Weber-Stephen Products (U.K.) Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03518831 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH SEPTEMBER 2019

FOR

WEBER-STEPHEN PRODUCTS (U.K.) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mr H J Herr

Mr J T Schollmeyer

Mr F J Lepeltier

Ms N M Misch

Mr P J Zadeik

Mr W J Horton

SECRETARY:

Mr D Durrant

REGISTERED OFFICE:

10th Floor

The Metro Building

1 Butterwick

London

W6 8DL

REGISTERED NUMBER:

03518831 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

The directors present their strategic report of the company and the group for the year ended 30th September 2019.

REVIEW OF BUSINESS

The principal activity of the group in the year under review was that of wholesalers of barbecues and related products.

The sub-group is part of the worldwide Weber Group which was established in 1952. The Weber Group is one of the

world's leading providers of barbecues with the most comprehensive range of barbecue products and services in the

industry. The Weber brand is internationally synonymous with barbecuing innovation, perfect barbecue products and the

utility barbecuing experience.

The directors consider the results achieved by the group to be satisfactory but expected in view of the global economy.

The group's market share in the world continues to grow and it is envisaged will improve further in the coming years

following the continued investment in staffing and resources. The product ranges continue to be regularly updated with

new innovative technology which is expected to improve income and profitability.

The company's key performance indicators during the year were as follows:

2018/19

2017/18

Turnover

£276m

£283m

Gross %

28.10%

32.55%

EBITDA

£7.57m

£22.25m

Turnover decreased by 2.47% compared to last year which the directors consider to be an adequate year. This decrease

was an achievement given the results for 2017/18 were assisted by the exceptional summer period and a number of

global sporting events, including the football world cup, which generally have a positive impact on sales. Unfortunately,

the gross margin reduced to 4.45%. This reduced gross margin was a result of the changes to the customer rebate system,

increases in purchase costs and the exchange rates. The costs in the business have moved in line with the levels of

activity and continue to be closely monitored. Overall a profit was achieved for the financial year.

The balance sheet reduced from £75m to £44m due to a dividend paid out during the year of £31.3m. The ultimate

parent company took the decision during the year to declare this dividend due to the future uncertainty surrounding the

UK leaving the European Union.

The group does not have any external funding requirements or reliance on any external creditors. All cash flow funding

is monitored and arranged within the Weber Group.

The directors are confident in the future outlook of the company and are budgeting a further increase in turnover and

market share for 2019/20.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal commercial risks and uncertainties faced by the group include the general economic climate, seasonal

weather factors and rising costs. The directors monitor these risks in order to respond and react to changes in the market

place.

FINANCIAL RISK MANAGEMENT

The group's operations expose it to a variety of financial risks that include the effects of credit, currency, interest rate

and liquidity risk. The directors actively manage these risks by monitoring levels of risk and related costs of mitigating

these.

The group finances their operations through a mixture of retained profits and inter-group loans. They are not exposed to

any external funding.

Hedge accounting is not used by the group.

EMPLOYEE INVOLVEMENT

The directors continue to develop employees using both external and in house resources. Programmes are developed

around both business needs and personal development. The group continues to appraise all systems and staff wellbeing

to actively promote a positive group culture.

It is the group's policy to consult and discuss with employees on matters likely to affect their interests.

In the recruitment of staff and their future career development, individuals are considered having regard to their

aptitudes and abilities, irrespective of race, sex, marital status or disability.

DISABLED PERSONS

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitude of the

applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their

employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the

training, career development and promotion of disabled persons should, as far as possible, be identical to that of other

employees.

ON BEHALF OF THE BOARD:

Mr W J Horton - Director

23rd June 2020

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

30th September 2019.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of wholesalers of barbecues and related products.

DIVIDENDS

Interim dividends per share were paid as follows:

6,650,000

- 17th June 2019

4,550,000

- 7th August 2019

4,450,000

- 25th September 2019

15,650,000

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30th September 2019 will be £ 31,300,000 .

RESEARCH AND DEVELOPMENT

The group continues to develop improved barbecue equipment and techniques.

FUTURE DEVELOPMENTS

No significant changes to the group's business are anticipated.

DIRECTORS

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

report.

Mr H J Herr

Mr J T Schollmeyer

Mr F J Lepeltier

Ms N M Misch

Mr P J Zadeik

Mr W J Horton

Other changes in directors holding office are as follows:

Mr L Leenders and Mr A M Reuter ceased to be directors after 30th September 2019 but prior to the date of this report.

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;

-	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 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 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

group's auditors are aware of that information.

AUDITORS

The auditors, Ainsworths Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr W J Horton - Director

23rd June 2020

Opinion

We have audited the financial statements of Weber-Stephen Products (U.K.) Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 30th September 2019 which comprise the Consolidated Income Statement,

Consolidated Other 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 30th September 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 five, 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.

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.

Mark Sunter (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

23rd June 2020

TURNOVER

3

276,296,697

282,967,367

Cost of sales

198,663,280

190,856,212

GROSS PROFIT

77,633,417

92,111,155

Distribution costs

210,279

217,219

Administrative expenses

72,505,590

72,779,252

72,715,869

72,996,471

OPERATING PROFIT

5

4,917,548

19,114,684

Interest receivable and similar income

153,559

36,547

5,071,107

19,151,231

Interest payable and similar expenses

6

754,408

707,774

PROFIT BEFORE TAXATION

4,316,699

18,443,457

Tax on profit

7

4,161,506

5,683,171

PROFIT FOR THE FINANCIAL YEAR

155,193

12,760,286

Profit attributable to:

Owners of the parent

155,193

12,760,286

PROFIT FOR THE YEAR

155,193

12,760,286

OTHER COMPREHENSIVE INCOME

Equity difference on foreign currency

80,318

639,701

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

80,318

639,701

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

235,511

13,399,987

Total comprehensive income attributable to:

Owners of the parent

235,511

13,399,987

FIXED ASSETS

Intangible assets

10

624,786

942,975

Tangible assets

11

3,727,983

5,433,697

Investments

12

-

-

4,352,769

6,376,672

CURRENT ASSETS

Stocks

13

36,684,204

53,124,935

Debtors

14

46,707,105

49,881,109

Cash at bank and in hand

13,745,899

13,221,916

97,137,208

116,227,960

CREDITORS

Amounts falling due within one year

15

57,754,867

47,805,033

NET CURRENT ASSETS

39,382,341

68,422,927

TOTAL ASSETS LESS CURRENT LIABILITIES

43,735,110

74,799,599

CAPITAL AND RESERVES

Called up share capital

17

2

2

Share premium

18

4,335,163

4,335,163

Equity difference on foreign

currency translations

18

5,328,038

5,247,720

Retained earnings

18

34,071,907

65,216,714

SHAREHOLDERS' FUNDS

43,735,110

74,799,599

The financial statements were approved by the Board of Directors and authorised for issue on 23rd June 2020 and were

signed on its behalf by:

Mr W J Horton - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

107,493

190,335

Investments

12

9,104,109

9,104,109

9,211,602

9,294,444

CURRENT ASSETS

Stocks

13

5,650,476

5,728,824

Debtors

14

4,053,663

4,557,968

Cash at bank and in hand

3,271,779

3,527,749

12,975,918

13,814,541

CREDITORS

Amounts falling due within one year

15

16,092,197

15,969,987

NET CURRENT LIABILITIES

(3,116,279

)

(2,155,446

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,095,323

7,138,998

CAPITAL AND RESERVES

Called up share capital

17

2

2

Share premium

18

4,335,163

4,335,163

Retained earnings

18

1,760,158

2,803,833

SHAREHOLDERS' FUNDS

6,095,323

7,138,998

Company's profit/(loss) for the financial year

30,256,325

(2,293,773

)

The financial statements were approved by the Board of Directors and authorised for issue on 23rd June 2020 and were signed on its behalf by:

Mr W J Horton - Director

Equity

difference

on

Called up

foreign

share

Retained

Share

currency

Total

capital

earnings

premium

translations

equity

£

£

£

£

£

Balance at 1st October 2017

2

52,456,428

4,335,163

4,608,019

61,399,612

Changes in equity

Total comprehensive income

-

12,760,286

-

639,701

13,399,987

Balance at 30th September 2018

2

65,216,714

4,335,163

5,247,720

74,799,599

Changes in equity

Dividends

-

(31,300,000

)

-

-

(31,300,000

)

Total comprehensive income

-

155,193

-

80,318

235,511

Balance at 30th September 2019

2

34,071,907

4,335,163

5,328,038

43,735,110

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1st October 2017

2

5,097,606

4,335,163

9,432,771

Changes in equity

Total comprehensive income

-

(2,293,773

)

-

(2,293,773

)

Balance at 30th September 2018

2

2,803,833

4,335,163

7,138,998

Changes in equity

Dividends

-

(31,300,000

)

-

(31,300,000

)

Total comprehensive income

-

30,256,325

-

30,256,325

Balance at 30th September 2019

2

1,760,158

4,335,163

6,095,323

Cash flows from operating activities

Cash generated from operations

1

37,704,826

11,365,729

Interest paid

(754,408

)

(707,774

)

Tax paid

(4,161,506

)

(5,278,020

)

Net cash from operating activities

32,788,912

5,379,935

Cash flows from investing activities

Purchase of intangible fixed assets

(11,513

)

(97,756

)

Purchase of tangible fixed assets

(1,111,403

)

(3,406,587

)

Sale of tangible fixed assets

4,428

45,700

Interest received

153,559

36,547

Net cash from investing activities

(964,929

)

(3,422,096

)

Cash flows from financing activities

Equity dividends paid

(31,300,000

)

-

Net cash from financing activities

(31,300,000

)

-

Increase in cash and cash equivalents

523,983

1,957,839

Cash and cash equivalents at beginning of year

2

13,221,916

11,264,077

Cash and cash equivalents at end of year

2

13,745,899

13,221,916

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

30.9.19

30.9.18

£

£

Profit before taxation

4,316,699

18,443,457

Depreciation charges

3,032,937

3,122,867

Loss on disposal of fixed assets

109,454

205,437

Equity difference on foreign currency

80,318

639,701

Finance costs

754,408

707,774

Finance income

(153,559

)

(36,547

)

8,140,257

23,082,689

Decrease/(increase) in stocks

16,440,731

(8,738,353

)

Decrease in trade and other debtors

3,839,966

19,340,423

Increase/(decrease) in trade and other creditors

9,283,872

(22,319,030

)

Cash generated from operations

37,704,826

11,365,729

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 September 2019

30.9.19

1.10.18

£

£

Cash and cash equivalents

13,745,899

13,221,916

Year ended 30th September 2018

30.9.18

1.10.17

£

£

Cash and cash equivalents

13,221,916

11,264,077