Campbell & Tate Ltd - Limited company accounts 20.1
Campbell & Tate Ltd - Limited company accounts 20.1
| REGISTERED NUMBER: 04505714 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2020 |
| FOR |
| CAMPBELL & TATE LTD |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2020 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Statement of Comprehensive Income | 7 |
| Consolidated Balance Sheet | 8 |
| Company Balance Sheet | 9 |
| Consolidated Statement of Changes in Equity | 10 |
| Company Statement of Changes in Equity | 11 |
| Consolidated Cash Flow Statement | 12 |
| Notes to the Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Financial Statements | 15 |
| CAMPBELL & TATE LTD |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MAY 2020 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| Statutory Auditor |
| 54 Thorpe Road |
| Norwich |
| Norfolk |
| NR1 1RY |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2020 |
| The directors present their strategic report of the company and the group for the year ended 31 May 2020. |
| REVIEW OF BUSINESS |
| The principal activity of the group is that of injection moulding, blow moulding and plastic design, plastic development and prototyping. |
| Turnover for the year reduced by £213,653 to £8,083,912, turnover on manufactured items reduced by £80,296, with the remainder on mould and tooling work. Gross profit however increased by £181,011 to £2,757,596 with an overall margin of 34.11% (31.05% in the prior year). Average employee numbers were 57 (58 in the prior year). |
| The Board are pleased with the financial results for the year which reflect a number of changes and investment that have happened within the business in recent years. The turnover for manufactured items has seen turnover broadly in line with the prior period despite the worldwide impact of Coronavirus. The increased margin is in line with the strategy of seeking higher margin work. |
| The group have always had a loyal base of blue chip customers and during the year it has been successful in developing new relationships and expanding its customer base by using its reputation for quality products and service to win additional business. |
| There were a number of changes within the business during the prior year and continuing in the current year including personnel changes and the acquisition of a new factory and machines to support the growth aspirations of the business. The group has invested in a new IT system which is helping improve management information and hence aid efficiency. |
| The group ends the year with a strong order book and enquiries from new prospects. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The use of plastics is coming under more scrutiny going forward and while there is no question over the size of the market and CODA's ability to be part of it there are increased costs associated with it both from raw material product pricing and associated direct and indirect taxation linked to the effects on the environment. These factors will put added pressure on margins going forward. |
| The company has considered the impact of BREXIT on the importing of raw materials. While it has been in dialogue with key suppliers around the ongoing supply, there is still uncertainty about what any impact may be. |
| The biggest risk facing the company, in line with many businesses, is the Coronavirus pandemic. However to date, subject to a short period during the initial lockdown, the company have seen little negative overall impact, whilst some products saw a drop in demand, this was more than made up by increased demand in other products to such an extent that recent months have seen record month on month turnover. The board will continue to be alert to any changes necessary in line with government guidelines. |
| ON BEHALF OF THE BOARD: |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2020 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 May 2020. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 May 2020 will be £ 172,000 . |
| RESEARCH AND DEVELOPMENT |
| The group will continue to invest in Research and Development, as was evidenced in the period with tax credits amounting to £31,191. |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2019 to the date of this report. |
| DIRECTORS THIRD PARTY INDEMNITY |
| A third party indemnity policy exists for the benefit of all Directors. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2020 |
| AUDITORS |
| The auditors, Berry & Warren Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CAMPBELL & TATE LTD |
| Opinion |
| We have audited the financial statements of Campbell & Tate Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2020 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
| - | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| CAMPBELL & TATE LTD |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants |
| Statutory Auditor |
| 54 Thorpe Road |
| Norwich |
| Norfolk |
| NR1 1RY |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 8,083,912 | 8,297,565 |
| Cost of sales | 5,326,316 | 5,720,980 |
| GROSS PROFIT | 2,757,596 | 2,576,585 |
| Distribution costs | 533,871 | 522,500 |
| Administrative expenses | 1,396,318 | 1,422,800 |
| 1,930,189 | 1,945,300 |
| 827,407 | 631,285 |
| Other operating income | 6,628 | - |
| OPERATING PROFIT | 4 | 834,035 | 631,285 |
| Interest receivable and similar income | 9,977 | 7,494 |
| 844,012 | 638,779 |
| Amounts written off investments | 5 | - | 25,109 |
| 844,012 | 613,670 |
| Interest payable and similar expenses | 6 | 34,405 | 52,084 |
| PROFIT BEFORE TAXATION | 809,607 | 561,586 |
| Tax on profit | 7 | 129,395 | 119,402 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
680,212 |
442,184 |
| Profit attributable to: |
| Owners of the parent | 680,212 | 442,184 |
| Total comprehensive income attributable to: |
| Owners of the parent | 680,212 | 442,184 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| CONSOLIDATED BALANCE SHEET |
| 31 MAY 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 | 3,230,481 | 2,956,692 |
| Investments | 11 | 67 | 1 |
| 3,230,548 | 2,956,693 |
| CURRENT ASSETS |
| Stocks | 12 | 794,982 | 866,778 |
| Debtors | 13 | 1,844,589 | 2,536,032 |
| Cash at bank and in hand | 1,204,011 | 373,257 |
| 3,843,582 | 3,776,067 |
| CREDITORS |
| Amounts falling due within one year | 14 | 1,997,340 | 2,142,549 |
| NET CURRENT ASSETS | 1,846,242 | 1,633,518 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
5,076,790 |
4,590,211 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
(516,716 |
) |
(620,353 |
) |
| PROVISIONS FOR LIABILITIES | 20 | (303,577 | ) | (221,573 | ) |
| NET ASSETS | 4,256,497 | 3,748,285 |
| CAPITAL AND RESERVES |
| Called up share capital | 21 | 100 | 100 |
| Retained earnings | 22 | 4,256,397 | 3,748,185 |
| SHAREHOLDERS' FUNDS | 4,256,497 | 3,748,285 |
| The financial statements were approved by the Board of Directors and authorised for issue on 1 October 2020 and were signed on its behalf by: |
| Mr N Tate - Director |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| COMPANY BALANCE SHEET |
| 31 MAY 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 | 278,237 |
| Investments | 11 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 329,232 | 208,263 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MAY 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 June 2018 | 100 | 3,450,001 | 3,450,101 |
| Changes in equity |
| Dividends | - | (144,000 | ) | (144,000 | ) |
| Total comprehensive income | - | 442,184 | 442,184 |
| Balance at 31 May 2019 | 100 | 3,748,185 | 3,748,285 |
| Changes in equity |
| Dividends | - | (172,000 | ) | (172,000 | ) |
| Total comprehensive income | - | 680,212 | 680,212 |
| Balance at 31 May 2020 | 100 | 4,256,397 | 4,256,497 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MAY 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 June 2018 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2020 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,766,176 | 716,238 |
| Interest paid | (23,925 | ) | (33,759 | ) |
| Interest element of hire purchase payments paid |
(10,480 |
) |
(18,325 |
) |
| Tax paid | (152,024 | ) | (54,908 | ) |
| Net cash from operating activities | 1,579,747 | 609,246 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (491,182 | ) | (106,789 | ) |
| Sale of tangible fixed assets | 30,000 | - |
| Interest received | 9,977 | 7,494 |
| Net cash from investing activities | (451,205 | ) | (99,295 | ) |
| Cash flows from financing activities |
| New loans in year | 50,000 | - |
| Loan repayments in year | (100,112 | ) | (171,533 | ) |
| Capital repayments in year | (130,075 | ) | (203,435 | ) |
| Amount introduced by directors | 244,235 | - |
| Amount withdrawn by directors | - | (404,472 | ) |
| Equity dividends paid | (172,000 | ) | (144,000 | ) |
| Net cash from financing activities | (107,952 | ) | (923,440 | ) |
| Increase/(decrease) in cash and cash equivalents | 1,020,590 | (413,489 | ) |
| Cash and cash equivalents at beginning of year |
2 |
183,421 |
596,910 |
| Cash and cash equivalents at end of year | 2 | 1,204,011 | 183,421 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Profit before taxation | 809,607 | 561,586 |
| Depreciation charges | 321,360 | 334,055 |
| Loss on disposal of fixed assets | 7,025 | 6,000 |
| Amounts written off investments | - | 25,109 |
| Government grants | (6,628 | ) | - |
| Finance costs | 34,405 | 52,084 |
| Finance income | (9,977 | ) | (7,494 | ) |
| 1,155,792 | 971,340 |
| Decrease/(increase) in stocks | 71,796 | (161,311 | ) |
| Decrease/(increase) in trade and other debtors | 504,138 | (385,351 | ) |
| Increase in trade and other creditors | 34,450 | 291,560 |
| Cash generated from operations | 1,766,176 | 716,238 |
| 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 May 2020 |
| 31.5.20 | 1.6.19 |
| £ | £ |
| Cash and cash equivalents | 1,204,011 | 373,257 |
| Bank overdrafts | - | (189,836 | ) |
| 1,204,011 | 183,421 |
| Year ended 31 May 2019 |
| 31.5.19 | 1.6.18 |
| £ | £ |
| Cash and cash equivalents | 373,257 | 860,688 |
| Bank overdrafts | (189,836 | ) | (263,778 | ) |
| 183,421 | 596,910 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
| At 1.6.19 | Cash flow | At 31.5.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 373,257 | 830,754 | 1,204,011 |
| Bank overdrafts | (189,836 | ) | 189,836 | - |
| 183,421 | 1,020,590 | 1,204,011 |
| Debt |
| Finance leases | (271,854 | ) | 130,075 | (141,779 | ) |
| Debts falling due within 1 year | (99,779 | ) | 30,215 | (69,564 | ) |
| Debts falling due after 1 year | (478,575 | ) | 19,896 | (458,679 | ) |
| (850,208 | ) | 180,186 | (670,022 | ) |
| Total | (666,787 | ) | 1,200,776 | 533,989 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 1. | STATUTORY INFORMATION |
| Campbell & Tate Ltd is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| In applying the group's accounting policies, the directors are required to make judgements, estimates and assumptions. These are continually evaluated and are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
| The estimates and assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of revision and future periods, if the revision affects both current and future periods. |
| Those judgements and estimates that the directors deem significant are detailed below in respect of the depreciation of tangible fixed assets. |
| Included within Plant and machinery are moulds and tooling work used for production. Due to their custom manufacture, often for a specific project, the directors have adopted a policy of 33% depreciation on a reducing balance. The carrying value is reviewed annually for those no longer in use and for which no alternative use is seen to exist at the time without significant modification. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover is recognised when products and services are supplied to customers in line with contractual arrangements. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| In determining the cost of stock, latest invoice price is used for raw materials and standard cost used for finished goods and work in progress. Standard cost is regularly reviewed and updated. Given the fast moving nature of most stock lines these methods are considered close to actual cost. Both policies represent a change to the prior year but the impact is seen as negligible. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group only enter into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors and bank loans. |
| Assets and liabilities are measured at amortised cost. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
| 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 3. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Management and administration | 12 | 12 |
| Production | 43 | 44 |
| Sales | 2 | 2 |
| Agency staff were used at various times to meet demand which are not included in the above staff numbers but are included in wages and salaries costs. This amounted to £299,404 (2019 £342,860). |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 2020 | 2019 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss on disposal of fixed assets |
| Auditors remuneration |
| Foreign exchange differences | ( |
) |
| 5. | AMOUNTS WRITTEN OFF INVESTMENTS |
| 2020 | 2019 |
| £ | £ |
| Amounts written off |
| investments | - | 25,109 |
| The investment has been written down to a nominal sum due to losses and a dilution in the shareholding. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Factoring interest |
| Bank loan interest |
| Hire purchase interest |
| 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 |
| Prior year corporation taxation over provided | (31,191 | ) | - |
| Total current tax |
| Deferred tax: |
| Origination and reversal of timing differences | ( |
) |
| Tax on profit |
| UK corporation tax was charged at 19%) in 2019. |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2020 | 2019 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Research and development claim | (31,191 | ) | - |
| Total tax charge | 129,395 | 119,402 |
| 8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 9. | DIVIDENDS |
| 2020 | 2019 |
| £ | £ |
| Ordinary "A" shares of £1 each |
| Interim |
| Ordinary "B" shares of £1 each |
| Interim |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Freehold | Plant and | and | Motor |
| property | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 June 2019 | 1,536,178 | 7,185,860 | 224,901 | 95,906 | 9,042,845 |
| Additions | - | 567,406 | 1,864 | 62,905 | 632,175 |
| Disposals | - | (13,395 | ) | - | (74,406 | ) | (87,801 | ) |
| At 31 May 2020 | 1,536,178 | 7,739,871 | 226,765 | 84,405 | 9,587,219 |
| DEPRECIATION |
| At 1 June 2019 | 326,128 | 5,521,877 | 170,166 | 67,982 | 6,086,153 |
| Charge for year | 28,724 | 278,550 | 13,684 | 403 | 321,361 |
| Eliminated on disposal | - | (2,680 | ) | - | (48,096 | ) | (50,776 | ) |
| At 31 May 2020 | 354,852 | 5,797,747 | 183,850 | 20,289 | 6,356,738 |
| NET BOOK VALUE |
| At 31 May 2020 | 1,181,326 | 1,942,124 | 42,915 | 64,116 | 3,230,481 |
| At 31 May 2019 | 1,210,050 | 1,663,983 | 54,735 | 27,924 | 2,956,692 |
| Included in cost of land and buildings is freehold land of £100,000 (2019 - £100,000) which is not depreciated. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and |
| machinery |
| £ |
| COST |
| At 1 June 2019 |
| Transfer to ownership | (222,535 | ) |
| At 31 May 2020 |
| DEPRECIATION |
| At 1 June 2019 |
| Charge for year |
| Transfer to ownership | (122,394 | ) |
| At 31 May 2020 |
| NET BOOK VALUE |
| At 31 May 2020 |
| At 31 May 2019 |
| Company |
| Freehold |
| property |
| £ |
| COST |
| At 1 June 2019 |
| and 31 May 2020 | 289,831 |
| DEPRECIATION |
| At 1 June 2019 | 5,797 |
| Charge for year | 5,797 |
| At 31 May 2020 | 11,594 |
| NET BOOK VALUE |
| At 31 May 2020 | 278,237 |
| At 31 May 2019 | 284,034 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 11. | FIXED ASSET INVESTMENTS |
| Group |
| Shares in |
| group | Unlisted |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST |
| At 1 June 2019 | - | 1 | 1 |
| Additions | 66 | - | 66 |
| At 31 May 2020 | 66 | 1 | 67 |
| NET BOOK VALUE |
| At 31 May 2020 | 66 | 1 | 67 |
| At 31 May 2019 | - | 1 | 1 |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 June 2019 |
| Additions |
| At 31 May 2020 |
| NET BOOK VALUE |
| At 31 May 2020 |
| At 31 May 2019 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: Folgate Road, North Walsham, Norfolk, NR28 OAJ |
| Nature of business: |
| % |
| Class of shares: | holding |
| The Company owned 66.67% of CGT(Norfolk) Ltd, incorporated September 19, no trading took place and the investment was disposed of July 20. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 12. | STOCKS |
| Group |
| 2020 | 2019 |
| £ | £ |
| Raw materials and work in progress | 396,662 | 438,000 |
| Finished goods | 398,320 | 428,778 |
| 794,982 | 866,778 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade debtors | 1,458,971 | 2,101,947 |
| Other debtors | 84,428 | 8,111 |
| Directors' current accounts | 173,713 | 417,948 | 163,800 | 404,770 |
| Prepayments and accrued income | 127,477 | 8,026 |
| 1,844,589 | 2,536,032 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 16) | 69,564 | 289,615 |
| Hire purchase contracts (see note 17) | 83,742 | 130,076 |
| Trade creditors | 1,135,483 | 1,084,004 |
| Amounts owed to group undertakings | - | - |
| Taxation | 78,582 | 132,915 |
| Social security and other taxes | 368,668 | 215,717 |
| Other creditors | 66 | - |
| Accruals | 261,235 | 290,222 |
| 1,997,340 | 2,142,549 |
| Trade creditors includes £140,993 in respect of the final 40% on a Magic Machine in Coda Plastics Limited. |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank loans (see note 16) | 458,679 | 478,575 |
| Hire purchase contracts (see note 17) | 58,037 | 141,778 |
| 516,716 | 620,353 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | - | 189,836 |
| Bank loans less than 1 year | 69,564 | 99,779 |
| 69,564 | 289,615 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 75,231 | 69,725 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 206,710 | 203,153 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loan more than 5 years | 176,738 | 205,697 | - | - |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 83,742 | 130,076 |
| Between one and five years | 58,037 | 141,778 |
| 141,779 | 271,854 |
| Group |
| Non-cancellable operating | leases |
| 2020 | 2019 |
| £ | £ |
| Within one year | 48,705 | 70,587 |
| Between one and five years | 30,288 | 63,437 |
| 78,993 | 134,024 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Bank overdraft | - | 189,836 |
| Bank loans | 528,243 | 578,354 |
| Hire purchase contracts | 141,779 | 271,854 | - | - |
| Bounce back loan not secured | (50,000 | ) | - | - | - |
| 620,022 | 1,040,044 |
| The bank loans are secured against freehold premises. Hire purchase liabilities are secured against the assets financed. The invoice finance (Bank overdraft) account is secured against trade debtors. A floating charge also exists in respect of the bank loans and invoice finance account. |
| 19. | FINANCIAL INSTRUMENTS |
| Group financial assets measured at amortised cost comprise cash at bank and debtors due within one year amounting to £2,687,848 (2019 £2,475,046). Company financial assets amounted to £556,466 (2019 £265,480). |
| Group financial liabilities measured at amortised cost cost comprise trade creditors due within one year and bank loans falling due within one year and after one year amounting to £1,663,726 (2019 £1,852,194). Company financial liabilities amounted to £123,618 (2019 £151,756). |
| 20. | PROVISIONS FOR LIABILITIES |
| Group |
| 2020 | 2019 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 303,577 | 221,573 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2019 | 221,573 |
| Charge to Statement of Comprehensive Income during year | 82,004 |
| Balance at 31 May 2020 | 303,577 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted and issued: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary "A" | £1 | 50 | 50 |
| Ordinary "B" | £1 | 50 | 50 |
| 100 | 100 |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 22. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 June 2019 | 3,748,185 |
| Profit for the year | 680,212 |
| Dividends | (172,000 | ) |
| At 31 May 2020 | 4,256,397 |
| Company |
| Retained |
| earnings |
| £ |
| At 1 June 2019 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 May 2020 |
| 23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 May 2020 and 31 May 2019: |
| 2020 | 2019 |
| £ | £ |
| J Campbell |
| Balance outstanding at start of year | 203,025 | 1,366 |
| Amounts advanced | 4,524 | 203,025 |
| Amounts repaid | (125,612 | ) | (1,366 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 81,937 | 203,025 |
| N Tate |
| Balance outstanding at start of year | 204,923 | 2,110 |
| Amounts advanced | 4,496 | 204,923 |
| Amounts repaid | (127,556 | ) | (2,110 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | 81,863 | 204,923 |
| C Gray and S Girdlestone, directors of the subsidiary company, each owed the subsidiary company £5,000 at 31st May 2020 and 31st May 2019. |
| CAMPBELL & TATE LTD (REGISTERED NUMBER: 04505714) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2020 |
| 24. | RELATED PARTY DISCLOSURES |
| 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. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
| 25. | POST BALANCE SHEET EVENTS |
| Coda Plastics Limited: |
| Since the balance sheet date, asset finance amounting to £309,550 was arranged in respect of a Magic Machine acquired during the period. Included in Trade creditors is an amount of £140,993 (€156,000) in respect of the final 40% purchase cost. |
| Commitments have also been made to purchase further Magic Machines and other plant totalling €788,500 with €735,000 payable in instalments over a period estimated to December 2020. |
| 26. | ULTIMATE CONTROLLING PARTY |
| The company is under the control of Mr J Campbell and Mr N Tate. |