S.J.Bargh Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00532272 (England and Wales)

S.J.BARGH LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2019

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

Directors:

Mrs R M Towers

Mrs R K Thomas

Mr A R Finlayson-Green

Mrs T M Park

Mr T J Lloyd

Secretary:

Mrs T M Park

Registered office:

Head Office

Caton Road

LANCASTER

LA1 3PE

Registered number:

00532272 (England and Wales)

Auditors:

Scott & Wilkinson LLP

Chartered Accountants and Registered Auditors

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

Bankers:

Barclays Bank Plc

38 Market Street

LANCASTER

LA1 1HR

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

Review of business

Our review is consistent with the size and nature of our business and is written in the context of the risks and

uncertainties we face.

The company continues to supply its services to the milk and general haulage sector.

The entire logistics sector continues to be affected by a severe shortage of drivers and an ageing population. This is a

key risk area for the business. The company continues to focus on recruitment, investing in staff training and

development to promote staff retention, which has shown improvement in the year.

Milk and Pallet haulage remains the core and principal activity of the business. The market place in milk continues to

be challenging with ongoing changes within the dairy industry and further closure of dairies, requiring our vehicles to

travel longer distances, along with short notice changes by our customers.

The management team have focused on efficiencies, strategic locations and a system assisted commercial approach

across the business, made possible by investment in IT over the previous three years.

After the year end freehold assets have been transferred to the ownership of S J Bargh Group Limited completing a four

year strategy with regard to managing assets. Loans associated with the original purchase of the properties have been

transferred to S J Bargh Group Limited at the same time.

Due to the loans being transferred to S J Bargh Group Limited within twelve months of the year end, the total loan

balances are shown as current liabilities as at 30 April 2019.

During the year the company has been awarded further industry related accreditations. Within compliance we have met

and exceeded our goals in most areas, including health and safety, hygiene and people related expectations.

We consider that our key financial performance indicators are those that communicate the financial performance

and strength of the company as a whole, these being gross profit and operating profits.

Operating profit was £947,780 (2018: £524,928). Reported profit before tax was £859,799 (2018: £402,026). This is a

welcomed improvement on the previous year.

Principal risks and uncertainties

As for many businesses in our sector, the business environment in which we operate has become very challenging.

Consequently with these challenges and uncertainties in mind we are aware that any plans for future development of our

business may be subject to unforeseen future events outside our control.

On behalf of the board:

Mr T J Lloyd - Director

27 November 2019

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

Dividends

An interim dividend of 190.31 per share was paid on 30 April 2019. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 April 2019 will be £ 483,000 .

Directors

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

Mrs R M Towers

Mrs R K Thomas

Mr A R Finlayson-Green

Mrs T M Park

Other changes in directors holding office are as follows:

Mrs H E Lloyd - resigned 4 October 2018

Mr S Cornthwaite - resigned 4 October 2018

Mr T J Lloyd - appointed 4 October 2018

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirements of

the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it

is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and

to provide training and career development and promotion to disabled employees wherever appropriate.

Employee involvement

During the year, the policy of providing employees with information about the company has been continued through

internal media methods in which employees have also been encouraged to present their suggestions and views on the

company performance. Meetings are held between local management and employees to allow a free flow of information

and ideas.

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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 then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

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

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

Statement as to disclosure of information to auditors

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

2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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, Scott & Wilkinson LLP, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

On behalf of the board:

Mr T J Lloyd - Director

27 November 2019

Opinion

We have audited the financial statements of S.J.Bargh Limited (the 'company') for the year ended 30 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 30 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 Directors' Report, but does not include the financial statements and our Auditors' 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.

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the 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 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 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 pages three and 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 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 an Auditors' 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.

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 Auditors' Report.

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 Auditors' 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.

Paul Wilkinson FCA (Senior Statutory Auditor)

for and on behalf of Scott & Wilkinson LLP

Chartered Accountants and Registered Auditors

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

28 November 2019

Turnover

30,421,643

28,802,896

Cost of sales

24,544,394

23,099,310

Gross profit

5,877,249

5,703,586

Administrative expenses

5,116,920

5,278,476

760,329

425,110

Other operating income

187,451

99,818

Operating profit

4

947,780

524,928

Interest receivable and similar income

3,836

1,557

951,616

526,485

Interest payable and similar expenses

5

91,817

124,459

Profit before taxation

859,799

402,026

Tax on profit

6

182,148

97,145

Profit for the financial year

677,651

304,881

Profit for the year

677,651

304,881

Other comprehensive income

-

-

Total comprehensive income for the year

677,651

Prior year adjustment

(21,951

)

Total comprehensive income since last annual report

282,930

Fixed assets

Tangible assets

8

10,279,920

10,875,613

Investment property

9

210,000

210,000

10,489,920

11,085,613

Current assets

Stocks

10

542,755

663,869

Debtors

11

6,184,618

6,389,031

Cash at bank and in hand

1,681,979

490,256

8,409,352

7,543,156

Creditors

Amounts falling due within one year

12

6,229,180

4,050,843

Net current assets

2,180,172

3,492,313

Total assets less current liabilities

12,670,092

14,577,926

Creditors

Amounts falling due after more than one year

13

658,019

2,760,504

Net assets

12,012,073

11,817,422

Capital and reserves

Called up share capital

16

2,538

2,538

Capital redemption reserve

17

32

32

Retained earnings

17

12,009,503

11,814,852

Shareholders' funds

12,012,073

11,817,422

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

Mr T J Lloyd - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2017

2,538

12,281,922

32

12,284,492

Prior year adjustment

-

(21,951

)

-

(21,951

)

As restated

2,538

12,259,971

32

12,262,541

Changes in equity

Dividends

-

(750,000

)

-

(750,000

)

Total comprehensive income

-

304,881

-

304,881

Balance at 30 April 2018

2,538

11,814,852

32

11,817,422

Changes in equity

Dividends

-

(483,000

)

-

(483,000

)

Total comprehensive income

-

677,651

-

677,651

Balance at 30 April 2019

2,538

12,009,503

32

12,012,073

Cash flows from operating activities

Cash generated from operations

1

2,772,023

3,500,650

Interest paid

(61,741

)

(61,297

)

Interest element of hire purchase payments paid

(30,076

)

(63,162

)

Tax paid

148,440

(250,563

)

Net cash from operating activities

2,828,646

3,125,628

Cash flows from investing activities

Purchase of tangible fixed assets

(1,230,504

)

(1,152,399

)

Sale of tangible fixed assets

68,750

160,422

Interest received

3,836

1,557

Net cash from investing activities

(1,157,918

)

(990,420

)

Cash flows from financing activities

Loan repayments in year

(112,703

)

(107,799

)

Other borrowings

810,478

464,414

Capital repayments in year

(650,700

)

(1,071,535

)

Amount withdrawn by directors

(100,000

)

(30,466

)

Amounts advanced to group undertaking

56,920

(56,500

)

Equity dividends paid

(483,000

)

(750,000

)

Net cash from financing activities

(479,005

)

(1,551,886

)

Increase in cash and cash equivalents

1,191,723

583,322

Cash and cash equivalents at beginning of year

2

490,256

(93,066

)

Cash and cash equivalents at end of year

2

1,681,979

490,256

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

2019

2018

£

£

Profit before taxation

859,799

402,026

Depreciation charges

1,759,347

2,051,843

Profit on disposal of fixed assets

(1,902

)

(34,809

)

Finance costs

91,817

124,459

Finance income

(3,836

)

(1,557

)

2,705,225

2,541,962

Decrease/(increase) in stocks

121,114

(176,101

)

(Increase)/decrease in trade and other debtors

(58,253

)

806,750

Increase in trade and other creditors

3,937

328,039

Cash generated from operations

2,772,023

3,500,650

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 30 April 2019

30/4/19

1/5/18

£

£

Cash and cash equivalents

1,681,979

490,256

Year ended 30 April 2018

30/4/18

1/5/17

£

£

Cash and cash equivalents

490,256

14,867

Bank overdrafts

-

(107,933

)

490,256

(93,066

)

1.	Statutory information

S.J.Bargh Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

2.	Accounting policies

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 measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% Straight line

Plant and machinery

-

15% Reducing balance

Fixtures and fittings

-

15% Reducing balance

Motor vehicles

-

25% Reducing balance

Computer equipment

-

25% on cost

Investment property

The Investment property was valued by the directors using their knowledge of similar properties in the area and

discussions with appropriate local advisors.

There has been no valuation of investment property by an independent valuer.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

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

Current or deferred taxation assets and liabilities are not discounted.

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

substantively enacted by the balance sheet date.

Deferred tax

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

sheet date.

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

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

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

timing difference.

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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 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.

3.	Employees and directors

2019

2018

£

£

Wages and salaries

11,263,868

10,932,678

Social security costs

1,064,239

1,042,391

Other pension costs

178,375

101,370

12,506,482

12,076,439

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

2019

2018

Administration and support

60

61

Other departments

326

298

386

359

2019

2018

£

£

Directors' remuneration

201,096

220,624

Directors' pension contributions to money purchase schemes

10,451

10,089

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

Money purchase schemes

2

3

Information regarding the highest paid director is as follows:

2019

2018

£

£

Emoluments etc

130,000

130,000

Pension contributions to money purchase schemes

9,600

9,600

4.	Operating profit

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

2019

2018

£

£

Hire of plant and machinery

256,049

310,270

Other operating leases

256,034

236,038

Depreciation - owned assets

1,202,614

1,432,791

Depreciation - assets on hire purchase contracts

556,735

619,051

Profit on disposal of fixed assets

(1,902

)

(34,809

)

Auditors' remuneration

10,400

9,700

Other non- audit services

9,596

9,006

5.

Interest payable and similar expenses

2019

2018

£

£

Loan interest

61,741

61,297

Hire purchase

30,076

63,162

91,817

124,459

6.

Taxation

Analysis of the tax charge

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

2019

2018

£

£

Current tax:

UK corporation tax

124,842

106,408

Deferred tax

57,306

(9,263

)

Tax on profit

182,148

97,145

Reconciliation of total tax charge included in profit and loss

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

explained below:

2019

2018

£

£

Profit before tax

859,799

402,026

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

163,362

76,385

Effects of:

Expenses not deductible for tax purposes

20,760

20,760

Tax decrease from effect of research and development claim

(1,974

)

-

Total tax charge

182,148

97,145