A E Beckett & Sons Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00682856 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2021

for

A E BECKETT & SONS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Statement of Financial Position

8

Company Statement of Financial Position

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Statement of Cash Flows

12

Notes to the Consolidated Statement of Cash Flows

13

Notes to the Consolidated Financial Statements

14

Directors:

S Beckett

A Beckett

I Comer

G Smith

A J Beckett

E V Kyte

Registered office:

Heath Farm Alcester Road

Wythall

Birmingham

Worcester

B47 6AJ

Registered number:

00682856 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

Bankers:

Yorkshire Bank Plc

52 Greengate Street

Staffordshire

ST16 2BR

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

Review of business

The principal activities of the group during the year continued to be that of food retailing, operation of a restaurant, general farming, letting of egg production facilities and the provision of ancillary services.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

As for many businesses of our size, the business environment in which we operate continues to be challenging. The retail market in the UK is highly competitive and margins continue to be challenged. We are of course also subject to consumer spending patterns and consumers' overall level of disposable income within our economy.

Principal risks and uncertainties

The risks facing the company are assessed on an ongoing basis. The directors evaluate the likelihood and potential impact of each risk and ensure appropriate action is taken to mitigate it.

A number of key risks such as credit management, liquidity, health and safety and regulatory compliance come under the direct control of the directors.

With the principal risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

Financial key performance indicators

We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin. The net contribution before allocation of central shared overheads of each activity is monitored on a regular basis.

Development and performance

The group's turnover decreased 5.5% from £5.1m in 2020 to £4.9m in 2021. Direct costs increased proportionally more than sales, meaning the group's gross profit margin remained at 30.7% (2020: 30.7%).

Administrative expenditure has increased to £2,126,589 (2020: £2,097,398). The operating profit for the year decreased by 0.5% to £1,222,236 (2020: £1,228,949).

Debt servicing costs reduced marginally on the prior year at £27,910 (2020: £31,862) due to a reducing loan balance. Profit before tax decreased to £1,194,326 (2020: £1,197,100), whilst profit after tax decreased to £829,361 (2020: £920,834).

After payment of dividends totalling £246,092, £583,269 was added to reserves leaving shareholders funds at £8,574,859 (2020: £7,991,590).

On behalf of the board:

S Beckett - Director

29 April 2022

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

Dividends

The total distribution of dividends for the year ended 31 December 2021 will be £246,092. Particulars of dividends paid are detailed within the financial statements.

Directors

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

S Beckett

A Beckett

I Comer

G Smith

Other changes in directors holding office are as follows:

A J Beckett and E V Kyte were appointed as directors after 31 December 2021 but prior to the date of this report.

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;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Auditors

Haines Watts Birmingham LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

On behalf of the board:

S Beckett - Director

29 April 2022

Opinion

We have audited the financial statements of A E Beckett & Sons Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 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 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 obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to:

-

making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

-

obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

assessing the design effectiveness of the controls in place to prevent and detect fraud;

-

assessing the risk of management override including identifying and testing journal entries;

-

challenging the assumptions and judgements made by management in its significant accounting estimates.

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

Nichola Venables (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

3 August 2022

Turnover

4

4,865,868

5,149,193

Cost of sales

(3,370,236

)

(3,568,507

)

Gross profit

1,495,632

1,580,686

Administrative expenses

(2,126,589

)

(2,097,398

)

(630,957

)

(516,712

)

Other operating income

5

1,853,193

1,745,661

Operating profit

7

1,222,236

1,228,949

Interest payable and similar expenses

8

(27,910

)

(31,849

)

Profit before taxation

1,194,326

1,197,100

Tax on profit

9

(364,965

)

(276,266

)

Profit for the financial year

829,361

920,834

Other comprehensive income

-

-

Total comprehensive income for the year

829,361

920,834

Profit attributable to:

Owners of the parent

829,361

920,834

Total comprehensive income attributable to:

Owners of the parent

829,361

920,834

Fixed assets

Tangible assets

12

8,488,928

9,407,129

Investments

13

-

-

8,488,928

9,407,129

Current assets

Stocks

14

232,265

125,827

Debtors

15

126,349

121,558

Investments

16

1,279

1,279

Cash at bank and in hand

1,931,186

724,619

2,291,079

973,283

Creditors

Amounts falling due within one year

17

839,662

772,023

Net current assets

1,451,417

201,260

Total assets less current liabilities

9,940,345

9,608,389

Creditors

Amounts falling due after more than one year

18

(960,567

)

(1,145,938

)

Provisions for liabilities

22

(404,919

)

(470,861

)

Net assets

8,574,859

7,991,590

Capital and reserves

Called up share capital

23

15,407

15,407

Share premium

24

626,884

626,884

Capital redemption reserve

24

23,599

23,599

Retained earnings

24

7,908,969

7,325,700

Shareholders' funds

8,574,859

7,991,590

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2022 and were signed on its behalf by:

S Beckett - Director

Fixed assets

Tangible assets

12

8,094,218

8,953,276

Investments

13

50,199

50,199

8,144,417

9,003,475

Current assets

Stocks

14

232,265

125,827

Debtors

15

126,350

121,559

Investments

16

1,279

1,279

Cash at bank and in hand

1,931,186

724,619

2,291,080

973,284

Creditors

Amounts falling due within one year

17

1,145,855

946,594

Net current assets

1,145,225

26,690

Total assets less current liabilities

9,289,642

9,030,165

Creditors

Amounts falling due after more than one year

18

(1,526,078

)

(1,711,449

)

Provisions for liabilities

22

(371,992

)

(436,281

)

Net assets

7,391,572

6,882,435

Capital and reserves

Called up share capital

23

15,407

15,407

Share premium

24

626,884

626,884

Capital redemption reserve

24

18,724

18,724

Retained earnings

24

6,730,557

6,221,420

Shareholders' funds

7,391,572

6,882,435

Company's profit for the financial year

755,229

841,783

The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2022 and were signed on its behalf by:

S Beckett - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2020

15,407

6,495,633

626,884

23,599

7,161,523

Changes in equity

Dividends

-

(90,767

)

-

-

(90,767

)

Total comprehensive income

-

920,834

-

-

920,834

Balance at 31 December 2020

15,407

7,325,700

626,884

23,599

7,991,590

Changes in equity

Dividends

-

(246,092

)

-

-

(246,092

)

Total comprehensive income

-

829,361

-

-

829,361

Balance at 31 December 2021

15,407

7,908,969

626,884

23,599

8,574,859

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2020

15,407

5,470,404

626,884

18,724

6,131,419

Changes in equity

Dividends

-

(90,767

)

-

-

(90,767

)

Total comprehensive income

-

841,783

-

-

841,783

Balance at 31 December 2020

15,407

6,221,420

626,884

18,724

6,882,435

Changes in equity

Dividends

-

(246,092

)

-

-

(246,092

)

Total comprehensive income

-

755,229

-

-

755,229

Balance at 31 December 2021

15,407

6,730,557

626,884

18,724

7,391,572

Cash flows from operating activities

Cash generated from operations

1

1,323,165

1,670,221

Interest paid

(27,910

)

(31,849

)

Tax paid

(400,090

)

(159,615

)

Net cash from operating activities

895,165

1,478,757

Cash flows from investing activities

Purchase of tangible fixed assets

(835,228

)

(1,112,146

)

Sale of tangible fixed assets

1,650,817

232,184

Net cash from investing activities

815,589

(879,962

)

Cash flows from financing activities

New loans in year

-

1,339,570

Loan repayments in year

(137,611

)

(1,462,443

)

Capital repayments in year

(152,214

)

132,382

Amount introduced by directors

35,000

196,000

Amount withdrawn by directors

(3,270

)

(231,000

)

Equity dividends paid

(246,092

)

(90,767

)

Net cash from financing activities

(504,187

)

(116,258

)

Increase in cash and cash equivalents

1,206,567

482,537

Cash and cash equivalents at beginning of year

2

724,619

242,082

Cash and cash equivalents at end of year

2

1,931,186

724,619

1.	Reconciliation of profit before taxation to cash generated from operations

2021

2020

£

£

Profit before taxation

1,194,326

1,197,100

Depreciation charges

468,684

510,612

Profit on disposal of fixed assets

(366,072

)

(115,089

)

Finance costs

27,910

31,849

1,324,848

1,624,472

(Increase)/decrease in stocks

(106,438

)

85,446

(Increase)/decrease in trade and other debtors

(36,521

)

32,527

Increase/(decrease) in trade and other creditors

141,276

(72,224

)

Cash generated from operations

1,323,165

1,670,221

2.	Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2021

31/12/21

1/1/21

£

£

Cash and cash equivalents

1,931,186

724,619

Year ended 31 December 2020

31/12/20

1/1/20

£

£

Cash and cash equivalents

724,619

242,082

3.	Analysis of changes in net (debt)/funds

At 1/1/21

Cash flow

At 31/12/21

£

£

£

Net cash

Cash at bank and in hand

724,619

1,206,567

1,931,186

724,619

1,206,567

1,931,186

Liquid resources

Current asset investments

1,279

-

1,279

1,279

-

1,279

Debt

Finance leases

(217,088

)

152,214

(64,874

)

Debts falling due within 1 year

(137,809

)

(3,033

)

(140,842

)

Debts falling due after 1 year

(1,101,211

)

140,644

(960,567

)

(1,456,108

)

289,825

(1,166,283

)

Total

(730,210

)

1,496,392

766,182

1.	Statutory information

A E Beckett & Sons 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 General Information page.

2.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

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

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account it published a separate profit and loss account for the parent company is omitted from the group consolidated financial statements by virtue of section 408 of the Companies Act 2006.

Turnover

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

Government grants

Grants which are of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.

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.

Freehold property

-

2% on cost

Improvements to property

-

5% on cost and 2% on cost

Plant & equipment

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

All fixed assets are initially recorded at cost.

Fixed asset investments

Investments in subsidiary undertakings are recognised at cost less accumulated impairment.

Stocks

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