Radnor Hills Mineral Water Company Ltd - Limited company accounts 20.1
Radnor Hills Mineral Water Company Ltd - Limited company accounts 20.1
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements |
| for the Year Ended 31 May 2020 |
| for |
| Radnor Hills Mineral Water Company Ltd |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Contents of the Financial Statements |
| for the year ended 31 May 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 7 |
| Income Statement | 10 |
| Statement of Financial Position | 11 |
| Statement of Changes in Equity | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 17 |
| Radnor Hills Mineral Water Company Ltd |
| Company Information |
| for the year ended 31 May 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditor |
| Emstrey House |
| Shrewsbury Business Park |
| Shrewsbury |
| Shropshire |
| SY2 6LG |
| BANKERS: |
| 44-46 Castle Street |
| Shrewsbury |
| Shropshire |
| SY1 2BU |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Strategic Report |
| for the year ended 31 May 2020 |
| The directors present their strategic report for the year ended 31 May 2020. |
| REVIEW OF BUSINESS |
| The company's principal activity is the manufacture and wholesaling of mineral water and soft drink products together with hotel management. |
| The directors report on a highly satisfactory first three quarters of the year with the company reporting an increase in turnover in line with the previous financial year and exceeding targets and expectations. The final quarter of the year (March to May 2020) was, however, extremely disappointing owing to the effects of the Covid 19 pandemic and the closure of schools and hospitality venues on March 15 and 21st 2020. The resultant loss of sales was slightly mitigated by support from some public sector contracts and retailer promotions but the annual turnover and net profit were nevertheless affected leading to disappointing results. |
| During the first part of the year the company committed to a considerable investment programme with capital commitment to introducing more robotic functions, and improvement of processes, manufacturing, packaging, warehousing, recycling, and environmental procedures. In some cases this investment was completed before lockdown but where this was not possible the installation stage had to be postponed into the next financial year, despite the majority of the financial commitment for these improvements falling within 2019/20 financial year. The largest planned investment into improved and expanded offices to house our growing administration teams was postponed and will not commence until the end of the next financial year. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Risks which may affect longer term performance of the Company continue to be assessed by the directors and mitigated where necessary, this continued risk assessment process has enabled the Directors to minimise the threat to the business caused by the Covid 19 Pandemic and whilst there has been a considerable subsequent reduction in turnover for the period and the expectation of a similar result for the next financial period, the Company remains strong with good prospects of a healthy recovery. |
| Product ranges continue to be reviewed and products are developed to address new trends, legislation and the demands of our customers. |
| A continued, focused, staff training and development programme together with careful recruitment, and a high calibre management team continues to strengthen the future of the company. This year the Company has taken advantage of the Government's Job Retention Scheme, where necessary, to protect the jobs of our employees during periods of lower demand enabling the retention of valuable skills and loyal workforce. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Strategic Report |
| for the year ended 31 May 2020 |
| SECTION 172(1) STATEMENT |
| The directors believe they have effectively implemented their duties under section 172 (1) of the Companies Act 2006. Long term strategy is continuously assessed and amended to deliver long term success to the business and its stakeholders. |
| The company continues to demonstrate commitment to maintenance of excellent reputation and high standards. Selection of contractors to deliver best value, reduced carbon footprint and awareness of environmental impact of all work undertaken, continues to be a priority for the business. |
| The importance of all the Companies stakeholders, employees, suppliers and customers in delivering the company strategy, maintaining sustainability is recognised by the Directors and they are involved in every decision process. The directors believe that all members of the company are treated fairly. |
| ENGAGEMENT WITH EMPLOYEES |
| The Company consults with employees on matters which may affect their interests, this is done through one-to-one meetings, group briefings, multi-departmental cascade briefs and employee forums as well as newsletters and reports. Group buy-in of the Company's vision, mission, values, economic factors and performance are vital to the success of the Company. During the final quarter of the year, when a large proportion of our teams were either working from home or furloughed this was achieved through regular Teams Meetings and employee newsletters, as well as regular welfare support calls from Departmental Managers. |
| ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
| The company considers it good practice to nurture close communication with major customers and suppliers at all times forging better working relationships, understanding and collaboration and this has resulted in excellent pay back during the early months of the Covid Pandemic. The directors and company pride themselves on customer service levels above and beyond our competitors and believe this is a reason for the continuing strength, longevity and loyalty of customer and supplier relationships. |
| Supplier agreement terms are set prior to orders being placed, suppliers are vetted and audited and chosen for their ethics, quality and sustainability. Supplier payments are made in accordance with agreed terms, promptly and on time. |
| ON BEHALF OF THE BOARD: |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Report of the Directors |
| for the year ended 31 May 2020 |
| The directors present their report with the financial statements of the company for the year ended 31 May 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the manufacture and wholesaling of mineral water and soft drink products together with hotel management. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 May 2020. |
| FUTURE DEVELOPMENTS |
| The company has continued to invest extensively after the year end in both plant and site facilities. This ensures the company is able to continue to meet demand. |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2019 to the date of this report. |
| FINANCIAL INSTRUMENTS |
| The exposure to financial risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| In accordance with SECR requirements, this provides a summary of GHG emissions and energy data for Radnor Hills Mineral Water Company Limited during the reporting year 1st June 2019 to 31st May 2020. |
| Element | 2019/20 (tCO2e) |
| Direct emissions (Scope 1) - LPG, refrigerant gases and company car fuel |
1,569 |
| Indirect emissions (Scope 2) - from purcased electricity | 2,102 |
| Total (tCO2e ) Scope 1 & 2 |
| Gross total emissions | 3,671 |
| Carbon offsetting purchased | 2,102 |
| Net total emissions | 1,569 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Report of the Directors |
| for the year ended 31 May 2020 |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The director has chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013, to set out in the company's strategic report, information required by schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports) Regulations 2008. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
| - | 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. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Report of the Directors |
| for the year ended 31 May 2020 |
| 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| Opinion |
| We have audited the financial statements of Radnor Hills Mineral Water Company Ltd (the 'company') for the year ended 31 May 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 May 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. |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| 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. |
| Report of the Independent Auditors to the Members of |
| Radnor Hills Mineral Water Company Ltd |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditor |
| Emstrey House |
| Shrewsbury Business Park |
| Shrewsbury |
| Shropshire |
| SY2 6LG |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Income Statement |
| for the year ended 31 May 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| REVENUE | 3 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| 2,481,408 | 5,350,514 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 3,004,908 | 5,602,880 |
| Interest payable and similar expenses | 7 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 8 |
| PROFIT FOR THE FINANCIAL YEAR |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Financial Position |
| 31 May 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Property, plant and equipment | 10 |
| CURRENT ASSETS |
| Inventories | 11 |
| Debtors | 12 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 13 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
| NET ASSETS |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Financial Position - continued |
| 31 May 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Revaluation reserve | 20 |
| Retained earnings | 20 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Changes in Equity |
| for the year ended 31 May 2020 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 June 2018 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 May 2019 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 May 2020 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Statement of Cash Flows |
| for the year ended 31 May 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | ( |
) | ( |
) |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| Government grants | 35,000 | 12,997 |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 976,222 | 1,035,060 |
| Amount withdrawn by directors | (971,369 | ) | (1,043,606 | ) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of year |
2 |
7,560,821 |
| Cash and cash equivalents at end of year | 2 | 10,277,558 | 8,219,732 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Statement of Cash Flows |
| for the year ended 31 May 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Gain on revaluation of fixed assets | - | (125,278 | ) |
| Government grants | ( |
) | ( |
) |
| Finance costs | 53,246 | 62,315 |
| Finance income | (36,439 | ) | (39,327 | ) |
| 5,162,171 | 7,625,104 |
| Increase in inventories | ( |
) | ( |
) |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Decrease in trade and other creditors | ( |
) | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 May 2020 |
| 31.5.20 | 1.6.19 |
| £ | £ |
| Cash and cash equivalents | 10,277,558 | 8,219,732 |
| Year ended 31 May 2019 |
| 31.5.19 | 1.6.18 |
| £ | £ |
| Cash and cash equivalents | 8,219,732 | 7,560,821 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Statement of Cash Flows |
| for the year ended 31 May 2020 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.6.19 | Cash flow | At 31.5.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 8,219,732 | 2,057,826 | 10,277,558 |
| 8,219,732 | 10,277,558 |
| Debt |
| Finance leases | (33,174 | ) | 14,299 | (18,875 | ) |
| Debts falling due within 1 year | (1,200,000 | ) | 450,000 | (750,000 | ) |
| Debts falling due after 1 year | (550,000 | ) | 550,000 | - |
| (1,783,174 | ) | 1,014,299 | (768,875 | ) |
| Total | 6,436,558 | 3,072,125 | 9,508,683 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements |
| for the year ended 31 May 2020 |
| 1. | STATUTORY INFORMATION |
| Radnor Hills Mineral Water Company Ltd is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Turnover |
| Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Intangible assets |
| Amortisation is calculated to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
| Debenture | - | written off in equal annual instalments over its estimated useful economic life |
| Computer software | - | written off in equal annual instalments over its estimated useful economic life |
| If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
| Tangible fixed assets |
| Freehold property | - |
| Long leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| The Lion fixtures and fittings | - |
| Government grants |
| Grants receivable as compensation for costs already incurred or for immediate financial support, with no future related costs, are recognised as income in the period in which it is received. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Inventories and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing inventories to their present location and condition. |
| 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 statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the 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 |
| 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. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 3. | REVENUE |
| The revenue and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of revenue by class of business is given below: |
| 2020 | 2019 |
| £ | £ |
| An analysis of revenue by geographical market is given below: |
| 2020 | 2019 |
| £ | £ |
| United Kingdom |
| Europe |
| 4. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Administration | 39 | 35 |
| Production | 125 | 129 |
| Hotel administration | 33 | 30 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Other amortisation |
| 6. | AUDITORS' REMUNERATION |
| 2020 | 2019 |
| £ | £ |
| Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
20,210 |
19,580 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Bank loan interest |
| Interest payable |
| Hire purchase |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 8. | 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 |
| Adjustments in respect of |
| previous periods | (229,359 | ) | (270,039 | ) |
| Total current tax |
| Deferred tax |
| Tax on profit |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2020 | 2019 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| Total tax charge | 357,949 | 802,423 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 9. | INTANGIBLE FIXED ASSETS |
| Other |
| £ |
| COST |
| At 1 June 2019 |
| Additions |
| At 31 May 2020 |
| AMORTISATION |
| At 1 June 2019 |
| Amortisation for year |
| At 31 May 2020 |
| NET BOOK VALUE |
| At 31 May 2020 |
| At 31 May 2019 |
| 10. | PROPERTY, PLANT AND EQUIPMENT |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2019 |
| Additions |
| Disposals | ( |
) |
| At 31 May 2020 |
| DEPRECIATION |
| At 1 June 2019 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 May 2020 |
| NET BOOK VALUE |
| At 31 May 2020 |
| At 31 May 2019 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 10. | PROPERTY, PLANT AND EQUIPMENT - continued |
| The Lion |
| Fixtures | fixtures |
| and | Motor | and |
| fittings | vehicles | fittings | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2019 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 May 2020 |
| DEPRECIATION |
| At 1 June 2019 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 May 2020 |
| NET BOOK VALUE |
| At 31 May 2020 |
| At 31 May 2019 |
| Cost or valuation at 31 May 2020 is represented by: |
| Freehold | Long | Plant and |
| property | leasehold | machinery |
| £ | £ | £ |
| Valuation in 2018 | 6,063,857 | 656,241 | 17,791,980 |
| Valuation in 2019 | 1,949,394 | - | 1,279,126 |
| Valuation in 2020 | 238,206 | 5,920 | 636,882 |
| 8,251,457 | 662,161 | 19,707,988 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 10. | PROPERTY, PLANT AND EQUIPMENT - continued |
| The Lion |
| Fixtures | fixtures |
| and | Motor | and |
| fittings | vehicles | fittings | Totals |
| £ | £ | £ | £ |
| Valuation in 2018 | 298,487 | 132,056 | 228,379 | 25,171,000 |
| Valuation in 2019 | 11,452 | 114,682 | - | 3,354,654 |
| Valuation in 2020 | 58,532 | 98,185 | 13,194 | 1,050,919 |
| 368,471 | 344,923 | 241,573 | 29,576,573 |
| If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
| 2020 | 2019 |
| £ | £ |
| Cost | 8,037,873 | 8,037,873 |
| Aggregate depreciation | 565,700 | 565,700 |
| Value of land in freehold land and buildings | 7,472,173 | 7,472,173 |
| The Lion Hotel was valued on an open market basis on 31 May 2020 by the director . |
| The valuation figures at 2018 represents the accumulated cost/valuation as at 31 May 2018. |
| The valuation figures at 2019 and 2020 represent additions/revaluations in the respective period. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 10. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Included within the carrying value of tangible assets are the following amounts related to assets held under finance leases or hire purchase agreements: |
| Plant and machinery |
| £ |
| At 31 May 2020 | 55,047 |
| At 31 May 2019 | 76,442 |
| 11. | INVENTORIES |
| 2020 | 2019 |
| £ | £ |
| Stocks |
| Raw materials |
| Work-in-progress |
| Finished goods |
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Tax |
| Prepayments and accrued income |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans and overdrafts (see note 15) |
| Hire purchase contracts (see note 16) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | 953,501 | 395,064 |
| Other creditors |
| Directors' loan accounts | 6,514 | 1,661 |
| Accruals and deferred income |
| 14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans (see note 15) |
| Hire purchase contracts (see note 16) |
| 15. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2020 | 2019 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 2020 | 2019 |
| £ | £ |
| Within one year |
| Between one and five years |
| 17. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2020 | 2019 |
| £ | £ |
| Bank loans |
| The bank loans are secured against the assets of the company. |
| 18. | PROVISIONS FOR LIABILITIES |
| 2020 | 2019 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Other timing differences | 23,803 | 23,803 |
| 414,433 | 339,587 |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 18. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2019 |
| Charge to Income Statement during year |
| Balance at 31 May 2020 |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 85 | 85 |
| 20. | RESERVES |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 June 2019 | 25,893,369 |
| Profit for the year |
| At 31 May 2020 | 28,487,082 |
| 21. | ULTIMATE PARENT COMPANY |
| Radnor Hills Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
| On 6th April 2020 Radnor Hills Holdings Limited, a company incorporated on 17th March 2020, acquired 100% of the issued share capital of Radnor Hills Mineral Water Company Limited. The first accounting period for Radnor Hills Holdings Limited is 31st May 2021 therefore these accounts are not yet available at Companies House. |
| The registered office of Radnor Hills Holdings Limited is Heartsease, Knighton, Powys, Wales, LD7 1LU. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 22. | OTHER FINANCIAL COMMITMENTS |
| Radnor Hills Mineral Water Company Limited has entered into the following licence agreement for certain of it's offices, land and facilities for the period 1st June 2019 to 31st May 2021 |
| £ |
| Financial commitment | 2021 | 500,000 |
| 23. | RELATED PARTY DISCLOSURES |
| Goods and services amounting to £1,314,000 (2019 £1,180,500) were paid by the company and received by Mr W W Watkins, a director of the company. At the year end there were no balances outstanding (2019 £Nil). |
| During the year goods and services amounting to £214,800 (2019 £110,633) were paid by the company to J Watkins & Son. Mr W W Watkins, a director of Radnor Hills Mineral Water Company Limited, is also a partner in J Watkins & Son. |
| During the year ended 31st May 2018 the company loaned £375,000 to J Watkins & Son. This is an interest free loan and at the year end £375,000 remained outstanding. |
| During the year the company loaned £150,000 to Kamiph Investments Limited, a company whose directors are connected by relationship with Mr W W Watkins. This is an interest free loan and at the year end £200,000 (2019 £50,00) remained outstanding. |
| 24. | POST BALANCE SHEET EVENTS |
| As a direct consequence of the Coronavirus (COVID-19) pandemic, at the date of approval of the accounts it has not been possible to quantify or ascertain with any certainty the financial impact of COVID-19. No adjustments have been made to any figures in the accounts as a result of the pandemic. |
| 25. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is W W Watkins by virtue of having ownership of 100% of the issued share capital in Radnor Hills Holdings Limited. |
| Radnor Hills Mineral Water Company Ltd (Registered number: 03258542) |
| Notes to the Financial Statements - continued |
| for the year ended 31 May 2020 |
| 26. | GOVERNMENT GRANTS |
| 2018 | 2019 |
| £ | £ |
| At start of period | - | 12,996 |
| Grants received or receivable | 420,526 | - |
| Released to the income statement | (420,526 | ) | (12,996 | ) |
| At end of period | - | - |