Brissco (Equipment) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00455916 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

FOR

BRISSCO (EQUIPMENT) LIMITED

Page

Company Information

1

Report of the Directors

2

Chartered Accountants' Report

3

Income Statement

4

Balance Sheet

5

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

P S Pope

Mrs M Freake

K M Bartlett

REGISTERED OFFICE:

Block 9, 25 Cater Road

Bishopsworth

Bristol

BS13 7TX

REGISTERED NUMBER:

00455916 (England and Wales)

ACCOUNTANTS:

Burnside

Chartered Accountants

and Statutory Auditor

61 Queen Square

Bristol

BS1 4JZ

The directors present their report with the financial statements of the company for the year ended 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and manufacture

of signs, labels and vehicle livery, sale of building plastics, plastic materials and fabrication of sheet

plastic.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to

the date of this report.

P S Pope

Mrs M Freake

K M Bartlett

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act

2006 relating to small companies.

ON BEHALF OF THE BOARD:

P S Pope - Director

17 June 2020

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your

approval the financial statements of Brissco (Equipment) Limited for the year ended

31 December 2019 which comprise the Income Statement, Balance Sheet, Statement of Changes

in Equity and the related notes from the company's accounting records and from information and

explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Brissco (Equipment) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Brissco (Equipment) Limited and state those matters that we have agreed to state to the Board of Directors of Brissco (Equipment) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Brissco (Equipment) Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Brissco (Equipment) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Brissco (Equipment) Limited. You consider that Brissco (Equipment) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Brissco (Equipment) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Burnside

Chartered Accountants

61 Queen Square

Bristol

BS1 4JZ

17 June 2020

TURNOVER

2,778,123

2,732,281

Cost of sales

1,218,075

1,180,021

GROSS PROFIT

1,560,048

1,552,260

Distribution costs

45,423

46,025

Administrative expenses

1,361,666

1,216,984

1,407,089

1,263,009

152,959

289,251

Other operating income

26,489

26,130

OPERATING PROFIT

4

179,448

315,381

Interest receivable and similar income

15

-

179,463

315,381

Interest payable and similar expenses

4,289

13,092

PROFIT BEFORE TAXATION

175,174

302,289

Tax on profit

5

35,165

59,288

PROFIT FOR THE FINANCIAL YEAR

140,009

243,001

FIXED ASSETS

Tangible assets

6

609,418

520,099

CURRENT ASSETS

Stocks

175,810

212,267

Debtors

7

658,292

565,079

Cash at bank

160,922

171,864

995,024

949,210

CREDITORS

Amounts falling due within one year

8

291,490

318,277

NET CURRENT ASSETS

703,534

630,933

TOTAL ASSETS LESS CURRENT LIABILITIES

1,312,952

1,151,032

CREDITORS

Amounts falling due after more than one year

9

(45,661

)

(33,608

)

PROVISIONS FOR LIABILITIES

12

(57,358

)

(42,146

)

NET ASSETS

1,209,933

1,075,278

CAPITAL AND RESERVES

Called up share capital

13

35,000

35,000

Share premium

2,300

2,300

Capital redemption reserve

8,000

8,000

Retained earnings

1,164,633

1,029,978

SHAREHOLDERS' FUNDS

1,209,933

1,075,278

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 and authorised for issue on 17 June 2020 and were signed on its behalf by:

P S Pope - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2018

35,000

1,742,138

2,300

8,000

1,787,438

Changes in equity

Dividends

-

(955,161

)

-

-

(955,161

)

Total comprehensive income

-

243,001

-

-

243,001

Balance at 31 December 2018

35,000

1,029,978

2,300

8,000

1,075,278

Changes in equity

Dividends

-

(5,354

)

-

-

(5,354

)

Total comprehensive income

-

140,009

-

-

140,009

Balance at 31 December 2019

35,000

1,164,633

2,300

8,000

1,209,933

1.	STATUTORY INFORMATION

Brissco (Equipment) 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade

discounts, supplied to customers during the year.

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 despatch 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.

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

-

Straight line over 10 to 50 years

Plant and machinery

-

Straight line over 3 to 15 years

Motor vehicles

-

Straight line over 2 to 4 years

Stocks

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

for obsolete and slow moving items.

Cost comprises direct materials and, where applicable, direct labour costs and those

overheads that have been incurred in bringing the stocks to there present location and

condition.

Financial instruments

Financial assets and liabilities are recognised in the balance sheet when the company

becomes party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and are

measured on initial recognition at transaction price. Debtors and creditors are subsequently

measured at amortised cost using the effective interest rate method. A provision is

established when there is objective evidence that the company may not be able to collect all

amounts due.

Financial instruments (continued)

Cash and cash equivalents are classified as basic financial instruments and comprise cash

in hand and at bank.

Financial liabilities and equity instruments issued by the company are classified in

accordance with the substance of the contractual arrangements entered into and the

definitions of a financial liability and an equity instrument. An equity instrument is any

contract that evidences a residual interest in the assets of the company after deducting all of

its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of any direct issue costs.

Interest bearing bank borrowings and other loans which meet the criteria of basic financial

instruments are initially recorded at the present value of cash payable to the bank, usually

being equivalent to the proceeds received net of direct issue costs. These liabilities are

subsequently measured at amortised cost, using the effective interest rate method.

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.

Employee benefits

The costs of short term employee benefits are recognised as a liability and an expense,

except where 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.

Going concern

The company has earned a profit throughout the last two years, and retains a strong net

asset, net current asset and cash position at 31 December 2019, which has further

strengthened since the year end with further profits in this post year end period.

The directors have assessed the next twelve months as best they can given the current

situation with COVID-19. The company has 'key worker' status for the cornerstone part of

their business as a key supplier to several essential service suppliers to UK key

infrastructure and fully expect that, with the promised backing of the British Government for

British businesses, the company will remain a going concern and the directors will endeavour

to ensure that the company has sufficient working capital to meet its requirements for the

foreseeable future. The directors will continue to carefully monitor the situation and have

alternative plans in place should the need arise.

In light of the above, the directors have reviewed the going concern status of the business for

the foreseeable future to the best of their abilities and have concluded that they have a

reasonable expectation that the company has adequate resources to continue in operational

existence for the foreseeable future. The directors therefore continue to adopt the going

concern basis of accounting in preparing these financial statements.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

820,791

765,082

Social security costs

67,807

62,075

Other pension costs

56,442

48,906

945,040

876,063

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

2019

2018

Management

3

3

Sales, administration and manufacture

34

33

37

36

2019

2018

£

£

Directors' remuneration

151,714

141,700

Directors' pension contributions to money purchase schemes

7,122

5,771

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

Money purchase schemes

3

3

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Hire of plant and machinery

19,852

20,903

Depreciation - owned assets

52,312

34,169

Depreciation - assets on hire purchase contracts

19,941

6,342

5.

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

19,953

51,081

Deferred tax

15,212

8,207

Tax on profit

35,165

59,288

UK corporation tax has been charged at 19% (2018 - 19%).

6.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1 January 2019

611,047

1,027,473

71,666

1,710,186

Additions

20,600

113,103

27,869

161,572

Disposals

-

(8,200

)

-

(8,200

)

At 31 December 2019

631,647

1,132,376

99,535

1,863,558

DEPRECIATION

At 1 January 2019

297,724

820,697

71,666

1,190,087

Charge for year

13,016

57,495

1,742

72,253

Eliminated on disposal

-

(8,200

)

-

(8,200

)

At 31 December 2019

310,740

869,992

73,408

1,254,140

NET BOOK VALUE

At 31 December 2019

320,907

262,384

26,127

609,418

At 31 December 2018

313,323

206,776

-

520,099

Fixed assets, included in the above, which are held under hire purchase contracts are as

follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2019

179,644

-

179,644

Additions

40,990

27,869

68,859

At 31 December 2019

220,634

27,869

248,503

DEPRECIATION

At 1 January 2019

109,442

-

109,442

Charge for year

18,199

1,742

19,941

At 31 December 2019

127,641

1,742

129,383

NET BOOK VALUE

At 31 December 2019

92,993

26,127

119,120

At 31 December 2018

70,202

-

70,202

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

232,014

247,778

Amounts owed by group undertakings

389,151

267,181

Other debtors

-

466

Prepayments and accrued income

37,127

49,654

658,292

565,079

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Amounts due under invoice

discounting facility

-

508

Hire purchase contracts (see note 10)

24,743

19,379

Trade creditors

73,323

119,183

Corporation tax

19,953

51,081

Social security and other taxes

96,631

71,170

Other creditors

12,059

5,938

Accruals and deferred income

64,781

51,018

291,490

318,277

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 10)

45,661

33,608

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2019

2018

£

£

Net obligations repayable:

Within one year

24,743

19,379

Between one and five years

45,661

33,608

70,404

52,987

Non-cancellable

operating leases

2019

2018

£

£

Within one year

6,258

16,142

Between one and five years

344

2,133

6,602

18,275

11.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Amounts due under invoice

discounting facility

-

508

Hire purchase contracts

70,404

52,987

70,404

53,495

The invoice discounting facility borrowings are secured on the company's trade debtors.

The hire purchase liabilities are secured on the assets to which they relate.

The company has also provided security for bank loans held by Brissco Limited, the

company's parent undertaking, totalling £264,572 (2018 - £375,848), in the form of a legal

mortgage over its freehold property and through fixed and floating charges over the assets of

the company.

12.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

Accelerated capital allowances

58,071

42,831

Other timing differences

(713

)

(685

)

57,358

42,146

Deferred

tax

£

Balance at 1 January 2019

42,146

Provided during year

15,212

Balance at 31 December 2019

57,358