Company Registration No. 03689286 (England and Wales)
C.SCRUTON (PRODUCE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
C.SCRUTON (PRODUCE) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
C.SCRUTON (PRODUCE) LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
68,704
60,148
Current assets
Stocks
45,793
58,597
Debtors
4
578,198
610,699
Cash at bank and in hand
565,499
418,256
1,189,490
1,087,552
Creditors: amounts falling due within one year
5
(670,431)
(674,911)
Net current assets
519,059
412,641
Total assets less current liabilities
587,763
472,789
Creditors: amounts falling due after more than one year
6
(16,366)
(14,155)
Provisions for liabilities
(2,147)
(3,375)
Net assets
569,250
455,259
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
569,249
455,258
Total equity
569,250
455,259
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 29 May 2020 and are signed on its behalf by:
Mr R Thompson
Director
Company Registration No. 03689286
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 2 -
1
Accounting policies
Company information
C.Scruton (Produce) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Yorkshire Produce Centre, Pontefract Lane, Leeds, Yorkshire, United Kingdom, LS9 0PX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have considered the impact of COVID-19 on the company’s trade, workforce and supply chain, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the directors are confident that they have in place plans to deal with any financial losses that may arise. Such plans include, but are not limited to: true
The directors do however recognise that significant uncertainty exists surrounding the duration and impact of COVID-19 and hence there is inherent risk regarding the success and sustainability of these plans. This risk represents a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern, however the directors have concluded that the company remains a going concern whilst such viable options are available to it. The directors therefore continue to adopt the going concern basis of preparation for these financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20% per annum on written down value
Fixtures and fittings
10% per annum on written down value or 33% per annum on cost
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 4 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 25 (2018: 25).
2019
2018
Number
Number
Total
25
23
3
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2018
64,725
100,514
36,850
202,089
Additions
2,265
2,371
21,679
26,315
Disposals
-
(5,773)
(6,500)
(12,273)
At 31 October 2019
66,990
97,112
52,029
216,131
Depreciation and impairment
At 1 November 2018
61,311
71,997
8,633
141,941
Depreciation charged in the year
796
4,859
12,104
17,759
Eliminated in respect of disposals
-
(5,773)
(6,500)
(12,273)
At 31 October 2019
62,107
71,083
14,237
147,427
Carrying amount
At 31 October 2019
4,883
26,029
37,792
68,704
At 31 October 2018
3,414
28,517
28,217
60,148
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
489,968
498,904
Amounts owed by group undertakings
35,930
58,832
Other debtors
29,354
25,929
Prepayments and accrued income
22,946
27,034
578,198
610,699
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 7 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Obligations under finance leases
14,044
7,077
Trade creditors
492,431
527,099
Amounts owed to group undertakings
113,597
114,221
Corporation tax
18,069
-
Other taxation and social security
10,975
10,786
Other creditors
3,193
1,887
Accruals and deferred income
18,122
13,841
670,431
674,911
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Obligations under finance leases
16,366
14,155
The outstanding balance is secured on the assets held under hire purchase agreements.
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
406,165
514,179
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Material uncertainty related to going concern
We draw attention to the management’s basis of preparation disclosure included within the going concern accounting policy in the financial statements which discusses the directors’ assessment of the impact of the COVID-19 pandemic on the company. As stated in the going concern accounting policy, these events or conditions, along with the other matters as set forth in the going concern accounting policy, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Lisa Leighton.
The auditor was BHP LLP.
C.SCRUTON (PRODUCE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 8 -
9
Financial commitments, guarantees and contingent liabilities
The company is subject to a cross group multilateral loan guarantee in favour of HSBC. At 31 October 2019 the total amounted to £2,988,973 (2018: £3,230,317).
At the reporting date the company had outstanding pension commitments amounting to £2,439 (2018: £1,458).
10
Events after the reporting date
As part of their assessment of the going concern basis of preparation, the directors have considered the impact of the COVID-19 pandemic on the company’s trade, workforce, supply chain and the wider economies in which it operates as outlined in the basis of preparation disclosure in accounting policies. It is the view of the directors that the events which have significantly impacted the company are the direct result of Government and international policy in response to the pandemic (for example restrictions on travel, trade and personal interactions) and such policy only arose after the balance sheet date. The directors therefore consider the impact of the COVID-19 on the business to be a non-adjusting post-balance sheet event.
11
Parent company
The ultimate controlling party is Gilbert Thompson (Leeds) Limited which is under the control of the directors D Thompson and R Thompson.
Group accounts for Gilbert Thompson (Leeds) Limited can be obtained from the registered office, Yorkshire Produce Centre, Pontefract Lane, Leeds, LS9 0PX.
2019-10-312018-11-01false29 May 2020CCH SoftwareCCH Accounts Production 2020.100No description of principal activityThis audit opinion is unqualifiedDean Shaun PlaceDaniel Charles ThompsonRichard James ThompsonMr R Thompson036892862018-11-012019-10-31036892862019-10-31036892862018-10-3103689286core:PlantMachinery2019-10-3103689286core:FurnitureFittings2019-10-3103689286core:MotorVehicles2019-10-3103689286core:PlantMachinery2018-10-3103689286core:FurnitureFittings2018-10-3103689286core:MotorVehicles2018-10-3103689286core:CurrentFinancialInstrumentscore:WithinOneYear2019-10-3103689286core:CurrentFinancialInstrumentscore:WithinOneYear2018-10-3103689286core:CurrentFinancialInstruments2019-10-3103689286core:CurrentFinancialInstruments2018-10-3103689286core:Non-currentFinancialInstruments2019-10-3103689286core:Non-currentFinancialInstruments2018-10-3103689286core:ShareCapital2019-10-3103689286core:ShareCapital2018-10-3103689286core:RetainedEarningsAccumulatedLosses2019-10-3103689286core:RetainedEarningsAccumulatedLosses2018-10-3103689286bus:CompanySecretaryDirector12018-11-012019-10-3103689286core:PlantMachinery2018-11-012019-10-3103689286core:FurnitureFittings2018-11-012019-10-3103689286core:MotorVehicles2018-11-012019-10-31036892862017-11-012018-10-3103689286core:PlantMachinery2018-10-3103689286core:FurnitureFittings2018-10-3103689286core:MotorVehicles2018-10-31036892862018-10-3103689286bus:PrivateLimitedCompanyLtd2018-11-012019-10-3103689286bus:SmallCompaniesRegimeForAccounts2018-11-012019-10-3103689286bus:FRS1022018-11-012019-10-3103689286bus:Audited2018-11-012019-10-3103689286bus:Director12018-11-012019-10-3103689286bus:Director22018-11-012019-10-3103689286bus:Director32018-11-012019-10-3103689286bus:CompanySecretary12018-11-012019-10-3103689286bus:FullAccounts2018-11-012019-10-31xbrli:purexbrli:sharesiso4217:GBP