Skyline Roofing Centres Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03286694 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 June 2020

for

Skyline Roofing Centres Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

S J Revell

C Moran

W R Revell

R J Revell

SECRETARY:

S J Revell

REGISTERED OFFICE:

Unit 73 Waterside Trade Centre

Trumpers Way

Hanwell

London

W7 2QA

REGISTERED NUMBER:

03286694 (England and Wales)

AUDITORS:

Bristow Burrell

Statutory Auditors

4 Riverview

Walnut Tree Close

Guildford

Surrey

GU1 4UX

In the year under review the Company continued to maintain its significant market position in the South East and London area. Although the actual sales for the year remained at a similar level to 2019 this was due to the business interruption caused by Covid-19, the actual underlying growth rate was 2.93%. Additionally product margins were maintained in a very competitive market. The company has continued to expand its sales operation with new branches becoming fully operational in the year, which will enable the company to consolidate and increase its sales potential in the next few years.

The Directors consider the continued uncertainty of the UK economy and that specifically surrounding Brexit and Covid-19 could cause issues of the timely availability of product from UK and European suppliers. These are the principal risk to the Company's business but the Directors are confident that they have the necessary resources and skills to enable the Company to meet its objectives for future growth including securing the key supply chains that will allow it to develop new markets and sales opportunities.

The Company continues to invest in all aspects of its business infrastructure especially in respect of staff, IT and transport in both this and the forthcoming year including at its new locations. This is again reflected in the Company enhancing its Balance Sheet position and increasing its net asset value .

ON BEHALF OF THE BOARD:

W R Revell - Director

8 December 2020

The directors present their report with the financial statements of the company for the year ended 30 June 2020.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2020.

DIRECTORS

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

S J Revell

C Moran

W R Revell

R J Revell

DISCLOSURE IN THE STRATEGIC REPORT

The company has exercised the option to disclose information which usually appears in the Report of the Directors in the Strategic Report instead. This includes an assessment of the principal risks and uncertainties faced, as well as likely future developments of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

W R Revell - Director

8 December 2020

Opinion

We have audited the financial statements of Skyline Roofing Centres Limited (the 'company') for the year ended 30 June 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 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 Statement of Directors' Responsibilities set out on page three, 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.

R Spicer (Senior Statutory Auditor)

for and on behalf of Bristow Burrell

Statutory Auditors

4 Riverview

Walnut Tree Close

Guildford

Surrey

GU1 4UX

8 December 2020

TURNOVER

21,778,649

21,985,939

Cost of sales

16,985,865

17,165,238

GROSS PROFIT

4,792,784

4,820,701

Administrative expenses

4,006,283

4,274,288

786,501

546,413

Other operating income

112

-

OPERATING PROFIT

5

786,613

546,413

Interest receivable and similar income

244

751

786,857

547,164

Interest payable and similar expenses

6

30,793

34,346

PROFIT BEFORE TAXATION

756,064

512,818

Tax on profit

7

144,799

99,994

PROFIT FOR THE FINANCIAL YEAR

611,265

412,824

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

611,265

412,824

FIXED ASSETS

Tangible assets

8

1,021,651

1,181,892

Investments

9

1,300

1,300

1,022,951

1,183,192

CURRENT ASSETS

Stocks

10

2,371,829

2,619,797

Debtors

11

3,177,043

3,115,053

Cash at bank and in hand

3,356,179

110,754

8,905,051

5,845,604

CREDITORS

Amounts falling due within one year

12

2,193,960

1,824,648

NET CURRENT ASSETS

6,711,091

4,020,956

TOTAL ASSETS LESS CURRENT LIABILITIES

7,734,042

5,204,148

CREDITORS

Amounts falling due after more than one year

13

(2,422,998

)

(490,862

)

PROVISIONS FOR LIABILITIES

17

(119,392

)

(132,899

)

NET ASSETS

5,191,652

4,580,387

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

5,191,452

4,580,187

SHAREHOLDERS' FUNDS

5,191,652

4,580,387

The financial statements were approved by the Board of Directors and authorised for issue on 8 December 2020 and were signed on its behalf by:

S J Revell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2018

200

4,167,363

4,167,563

Changes in equity

Total comprehensive income

-

412,824

412,824

Balance at 30 June 2019

200

4,580,187

4,580,387

Changes in equity

Total comprehensive income

-

611,265

611,265

Balance at 30 June 2020

200

5,191,452

5,191,652

1.	STATUTORY INFORMATION

Skyline Roofing Centres 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

10% on cost

Improvements to property

-

25% on cost, 20% on cost and 10% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

2,800,565

2,987,287

Social security costs

254,082

269,913

Other pension costs

74,228

61,035

3,128,875

3,318,235

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

2020

2019

Administration

33

33

Direct Labour

69

70

102

103

2020

2019

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

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

2020

2019

£

£

Depreciation - owned assets

216,948

390,750

Depreciation - assets on hire purchase contracts

173,269

5,826

Loss on disposal of fixed assets

832

16,954

Auditors' remuneration

6,000

6,000

Foreign exchange differences

(112

)

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank loan interest

1,658

-

Hire purchase

29,135

34,346

30,793

34,346

7.

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

158,306

77,321

Deferred tax

(13,507

)

22,673

Tax on profit

144,799

99,994

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

756,064

512,818

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

143,652

97,435

Effects of:

Expenses not deductible for tax purposes

1,147

2,192

Capital allowances in excess of depreciation

-

(22,306

)

Depreciation in excess of capital allowances

13,507

-

Deferred tax

(13,507

)

22,673

Total tax charge

144,799

99,994

8.	TANGIBLE FIXED ASSETS

Improvements

Short

to

Plant and

leasehold

property

machinery

£

£

£

COST

At 1 July 2019

31,578

239,435

614,268

Additions

-

-

57,001

Disposals

-

-

-

At 30 June 2020

31,578

239,435

671,269

DEPRECIATION

At 1 July 2019

31,578

239,435

353,377

Charge for year

-

-

91,563

Eliminated on disposal

-

-

-

At 30 June 2020

31,578

239,435

444,940

NET BOOK VALUE

At 30 June 2020

-

-

226,329

At 30 June 2019

-

-

260,891

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 July 2019

559,319

1,733,732

3,178,332

Additions

174,308

-

231,309

Disposals

(26,192

)

(36,000

)

(62,192

)

At 30 June 2020

707,435

1,697,732

3,347,449

DEPRECIATION

At 1 July 2019

424,070

947,980

1,996,440

Charge for year

102,215

196,439

390,217

Eliminated on disposal

(25,999

)

(34,860

)

(60,859

)

At 30 June 2020

500,286

1,109,559

2,325,798

NET BOOK VALUE

At 30 June 2020

207,149

588,173

1,021,651

At 30 June 2019

135,249

785,752

1,181,892

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 July 2019

17,849

1,080,618

1,098,467

Additions

32,009

-

32,009

At 30 June 2020

49,858

1,080,618

1,130,476

DEPRECIATION

At 1 July 2019

3,867

217,298

221,165

Charge for year

9,438

163,831

173,269

At 30 June 2020

13,305

381,129

394,434

NET BOOK VALUE

At 30 June 2020

36,553

699,489

736,042

At 30 June 2019

13,982

863,320

877,302

9.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 July 2019

and 30 June 2020

1,300

NET BOOK VALUE

At 30 June 2020

1,300

At 30 June 2019

1,300

10.

STOCKS

2020

2019

£

£

Stocks

2,371,829

2,619,797

Stocks are measured at the lower of cost and net realisable value, after making allowances for obsolete and slow moving items. The cost formula used is the first in, first out (FIFO) method.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,879,517

2,873,429

Other debtors

210,147

107,200

Prepayments

87,379

134,424

3,177,043

3,115,053

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 14)

47,671

-

Hire purchase contracts (see note 15)

228,407

229,693

Trade creditors

304,548

380,440

Tax

158,306

77,321

Social security and other taxes

67,328

98,219

VAT

780,019

469,756

Other creditors

388,787

406,266

Accrued expenses

218,894

162,953

2,193,960

1,824,648

13.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans (see note 14)

2,088,874

-

Hire purchase contracts (see note 15)

334,124

490,862

2,422,998

490,862

14.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year or on demand:

Bank loans

47,671

-

Amounts falling due between one and two years:

Bank loans - 1-2 years

549,910

-

Amounts falling due between two and five years:

Bank loans - 2-5 years

1,538,964

-