OPICO Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06175803 (England and Wales)

OPICO LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Page

Company Information

1

Strategic Report

2

to

4

Report of the Directors

5

to

6

Report of the Independent Auditors

7

to

10

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

24

DIRECTORS:

J A Woolway

D A Steven

C M Bedforth

REGISTERED OFFICE:

Cherry Holt Road

Bourne

Lincolnshire

PE10 9LA

REGISTERED NUMBER:

06175803 (England and Wales)

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

The directors present their strategic report for the year ended 31 December 2020.

REVIEW OF BUSINESS

The wet weather continued to impact OPICO's customers at the start of 2020 and business was slow as many areas experienced waterlogging and field operations were hampered. Spring finally came in mid March and farmers worked 24/7 to catch up from the effects of the past 6 months poor weather. From March onwards the spare parts and technical support teams were extremely busy supporting customers through the catch up whilst observing COVID-19 protocols.

Final turnover was lower than initially forecast for 2020 as a result of COVID-19 and another year of unusual weather patterns, however the company is very fortunate to be involved in agriculture and as a result of a team effort performed relatively well during the year. A number of new products and models had a useful impact on turnover and additional office time allowed some staff the chance to work on some longer term projects.

By the middle of the year it was clear that food nationalism had risen up the agenda for many governments around the world and agricultural commodity prices strengthened significantly towards the end of 2020 as a result. The forward order position and prospects for 2021 are very strong although supply of machinery and components is likely to be the limiting factor in the short to medium term.

IMPACT OF COVID-19

Social distancing preparations for COVID-19 began in February with investments in PPE, office divisions and IT equipment for working from home. Workspaces were reorganised and the company protocols for work at home, Bourne or in the field evolved throughout the spring. The company has a disproportionate number of staff who's partners work in hospitals or healthcare, this created difficulties for OPICO staff due to their own potential infection risk and childcare but the team adapted and assisted each other with the workload. One benefit of this Healthcare connection and having two suppliers in Northern Italy was the first hand information about the Virus the company received which helped us react early.

Wholegoods deliveries from Europe were impacted by COVID-19 due to component supplies. This, along with a number of order cancellations for fixed installation product, meant that the assembly department were not fully utilised in the spring. In order to account for the reduced workload and divide the team into two bubbles the company took advantage of the Furlough scheme and operated a rotational furlough working plan for a number of months in assembly. As a result of the slow start to the year, the COVID-19 impact on wholegoods sales and the uncertainty for the remainder of 2020 the directors also decided to take advantage of the governments VAT deferral scheme to ensure cashflow remained robust.

The company made significant savings during 2020 as a result of exhibitions being cancelled and national travel being reduced. There were additional digital marketing costs as the company worked hard to maintain contact with customers but by the end of the year it was clear that a combination of savings had provided natural mitigation for the reduction in turnover and increased costs that came as a result of the COVID-19 pandemic.

KEY PERFORMANCE INDICATORS

To gain an understanding of the development, performance and financial strength of the company, the management relies on the following key performance indicators:

2020

2019

Movement in Turnover

(2,265,180)

(1,141,690)

Gross Profit %

23.8%

21.2%

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them.

The key risks affecting the company are set out below:

COMMODITY PRICES

The major risk that the Company faces is from a downturn in agricultural prices or from a poor harvest which would reduce the available finance for their customers to invest in equipment. This can be impacted by local factors, such as weather in key growing and harvesting periods, and international factors on world markets. The group attempts to mitigate such a risk by having a diverse range of equipment available and also through aftersales activities such as servicing and part sales.

FOREIGN EXCHANGE RISK

The group imports machinery from around the world and so is exposed to fluctuations in the foreign exchange rate. A blend of forward contracts and various hedging strategies are utilised to mitigate these risks.

COVID-19

The company adapted to COVID-19 early and has continued to work effectively throughout the Pandemic. However, it is clear that the continued lack of face to face meetings and international travel are having an impact on the business by obstructing progression in certain areas. The company is in a good position to cope with ongoing COVID-19 precautions but growth is likely to be affected by the continued restrictions.

BREXIT & POLITICS

Whilst clarity in terms of a Brexit trade deal is better than the uncertainty we have experienced for the last 4 years it is clear that relationships will be more strained with Europe and this will cause difficulties for our customers exporting agricultural goods as well as the import of machinery. We will need to keep a close eye on the effect of the new trade relationship on commodity prices as a result. In terms of machinery it is clear that OPICO's stock holding of spare parts will need to be increased to ensure that we do not rely on fast shipments of urgent parts from Europe are able to maintain a good level of after sales support.

The OPICO product range is well positioned to capitalise on the changes to UK Agricultural policy and the directors will keep a close eye on the details of further changes as they are made public.

Brexit & Politics

The effect of the Brexit process was felt in 2019 but more from an uncertainty perspective than in any other way. Now that the situation is clearer there is some temporary respite but trade deal negotiations will cause currency fluctuations during 2020 and beyond.

We anticipate some additional administration work when the UK formally leaves the EU and have already recruited to cover this eventuality.

The reintroduction of the Agriculture bill and transition away from EU farm subsidy system will bring about a step change in the farming and agricultural machinery industry over the next 5 years. We wait with interest to see the result of the consultations and shape of the final bill. OPICO are in a strong position with a diverse range of machines which provide efficiencies for farmers and are targeted at streamlined farming businesses. As an independent importer of agricultural machinery we are also able to adapt relatively quickly to meet new market needs and this could be a significant advantage to the company going forward.

ON BEHALF OF THE BOARD:

J A Woolway - Director

28 April 2021

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of agricultural machinery distributors.

DIVIDENDS

Dividends totalling £200,413 (2019: £201,250) were paid during the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

J A Woolway

D A Steven

Other changes in directors holding office are as follows:

C M Bedforth - appointed 8 December 2020

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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Duncan and Toplis, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J A Woolway - Director

28 April 2021

Opinion

We have audited the financial statements of OPICO Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the company's employment and health and safety controls to ensure no areas of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Alistair Main FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

Enterprise Way

Pinchbeck

Spalding

Lincolnshire

PE11 3YR

28 April 2021

TURNOVER

3

12,658,283

14,923,471

Cost of sales

9,645,530

11,758,165

GROSS PROFIT

3,012,753

3,165,306

Distribution costs

184,255

229,897

Administrative expenses

2,407,556

2,556,036

2,591,811

2,785,933

420,942

379,373

Other operating income

4,871

4,127

OPERATING PROFIT

5

425,813

383,500

Interest receivable and similar income

-

533

425,813

384,033

Interest payable and similar expenses

6

18,942

34,383

PROFIT BEFORE TAXATION

406,871

349,650

Tax on profit

7

78,451

79,533

PROFIT FOR THE FINANCIAL YEAR

328,420

270,117

PROFIT FOR THE YEAR

328,420

270,117

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

328,420

270,117

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

309,313

303,072

309,313

303,072

CURRENT ASSETS

Stocks

11

3,654,858

3,487,657

Debtors

12

2,225,615

1,562,201

Cash at bank

119,047

99,599

5,999,520

5,149,457

CREDITORS

Amounts falling due within one year

13

3,261,750

2,389,465

NET CURRENT ASSETS

2,737,770

2,759,992

TOTAL ASSETS LESS CURRENT LIABILITIES

3,047,083

3,063,064

PROVISIONS FOR LIABILITIES

17

50,051

50,051

NET ASSETS

2,997,032

3,013,013

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Retained earnings

19

2,996,032

3,012,013

SHAREHOLDERS' FUNDS

2,997,032

3,013,013

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 28 April 2021 and were signed on its behalf by:

J A Woolway - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

1,000

2,943,146

2,944,146

Changes in equity

Dividends

-

(201,250

)

(201,250

)

Total comprehensive income

-

270,117

270,117

Balance at 31 December 2019

1,000

3,012,013

3,013,013

Changes in equity

Dividends

-

(344,401

)

(344,401

)

Total comprehensive income

-

328,420

328,420

Balance at 31 December 2020

1,000

2,996,032

2,997,032

1.	STATUTORY INFORMATION

OPICO Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Report Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d).

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised at the point risk and reward of ownership of a product is passed to the customer, usually this is on despatch for goods sales, on completion for servicing and repair work and for specified periods for service agreements.

Intangible assets

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost and 20% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slowing moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised within the profit and loss account in other administrative expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The 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.

Financial instruments

The company has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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 payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2020

2019

£

£

Wholegoods

10,530,219

13,061,031

Parts

2,019,395

1,748,433

Carriage

108,669

114,007

12,658,283

14,923,471

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

1,308,697

1,331,540

Social security costs

133,734

144,076

Other pension costs

46,665

51,895

1,489,096

1,527,511

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

2020

2019

Directors

3

2

Administration and Production

37

39

40

41

2020

2019

£

£

Directors' remuneration

79,073

75,417

Directors' pension contributions to money purchase schemes

3,384

3,025

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

1

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2020

2019

£

£

Other operating leases

168,000

168,000

Depreciation - owned assets

131,900

130,419

Profit on disposal of fixed assets

(21,465

)

(8,217

)

Auditors' remuneration

10,000

9,750

Auditors' remuneration for non audit work

6,660

6,299

Foreign exchange differences

(107,701

)

(264,818

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

1,365

1,763

Bank loan interest and charges

17,577

32,620

18,942

34,383

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

78,451

89,348

Deferred tax

-

(9,815

)

Tax on profit

78,451

79,533

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2020

2019

£

£

Profit before tax

406,871

349,650

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

77,305

66,434

Effects of:

Expenses not deductible for tax purposes

12,198

11,228

Income not taxable for tax purposes

(4,078

)

-

Capital allowances in excess of depreciation

(6,974

)

-

Depreciation in excess of capital allowances

-

1,871

credit

Total tax charge

78,451

79,533

8.

DIVIDENDS

2020

2019

£

£

Ordinary shares of £1 each

Interim

344,401

201,250

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2020

and 31 December 2020

20,003

AMORTISATION

At 1 January 2020

and 31 December 2020

20,003

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

-

10.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 1 January 2020

168,049

689,211

857,260

Additions

-

169,676

169,676

Disposals

-

(139,194

)

(139,194

)

At 31 December 2020

168,049

719,693

887,742

DEPRECIATION

At 1 January 2020

141,098

413,090

554,188

Charge for year

4,328

127,572

131,900

Eliminated on disposal

-

(107,659

)

(107,659

)

At 31 December 2020

145,426

433,003

578,429

NET BOOK VALUE

At 31 December 2020

22,623

286,690

309,313

At 31 December 2019

26,951

276,121

303,072

The net book value of tangible fixed assets includes £nil (2019 - £nil) in respect of assets held under hire purchase contracts.

11.

STOCKS

2020

2019

£

£

Stocks

3,654,858

3,487,657