied:

- the Company has transferred to the buyer the significant risks and rewards of ownership of the

goods;

- the Company retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

- the amount of revenue 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.

Goodwill

Goodwill arising on an acquisition of a business is carried at cost less accumulated amortisation and

impairment losses, if any. Goodwill is amortised in equal instalments over its estimated useful

economic life of 10 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.

Tangible fixed assets

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

Freehold property

-

2% on reducing balance

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on cost

Office equipment

-

15% on reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment

losses.

Stocks

Stock is valued at the lower of cost and estimated selling price less costs to sell. In respect of work in

progress and finished goods, cost includes a relevant proportion of overheads according to the stage

of completion.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period

in which the related revenue is recognised. The amount of any write-down of stocks to net realisable

value and all losses of stocks are recognised as an expense in the period in which the write-down of

loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in

the amount of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade

creditors, bank loans and directors' loans.

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 cost, 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 expenses is recognised on the basis

of the effective interest method and is included in interest payable and similar charges. Borrowings are

classified 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.

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary

course of business. Trade debtors with no stated interest rate are recognised initially at the transaction

price. 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

receivables.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Accounts payable 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

creditors 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 with no stated interest rate are recognised at the transaction price.

Directors' loans (being repayable on demand) are measured at the undiscounted amount of the cash

or other consideration expected to be paid or received.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Income and Retained Earnings, 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

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated into sterling at the

rates of exchange ruling at the balance sheet date or the forward contract rate, where such contracts

are in place. All differences are taken to the profit and loss account.

Leasing commitments

Leases in which substantially all risks and rewards of ownership are retained by the lessor are

classified as operating leases. Payments made 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 company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event

prior to the balance sheet date and that a payment will be required in settlement that can be estimated

reliably. Where material, provisions are calculated on a discounted basis.

Employee benefits

Short-term employee benefits, including holiday pay, are recognised as an expense in the Statement of

Income and Retained Earnings in the period in which they are incurred.

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. In the statement of financial position, bank overdrafts are shown within

borrowings or current liabilities.

Unlisted Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured

reliably are measured at cost less impairment.

Listed Investments

Listed investments in unquoted shares have been measured at cost less impairment. After initial

recognition, listed investments are measured at fair value through the P&L.

Going concern

As set out in the strategic report, the directors believe that the company is continuing to grow,

experiencing good levels of profitability and is well placed to manage its business risks successfully.

Accordingly, they have a reasonable expectation that the company has adequate resources to

continue in operational existence for the foreseeable future. Thus they continue to adopt the going

concern basis of accounting in preparing the financial statements.

3.

Turnover

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

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

2019

2018

£

£

Sale of goods

15,362,458

13,128,349

15,362,458

13,128,349

Revenue by geographical location

The directors consider that to disclose a geographical analysis of turnover would be seriously

prejudicial to the company's interests.