Campbell & Tate Ltd - Limited company accounts 18.2

REGISTERED NUMBER: 04505714 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MAY 2019

FOR

CAMPBELL & TATE LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

6

Consolidated Balance Sheet

7

Company Balance Sheet

8

Consolidated Statement of Changes in Equity

9

Company Statement of Changes in Equity

10

Consolidated Cash Flow Statement

11

Notes to the Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

Mr J Campbell

Mr N Tate

SECRETARY:

Mr J Campbell

REGISTERED OFFICE:

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

REGISTERED NUMBER:

04505714 (England and Wales)

AUDITORS:

Berry & Warren Ltd

Chartered Accountants

Statutory Auditor

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

The directors present their strategic report of the company and the group for the year ended 31st May 2019.

REVIEW OF BUSINESS

The principal activity of the group is that of injection moulding, blow moulding and plastic design, plastic development

and prototyping.

Turnover for the year increased £1,266,556 to £8,297,565, turnover on manufactured items increased by £1,857,345.

Gross profit increased by £783,385 to £2,576,585 with the overall margin of 31.05% (25.50% in the prior year).

Average employee numbers increased to 58 (52 in the prior year).

The Board are pleased with the financial results for the year and reflect a number of changes that have happened within

the business. The turnover for manufactured items has seen a 30% increase with a corresponding decrease for the

reduced margin tooling business. The overall effect has had a beneficial impact on margin.

The company has always had a loyal base of blue chip customers and during the year it has been successful in

developing new relationships and expanding its customer base by using its reputation for quality products and service to

win additional business.

There have been a number of changes within the business during the last year or so including personnel changes and the

acquisition of a new factory to support the growth aspirations of the business. The company is investing in a new IT

system which should improve management information and hence aid efficiency. This will be delivered during the

following year, all of which is geared towards enabling the company to deliver the planned growth efficiently.

The company ends the year with a strong order book and enquiries from new prospects.

PRINCIPAL RISKS AND UNCERTAINTIES

The use of plastics is coming under more scrutiny going forward and while there is no question over the size of the

market and CODA's ability to be part of it there are increased costs associated with it both from raw material product

pricing and associated direct and indirect taxation linked to the effects on the environment. These factors will put added

pressure on margins going forward.

The company has considered the impact of BREXIT on the importing of raw materials. While it has been in dialogue

with key suppliers around the ongoing supply, there is uncertainty about what any impact may be.

ON BEHALF OF THE BOARD:

Mr J Campbell - Secretary

27th September 2019

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

31st May 2019.

DIVIDENDS

The total distribution of dividends for the year ended 31st May 2019 will be £ 144,000 .

DIRECTORS

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

Mr J Campbell

Mr N Tate

DIRECTORS THIRD PARTY INDEMNITY

A third party indemnity policy exists for the benefit of all Directors.

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 ought to have taken as

a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are

aware of that information.

AUDITORS

The auditors, Berry & Warren Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr J Campbell - Secretary

27th September 2019

Opinion

We have audited the financial statements of Campbell & Tate Ltd (the 'parent company') and its subsidiaries (the 'group')

for the year ended 31st May 2019 which comprise the Consolidated Statement of Comprehensive Income, Consolidated

Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes

in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the

Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has

been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st May 2019 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.

Matters on which we are required to report by exception

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

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

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

if, in our opinion:

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

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

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

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

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

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

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

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

Auditors' responsibilities for the audit of the financial statements

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

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

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

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

Other Matters

In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the

Companies Act. Therefore the prior period financial statements were not subject to 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 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.

Mr Jason Woodcock FCA (Senior Statutory Auditor)

for and on behalf of Berry & Warren Ltd

Chartered Accountants

Statutory Auditor

54 Thorpe Road

Norwich

Norfolk

NR1 1RY

27th September 2019

TURNOVER

8,297,565

7,031,009

Cost of sales

5,720,980

5,237,809

GROSS PROFIT

2,576,585

1,793,200

Distribution costs

522,500

449,971

Administrative expenses

1,422,800

959,683

1,945,300

1,409,654

OPERATING PROFIT

4

631,285

383,546

Interest receivable and similar income

7,494

816

638,779

384,362

Amounts written off investments

5

25,109

-

613,670

384,362

Interest payable and similar expenses

6

52,084

44,808

PROFIT BEFORE TAXATION

561,586

339,554

Tax on profit

7

119,402

68,415

PROFIT FOR THE FINANCIAL YEAR

442,184

271,139

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

442,184

271,139

Profit attributable to:

Owners of the parent

442,184

271,139

Total comprehensive income attributable to:

Owners of the parent

442,184

271,139

FIXED ASSETS

Tangible assets

10

2,956,692

3,183,958

Investments

11

1

31,110

2,956,693

3,215,068

CURRENT ASSETS

Stocks

12

866,778

705,467

Debtors

13

2,536,032

1,746,209

Cash at bank and in hand

373,257

860,688

3,776,067

3,312,364

CREDITORS

Amounts falling due within one year

14

2,142,549

1,980,819

NET CURRENT ASSETS

1,633,518

1,331,545

TOTAL ASSETS LESS CURRENT LIABILITIES

4,590,211

4,546,613

CREDITORS

Amounts falling due after more than one year

15

(620,353

)

(861,426

)

PROVISIONS FOR LIABILITIES

20

(221,573

)

(235,086

)

NET ASSETS

3,748,285

3,450,101

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

3,748,185

3,450,001

SHAREHOLDERS' FUNDS

3,748,285

3,450,101

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

behalf by:

Mr N Tate - Director

FIXED ASSETS

Tangible assets

10

284,034

289,831

Investments

11

2,290,374

2,290,374

2,574,408

2,580,205

CURRENT ASSETS

Debtors

13

404,770

-

Cash at bank

265,480

753,745

670,250

753,745

CREDITORS

Amounts falling due within one year

14

138,990

264,649

NET CURRENT ASSETS

531,260

489,096

TOTAL ASSETS LESS CURRENT LIABILITIES

3,105,668

3,069,301

CREDITORS

Amounts falling due after more than one year

15

123,536

151,432

NET ASSETS

2,982,132

2,917,869

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

2,982,032

2,917,769

SHAREHOLDERS' FUNDS

2,982,132

2,917,869

Company's profit for the financial year

208,263

234,081

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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

Mr N Tate - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st June 2017

100

3,342,862

3,342,962

Changes in equity

Dividends

-

(164,000

)

(164,000

)

Total comprehensive income

-

271,139

271,139

Balance at 31st May 2018

100

3,450,001

3,450,101

Changes in equity

Dividends

-

(144,000

)

(144,000

)

Total comprehensive income

-

442,184

442,184

Balance at 31st May 2019

100

3,748,185

3,748,285

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st June 2017

100

2,847,688

2,847,788

Changes in equity

Dividends

-

(164,000

)

(164,000

)

Total comprehensive income

-

234,081

234,081

Balance at 31st May 2018

100

2,917,769

2,917,869

Changes in equity

Dividends

-

(144,000

)

(144,000

)

Total comprehensive income

-

208,263

208,263

Balance at 31st May 2019

100

2,982,032

2,982,132

Cash flows from operating activities

Cash generated from operations

1

716,238

1,128,489

Interest paid

(33,759

)

(20,295

)

Interest element of hire purchase payments paid

(18,325

)

(24,513

)

Tax paid

(54,908

)

(86,976

)

Net cash from operating activities

609,246

996,705

Cash flows from investing activities

Purchase of tangible fixed assets

(106,789

)

(857,165

)

Sale of tangible fixed assets

-

6,200

Interest received

7,494

816

Net cash from investing activities

(99,295

)

(850,149

)

Cash flows from financing activities

New loans in year

-

490,625

Loan repayments in year

(171,533

)

(134,103

)

Capital repayments in year

(203,435

)

(246,750

)

Amount introduced by directors

-

3,042

Amount withdrawn by directors

(404,472

)

(1,678

)

Equity dividends paid

(144,000

)

(164,000

)

Net cash from financing activities

(923,440

)

(52,864

)

(Decrease)/increase in cash and cash equivalents

(413,489

)

93,692

Cash and cash equivalents at beginning of year

2

596,910

503,218

Cash and cash equivalents at end of year

2

183,421

596,910

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

Profit before taxation

561,586

339,554

Depreciation charges

334,055

271,345

Loss/(profit) on disposal of fixed assets

6,000

(1,858

)

Amounts written off investments

25,109

-

Finance costs

52,084

44,808

Finance income

(7,494

)

(816

)

971,340

653,033

Increase in stocks

(161,311

)

(50,029

)

(Increase)/decrease in trade and other debtors

(385,351

)

195,720

Increase in trade and other creditors

291,560

329,765

Cash generated from operations

716,238

1,128,489

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 31st May 2019

31.5.19

1.6.18

£

£

Cash and cash equivalents

373,257

860,688

Bank overdrafts

(189,836

)

(263,778

)

183,421

596,910

Year ended 31st May 2018

31.5.18

1.6.17

£

£

Cash and cash equivalents

860,688

503,218

Bank overdrafts

(263,778

)

-

596,910

503,218

1.	STATUTORY INFORMATION

Campbell & Tate Ltd 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 General 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.

Significant judgements and estimates

In applying the group's accounting policies, the directors are required to make judgements, estimates and

assumptions. These are continually evaluated and are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the

period in which the estimate is revised if the revision affects only that period or in the period of revision and

future periods, if the revision affects both current and future periods.

Those judgements and estimates that the directors deem significant are detailed below in respect of the

depreciation of tangible fixed assets.

Included within Plant and machinery are moulds and tooling work used for production. Due to their custom

manufacture, often for a specific project, the directors have adopted a policy of 33% depreciation on a reducing

balance. The carrying value is reviewed annually for those no longer in use and for which no alternative use is

seen to exist at the time without significant modification.

Turnover

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

value added tax and other sales taxes.

Turnover is recognised when products and services are supplied to customers in line with contractual

arrangements.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

33% on reducing balance and 10% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

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

moving items.

In determining the cost of stock, the average price is used, which includes an appropriate overhead and labour

rate for work in progress and finished goods.

Financial instruments

The group only enter into basic financial instrument transactions that result in the recognition of financial assets

and liabilities such as trade and other debtors and creditors and bank loans.

Assets and liabilities are measured at amortised cost.

Taxation

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

Comprehensive Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 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.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,897,150

1,669,284

Social security costs

149,580

127,630

Other pension costs

347,970

41,397

2,394,700

1,838,311