Tallis Amos Group Limited - Period Ending 2019-12-31

Registration number: 04697211

Tallis Amos Group Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2019

Tallis Amos Group Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3 to 4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 8
Profit and Loss Account	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 to 29

Tallis Amos Group Limited

Company Information

Directors

BJ Tallis S C G Amos CJ Tallis C Mcintyre M G Blackburn

Registered office

Hinton-on-the-Green Evesham Worcestershire WR11 2QT

Bankers

HSBC Bank plc Evesham 32 Bridge Street Evesham Worcestershire WR11 4RU

Auditors

Clement Rabjohns Limited Registered Auditors and Chartered Accountants 111/113 High Street Evesham Worcestershire WR11 4XP

Page 1

Tallis Amos Group Limited

Strategic Report for the Year Ended 31 December 2019

The directors present their strategic report for the year ended 31 December 2019.

Principal activity

The principal activity of the company is the sale and maintenance of agricultural machinery

Fair review of the business

The company is owned by the Tallis and Amos families, with managing director Ben Tallis based at the Evesham head office and sales director Simon Amos based at Leominster running the company as partners. The company currently has four sites which employ around 130 people.

The company has had a very comparable year showing similar income, margins and profit. This was expected with the market and the continued use of the four depots from budgets prepared last year.

The company plans within 2020 to start construction on a new depot to increase customers within the new catchment area acquired in 2018. This will be a purpose built unit to offer all servies including machinery sales and servicing.

The Coronavirus has had an impact on the business since the balance sheet date however, with the main trade of the company being in agricultural machinery this is an industry which has not been as badly affected as others. As a result the business has been able to continue trading largely as previously but has utilised some of the government financial support schemes and has the continued support of the companies bankers. The residential turf section of the business has been affected however, this is a small profit generating unit to the main agricultural business of the company.

Given the straight forward nature of the business, the company’s directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.

Principal risks and uncertainties

The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent wholesalers and retailers, employee retention and product availability.

Approved by the Board on 15 June 2020 and signed on its behalf by:

.........................................
BJ Tallis
Director

.........................................
S C G Amos
Director

Page 2

Tallis Amos Group Limited

Directors' Report for the Year Ended 31 December 2019

The directors present their report and the financial statements for the year ended 31 December 2019.

Directors of the company

The directors who held office during the year were as follows:

BJ Tallis

S C G Amos

CJ Tallis

C G Amos (Resigned 1 June 2020)

C Mcintyre

M G Blackburn

Financial instruments

Objectives and policies

The company’s activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company’s policies approved by the board of directors. The company does not use derivative financial instruments for speculative purposes.

Page 3

Tallis Amos Group Limited

Directors' Report for the Year Ended 31 December 2019

Price risk, credit risk, liquidity risk and cash flow risk

Price risk

The company is exposed to commodity price risk. The company does not manage its exposure to commodity price risk due to cost benefit considerations.

Credit risk

The company’s principal financial assets are bank balances and cash, trade and other debtors.

The company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

The company has no significant concentration of credit risk with exposure spread over a large number of counterparties and customers.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.

Cash flow risk

The company’s activities expose it primarily to the financial risks of non paying customers. The company has implemented good credit control procedures and ability to offer credit for customers from credit agencies to mitigate this risk.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 15 June 2020 and signed on its behalf by:

.........................................
BJ Tallis
Director

.........................................
S C G Amos
Director

Page 4

Tallis Amos Group Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 apply them consistently;

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

•	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	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.

Page 5

Tallis Amos Group Limited

Independent Auditor's Report to the Members of Tallis Amos Group Limited

Opinion

We have audited the financial statements of Tallis Amos Group Limited (the 'company') for the year ended 31 December 2019, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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).

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 auditor’s 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.

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 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 Auditor’s 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 included in the annual report, other than the financial statements and our auditor’s 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.

Page 6

Tallis Amos Group Limited

Independent Auditor's Report to the Members of Tallis Amos Group Limited

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.

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

•	the Strategic Report and 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 our 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 and 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 page 5], 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 is 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.

Auditor’s 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 auditor’s 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.

Page 7

Tallis Amos Group Limited

Independent Auditor's Report to the Members of Tallis Amos Group Limited

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

•

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

•	Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

•

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

......................................
Philip Parsons FCA (Senior Statutory Auditor)
For and on behalf of Clement Rabjohns Limited, Statutory Auditor

111/113 High Street
Evesham
Worcestershire
WR11 4XP

15 June 2020

Page 8

Tallis Amos Group Limited

Profit and Loss Account for the Year Ended 31 December 2019

	Note	2019 £	2018 £
Turnover	3	48,684,067	48,499,904
Cost of sales		(45,095,772)	(44,841,541)
Gross profit		3,588,295	3,658,363
Administrative expenses		(2,838,053)	(2,878,341)
Other operating income	4	2,800	1,750
Operating profit	6	753,042	781,772
Interest payable and similar expenses	7	(242,611)	(234,021)
Profit before tax		510,431	547,751
Taxation	11	(97,167)	(114,732)
Profit for the financial year		413,264	433,019

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 13 to 29 form an integral part of these financial statements.

Page 9

Tallis Amos Group Limited

(Registration number: 04697211)
Balance Sheet as at 31 December 2019

	Note	2019 £	2018 £
Fixed assets
Intangible assets	12	138,017	149,917
Tangible assets	13	1,731,702	1,786,795
		1,869,719	1,936,712
Current assets
Stocks	14	12,767,552	10,245,306
Debtors	15	4,373,417	5,303,410
Cash at bank and in hand		6,055	2,345
		17,147,024	15,551,061
Creditors: Amounts falling due within one year	17	(13,363,415)	(11,904,586)
Net current assets		3,783,609	3,646,475
Total assets less current liabilities		5,653,328	5,583,187
Creditors: Amounts falling due after more than one year	17	(613,305)	(828,422)
Provisions for liabilities	18	(156,578)	(126,585)
Net assets		4,883,445	4,628,180
Capital and reserves
Called up share capital	20	154	154
Share premium reserve		1,099,140	1,099,140
Capital redemption reserve		12	12
Profit and loss account		3,784,139	3,528,874
Total equity		4,883,445	4,628,180

Approved and authorised by the Board on 15 June 2020 and signed on its behalf by:
 

.........................................

BJ Tallis
Director

.........................................

S C G Amos
Director

The notes on pages 13 to 29 form an integral part of these financial statements.

Page 10

Tallis Amos Group Limited

Statement of Changes in Equity for the Year Ended 31 December 2019

	Share capital £	Share premium £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 January 2019	154	1,099,140	12	3,528,875	4,628,181
Profit for the year	-	-	-	413,264	413,264
Total comprehensive income	-	-	-	413,264	413,264
Dividends	-	-	-	(158,000)	(158,000)
At 31 December 2019	154	1,099,140	12	3,784,139	4,883,445

	Share capital £	Share premium £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 January 2018	154	1,099,140	12	3,183,855	4,283,161
Profit for the year	-	-	-	433,019	433,019
Total comprehensive income	-	-	-	433,019	433,019
Dividends	-	-	-	(88,000)	(88,000)
At 31 December 2018	154	1,099,140	12	3,528,874	4,628,180

The notes on pages 13 to 29 form an integral part of these financial statements.

Page 11

Tallis Amos Group Limited

Statement of Cash Flows for the Year Ended 31 December 2019

	Note	2019 £	2018 £
Cash flows from operating activities
Profit for the year		413,264	433,019
Adjustments to cash flows from non-cash items
Depreciation and amortisation	6	433,343	431,076
Profit on disposal of tangible assets	5	(23,746)	(8,086)
Finance costs	7	242,611	234,021
Income tax expense	11	97,167	114,732
		1,162,639	1,204,762
Working capital adjustments
Increase in stocks	14	(2,522,246)	(1,918,398)
Decrease/(increase) in trade debtors	15	929,993	(91,098)
Increase in trade creditors	17	1,697,097	1,234,353
Cash generated from operations		1,267,483	429,619
Income taxes paid	11	(127,589)	(124,825)
Net cash flow from operating activities		1,139,894	304,794
Cash flows from investing activities
Acquisitions of tangible assets		(338,200)	(453,104)
Proceeds from sale of tangible assets		158,808	261,266
Acquisition of intangible assets	12	-	(20,000)
Net cash flows from investing activities		(179,392)	(211,838)
Cash flows from financing activities
Interest paid	7	(242,611)	(234,021)
Repayment of bank borrowing		-	(100,000)
Repayment of other borrowing		(55,000)	(100,000)
Payments to finance lease creditors		(409,825)	(415,675)
Dividends paid	23	(158,000)	(88,000)
Net cash flows from financing activities		(865,436)	(937,696)
Net increase/(decrease) in cash and cash equivalents		95,066	(844,740)
Cash and cash equivalents at 1 January		(1,524,655)	(679,915)
Cash and cash equivalents at 31 December		(1,429,589)	(1,524,655)

The notes on pages 13 to 29 form an integral part of these financial statements.

Page 12

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Hinton-on-the-Green
Evesham
Worcestershire
WR11 2QT
United Kingdom

These financial statements were authorised for issue by the Board on 15 June 2020.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, refunds, rebates and discounts and after eliminating sales recharges within the company.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and goods have been delivered or service completed.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.

Page 13

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Tenants improvements	Straight line over 15 years
Furniture, fittings and equipment	15% / 33% Straight line
Motor vehicles	25% Reducing balance
Other property, plant and equipment	1% Straight line per month

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	20 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Page 14

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Trade debtors

Trade Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment is established when there is objective evidence that the Company not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Page 15

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 16

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

3

Revenue

The analysis of the company's revenue for the year from continuing operations is as follows:

	2019 £	2018 £
Sale of goods	48,019,866	47,756,288
Commissions received	664,201	743,616
	48,684,067	48,499,904

The analysis of the company's turnover for the year by class of business is as follows:

	2019  £	2018  £
Equipment sales	39,511,857	38,956,991
Hire sales	162,049	119,264
Service and part sales	9,010,161	9,423,649
	48,684,067	48,499,904

The analysis of the company's turnover for the year by market is as follows:

	2019 £	2018 £
UK	47,664,097	47,642,884
Europe	811,058	830,399
Rest of world	208,912	26,621
	48,684,067	48,499,904

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2019 £	2018 £
Sub lease rental income	2,800	1,750

5	Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

	2019 £	2018 £
Gain (loss) on disposal of property, plant and equipment	23,746	8,086

Page 17

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

6	Operating profit

Arrived at after charging/(crediting)

	2019 £	2018 £
Depreciation expense	421,443	419,176
Amortisation expense	11,900	11,900
Profit on disposal of property, plant and equipment	(23,746)	(8,086)

7	Interest payable and similar expenses

	2019 £	2018 £
Interest on bank overdrafts and borrowings	41,788	43,293
Interest on obligations under finance leases and hire purchase contracts	32,499	35,076
Interest expense on other finance liabilities	168,324	155,652
	242,611	234,021

8	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	2019 £	2018 £
Wages and salaries	3,958,652	3,739,265
Social security costs	371,131	357,529
Pension costs, defined contribution scheme	107,222	82,100
Other employee expense	74,792	64,895
	4,511,797	4,243,789

Page 18

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2019 No.	2018 No.
Production	109	108
Administration and support	20	22
	129	130

9	Directors' remuneration

The directors' remuneration for the year was as follows:

	2019 £	2018 £
Remuneration	258,120	246,652
Contributions paid to money purchase schemes	24,624	20,904
	282,744	267,556

During the year the number of directors who were receiving benefits and share incentives was as follows:

	2019 No.	2018 No.
Accruing benefits under money purchase pension scheme	4	4

In respect of the highest paid director:

	2019 £	2018 £
Remuneration	60,000	60,000
Company contributions to money purchase pension schemes	11,400	10,050

10	Auditors' remuneration

	2019 £	2018 £
Audit of the financial statements	16,800	15,600

 

Page 19

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

11

Taxation

Tax charged/(credited) in the income statement

	2019 £	2018 £
Current taxation
UK corporation tax	67,174	127,590
Deferred taxation
Arising from origination and reversal of timing differences	29,993	(12,858)
Tax expense in the income statement	97,167	114,732

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2018 - higher than the standard rate of corporation tax in the UK) of 19% (2018 - 19%).

The differences are reconciled below:

	2019 £	2018 £
Profit before tax	510,431	547,751
Corporation tax at standard rate	96,982	104,073
Effect of expense not deductible in determining taxable profit (tax loss)	1,558	2,021
Deferred tax expense/(credit) relating to changes in tax rates or laws	29,993	(12,858)
Tax (decrease)/increase from effect of capital allowances and depreciation	(31,572)	18,065
Tax increase from other short-term timing differences	206	3,431
Total tax charge	97,167	114,732

Deferred tax

Deferred tax assets and liabilities

2019	Asset £	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	-	165,949
Tax losses available	13,863	-
General provisions	-	4,492
	13,863	170,441

Page 20

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

2018	Asset £	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	-	136,163
Tax losses available	13,863	-
General provisions	-	4,285
	13,863	140,448

12	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 January 2019	238,000	238,000
At 31 December 2019	238,000	238,000
Amortisation
At 1 January 2019	88,083	88,083
Amortisation charge	11,900	11,900
At 31 December 2019	99,983	99,983
Carrying amount
At 31 December 2019	138,017	138,017
At 31 December 2018	149,917	149,917

Page 21

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

13	Tangible assets

	Land and buildings £	Fixtures and fittings £	Plant and machinery £	Motor vehicles  £	Total £
Cost or valuation
At 1 January 2019	41,147	439,035	1,221,221	1,579,150	3,280,553
Additions	17,826	64,733	262,996	155,856	501,411
Disposals	-	-	(65,599)	(256,586)	(322,185)
At 31 December 2019	58,973	503,768	1,418,618	1,478,420	3,459,779
Depreciation
At 1 January 2019	13,376	336,126	435,728	708,527	1,493,757
Charge for the year	3,267	43,810	150,076	224,290	421,443
Eliminated on disposal	-	-	(22,641)	(164,482)	(187,123)
At 31 December 2019	16,643	379,936	563,163	768,335	1,728,077
Carrying amount
At 31 December 2019	42,330	123,832	855,455	710,085	1,731,702
At 31 December 2018	27,771	102,909	785,492	870,623	1,786,795

Included within the net book value of land and buildings above is £42,330 (2018 - £27,771) in respect of tenant improvements.
 

Page 22

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

	2019 £	2018 £
Motor vehicles, other property, plant and equipment	727,181	824,685

14

Stocks

	2019 £	2018 £
Work in progress	103,573	123,840
Stocks	12,663,979	10,121,466
	12,767,552	10,245,306

15

Debtors

	Note	2019 £	2018 £
Trade debtors		3,149,755	3,531,286
Amounts owed by related parties	24	9,869	14,587
Other debtors		2,587	12,024
Prepayments		1,211,206	1,745,513
		4,373,417	5,303,410

Page 23

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

16	Cash and cash equivalents

	2019 £	2018 £
Cash on hand	1,070	1,434
Cash at bank	4,985	911
	6,055	2,345
Bank overdrafts	(1,435,644)	(1,527,000)
Cash and cash equivalents in statement of cash flows	(1,429,589)	(1,524,655)

17

Creditors

	Note	2019 £	2018 £
Due within one year
Loans and borrowings	21	2,155,029	2,332,882
Trade creditors		9,636,554	7,903,009
Amounts due to related parties	24	1,855	3,300
Social security and other taxes		668,317	634,269
Outstanding defined contribution pension costs		23,639	22,552
Accruals		810,847	880,985
Income tax liability	11	67,174	127,589
		13,363,415	11,904,586
Due after one year
Loans and borrowings	21	613,305	828,422

18	Deferred tax and other provisions

	Deferred tax £	Total £
At 1 January 2019	126,585	126,585
Increase (decrease) in existing provisions	29,993	29,993
At 31 December 2019	156,578	156,578

19	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £107,222 (2018 - £82,101).

Contributions totalling £23,639 (2018 - £22,552) were payable to the scheme at the end of the year and are included in creditors.

Page 24

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

20	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary A shares of £1 each	4	4	4	4
Ordinary B shares of £1 each	100	100	100	100
Ordinary C shares of £1 each	50	50	50	50
	154	154	154	154

21	Loans and borrowings

	2019 £	2018 £
Non-current loans and borrowings
Finance lease liabilities	318,305	478,422
Other borrowings	295,000	350,000
	613,305	828,422

	2019 £	2018 £
Current loans and borrowings
Bank overdrafts	1,435,644	1,527,000
Finance lease liabilities	269,385	355,882
Other borrowings	450,000	450,000
	2,155,029	2,332,882

The bank overdraft is denominated in sterling with a nominal interest rate of 2.21% over base, and the facility was renewed in April 2020. The carrying amount at year end is £1,435,644 (2018 - £1,527,000).

The bank overdraft is secured by a legal charge over the leasehold property at Hinton on the Green, Evesham, Worcestershire.

Security is also held by way of floating charges over all present property, book and other debts, chattells, goodwill and uncalled share capital both present and future.

Other borrowings

Loan notes is denominated in sterling with a nominal interest rate of 5% and 3% respectively, and the final instalment is due on 31 January 2026. The carrying amount at year end is £745,000 (2018 - £800,000).

Page 25

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Included in the loans and borrowings are the following amounts due after more than five years:

	2019 £	2018 £
After more than five years by instalments	95,000	150,000

	-	-

22	Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	269,385	355,882
Later than one year and not later than five years	318,305	478,422
	587,690	834,304

Operating leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	140,000	140,000
Later than one year and not later than five years	243,333	403,333
	383,333	543,333

The amount of non-cancellable operating lease payments recognised as an expense during the year was £140,000 (2018 - £140,000).

23

Dividends

Interim dividends paid

		2019 £		2018 £
Interim dividend of £22,454.57 (2018 - £22,000.00) per each Ordinary A Shares		89,818		88,000
Interim dividend of £454.54 (2018 - £Nil) per each Ordinary B Shares		45,455		-
Interim dividend of £454.54 (2018 - £Nil) per each Ordinary C Shares		22,727		-
		158,000		88,000

Page 26

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

24	Related party transactions

Transactions with directors

2019	At 1 January 2019 £	Advances to directors £	Repayments by director £	At 31 December 2019 £
BJ Tallis
Interest free loan repayable on demand	9,437	4,917	(14,354)	-
CJ Tallis
Interest free loan repayable on demand	630	-	-	630

2018	At 1 January 2018 £	Advances to directors £	At 31 December 2018 £
BJ Tallis
Interest free loan repayable on demand	5,537	3,900	9,437
CJ Tallis
Interest free loan repayable on demand	630	-	630

Page 27

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Income and receivables from related parties

2019	Entities with joint control or significant influence £	Other related parties £
Sale of goods	163,687	-
	163,687	-

Expenditure with and payables to related parties

2019	Entities with joint control or significant influence £
Purchase of goods	151,458
Leases	100,000
Transfers under finance arrangements (including loans and equity contributions)	10,655
	262,113

2018	Entities with joint control or significant influence £
Purchase of goods	165,600
Leases	100,000
Transfers under finance arrangements (including loans and equity contributions)	13,973
	279,573

Loans to related parties

2019	Key management £
At start of period	10,067
Advanced	4,918
Repaid	(14,355)
At end of period	630

2018	Key management £
At start of period	6,167
Advanced	3,900
At end of period	10,067

Page 28

Tallis Amos Group Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Loans from related parties

2019	Entities with joint control or significant influence £
At start of period	400,000
Repaid	(55,000)
At end of period	345,000

2018	Entities with joint control or significant influence £
At start of period	500,000
Repaid	(100,000)
At end of period	400,000

Terms of loans from related parties

Loan note repayable in 2026 with interest charged at 3% per annum.
 

25	Parent and ultimate parent undertaking

The ultimate controlling party is B Tallis and S Amos, both directors of the company.

Page 29