The Printing House Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02594094 (England and Wales)

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2020

for

The Printing House Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Statement of Comprehensive Income

5

Statement of Financial Position

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTORS:

M P Haase

D H Kinsman

SECRETARY:

Mrs D Brandon-Sweeney

REGISTERED OFFICE:

Arnold Haase House

Duchy Road

Crewe

Cheshire

CW1 6ND

REGISTERED NUMBER:

02594094 (England and Wales)

AUDITORS:

Banks Sheridan

Datum House

Electra Way

Crewe

Cheshire

CW1 6ZF

BANKERS:

National Westminster Bank Plc

41 Greengate Street

Stafford

Staffordshire

ST16 2JD

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

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 April 2019 to the date of this report.

M P Haase

D H Kinsman

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

M P Haase - Director

4 February 2021

Opinion

We have audited the financial statements of The Printing House Limited (the 'company') for the year ended 31 March 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 31 March 2020 and of its loss 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.

Emphasis of matter - impact of the outbreak of COVID-19

Since the end of the reporting period there has been a global pandemic from the outbreak of COVID-19, the potential impact of COVID-19 became significant in March 2020 and is causing widespread disruption to normal patterns of business activity across the world, including the UK.

In forming our opinion on the financial statements, which is not modified, we draw your attention to the directors' view on the impact of the COVID-19 as disclosed on page 2, and the consideration in the going concern basis of preparation on page 8 and non- adjusting subsequent events on page 16.

Other information

The directors are responsible for the other information. The other information comprises the information in 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 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; or

-	the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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.

Stuart Banks BSc FCA (Senior Statutory Auditor)

for and on behalf of Banks Sheridan

Datum House

Electra Way

Crewe

Cheshire

CW1 6ZF

4 February 2021

TURNOVER

1,667,418

1,745,840

Cost of sales

(1,423,511

)

(1,431,631

)

GROSS PROFIT

243,907

314,209

Distribution costs

(141,491

)

(123,730

)

Administrative expenses

(380,310

)

(410,160

)

(277,894

)

(219,681

)

Other operating income

6,752

10,996

OPERATING LOSS

5

(271,142

)

(208,685

)

Interest payable and similar expenses

7

(6,241

)

(19,931

)

LOSS BEFORE TAXATION

(277,383

)

(228,616

)

Tax on loss

8

7,458

9,998

LOSS FOR THE FINANCIAL YEAR

(269,925

)

(218,618

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(269,925

)

(218,618

)

FIXED ASSETS

Intangible assets

9

13,144

-

Tangible assets

10

201,707

240,322

214,851

240,322

CURRENT ASSETS

Stocks

11

62,570

39,741

Debtors: amounts falling due within one year

12

151,162

191,191

Cash at bank

16,497

-

230,229

230,932

CREDITORS

Amounts falling due within one year

13

(1,148,857

)

(877,485

)

NET CURRENT LIABILITIES

(918,628

)

(646,553

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(703,777

)

(406,231

)

CREDITORS

Amounts falling due after more than one year

14

(3,372

)

(21,370

)

PROVISIONS FOR LIABILITIES

18

(45,458

)

(55,081

)

NET LIABILITIES

(752,607

)

(482,682

)

CAPITAL AND RESERVES

Called up share capital

19

220

220

Retained earnings

20

(752,827

)

(482,902

)

SHAREHOLDERS' FUNDS

(752,607

)

(482,682

)

The financial statements were approved by the Board of Directors and authorised for issue on 4 February 2021 and were signed on its behalf by:

M P Haase - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2018

220

(264,284

)

(264,064

)

Changes in equity

Total comprehensive loss

-

(218,618

)

(218,618

)

Balance at 31 March 2019

220

(482,902

)

(482,682

)

Changes in equity

Total comprehensive loss

-

(269,925

)

(269,925

)

Balance at 31 March 2020

220

(752,827

)

(752,607

)

1.	STATUTORY INFORMATION

The Printing House Limited ('The Company') are primarily engaged in the supply of printing services.

The company is a private company limited by shares and is incorporated in England and Wales. The address of the principal place of business and of the registered office is Arnold Haase House, Duchy Road, Crewe, Cheshire, CW1 6ND. The registered number can be found on the Company Information page.

The functional and presentational currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

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

Summary of significant accounting policies

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

The principle accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated.

Basis of preparation and going concern

The company is a subsidiary of SG World Limited and the parent company has agreed to support the company for a period of not less than twelve months from the date of these financial statements.

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

On this basis the directors consider it appropriate to prepare the financial statements on the going concern basis.

The above statements regarding going concern are given notwithstanding the COVID-19 pandemic. Further disclosures are given in note 25.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions 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;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

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 and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Income is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them.

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.

Computer software is being amortised evenly over its estimated useful life of four years.

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.

Plant and machinery

-

Straight line over 20 years

Fixtures and fittings

-

Straight line over 5 to 10 years

Office equipment

-

Straight line over 2 to 4 years

Government grants

Government grants are recognised on an accruals basis and are shown within other operating income.

Stocks

Stocks are stated at the lower of cost and selling price less costs to complete and sell. Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

An impairment loss is recognised for damaged, discontinued and slow-moving stock where appropriate.

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 end of the financial year.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the end of the financial year.

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 statement of financial position 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 are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives.

The interest element of those obligations is charged to the profit and loss account so as to provide a periodic charge on the remaining balance of the obligation for each accounting period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account so as to produce a constant periodic charge for each accounting period up to the end of the lease or next renewal date.

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.

Impairment of assets

Assets not measured at fair value are reviewed for any indications that the asset may be impaired at each statement of financial position date. If such indications exists the recoverable amount of the asset or the assets cash generating unit is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Any losses arising from impairment are recognised in the Statement of Comprehensive Income under the appropriate heading.

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

570,232

629,383

Social security costs

35,107

52,757

Other pension costs

9,755

7,302

615,094

689,442

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

2020

2019

Production

17

21

Sales and distribution

4

3

Administration

4

6

25

30

2020

2019

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

2020

2019

£

£

Hire of plant and machinery

2,860

6,202

Other operating leases

53,517

60,000

Depreciation of tangible fixed assets:

- owned assets

32,137

21,223

- assets held under hire purchase contracts

14,732

31,854

Amortisation of intangible fixed assets:

572

-

Auditors' remuneration

3,600

3,500

6.	EXCEPTIONAL ITEMS

2020

2019

£

£

Exceptional items

(10,832

)

-

Exceptional items relate to non-recurring charges to the income statement during the year. These charges are associated with the reorganisation of the company's operations in order to provide an improved structure to support future operations. There was no tax consequence of this transaction.

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

3,899

5,880

Hire purchase

2,342

14,051

6,241

19,931

8.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2020

2019

£

£

Deferred tax

(7,458

)

(9,998

)

Tax on loss

(7,458

)

(9,998

)

At as 31 March 2020, there are tax losses to carry forward of £8,320.

9.	INTANGIBLE FIXED ASSETS

Computer

Goodwill

software

Totals

£

£

£

COST

At 1 April 2019

139,544

-

139,544

Additions

-

13,716

13,716

At 31 March 2020

139,544

13,716

153,260

AMORTISATION

At 1 April 2019

139,544

-

139,544

Amortisation for year

-

572

572

At 31 March 2020

139,544

572

140,116

NET BOOK VALUE

At 31 March 2020

-

13,144

13,144

At 31 March 2019

-

-

-

10.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Office

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2019

530,148

3,716

46,203

580,067

Additions

8,254

-

-

8,254

At 31 March 2020

538,402

3,716

46,203

588,321

DEPRECIATION

At 1 April 2019

292,125

3,716

43,904

339,745

Charge for year

45,402

-

1,467

46,869

At 31 March 2020

337,527

3,716

45,371

386,614

NET BOOK VALUE

At 31 March 2020

200,875

-

832

201,707

At 31 March 2019

238,023

-

2,299

240,322

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

Plant and

machinery

£

COST

At 1 April 2019

253,584

Transfer to ownership

(133,921

)

At 31 March 2020

119,663

DEPRECIATION

At 1 April 2019

93,568

Charge for year

14,732

Transfer to ownership

(59,588

)

At 31 March 2020

48,712

NET BOOK VALUE

At 31 March 2020

70,951

At 31 March 2019

160,016

11.

STOCKS

2020

2019

£

£

Stocks

62,570

39,741

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

124,892

182,571

Other debtors

7,608

2,544

VAT

15,306

2,273

Prepayments and accrued income

3,356

3,803

151,162

191,191

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 15)

90,134

78,588

Hire purchase contracts (see note 16)

17,069

25,865

Trade creditors

183,343

187,437

Amounts owed to group undertakings

800,181

521,457

Social security and other taxes

20,750

15,734

Other creditors

2,316

1,313

Accruals and deferred income

35,064

47,091

1,148,857

877,485

Amounts owed to group undertakings are unsecured, interest free and payable on demand.

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 16)

3,372

21,370

15.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

90,134

78,588

16.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

17,069

25,865

Between one and five years

3,372

21,370

20,441

47,235

Non-cancellable operating

leases

2020

2019

£

£

Within one year

2,600

66,339

Between one and five years

-

11,585

2,600

77,924

17.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank overdrafts

90,134

78,588

Hire purchase contracts

20,441

47,235

110,575

125,823