Calder Textiles Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01803068 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

FOR

CALDER TEXTILES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Malcolm Rawson

Tracy Jane Wadsworth

Timothy Booth

REGISTERED OFFICE:

Anchor House

Dewsbury Mills

Thornhill Road

Dewsbury

West Yorkshire

WF12 9QE

REGISTERED NUMBER:

01803068 (England and Wales)

AUDITORS:

Walter Dawson & Son

Chartered Accountants

7 Wellington Road East

Dewsbury

West Yorkshire

WF13 1HF

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

REVIEW OF BUSINESS

We continued to supply specialist woollen carpet yarn, hank dyeing and fibre dyeing services.

The main feature of 2019/2020 has been the Covid pandemic which started to take effect late in March 2020 and dominated the final quarter of our financial year.

Sales over this period were less than 20% compared to the same period the year before. It has therefore been a challenging time. The positive results for the first three quarters were eroded in the final quarter. We have taken appropriate measures to reduce costs and conserve cash which has included prudent capital expenditure.

PRINCIPAL RISKS AND UNCERTAINTIES

We have observed the sectors which have been hardest hit namely retail, hospitality and aviation which are all important sectors to our business. Another uncertainty was Brexit which has actually driven more business to Calder Textiles. Companies have tried to ensure a robust supply chain and have actively moved orders from the EU back to the UK shores.

Currently business levels are approximately 80% of pre-pandemic levels. When the aviation sector recovers, we foresee demand for our products to be very high. We are therefore already planning to increase capacity.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

11 May 2021

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of yarn spinners.

DIVIDENDS

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

DIRECTORS

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

Gregory Quinton Bedford

Derek John Bedford

David Kevin Bedford

Carol Lesley Brown

Mark Mawson

Malcolm Rawson

Tracy Jane Wadsworth

Timothy Booth

DIRECTORS INTERESTS

The directors holding office at 30th June 2020 did not hold any beneficial interest in the issued share capital of the company at 1st July 2019 (or date of appointment if later) or 30th June 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 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, Walter Dawson & Son, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Gregory Quinton Bedford - Director

11 May 2021

Opinion

We have audited the financial statements of Calder Textiles Limited (the 'company') for the year ended 30 June 2020 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 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.

Graham Atkinson FCA (Senior Statutory Auditor)

for and on behalf of Walter Dawson & Son

Chartered Accountants

7 Wellington Road East

Dewsbury

West Yorkshire

WF13 1HF

11 May 2021

TURNOVER

3

9,393,911

11,559,165

Cost of sales

8,153,956

9,589,759

GROSS PROFIT

1,239,955

1,969,406

Distribution costs

656,982

702,803

Administrative expenses

894,739

1,000,122

1,551,721

1,702,925

(311,766

)

266,481

Other operating income

445,596

-

OPERATING PROFIT

5

133,830

266,481

Interest payable and similar expenses

6

1,961

194

PROFIT BEFORE TAXATION

131,869

266,287

Tax on profit

7

18,805

20,773

PROFIT FOR THE FINANCIAL YEAR

113,064

245,514

PROFIT FOR THE YEAR

113,064

245,514

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

113,064

245,514

FIXED ASSETS

Tangible assets

8

1,079,813

1,071,872

CURRENT ASSETS

Stocks

9

1,483,549

1,242,232

Debtors

10

1,783,869

2,895,766

Cash in hand

513

1,276

3,267,931

4,139,274

CREDITORS

Amounts falling due within one year

11

1,313,425

2,308,696

NET CURRENT ASSETS

1,954,506

1,830,578

TOTAL ASSETS LESS CURRENT LIABILITIES

3,034,319

2,902,450

PROVISIONS FOR LIABILITIES

15

96,225

77,420

NET ASSETS

2,938,094

2,825,030

CAPITAL AND RESERVES

Called up share capital

16

112,000

112,000

Profit and loss account

2,826,094

2,713,030

SHAREHOLDERS' FUNDS

2,938,094

2,825,030

The financial statements were approved by the Board of Directors and authorised for issue on 11 May 2021 and were signed on its behalf by:

Gregory Quinton Bedford - Director

Carol Lesley Brown - Director

Called up

Profit

share

and loss

Total

capital

account

equity

£

£

£

Balance at 1 July 2018

112,000

2,467,516

2,579,516

Changes in equity

Profit for the year

-

245,514

245,514

Total comprehensive income

-

245,514

245,514

Balance at 30 June 2019

112,000

2,713,030

2,825,030

Changes in equity

Profit for the year

-

113,064

113,064

Total comprehensive income

-

113,064

113,064

Balance at 30 June 2020

112,000

2,826,094

2,938,094

Cash flows from operating activities

Cash generated from operations

1

234,309

480,415

Interest paid

(1,961

)

(194

)

Tax paid

-

(42,659

)

Net cash from operating activities

232,348

437,562

Cash flows from investing activities

Purchase of tangible fixed assets

(261,519

)

(255,267

)

Sale of tangible fixed assets

3,119

12,651

Net cash from investing activities

(258,400

)

(242,616

)

Cash flows from financing activities

Repayment of group loans in the year

148,173

(436,289

)

Net cash from financing activities

148,173

(436,289

)

Increase/(decrease) in cash and cash equivalents

122,121

(241,343

)

Cash and cash equivalents at beginning of year

2

(170,285

)

71,058

Cash and cash equivalents at end of year

2

(48,164

)

(170,285

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Profit before taxation

131,869

266,287

Depreciation charges

252,278

226,927

(Profit)/loss on disposal of fixed assets

(1,819

)

1,856

Finance costs

1,961

194

384,289

495,264

Increase in stocks

(241,317

)

(172,545

)

Decrease in trade and other debtors

907,369

266,328

Decrease in trade and other creditors

(816,032

)

(108,632

)

Cash generated from operations

234,309

480,415

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2020

30.6.20

1.7.19

£

£

Cash and cash equivalents

513

1,276

Bank overdrafts

(48,677

)

(171,561

)

(48,164

)

(170,285

)

Year ended 30 June 2019

30.6.19

1.7.18

£

£

Cash and cash equivalents

1,276

71,058

Bank overdrafts

(171,561

)

-

(170,285

)

71,058

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.19

Cash flow

At 30.6.20

£

£

£

Net cash

Cash at bank and in hand

1,276

(763

)

513

Bank overdrafts

(171,561

)

122,884

(48,677

)

(170,285

)

122,121

(48,164

)

Total

(170,285

)

122,121

(48,164

)

1.	STATUTORY INFORMATION

Calder Textiles 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.

RELATED PARTY EXEMPTION

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

TURNOVER

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

TANGIBLE FIXED ASSETS

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

Short leasehold

-

5% on cost or valuation

Plant and machinery

-

12.5% on cost

Motor vehicles

-

25% on cost

GOVERNMENT GRANTS

Grants receivable in relation to profit and loss expenditure are credited to the profit and loss in the year for which they relate.

STOCKS

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

FOREIGN CURRENCIES

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

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.

HIRE PURCHASE AND LEASING

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the leases. The benefits of lease incentives are recognised in the profit and loss account over the shorter of the lease period and the period to the next rent review at which the rent is expected to be reset to market rates.

INCOME RECOGNITION

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

3.

TURNOVER

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

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

3,319,965

3,437,132

Social security costs

30,578

39,346

Other pension costs

20,710

47,774

3,371,253

3,524,252

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

2020

2019

Distribution and selling

2

2

Production

154

149

Administration

8

8

164

159

2020

2019

£

£

Directors' remuneration

307,280

370,689

Directors' pension contributions to money purchase schemes

1,379

16,153

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

Money purchase schemes

6

5

Information regarding the highest paid director is as follows:

2020

2019

£

£

Emoluments etc

60,082

65,338

5.	OPERATING PROFIT

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

2020

2019

£

£

Depreciation - owned assets

252,278

226,927

(Profit)/loss on disposal of fixed assets

(1,819

)

1,856

Auditors' remuneration

11,631

11,234

Foreign exchange differences

(10,649

)

(10,617

)

Operating leases

161,878

176,091

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

378

194

Group support interest

1,583

-

1,961

194

7.

TAXATION

Analysis of the tax charge

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

2020

2019

£

£

Deferred tax

18,805

20,773

Tax on profit

18,805

20,773

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

131,869

266,287

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

25,055

50,595

Effects of:

Expenses not deductible for tax purposes

-

781

Depreciation on assets excluded from capital allowances

274

274

Research and development enhancement

-

(16,581

)

Group loss relief

(6,524

)

(14,296

)

on deferred tax provision

Total tax charge

18,805

20,773

8.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

leasehold

machinery

vehicles

Totals

£

£

£

£

COST

At 1 July 2019

215,802

7,754,879

88,573

8,059,254

Additions

-

233,341

28,178

261,519

Disposals

-

-

(20,795

)

(20,795

)

At 30 June 2020

215,802

7,988,220

95,956

8,299,978

DEPRECIATION

At 1 July 2019

142,220

6,804,943

40,219

6,987,382

Charge for year

10,790

221,984

19,504

252,278

Eliminated on disposal

-

-

(19,495

)

(19,495

)

At 30 June 2020

153,010

7,026,927

40,228

7,220,165

NET BOOK VALUE

At 30 June 2020

62,792

961,293

55,728

1,079,813

At 30 June 2019

73,582

949,936

48,354

1,071,872

9.

STOCKS

2020

2019

£

£

Stocks

1,483,549

1,242,232

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

986,186

2,008,243

Amounts owed by group undertakings

440,987

645,515

VAT

56,303

168,136

Prepayments and accrued income

300,393

73,872

1,783,869

2,895,766

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 12)

48,677

171,561

Trade creditors

330,201

1,154,936

Amounts owed to group undertakings

415,977

472,332

Social security and other taxes

53,144

94,548

Accruals and deferred income

465,426

415,319

1,313,425

2,308,696