Askern Holdings Limited - Period Ending 2020-03-31
Askern Holdings Limited - Period Ending 2020-03-31
Registration number:
Askern Holdings Limited
for the Year Ended 31 March 2020
Askern Holdings Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Askern Holdings Limited
Company Information
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Directors |
Mr D Murray Mrs M Murray |
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Registered office |
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Bankers |
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Auditors |
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Askern Holdings Limited
Strategic Report for the Year Ended 31 March 2020
The directors present their strategic report for the year ended 31 March 2020.
Principal activity
The principal activity of the group is the design and manufacture of cable reels.
Fair review of the business
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2020 |
2019 |
|
|
Turnover |
£ |
8,543,736 |
8,215,013 |
|
Gross Profit |
£ |
2,414,112 |
1,529,552 |
|
Gross Profit Percentage |
% |
28 |
19 |
|
Profit/(Loss) Before Tax |
£ |
928,659 |
122,042 |
|
Net Current Assets |
£ |
1,134,701 |
475,775 |
|
Net Assets |
£ |
3,183,649 |
2,435,542 |
During the year the group has been successful in increasing its turnover by 4%.
Gross profits have also increased from 19% to 28% due to a decrease in raw material costs.
The group's overall balance sheet remains strong.
The directors believe that, despite the currently challenging market conditions, the group remains well placed to take advantage of any opportunities that arise in the year ended 31 March 2021.
Askern Holdings Limited
Strategic Report for the Year Ended 31 March 2020
Principal risks and uncertainties
Most sales are to UK customers and most suppliers are UK based, and accordingly the group has not entered into any hedging arrangements in respect of risks relating to trade debtors or creditors.
10% to 15% of the group's sales are to the EU and some of the group's suppliers are EU based. Accordingly the current uncertainty surrounding BREXIT represents a risk to the group. The directors have considered their exposure to these risks and believe the group is well positioned to respond appropriately to any changes that arise as a result.
The group's business operations have been affected by changes in general economic activity as a result of the global Covid-19 outbreak. Whilst there was a contraction in the company's trade in some areas of the market in April 2020 and May 2020, sales returned to more normal levels in June 2020 and the company continues to trade profitably. However, due to the high level of uncertainty surrounding this ongoing outbreak the directors are currently unable to estimate the ultimate financial impact on the company.
The group has operated throughout the year within its banking and invoice financing arrangements, thereby substantially eliminating liquidity and cash flow risks.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors’ liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Approved by the
.........................................
Director
Askern Holdings Limited
Directors' Report for the Year Ended 31 March 2020
The directors present their report and the financial statements for the year ended 31 March 2020.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The group’s principal financial instruments comprise bank balances, invoice financing, trade
debtors and trade creditors. The purpose of these instruments is to finance the group’s business
operations.
Price risk, credit risk, liquidity risk and cash flow risk
The directors do not consider that the group has any significant financial risks other
than those normal commercial risks arising from its trading operations. Such risks are managed so as
to permit the smooth operation of the business.
Important non adjusting events after the financial period
On 30 January 2020 the World Health Organisation declared the outbreak of Covid-19 as a "Public Health Emergency of International Concern" and countries across the globe have imposed restrictions on the movement of individuals and the operations of certain businesses.
In particular the group's business operations have been affected by changes in general economic activity as a result of the global Covid-19 outbreak. Whilst there was a contraction in the company's trade in some areas of the market in April 2020 and May 2020, sales returned to more normal levels in June 2020 and the group continues to trade profitably. However, due to the high level of
uncertainty surrounding this ongoing outbreak the directors are currently unable to estimate the ultimate financial impact on the group.
The directors do not consider that any adjustments are required to the assets and liabilities reported in these financial statements as a result of the coronavirus and its impact on the economic environment in which it operates.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
.........................................
Director
Askern Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Askern Holdings Limited
Independent Auditor's Report to the Members of Askern Holdings Limited
Opinion
We have audited the financial statements of Askern Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2020, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 group's and the parent company's affairs as at 31 March 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 Auditor’s 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:
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the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent 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 included in the annual report, other than the financial statements and our auditor’s report 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.
Askern Holdings Limited
Independent Auditor's Report to the Members of Askern Holdings Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 Strategic Report and the Directors' Report.
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 5], 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 is 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.
Auditor’s 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 an auditor’s report 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.
Askern Holdings Limited
Independent Auditor's Report to the Members of Askern Holdings Limited
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Askern Holdings Limited
Independent Auditor's Report to the Members of Askern Holdings Limited
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 an auditor’s report 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
9/13 Thorne Road
South Yorkshire
DN1 2HJ
Askern Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2020
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Note |
2020 |
2019 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
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Administrative expenses |
( |
( |
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Other operating income |
|
|
|
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Operating profit |
|
|
|
|
Interest payable and similar expenses |
( |
( |
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Profit before tax |
|
|
|
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Tax on profit |
( |
( |
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Profit for the financial year |
|
|
|
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Profit/(loss) attributable to: |
|||
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Owners of the company |
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The group has no recognised gains or losses for the year other than the results above.
Askern Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2020
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2020 |
2019 |
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Profit for the year |
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Total comprehensive income for the year |
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Total comprehensive income attributable to: |
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Owners of the company |
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Askern Holdings Limited
(Registration number: 06532363)
Consolidated Balance Sheet as at 31 March 2020
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Note |
2020 |
2019 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
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Current assets |
|||
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Stocks |
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Debtors |
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|
|
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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|
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Total assets less current liabilities |
|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
100 |
100 |
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|
Profit and loss account |
3,183,549 |
2,435,441 |
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Equity attributable to owners of the company |
3,183,649 |
2,435,541 |
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Shareholders' funds |
3,183,649 |
2,435,541 |
Approved and authorised by the
.........................................
Director
Askern Holdings Limited
(Registration number: 06532363)
Balance Sheet as at 31 March 2020
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Note |
2020 |
2019 |
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Fixed assets |
|||
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Tangible assets |
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|
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Investments |
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|
|
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||
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Current assets |
|||
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Debtors |
|
|
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Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
|
|
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Net assets |
|
|
|
|
Capital and reserves |
|||
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Called up share capital |
100 |
100 |
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|
Profit and loss account |
148,255 |
149,331 |
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Shareholders' funds |
148,355 |
149,431 |
The company made a loss after tax for the financial year of £1,076 (2019 - loss of £7,695).
Approved and authorised by the
.........................................
Director
Askern Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2020
Equity attributable to the parent company
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Share capital |
Profit and loss account |
Total |
Total equity |
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At 1 April 2019 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 March 2020 |
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Share capital |
Profit and loss account |
Total |
Total equity |
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At 1 April 2018 |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 March 2019 |
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Askern Holdings Limited
Statement of Changes in Equity for the Year Ended 31 March 2020
|
Share capital |
Profit and loss account |
Total |
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At 1 April 2019 |
|
|
|
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Loss for the year |
- |
( |
( |
|
Total comprehensive income |
- |
( |
( |
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At 31 March 2020 |
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|
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Share capital |
Profit and loss account |
Total |
|
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At 1 April 2018 |
|
|
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Loss for the year |
- |
( |
( |
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Total comprehensive income |
- |
( |
( |
|
At 31 March 2019 |
|
|
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Askern Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2020
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Note |
2020 |
2019 |
|
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Cash flows from operating activities |
|||
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Profit for the year |
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|
|
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
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Loss/(profit) on disposal of tangible assets |
|
( |
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Finance costs |
|
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Income tax expense |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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Increase in stocks |
( |
( |
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Decrease in trade debtors |
|
|
|
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Decrease in trade creditors |
( |
( |
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|
Cash generated from operations |
|
( |
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Proceeds from other borrowing draw downs |
- |
|
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Net cash flows from financing activities |
( |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 April |
|
|
|
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Cash and cash equivalents at 31 March |
|
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Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2020.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £1,076 (2019 - loss of £7,695).
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
10% straight line per annum |
|
Motor vehicles |
25% straight line per annum |
|
Buildings |
2% straight line per annum |
|
Land |
Not depreciated |
|
Fixtures and fittings |
10% straight line per annum |
|
Office equipment |
10% straight line per annum |
|
Other tangible assets |
25% straight line per annum |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the group's accounting policies, which are described in note 2, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 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.
Critical judgements
The directors do not consider that there have been any critical judgements made in the process of applying the group's accounting policies. |
Key sources of estimation uncertainty
The group has long running unresolved disputes in respect of certain creditors included in the accounts at £142,300 (2019 - £142,300). Included in debtors is an estimated prepayment against these creditors of £74,894 (2019 - £74,894).
Other than this the directors do not consider that there have been any key assumptions concerning the future or other key sources of estimation uncertainty at the balance sheet date which may cause a material adjustment to the carrying amount of assets and liabilities within the next financial year.
|
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Rental income from investment property |
|
|
|
|
|
The analysis of the group's turnover for the year by market is as follows:
|
2020 |
2019 |
|
|
UK |
|
|
|
Exports |
|
|
|
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Miscellaneous other operating income |
|
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
|
2020 |
2019 |
|
|
Gain (loss) on disposal of property, plant and equipment |
( |
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
( |
- |
|
Other finance costs |
|
|
|
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
79,293 |
74,684 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2020 |
2019 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of these financial statements |
12,784 |
12,976 |
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
2019 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
185,142 |
10,949 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
|
Effect of tax losses |
( |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Total tax charge |
|
|
The group has tax losses carried forward of £32,173 (2019 - £50,981).
The company has tax losses carried forward of £32,173 (2019 - £50,981).
These losses have been recognised as a deferred tax asset only to the extent that they could be used to offset deferred tax liabilities.
Deferred tax
Group
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Difference between accumulated depreciation and capital allowances |
|
|
Tax losses carried forwards |
- |
|
|
|
2019 |
Liability |
|
Difference between accumulated depreciation and capital allowances |
|
|
Tax losses carried forwards |
- |
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Tangible assets |
Group
|
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 April 2019 |
|
|
|
|
|
|
|
Additions |
- |
|
|
|
- |
|
|
Disposals |
- |
( |
( |
( |
( |
( |
|
At 31 March 2020 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 April 2019 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
( |
( |
|
At 31 March 2020 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 March 2020 |
|
|
|
|
|
|
|
At 31 March 2019 |
|
|
|
|
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Included within the net book value of land and buildings above is £3,170,783 (2019 - £3,196,590) in respect of freehold land and buildings.
Included within the net book value of land and buildings above is £1,455,295 (2019 - £1,455,295) representing property currently held for investment purposes. The directors consider that this represents the fair value of the property at the balance sheet date. No depreciation has been charged on this property.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2020 |
2019 |
|
|
Plant and machinery |
212,554 |
242,924 |
|
Motor vehicles |
6,096 |
12,198 |
|
218,650 |
255,122 |
Restriction on title and pledged as security
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Company
|
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 April 2019 |
|
|
|
|
|
|
Disposals |
( |
( |
( |
( |
( |
|
At 31 March 2020 |
|
|
- |
- |
|
|
Depreciation |
|||||
|
At 1 April 2019 |
|
|
|
|
|
|
Charge for the year |
|
|
- |
- |
|
|
Eliminated on disposal |
( |
( |
( |
( |
( |
|
At 31 March 2020 |
|
|
- |
- |
|
|
Carrying amount |
|||||
|
At 31 March 2020 |
|
|
- |
- |
|
|
At 31 March 2019 |
|
|
- |
- |
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2020 |
2019 |
|||
|
Subsidiary undertakings |
||||
|
|
28 Lidgate Crescent, Langthwaite Business Park, South Kirkby, Pontefract. WF9 3NR |
Ordinary shares |
|
|
|
England |
||||
|
|
28 Lidgate Crescent, Langthwaite Business Park, South Kirkby, Pontefract. WF9 3NR. |
Ordinary shares |
|
|
|
England |
||||
* indicates direct investment of the company
Subsidiary undertakings
|
Askern UK Limited The principal activity of Askern UK Limited is |
|
Askern Properties (North) Limited The principal activity of Askern Properties (North) Limited is |
Both subsidiaries are included in these consolidated financial statements.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Company
|
2020 |
2019 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2019 |
|
|
At 31 March 2020 |
|
|
Carrying amount |
|
|
At 31 March 2020 |
|
|
At 31 March 2019 |
|
|
Stocks |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Raw materials and consumables |
|
|
- |
- |
|
Work in progress |
|
|
- |
- |
|
Finished goods and goods for resale |
|
|
- |
- |
|
|
|
- |
- |
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Debtors |
|
Group |
Company |
||||
|
Note |
2020 |
2019 |
2020 |
2019 |
|
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
|
|
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
Income tax asset |
- |
|
- |
- |
|
|
|
|
|
|
||
|
Less non-current portion |
( |
( |
- |
- |
|
|
|
|
|
|
||
Details of non-current trade and other debtors
Group
£28,800 (2019 - £86,400) of trade debtors is classified as non current.
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2020 |
2019 |
2020 |
2019 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
- |
|
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other payables |
|
|
- |
- |
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
165,114 |
9,772 |
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Total |
|
|
At 1 April 2019 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 March 2020 |
|
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Loans and borrowings |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase contracts |
- |
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
- |
- |
|
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase contracts |
|
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
- |
- |
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Group
Bank borrowings
|
Bank borrowings are secured by fixed charge over the groups premises, by debenture over all group assets and by inter company composite guarantee with all group companies. |
Finance lease liabilities and other borrowings
Factoring creditors are secured over part of Askern UK Limited's trade debtors. Finance lease, hire purchase contracts and similar other borrowings are secured against the asset to which they relate.
Included in the loans and borrowings are the following amounts due after more than five years:
|
2020 |
2019 |
|
|
After more than five years by instalments |
|
|
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
|
Contingent liabilities |
Group
During the year ended 31 March 2019 the group wrote off a creditor in relation to a connected party of £47,600 as the director believes this amount is not due. This creditor remains under dispute. Accordingly there is a possibility that some liability in respect of this amount may arise in the future.
|
Related party transactions |
Group
Key management compensation
|
2020 |
2019 |
|
|
Salaries and other short term employee benefits |
|
|
|
Other transactions with directors |
The balance owed to Mr D Murray at the period end in respect of the director's current account was £23,246 (2019 - £23,246). There are no repayment terms and interest is not charged on the balance. The balance is repayable on demand.
Summary of transactions with entities with joint control or significant interest
Included within prepayments is an amount of £74,894 (2019 - £74,984) in respect of provisions against disputed creditor balances. These disputed creditor balances are included in full within the related party balance disclosures below relating to entities which are under the common control of the group's beneficial owners
Income and receivables from related parties
|
2020 |
Entities with joint control or significant influence |
|
Amounts receivable from related party |
|
|
2019 |
Entities with joint control or significant influence |
|
Amounts receivable from related party |
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Expenditure with and payables to related parties
|
2020 |
Entities with joint control or significant influence |
|
Leases |
|
|
Amounts payable to related party |
|
|
2019 |
Entities with joint control or significant influence |
|
Leases |
|
|
Amounts payable to related party |
|
Loans to related parties
|
2020 |
Entities with joint control or significant influence |
|
At start of period |
|
|
At end of period |
|
|
2019 |
Entities with joint control or significant influence |
|
At start of period |
|
|
At end of period |
|
Askern Holdings Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Loans from related parties
|
2020 |
Entities with joint control or significant influence |
|
At start of period |
|
|
At end of period |
|
|
2019 |
Entities with joint control or significant influence |
|
At start of period |
|
|
Impairment |
( |
|
At end of period |
|
|
Non adjusting events after the financial period |
|
|