Bonus Accessories Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01931017 (England and Wales)

Bonus Accessories Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30th June 2020

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

S T E Boanas

R Jackson

D Madden

J Allen

SECRETARY:

R Jackson

REGISTERED OFFICE:

18 Plane Tree Croft

Leeds

LS17 8UQ

REGISTERED NUMBER:

01931017 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

BANKERS:

The Royal Bank of Scotland plc

3rd Floor

2 Whitehall Quay

Leeds

West Yorkshire

LS1 4HR

SOLICITORS:

Rollits

Wilberforce Court

High Street

Hull

HU1 1YJ

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the manufacture and distribution of electrical accessories to the caravan industry.

REVIEW OF BUSINESS

Turnover has decreased by 28% largely as a result of the coronavirus pandemic.

The directors consider management of the group's stock and debtors as key areas for which key performance indicators are appropriate. Stock levels have increased to £3.9M (2019 £3.2M) and trade debtors have decreased to £0.7M (2019 £2M), both changes being acceptable given the circumstances surrounding the pandemic at the year end.

The directors are pleased to have started the new accounting year with a solid business and solid capital base, good bank facilities in place if needed, and with good prospects for the future.

PRINCIPAL RISKS AND UNCERTAINTIES

The company continues to operate in competitive markets. To reduce the risk, it undertakes research to ensure that it develops appropriate products that satisfy the needs of their customers. The company continues to invest on product development to ensure that it has various products at various stages of the product life cycle.

The company benefits from close commercial relationships with customers. Damage to or loss of any of these relationships could have a direct and detrimental effect on the results. To manage this risk the directors holds periodic customer reviews to identify issues of concern. The company also manages risk by providing added value services to its customers, having fast response times not only in supplying products but handling all customer queries and by maintaining strong relationships with customers.

ON BEHALF OF THE BOARD:

R Jackson - Secretary

1st June 2021

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

DIVIDENDS

No dividends will be distributed for the year ended 30th June 2020.

DIRECTORS

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

S T E Boanas

R Jackson

D Madden

J Allen

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 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.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Jackson - Secretary

1st June 2021

Opinion

We have audited the financial statements of Bonus Accessories Limited (the 'company') for the year ended 30th June 2020 which comprise the Statement of 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 30th June 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Sharpley FCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire HU2 8BA

1st June 2021

TURNOVER

3

11,870,799

16,547,021

Cost of sales

8,912,723

12,476,048

GROSS PROFIT

2,958,076

4,070,973

Distribution costs

317,563

334,303

Administrative expenses

2,537,975

2,105,167

2,855,538

2,439,470

102,538

1,631,503

Other operating income

201,058

-

OPERATING PROFIT and

PROFIT BEFORE TAXATION

303,596

1,631,503

Tax on profit

6

45,975

289,400

PROFIT FOR THE FINANCIAL YEAR

257,621

1,342,103

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

257,621

1,342,103

FIXED ASSETS

Intangible assets

8

3

3

Tangible assets

9

242,273

145,473

242,276

145,476

CURRENT ASSETS

Stocks

10

3,931,446

3,183,369

Debtors

11

1,411,057

3,612,628

Cash at bank

1,232,349

1,337,261

6,574,852

8,133,258

CREDITORS

Amounts falling due within one year

12

564,070

2,283,297

NET CURRENT ASSETS

6,010,782

5,849,961

TOTAL ASSETS LESS CURRENT LIABILITIES

6,253,058

5,995,437

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

6,252,958

5,995,337

SHAREHOLDERS' FUNDS

6,253,058

5,995,437

The financial statements were approved by the Board of Directors and authorised for issue on 1st June 2021 and were signed on its behalf by:

R Jackson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2018

100

6,153,234

6,153,334

Changes in equity

Dividends

-

(1,500,000

)

(1,500,000

)

Total comprehensive income

-

1,342,103

1,342,103

Balance at 30th June 2019

100

5,995,337

5,995,437

Changes in equity

Total comprehensive income

-

257,621

257,621

Balance at 30th June 2020

100

6,252,958

6,253,058

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The principle accounting policies have remained unchanged from the previous year and are set out below.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

Straight line over 7 years

Motor vehicles

-

Straight line over 4 years

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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 in the profit and loss account in other administrative expenses.

Impairment

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

Taxation

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

Current taxation assets and liabilities are not discounted.

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the year end. 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

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.

Intangible fixed assets

Intangible fixed assets are stated at cost less amortisation. Amortisation is provided on cost in equal annual instalments over the estimated useful lives of the assets. The estimated useful lives are as follows:

Goodwill

5 years

Intellectual property

5 years

Contracts

3 years

3.

TURNOVER

All turnover and operating loss arises from the company's principal activity within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2020

2019

No

No

Average number of persons employed

Production

27

27

Sales and distribution

14

14

Administration

24

23

65

64

2020

2019

£

£

Staff costs during the period (including directors)

Wages and salaries

1,567,588

1,542,924

Social security costs

141,863

146,597

Pension costs

37,046

28,154

1,746,497

1,717,675

2020

2019

£

£

Directors' remuneration

402,701

333,533

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

Money purchase schemes

4

4

Information regarding the highest paid director is as follows:

2020

2019

£

£

Emoluments etc

231,080

236,861

5.	OPERATING PROFIT

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

2020

2019

£

£

Other operating leases

346,252

309,652

Depreciation - owned assets

74,926

52,575

Profit on disposal of fixed assets

(1,926

)

(3,698

)

Auditors' remuneration

8,004

8,998

6.

TAXATION

Analysis of the tax charge

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

2020

2019

£

£

Current tax:

UK corporation tax

45,975

289,400

Tax on profit

45,975

289,400

UK corporation tax was charged at 19%) in 2019.

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

303,596

1,631,503

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

57,683

309,986

Effects of:

Expenses not deductible for tax purposes

26,720

28,211

Capital allowances in excess of depreciation

(12,775

)

-

Depreciation in excess of capital allowances

-

2,440

Adjustments to tax charge in respect of previous periods

2,331

850

Group relief received

(27,984

)

(52,087

)

Total tax charge

45,975

289,400

The standard rate of corporation tax in the UK is 19% from 1 April 2017. A reduction in the standard rate UK corporation tax has been announced and the rate will be 17% from 1 April 2020.

7.

DIVIDENDS

2020

2019

£

£

Called up, allotted and fully paid shares of 1 each

Interim

-

1,500,000

8.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1st July 2019

and 30th June 2020

1

2

3

NET BOOK VALUE

At 30th June 2020

1

2

3

At 30th June 2019

1

2

3

9.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1st July 2019

171,360

224,013

395,373

Additions

19,170

156,005

175,175

Disposals

-

(16,559

)

(16,559

)

At 30th June 2020

190,530

363,459

553,989

DEPRECIATION

At 1st July 2019

109,913

139,987

249,900

Charge for year

18,192

56,734

74,926

Eliminated on disposal

-

(13,110

)

(13,110

)

At 30th June 2020

128,105

183,611

311,716

NET BOOK VALUE

At 30th June 2020

62,425

179,848

242,273

At 30th June 2019

61,447

84,026

145,473

10.

STOCKS

2020

2019

£

£

Goods for resale

3,931,446

3,183,369

Stock recognised in cost of sales during the year as an expense was £8,414,753 (2019 £11,939,322). Included in this is an impairment loss of £Nil (2019 £Nil) in relation to slow moving and obsolete stock.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

713,353

1,963,005

Amounts owed by parent company

534,239

1,454,992

Prepayments and accrued income

163,465

194,631

1,411,057

3,612,628

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

124,250

1,474,834

Tax

(31,363

)

128,541

Social security and other taxes

314,245

332,151

Accruals and deferred income

156,938

347,771

564,070

2,283,297

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

100

Called up, allotted and fully

paid

1

100

100

14.

RESERVES

Retained

earnings

£

At 1st July 2019

5,995,337

Profit for the year

257,621

At 30th June 2020

6,252,958

15.	PENSION COMMITMENTS

The company operates a defined contributions scheme. The assets of the scheme are held separately from those of the company in independent administered funds. The pension cost charge represents contributions payable by the company to the fund and amounts to £37,046 (2019 £28,154). There were no amounts outstanding at the period end.

16.	CONTINGENT LIABILITIES

The company has given unlimited guarantees in respect of the bank borrowings of fellow group companies. The amount outstanding under this guarantee at 30 June 2020 was £Nil (2019 £Nil).

The company is part of a group VAT registration. At 30 June 2020 the potential liability of the company under this registration was £31,910 (2019 £136,784).

17.	RELATED PARTY DISCLOSURES

Other related parties

2020

2019

£

£

Sales

425,127

638,154

Purchases

444,983

484,115

Amount due from related party

91,242

182,374

Amount due to related party

14,814

-

18.	ULTIMATE CONTROLLING PARTY

In the opinion of the director, the company's immediate and ultimate parent company is Bonus Electrical Group Limited, a company registered in England. Copies of the group financial statements of Bonus Electrical Group Limited can be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

79% of ordinary share capital of Bonus Electrical Group Limited is held by Mr T S E Boanas.