Portico GB Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04118987 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 January 2020

for

Portico GB Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

P A Martin

Mrs F Williams

G J Clayton

O C Hart

SECRETARY:

Mrs F Williams

REGISTERED OFFICE:

Unit 9 Woolpit Business Park

Windmill Avenue

Woolpit

Bury St Edmunds

Suffolk

IP30 9UP

REGISTERED NUMBER:

04118987 (England and Wales)

AUDITORS:

Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The directors present their strategic report for the year ended 31 January 2020.

REVIEW OF BUSINESS

Portico GB Limited offer a comprehensive national coverage to supply and install windows and wardrobes with a focus on supplying new build residential developments. Portico GB Limited aims to provide high quality products backed by exemplary levels of customer service. The company continually aims to invest in an ever expanding team to ensure this quality is maintained and can consistently be improved wherever possible.

The company's focus on quality, and customer satisfaction has seen the company grow in recent years. This growth can be seen in the annexed financial statements. The year ended 31 January 2020 has seen turnover increase by 9% to £11,059,129 (2019 : £10,138,238) with gross profit margins being maintained. This improved financial performance is a result of the planned continued expansion of the company and the drive to consistently fulfil customers expectations.

The net balance sheet of the company shows a strong financial position with overall shareholders funds increasing to £7,732,560 (2019 : £6,963,325). This provides the company with a strong support to grow in the future.

PRINCIPAL RISKS AND UNCERTAINTIES

As with many businesses the ongoing COVID-19 pandemic is a risk for the company however the company is fully prepared for the future and has taken the necessary steps to prepare financially for the challenges ahead. The company has a strong balance sheet and the directors are confident that the company will successfully trade through this pandemic and continue to grow going forward.

ON BEHALF OF THE BOARD:

Mrs F Williams - Director

23 October 2020

The directors present their report with the financial statements of the company for the year ended 31 January 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a supply and fix sub-contractor to new build properties.

DIVIDENDS

Interim dividends per share were paid as follows:

£0.1433

- 24 May 2019

£0.1433

- 25 June 2019

£0.1433

- 25 July 2019

£0.1433

- 23 August 2019

£0.1433

- 25 September 2019

£0.1433

- 25 October 2019

£0.1433

- 22 November 2019

£0.1433

- 20 December 2019

£0.1433

- 24 January 2020

£1.289

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 January 2020 will be £ 90,256 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2019 to the date of this report.

P A Martin

Mrs F Williams

Other changes in directors holding office are as follows:

G J Clayton - appointed 9 May 2019

O C Hart - appointed 9 May 2019

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the 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 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 then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.

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 company'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 company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mrs F Williams - Director

23 October 2020

Opinion

We have audited the financial statements of Portico GB Limited (the 'company') for the year ended 31 January 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 January 2020 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 Auditors' 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 in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Directors' Responsibilities Statement set out on pages three and four, 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 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.

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.

James Knights ACA (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

26 October 2020

TURNOVER

11,059,129

10,138,238

Cost of sales

8,379,853

7,821,766

GROSS PROFIT

2,679,276

2,316,472

Administrative expenses

1,607,792

1,472,269

OPERATING PROFIT

4

1,071,484

844,203

Interest receivable and similar income

10,057

12,308

PROFIT BEFORE TAXATION

1,081,541

856,511

Tax on profit

5

222,050

165,447

PROFIT FOR THE FINANCIAL YEAR

859,491

691,064

PROFIT FOR THE YEAR

859,491

691,064

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

859,491

691,064

FIXED ASSETS

Tangible assets

7

365,058

344,404

CURRENT ASSETS

Stocks

8

565,716

595,772

Debtors

9

6,085,742

2,212,221

Cash at bank and in hand

1,680,566

4,526,616

8,332,024

7,334,609

CREDITORS

Amounts falling due within one year

10

901,760

656,223

NET CURRENT ASSETS

7,430,264

6,678,386

TOTAL ASSETS LESS CURRENT LIABILITIES

7,795,322

7,022,790

PROVISIONS FOR LIABILITIES

12

62,762

59,465

NET ASSETS

7,732,560

6,963,325

CAPITAL AND RESERVES

Called up share capital

13

70

70

Capital redemption reserve

14

30

30

Retained earnings

14

7,732,460

6,963,225

SHAREHOLDERS' FUNDS

7,732,560

6,963,325

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

P A Martin - Director

Mrs F Williams - Director

G J Clayton - Director

O C Hart - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2018

70

6,272,161

30

6,272,261

Changes in equity

Total comprehensive income

-

691,064

-

691,064

Balance at 31 January 2019

70

6,963,225

30

6,963,325

Changes in equity

Dividends

-

(90,256

)

-

(90,256

)

Total comprehensive income

-

859,491

-

859,491

Balance at 31 January 2020

70

7,732,460

30

7,732,560

Cash flows from operating activities

Cash generated from operations

1

1,073,371

1,132,570

Tax paid

(165,481

)

(194,385

)

Net cash from operating activities

907,890

938,185

Cash flows from investing activities

Purchase of tangible fixed assets

(151,077

)

(163,554

)

Sale of tangible fixed assets

38,721

24,000

Interest received

10,057

12,308

Loans to group companies

(3,561,385

)

-

Net cash from investing activities

(3,663,684

)

(127,246

)

Cash flows from financing activities

Amount introduced by directors

-

200,000

Equity dividends paid

(90,256

)

-

Net cash from financing activities

(90,256

)

200,000

(Decrease)/increase in cash and cash equivalents

(2,846,050

)

1,010,939

Cash and cash equivalents at beginning of year

2

4,526,616

3,515,677

Cash and cash equivalents at end of year

2

1,680,566

4,526,616

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

2020

2019

£

£

Profit before taxation

1,081,541

856,511

Depreciation charges

97,840

133,757

Profit on disposal of fixed assets

(6,138

)

(2,396

)

Finance income

(10,057

)

(12,308

)

1,163,186

975,564

Decrease in stocks

30,056

60,462

(Increase)/decrease in trade and other debtors

(312,136

)

334,232

Increase/(decrease) in trade and other creditors

192,265

(237,688

)

Cash generated from operations

1,073,371

1,132,570

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 31 January 2020

31.1.20

1.2.19

£

£

Cash and cash equivalents

1,680,566

4,526,616

Year ended 31 January 2019

31.1.19

1.2.18

£

£

Cash and cash equivalents

4,526,616

3,515,677

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.19

Cash flow

At 31.1.20

£

£

£

Net cash

Cash at bank and in hand

4,526,616

(2,846,050

)

1,680,566

4,526,616

(2,846,050

)

1,680,566

Total

4,526,616

(2,846,050

)

1,680,566

1.	STATUTORY INFORMATION

Portico GB 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.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the Company's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that and future periods.

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets - property, plant and machinery

Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors knowledge of the reduction in the residual value of trading assets and estate property on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of the economic lives of the assets.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

Straight line over 15 years

Plant & equipment

-

25% on reducing balance

Fixtures & fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

4 years straight line

Stocks

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

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable or other related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

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

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.

Revenue recognition

Revenue is measured at fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed and value added taxes.

Revenue is recognised when the significant risks and rewards of ownership have been transfered to the buyer, the amount of revenue can be measured reliably and its probable that future economic benefits will flow to the entity.

Retentions which relate to an element of revenue that is recognised at the point of sale but not receivable until specifics of total contracts are completed are disclosed as amounts recoverable on contracts.

Impairment review

At each reporting date, goodwill and other fixed assets, including tangible fixed assets and investments but excluding investment properties, are assessed to determine whether there is an indication that the carrying amount of an asset may be more than its recoverable amount and that the asset should be impaired. If there is an indication of possible impairment, the recoverable amount of an asset, which is the higher of its value in use and its net realisable value, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is written down to its estimated recoverable amount and an impairment loss is recognised in the income statement.

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

1,929,354

1,832,187

Social security costs

25,271

19,869

Other pension costs

6,779

1,635

1,961,404

1,853,691

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

2020

2019

Employees

52

51

2020

2019

£

£

Directors' remuneration

229,016

178,115

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

Money purchase schemes

3

2

Information regarding the highest paid director for the year ended 31 January 2020 is as follows:

2020

£

Emoluments etc

66,384

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2020

2019

£

£

Hire of plant and machinery

14,780

20,130

Depreciation - owned assets

97,840

133,757

Profit on disposal of fixed assets

(6,138

)

(2,396

)

Auditors' remuneration

5,250

5,500

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

218,753

165,481

Deferred tax

3,297

(34

)

Tax on profit

222,050

165,447

UK corporation tax has been charged at 19% (2019 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2020

2019

£

£

Profit before tax

1,081,541

856,511

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

205,493

162,737

Effects of:

Expenses not deductible for tax purposes

15,814

2,563

Capital allowances in excess of depreciation

(2,554

)

-

Depreciation in excess of capital allowances

-

181

Deferred tax

3,297

(34

)

Total tax charge

222,050

165,447

6.

DIVIDENDS

2020

2019

£

£

Ordinary shares of £0.001 each

Interim - ordinary shares

90,256

-

7.	TANGIBLE FIXED ASSETS

Improvements

to

Plant &

Fixtures

property

equipment

& fittings

£

£

£

COST

At 1 February 2019

27,548

179,590

28,574

Additions

14,777

6,401

1,565

Disposals

-

(1,613

)

-

At 31 January 2020

42,325

184,378

30,139

DEPRECIATION

At 1 February 2019

136

97,474

23,204

Charge for year

2,656

21,532

1,571

Eliminated on disposal

-

(441

)

-

At 31 January 2020

2,792

118,565

24,775

NET BOOK VALUE

At 31 January 2020

39,533

65,813

5,364

At 31 January 2019

27,412

82,116

5,370

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 February 2019

436,469

54,445

726,626

Additions

95,378

32,956

151,077

Disposals

(104,828

)

-

(106,441

)

At 31 January 2020

427,019

87,401

771,262

DEPRECIATION

At 1 February 2019

222,713

38,695

382,222

Charge for year

61,079

11,002

97,840

Eliminated on disposal

(73,417

)

-

(73,858

)

At 31 January 2020

210,375

49,697

406,204

NET BOOK VALUE

At 31 January 2020

216,644

37,704

365,058

At 31 January 2019

213,756

15,750

344,404