Origin Frames Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04449292 (England and Wales)

ORIGIN FRAMES LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

9

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

MJ Ginger

AL Ginger

N Ginger

Mrs V Brocklesby

OJ Ginger

DJ Baker

G Walker

SECRETARY:

MJ Ginger

REGISTERED OFFICE:

Broad House

1 The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

REGISTERED NUMBER:

04449292 (England and Wales)

AUDITORS:

Keelings Limited

Statutory Auditors, Chartered Tax Advisers

and Chartered Certified Accountants

Broad House

The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

The directors present their strategic report of the company and the group for the year ended 31 December 2021.

2021 PERFORMANCE AT A GLANCE

Revenue for the financial year: £57,639,903 (2020: £43,726,414)

Revenue Growth: 32%

Profit for the Financial Year: £8,440,649 (2020: £6,401,116)

Profit Growth: 32%

Origin Team - 320 members

Trade Partners we work with regularly - 1,400

Doors manufactured 2021 - 59,648

Windows manufactured 2021 - 70,087

ABOUT ORIGIN FRAMES LIMITED

At Origin, we endeavour to lead the way in the fenestration industry with the design and development of beautiful and quality aluminium door and window products, innovative processes and systems, and a constant drive to invest in the technology that allows us to manufacture and deliver premium products and services, in a sustainable way, to our customers.

Our priority continues to be the wellbeing and safety of our dedicated and enthusiastic Origin team, without whom none of this would be possible. The drive, passion and dedication to deliver on our strategy across the company is the key to continuing our industry-leading innovation.

Our processes and systems are critical to ensuring our customers "never miss an install date"and experience continuous improvement in all areas, by automating, simplifying and allowing our customers to self-serve as much as possible.

The macro-economic challenges that we have faced over recent years have given us a wealth of learning opportunities and has ensured we are laser-focused on our priorities: ensuring we have the best people, focused on continuous improvement and innovation, and consistently meeting the needs of our customers while remaining flexible and resilient to take on the challenges that lie ahead.

REVIEW OF 2021

At Origin, we have always strived to make ourselves reliable, resourceful, resilient and flexible; these traits have put us in a strong position. Building on these foundations and ensuring they are the backbone of our business is essential for us to continue to thrive on the challenge of change and growth, allowing us to invest in our future, look after our incredible team of people and make the most of all opportunities to improve what we do.

Origin have relentlessly pursued the full potential of our customer proposition, enabling us to grow our market share through successful partnerships, leveraging the strong and powerful consumer brand we have built. We will continue to bring our full product offering to market, enhancing and improving along the way, whether that be through product design or ability to order online. We are relentless in our pursuit of improvement. Continuing to be open to finding issues and implementing solutions is the Origin team's priority. We have been demanding of ourselves and supportive of our colleagues around us.

The group business continues to grow, with turnover increasing by just under £14m (32%) to £57.6m. The gross margin was down from 44% in the prior year, to 41%; the net effect of the rise in turnover and fall in margin was an increase in gross profits to £23.9m, up from £19.2m in 2020. Overheads are carefully managed across the business, whilst continuous investment is made in infrastructure and staff.

Pre-tax profits increased to £10.2m, up from £7.5m in 2020. After deducting a tax charge of £1.7m, paying dividends of £5m and recognising a foreign exchange loss of £18,000, the group retained profits of £3.4m, resulting in net assets increasing to £19m.

Cash balances decreased by £2m, to £14.6m, and net current assets rose by £2.5m, to £19m. The North American operation continued to deliver sales growth, with turnover up this year by 27%, to £5.7m.

OUR MARKET POSITION

We estimate that the UK fenestration market is presently worth approximately £3.5 billion. Within this sector, the aluminium market is currently growing faster than any other and worth an estimated £1 billion, notwithstanding the current macro-economic situation. This means there is a significant growth opportunity for us. At present, Origin accounts for some 2% of this demand. Our brand awareness has increased significantly during the last ten years, and particularly in 2020 and 2021 when consumers were looking for a trusted brand to ensure security, quality, integrity, sustainability and service.

BRAND STRATEGY

Origin has invested heavily to develop a consumer brand over the last ten years. This has resulted in Origin being one of the few recognisable names within the UK fenestration industry. Through the early adoption of digital and social marketing, as well as traditional formats such as television, we have driven demand for, and generated awareness of, our unique proposition.

This investment has enabled us to grow while others have not, as reassurance in the brand provided the trust and confidence to allow products to be purchased unseen.

The trusted Origin brand continues to grow and we work closely with our partners to ensure that our brand values are carried through every part of the customer journey.

DELIVERING THE STRATEGY

At Origin, our board of directors ensure we are in line with our strategic objectives, working collaboratively to develop the company's strategy, review its capital expenditure and investment budgets, and drive our culture of inclusivity, integrity, honesty and continuous improvement.

CEO - Neil Ginger

MD - Daniel Baker

COO - Victoria Brocklesby

FD - Garry Walker

Operations Director - Oliver Ginger

The directors consider the interests of the entire Origin Team, investing in our people continuously with training, development, support and improving our working environment. The board of directors engage with the Origin Team in a number of ways to ensure that we deliver on the strategy. This is carried out in a variety of ways, including surveys, roundtable sessions, company gatherings (albeit remotely during parts of 2021) and clear strategic leadership and support for each area of the business. Origin work clearly and collaboratively within the MS365 platform, enabling our teams to work remotely during 2021 and beyond.

Origin is an equal opportunities employer and gives full and fair consideration to applications for employment by disabled persons. The company endeavours to retain those who become disabled during their employment and gives due consideration to the training, career development and promotion of disabled persons.

Delivery of our strategy requires strong relationships, not only within our great team but also with our customers, suppliers and others. We are constantly monitoring our performance, as a customer and a supplier, listening to and working with others to learn how best we can work together.

Our services and products are in line with our values and beliefs regarding our community and environment. At Origin, we strive to improve and enhance our local and wider community and environment, by working with charities, clubs, individuals and associations to help in a variety of different ways, including sponsorship and providing resources and funding, as well as manufacturing and acting responsibly to continue to improve our impact on the environment by lowering our carbon footprint. All aspects of our business, from lighting, vehicle management, tree planting, maintaining local natural habitats and waste disposal, are monitored regularly.

RESEARCH AND DEVELOPMENT

We invest heavily in developing new products and operate our own, in-house development in High Wycombe.

RISK MANAGEMENT

The execution of the company strategy is subject to a number of risks that we seek to mitigate in several ways:

Supply Chain Risk Management

Demand for aluminium was high during 2021, due to the pandemic and supply into the UK being disrupted by Brexit. Origin stockpiled and invested in materials to ensure delivery to our customers was not affected. Maintaining the strong relationships we foster with our suppliers is key to consistent performance, and dual supply of key materials and components is essential.

Financial Risk Management

As a result of transactions with a number of foreign suppliers and customers, Origin is exposed to movements in foreign exchange rates, which it mitigates by hedging. Generally, we limit our exposure to volatility and losses by sound business practices; we do not speculate on either the level or direction of interest rates, foreign exchange or commodity prices.

The 2021 year continued to bring some disruption to the global economy, but our financial results were largely unaffected. Covid-19 continued to cause some disruption internally, affecting our Origin Team and working patterns. This was managed effectively by our team and we kept this disruption to a minimum.

Brexit, the global macro-economic and geopolitical landscape has seen a significant proportion of the labour market leave the UK, causing significant disruption to our recruiting capability. This has led to innovative ways of addressing these issues, including enhanced training programs, technological transformations and flexible working patterns.

Disaster Recovery

Origin operates a business continuity and disaster recovery plan to make sure that we are addressing the high-risk areas within manufacturing facilities, office spaces and information technology. Recovery plans are in place and reviewed regularly to ensure suitability.

Data Risk

Origin operates a strict GDPR policy to ensure the security of data. Please see our privacy policy on our website www.origin-global.com.

THE YEAR AHEAD

The 2022 year is set to see a number of changes, including new products, innovative working patterns and systems to adapt to the hybrid nature of office/work from home, enhanced technology and autonomous systems to ensure we are meeting the needs of our customers. We will continue to use data as a key part of our decision making process, enhancing this area, giving us key information so we can target the priorities of the business.

At Origin we are looking forward to spending more time together as a team, making up for the loss of face to face time during 2020 and 2021. Relationships and support to our team and partners are so important to our progress and ensuring our Origin Team are our top priority is essential. The last two years has been a difficult time for many and at Origin we will do what we can to help navigate the changes that 2022 will bring as we ease into a new way of working.

Digital automation and self-service will be a key part of our customer offering, making data available to our partners at the click of a button. Assisting our partners with lead supply, marketing assistance and regular training will help us support our partners to the level they require to "Never Miss an Install".

Operational Excellence sits at the centre of Origin's strategy. As part of our bid to build stronger foundations, we are identifying and investigating all areas of the business that impact the customer experience. Working within all areas of the business and investing time and resources into improving processes, systems, and knowledge, we will be focusing all our energies to deliver the "Never Miss an Install" goal. Listening to feedback from our customers and measuring interdepartmental flow, we will connect the teams like never before, creating cross-company unification.

Our drive to be better has never been more steadfast and we are looking forward to further developing this enthusiasm to grow and learn during 2022.

SECTION 172(1) STATEMENT

During the year ended 31 December 2021, the board of directors of Origin Frames Limited has acted in ways most likely to promote the success of the company for the benefit of its members as a whole (having regard to its stakeholders) and meet the requirements set out in S172(1)(a-f) of the Companies Act 2006

- Origin is dedicated to providing and maintaining the highest quality standards regarding our products and services. Our strategic plans and ways of working are designed to contribute to our goal of delivering a leading customer experience which will support profitable growth as outlined in the Business Review. Origin's Board of Directors and Senior Management Team comprise of exceptional individuals who have the necessary skills, professional qualifications, experience, and judgement to ensure that this mission is achieved effectively.

- Origin fosters trustful and respectful working relationships and does not exercise authority in purely formal ways. The working environment is one of aspiration and inspiration. We are committed to creating an open, inclusive and safe culture for our people that promotes collaboration and staff development as part of our continuous improvement process. We continuously invest in training to provide our people with the skills and competencies they need to deliver excellence to our customers, as well as provide opportunities for their own growth and development.

- Regular engagements with key suppliers ensure relationships are well maintained. We look to work collaboratively to ensure quality whilst encouraging change where appropriate. This includes the acquisition of new technology, harmonisation and process enhancement.

- We are very aware of our impact on the environment and on the communities in which we operate and our responsibility to individuals and wider society. Environmental matters are dealt with in line with regulatory requirements and we continue to review ways to maintain best practice.

- Origin aims for success and takes pride in continuously achieving outstanding results and outperforming its market. The company pursues our vision and targets with persistency and a long-term view, which enables us to act in the best interest of our shareholders.

- Stakeholder engagement is a key part of our business practice. We understand our obligations to behave responsibly towards all of our stakeholders, including customers, staff, associates, suppliers and shareholders, treating them fairly and with respect so they can benefit from the successful delivery of our business plan.

ON BEHALF OF THE BOARD:

MJ Ginger - Director

25 May 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021.

DIVIDENDS

Interim dividends of £5,007,436 (2020: £1,775,046) were paid during the year; no final dividend is recommended.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

MJ Ginger

AL Ginger

N Ginger

Mrs V Brocklesby

OJ Ginger

DJ Baker

G Walker

CHARITABLE DONATIONS AND EXPENDITURE

During the year, the group made charitable donations of £33,541 (2020: £19,672).

BRANCHES OUTSIDE THE UNITED KINGDOM

The company has a subsidiary undertaking in the USA. See note 14 of the financial statements.

STREAMLINED ENERGY AND CARBON REPORTING

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard, Origin Frames Limited has been engaged in a process aimed at reducing our energy and greenhouse gases. Origin has a continual commitment to tackling climate change, which is achieved by:

- controlling our consumption of natural and energy resources,

- combating global warming and pollution by managing our energy better,

- sharing sustainable development principles within the organisation, with a view to expanding stakeholders and associated parties.

Our doors and windows are made from aluminium, which is an extremely versatile, durable, and recyclable material. It is 100% recyclable, making it a highly sought-after material in the construction industry, with the potential to be recycled indefinitely.

Origin looks to continually improve its carbon footprint through enhancing environmental performance and energy management. Origin offsets 100% of its recorded carbon footprint each year, working with the Chiltern Rangers in the local community, planting trees and hedgerows to maintain carbon neutrality.

During 2021, Origin acquired a new warehouse; this has been taken into account in our 2021 SECR. We operated for a full 12 months during 2021, as opposed to 11 months in 2020, due to COVID19. We have also included electricity transmission and distribution this year, in line with BEIS guidance for best practice electricity emissions reporting.

Recommendations are implemented as appropriate, including those resulting from our Energy Savings Opportunity Scheme (ESOS) assessments, with the next submission due by the end of 2023.

Recorded energy consumption during the financial year was 1,355,753 kWh (or 1,356 MWh).

Efficiency Measures Taken

Origin has been actively engaged in measures to reduce its energy throughout the reporting period, as follows:

1)

Annual review of the environmental management system and policies.

2)

Ongoing training developments on Origin Academy, to improve staff awareness and competency

across environmental and energy topics.

3)

Moving towards paperless Distribution/Transport processes by the end of 2022.

4)

Strengthening supply chain controls through new software and prequalification criteria for suppliers.

5)

Continuing provision of resources to encourage and allow remote meetings and flexible working structures.

2021 Emissions Data

Scope

Tonnes CO2 equivalent

Scope 1 (natural gas, LPG, transport, biomass)

1,264

Scope 2 (electricity)

137

Scope 3 (transport - business travel land, electric T&D)

17

Total Emissions

1,418 tCO2e

18% increase since our previous reporting period.

Intensity Metric

Aluminium Consumption through Production (Tonnes)

0.57 tCO2e

3% reduction since our previous reporting period.

Previous Year Emissions Data (2020)

Recorded Energy Consumption

1,243,303 kWh

Scope 1 (natural gas, LPG, transport, biomass)

1,086 tCO2e

Scope 2 (electricity)

109 tCO2e

Scope 3 (transport - business travel land)

3 tCO2e

Total Emissions

1,198 tCO2e

Intensity Metric - Aluminium Consumption (Tonnes)

0.59 tCO2e

Methodology

We have reported all of emission sources as required under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013. Origin can report figures below, calculated based on the GHG Protocol Corporate Standard using emissions factors from UK government conversion 2021 factor guidance. Reporting corresponds with our financial year and reflect emissions from the leased, owned, and controlled assets for which Origin is responsible.

Origin maintains scopes one (1), two (2) and three (3) emissions, which are generated from our offices and factories, respectively. We maintain emissions from energy combustion, transport, company vehicles, and "grey fleet" - personal cars used for business purposes.

We have calculated and reported our emissions in line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and emission factors from the UK Government's GHG Conversion Factors for Company Reporting 2021.

The reporting period is the financial year 2021, the same as that covered by the Annual Report and Financial Statements. The boundaries of the GHG inventory are defined using the operational control approach. In general, the emissions reported are the same as those which would be reported based on a financial control boundary. Emissions for previous years are retrospectively adjusted as and when more accurate data is provided.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by the Companies Act, the group has disclosed in the Strategic Report information which would otherwise be disclosed in the Directors' Report, as follows:

-

Future developments

-

Stakeholder engagement

-

Risk management

-

Research and development activities

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

MJ Ginger - Director

25 May 2022

Opinion

We have audited the financial statements of Origin Frames Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2021 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages seven and eight, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the Entity and the industry in which it operates and considered the risk of acts by Management which were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, compliance with Financial Reporting Framework FRS 102, Companies Act 2006, General Data Protection Regulations, and applicable Health and Safety and Employment Legislation. We made enquiries of the Directors of the Company to obtain further understanding of the risks of non-compliance. We focused on laws and regulations that could give rise to a material misstatement in the financial statements. Our tests included, but were not limited to:

- agreement of the financial statement disclosures to underlying supporting documentation;

- enquiries of Management regarding known or suspected instances of non-compliance with laws and regulations;

- review of minutes of the Board meetings throughout the year; and

- obtaining an understanding of the control environment in place to prevent and detect irregularities.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Domenico Maurello (Senior Statutory Auditor)

for and on behalf of Keelings Limited

Statutory Auditors, Chartered Tax Advisers

and Chartered Certified Accountants

Broad House

The Broadway

Old Hatfield

Hertfordshire

AL9 5BG

25 May 2022

TURNOVER

4

57,639,903

43,726,414

Cost of sales

33,726,717

24,497,717

GROSS PROFIT

23,913,186

19,228,697

Administrative expenses

13,644,528

12,774,835

10,268,658

6,453,862

Other operating income

5

-

1,112,698

OPERATING PROFIT

7

10,268,658

7,566,560

Interest receivable and similar income

1,362

5,434

10,270,020

7,571,994

Interest payable and similar expenses

8

89,109

52,718

PROFIT BEFORE TAXATION

10,180,911

7,519,276

Tax on profit

9

1,740,262

1,118,160

PROFIT FOR THE FINANCIAL YEAR

8,440,649

6,401,116

Profit attributable to:

Owners of the parent

8,440,649

6,401,116

PROFIT FOR THE YEAR

8,440,649

6,401,116

OTHER COMPREHENSIVE INCOME

Foreign exchange differences on

translation of net investments in

overseas subsidiary

(18,398

)

134,120

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(18,398

)

134,120

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

8,422,251

6,535,236

Total comprehensive income attributable to:

Owners of the parent

8,422,251

6,535,236

FIXED ASSETS

Intangible assets

12

312,828

293,060

Tangible assets

13

3,564,874

2,916,861

Investments

14

-

-

3,877,702

3,209,921

CURRENT ASSETS

Stocks

15

13,218,300

7,097,190

Debtors

16

3,616,625

3,358,163

Cash at bank and in hand

14,641,287

16,691,301

31,476,212

27,146,654

CREDITORS

Amounts falling due within one year

17

12,294,439

10,481,861

NET CURRENT ASSETS

19,181,773

16,664,793

TOTAL ASSETS LESS CURRENT LIABILITIES

23,059,475

19,874,714

CREDITORS

Amounts falling due after more than one year

18

(3,622,462

)

(4,007,098

)

PROVISIONS FOR LIABILITIES

22

(376,170

)

(221,588

)

NET ASSETS

19,060,843

15,646,028

CAPITAL AND RESERVES

Called up share capital

23

1,052

1,052

Share premium

24

29,848

29,848

Capital redemption reserve

24

66

66

Other reserves

24

642

642

Retained earnings

24

19,029,235

15,614,420

SHAREHOLDERS' FUNDS

19,060,843

15,646,028

The financial statements were approved by the Board of Directors and authorised for issue on 25 May 2022 and were signed on its behalf by:

MJ Ginger - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

3,452,769

2,788,998

Investments

14

-

-

3,452,769

2,788,998

CURRENT ASSETS

Stocks

15

12,083,301

6,212,960

Debtors

16

8,091,159

8,660,043

Cash at bank and in hand

13,475,034

15,065,539

33,649,494

29,938,542

CREDITORS

Amounts falling due within one year

17

11,889,919

10,157,143

NET CURRENT ASSETS

21,759,575

19,781,399

TOTAL ASSETS LESS CURRENT LIABILITIES

25,212,344

22,570,397

CREDITORS

Amounts falling due after more than one year

18

(3,622,462

)

(4,007,098

)

PROVISIONS FOR LIABILITIES

22

(376,170

)

(221,588

)

NET ASSETS

21,213,712

18,341,711

CAPITAL AND RESERVES

Called up share capital

23

1,052

1,052

Share premium

24

29,848

29,848

Capital redemption reserve

24

66

66

Retained earnings

24

21,182,746

18,310,745

SHAREHOLDERS' FUNDS

21,213,712

18,341,711

Company's profit for the financial year

7,879,437

6,298,279

The financial statements were approved by the Board of Directors and authorised for issue on 25 May 2022 and were signed on its behalf by:

MJ Ginger - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2020

1,052

10,854,230

29,848

Changes in equity

Dividends

-

(1,775,046

)

-

Total comprehensive income

-

6,535,236

-

Balance at 31 December 2020

1,052

15,614,420

29,848

Changes in equity

Dividends

-

(5,007,436

)

-

Total comprehensive income

-

8,422,251

-

Balance at 31 December 2021

1,052

19,029,235

29,848

Capital

redemption

Other

Total

reserve

reserves

equity

£

£

£

Balance at 1 January 2020

66

642

10,885,838

Changes in equity

Dividends

-

-

(1,775,046

)

Total comprehensive income

-

-

6,535,236

Balance at 31 December 2020

66

642

15,646,028

Changes in equity

Dividends

-

-

(5,007,436

)

Total comprehensive income

-

-

8,422,251

Balance at 31 December 2021

66

642

19,060,843

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2020

1,052

13,787,512

29,848

66

13,818,478

Changes in equity

Dividends

-

(1,775,046

)

-

-

(1,775,046

)

Total comprehensive income

-

6,298,279

-

-

6,298,279

Balance at 31 December 2020

1,052

18,310,745

29,848

66

18,341,711

Changes in equity

Dividends

-

(5,007,436

)

-

-

(5,007,436

)

Total comprehensive income

-

7,879,437

-

-

7,879,437

Balance at 31 December 2021

1,052

21,182,746

29,848

66

21,213,712