Freshview Foods Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07225354 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

FRESHVIEW FOODS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Income and Retained Earnings

9

Balance Sheet

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

R J Harrison

W C Summerscales

I P Carter

REGISTERED OFFICE:

Unit 2 Lowfield Drive

Centre 500

Wolstanton

Newcastle

Staffordshire

ST5 0UU

REGISTERED NUMBER:

07225354 (England and Wales)

AUDITORS:

Barringtons Limited

Chartered Accountants & Statutory Auditors

570-572 Etruria Road

Newcastle

Staffordshire

ST5 0SU

The directors present their strategic report for the year ended 30 September 2020.

REVIEW OF BUSINESS

Our objective is to present a balanced and comprehensive review of the development of our business during the year and its position at the year end. Our review is consistent with the high transaction nature of our business and is written in the context of the risks and uncertainties that we face.

The Senior Leadership Team continues to develop and there have been further resources added at middle management level, in particular in the sales, health and safety and food safety teams. We have also significantly increased the size of our prepared vegetable operation which will allow us to increase the efficiency and output from this part of the business.

This year has been dominated by the Coronavirus pandemic. Freshview, like every other business in the food sector, has felt the significant impact in terms of turnover and profitability. Many of our customers have been forced to close at some point during the year. Some have developed the takeaway side or made other changes in order to generate some income. Freshview introduced a box delivery scheme to individual households to take advantage of market conditions early in the pandemic. This proved successful in generating some income and maintaining our reputation as a responsible and socially engaged company. The government furlough scheme allowed us to retain the vast majority of our staff whilst aligning reduced sales with costs.

Whilst we are still dealing with the continuing effects of Covid we have focussed on ensuring that the company is well placed to take advantage of any upturn in business as the country comes out of the pandemic. We would like to anticipate that there will be some pent-up demand which will generate a bounce in turnover when restrictions are lifted, and we feel that we have the resources and expertise to accommodate any surge in demand.

The supply side of the business continues to be affected by the uncertainty over Brexit. Our strong relationships with our suppliers will again be important in ensuring a consistent supply of produce.

The company again achieved a double A grade against the BRC Global Standard-issue 8 for food safety.

The unique trading conditions this year have been an enormous challenge for many businesses. The commitment, adaptability, determination, resilience, positivity and hard work of all our staff have resulted in a confidence that Freshview will not only survive but be in a strong position to carry on growing in more favourable trading conditions.

The financial statements show a pre tax profit of £196,993 (2019 pre tax profit of £615,414) and sales of £14,479,426 (2019 £19,021961).

The company has net current assets of £775,519 (2019 £206,241) and shareholders funds of £974,738 (2019 £1,132,434).

PRINCIPAL RISKS AND UNCERTAINTIES

The company's operational risks include environmental, health and safety and food safety.

The management of environmental risk includes an Environmental Management System Manual and both internal and independent external audits. The company is currently certificated under BRC standards for the storage and distribution of food. A double A grade was achieved in September 2019.

The management of health and safety risks include a Health and Safety Manual, a dedicated health and safety review team and regular audits.

The company commercial risks include customer contract management, bad debts and seasonal/climate product pricing. Potential new business undergoes a comprehensive profit study check before being tendered. Significant focus is placed on the minimisation of bad debt risk which includes reviewing the credit worthiness of customers before credit facilities are agreed. The company also has in place significant credit insurance.

The prevailing economic climate will always affect the demand for our services. The company aims to broaden its customer base and product range so that we don't rely too heavily on one particular sector or product group. The popularity of vegan and plant based products means that we are well placed to take advantage of increased demand in this area.

Exchange Rates. We have more exposure to currency fluctuations during winter as more products are imported. Brexit uncertainty has made this more challenging. We are able to negotiate some fixed price contracts to offset these fluctuations and the fact that there is now a definite date for the withdrawal from the EU will enable more secure planning to take place.

Availability of labour. We have a strong focus on staff training and development which is borne out by the improvement in our staff retention and attendance figures.

Trade debtors. Our strict credit control procedures have led to low levels of bad debt. We have now added credit insurance where it is deemed necessary as the number of high spending customers increases.

Fuel prices. We continue to invest in a fuel efficient fleet and continue to survey the market for the best deals.

Loss of key customers. We have improved service levels in all areas of the business resulting in a significant number of new customers and close relationships with existing clients.

Market consolidation. The continued consolidation in the market represents further opportunities for companies of our size and with our reputation and expertise to grow.

KEY PERFORMANCE INDICATORS

KPI's are used to monitor the performance of the business and compared to budgets.

Turnover £14,479,426 (2019 £19,021,961)

Gross Profit 34.74% (2019 34.55%)

Net Profit Before Tax 1.36% (2019 3.23%)

EBITDA £560,676 (2019 £1,021,141)

Wages as percentage of turnover increased by 4.9% this year.

Service level. Orders delivered in full in 2018, 2019 and 2020

2018 99.85%

2019 99.85%

2020 99.85%

ON BEHALF OF THE BOARD:

R J Harrison - Director

5 February 2021

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the wholesale of fruit and vegetables.

DIVIDENDS

During the year dividends were paid as follows :

Ordinary 'A Shares £64,480

Ordinary 'B' Shares £74,480

Ordinary 'C' Shares £79,520

Ordinary 'D' Shares £69,520

The total distribution of dividends for the year ended 30 September 2020 was £288,000.

DIRECTORS

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

R J Harrison

W C Summerscales

I P Carter

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

ON BEHALF OF THE BOARD:

R J Harrison - Director

5 February 2021

Opinion

We have audited the financial statements of Freshview Foods Limited (the 'company') for the year ended 30 September 2020 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 30 September 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Nicholas Cooper FCA (Senior Statutory Auditor)

for and on behalf of Barringtons Limited

Chartered Accountants & Statutory Auditors

570-572 Etruria Road

Newcastle

Staffordshire

ST5 0SU

5 February 2021

TURNOVER

14,479,426

19,021,961

Cost of sales

9,445,837

12,449,653

GROSS PROFIT

5,033,589

6,572,308

Administrative expenses

5,562,128

5,939,721

(528,539

)

632,587

Other operating income

734,037

-

OPERATING PROFIT

4

205,498

632,587

Interest payable and similar expenses

5

8,505

17,443

PROFIT BEFORE TAXATION

196,993

615,144

Tax on profit

6

66,689

125,756

PROFIT FOR THE FINANCIAL YEAR

130,304

489,388

Retained earnings at beginning of year

1,132,234

921,846

Dividends

7

(288,000

)

(279,000

)

RETAINED EARNINGS AT END OF YEAR

974,538

1,132,234

FIXED ASSETS

Intangible assets

8

-

9,471

Tangible assets

9

1,248,735

1,371,300

1,248,735

1,380,771

CURRENT ASSETS

Stocks

10

266,561

224,944

Debtors

11

2,778,745

2,621,641

Cash at bank and in hand

741,325

136,918

3,786,631

2,983,503

CREDITORS

Amounts falling due within one year

12

3,011,112

2,777,262

NET CURRENT ASSETS

775,519

206,241

TOTAL ASSETS LESS CURRENT LIABILITIES

2,024,254

1,587,012

CREDITORS

Amounts falling due after more than one year

13

(855,868

)

(248,016

)

PROVISIONS FOR LIABILITIES

17

(193,648

)

(206,562

)

NET ASSETS

974,738

1,132,434

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

19

974,538

1,132,234

SHAREHOLDERS' FUNDS

974,738

1,132,434

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 5 February 2021 and were signed on its behalf by:

R J Harrison - Director

Cash flows from operating activities

Cash generated from operations

1

353,573

863,443

Interest element of hire purchase payments paid

(8,504

)

(17,443

)

Tax paid

(1

)

(145,587

)

Net cash from operating activities

345,068

700,413

Cash flows from investing activities

Purchase of tangible fixed assets

(205,745

)

(647,035

)

Sale of tangible fixed assets

17,196

40,661

Net cash from investing activities

(188,549

)

(606,374

)

Cash flows from financing activities

New loans in year

700,000

-

Capital repayments in year

(10,312

)

66,343

Amount introduced by directors

192,000

183,000

Amount withdrawn by directors

(145,800

)

(138,890

)

Equity dividends paid

(288,000

)

(279,000

)

Net cash from financing activities

447,888

(168,547

)

Increase/(decrease) in cash and cash equivalents

604,407

(74,508

)

Cash and cash equivalents at beginning of year

2

136,918

211,426

Cash and cash equivalents at end of year

2

741,325

136,918

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

2020

2019

£

£

Profit before taxation

196,993

615,144

Depreciation charges

314,763

318,152

Loss on disposal of fixed assets

5,821

19,669

Finance costs

8,505

17,443

526,082

970,408

Increase in stocks

(41,617

)

(18,499

)

Increase in trade and other debtors

(157,104

)

(125,736

)

Increase in trade and other creditors

26,212

37,270

Cash generated from operations

353,573

863,443

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 30 September 2020

30.9.20

1.10.19

£

£

Cash and cash equivalents

741,325

136,918

Year ended 30 September 2019

30.9.19

1.10.18

£

£

Cash and cash equivalents

136,918

211,426

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.10.19

Cash flow

At 30.9.20

£

£

£

Net cash

Cash at bank and in hand

136,918

604,407

741,325

136,918

604,407

741,325

Debt

Finance leases

(476,014

)

10,312

(465,702

)

Debts falling due within 1 year

-

(87,500

)

(87,500

)

Debts falling due after 1 year

-

(612,500

)

(612,500

)

(476,014

)

(689,688

)

(1,165,702

)

Total

(339,096

)

(85,281

)

(424,377

)

1.	STATUTORY INFORMATION

Freshview Foods 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.

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.

Preparation of consolidated financial statements

The accounts contain the results of the parent company Freshview Foods Limited alone and not the result of its subsidiaries Morning Fresh (Staffs) Limited and Eastview Foods Limited.

In accordance with Section 405 Companies Act 2006, a parent company is exempt from the requirement to prepare group accounts if of all its subsidiaries could be excluded from consolidation. The subsidiaries have been excluded on the grounds that their inclusion is not material for the purposes of giving a true and fair view.

Turnover

Turnover, which excludes value added tax, represents the amounts invoiced to customers for goods sold and services supplied during the year in respect of the sale and distribution of food products to the catering and wholesale trade, less credits for returns. Turnover is recognised when the significant risks and rewards of ownership have been transfered to the buyer, recovery of the consideration is probable and the amount of revenue can be measured reliably.

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or circumstances indicate that the carrying value may not be recoverable.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

Evenly over 10 years useful life

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

-

equally over the lease term

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete items. Cost is based on the first-in first-out principle.

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 debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective rate of interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, 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 out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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 and 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 of the recoverable amount, 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.

Operating leases

Rentals under operating leases are charged on a straight line basis over the terms of the lease.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Going concern

The company made a profit of £196,993, has net current assets of £775,519 and net assets of £974,738 at the year end.

During the first quarter of 2020, The Covid -19 Pandemic has spread initially from Asia to Europe and subsequently worldwide. The initial economic effect of this has been a worldwide slowdown in economic activity and the loss of jobs across many businesses.

Like many businesses, Freshview Foods Limited is exposed to the effects of the Covid-19 Pandemic. Whilst the company continues to trade during this period, there has been a notable reduction in trading activity and customer demand compared to the same period in the previous financial year.Staff costs have been reduced through the temporary reduction in staff and other costs have been reduced where possible. The company will also use government supports provided to businesses during this time.

Based on the measures taken to reduce costs, the directors believe that the company is well positioned to return to full trading capacity once the period of uncertainty passes. The directors intend to recommence full trading as soon as restrictions are lifted and it is safe for all staff to return to work.

Whilst the directors believe that the effect will be negative on the company and the full effect of the events since the balance sheet date are difficult to determine, the directors are confident that the company is a going concern and the financial statements have been prepared on that basis.

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

3,538,963

3,706,691

Social security costs

258,704

277,296

Other pension costs

83,059

84,898

3,880,726

4,068,885

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

2020

2019

Directors

2

3

Administration

15

20

Operational & distribution

132

175

149

198

2020

2019

£

£

Directors' remuneration

32,222

94,741

Directors' pension contributions to money purchase schemes

114

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Hire of plant and machinery

290

1,584

Other operating leases

60,000

61,560

Depreciation - owned assets

305,293

308,681

Loss on disposal of fixed assets

5,821

19,669

Goodwill amortisation

9,471

9,471

Auditors' remuneration

9,500

7,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Hire purchase

8,505

17,443

6.

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

79,603

53,668

Deferred tax

(12,914

)

72,088

Tax on profit

66,689

125,756

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

196,993

615,144

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

37,429

116,877

Effects of:

Expenses not deductible for tax purposes

13,915

2,064

Capital allowances in excess of depreciation

-

(65,533

)

Depreciation in excess of capital allowances

10,289

-

Structure Building Allowance

(73

)

-

Expensive Leased Cars

545

302

Capital items in repairs

17,498

-

Movement of deferred tax

(12,914

)

72,046

Total tax charge

66,689

125,756