Michael Davies and Associates Limited Company accounts
Michael Davies and Associates Limited Company accounts
COMPANY REGISTRATION NUMBER:
02165614
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Financial Statements |
Year ended 31 December 2021
Contents |
Page |
Strategic report |
1 |
Directors' report |
3 |
Independent auditor's report to the members |
5 |
Statement of income and retained earnings |
9 |
Statement of financial position |
10 |
Notes to the financial statements |
11 |
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Strategic Report |
Year ended 31 December 2021
The directors present their strategic report for the year ended 31 December 2021.
Review of the business
The business was historically engaged in the procurement and fulfilment of branded collateral and has now diversified into a multi channel logistics solutions specialist. 2020's results bore the impact of the pandemic and this continued into the early part of 2021 with Q1 in particular being impacted by a further nationwide lockdown. This had a significant impact in particular on our clients in the hospitality and retail sectors whose activity reduced consequently. As restrictions began to ease, activity in these sectors picked up and continued to grow across the remainder of 2021. In tandem with this, our diversification strategy continues to bear fruit with a number of new core product client wins successfully integrated across the year. The resultant impact led to turnover increasing by 25% versus 2020 and EBITDA of £4.533m for the year, which compares favourably to 2020 of £3.510m. The operating loss for the year of (£0.058m) compares to an operating loss in 2020 of (£0.962m). In both these numbers, within administrative expenses, there is the non-cash impactive posting of goodwill amortisation of £3.100m. We have seen the strong finish in 2021 continue into Q1 of 2022 and with advanced plans in place to extend our warehouse estate to seven units we are confident that the business will continue to grow this year and beyond. Rebrand From 1 February 2021 the business was rebranded and is now trading as Staci. This aligns us with the wider Staci group and allows us to offer a consistent Pan-European solution, which has already played a key part in significant new client wins with fulfilment activities spread across multiple European countries including the UK.
Principal risks and uncertainties
As we entered into 2021 the pandemic and Brexit were the most significant risks the UK economy was facing and whilst neither has abated fully we feel that they alone are no longer the principal risks the business faces. (i) Inflation As the UK emerges from the pandemic and adjusts to the post Brexit world these matters, allied to the war in the Ukraine, have resulted in pressure on supply chains leading to significant levels of inflation. As a business, we are confident that we have robust procedures and controls in place to mitigate any cost increases and whilst being cognisant of all cost lines we are confident that there will not be any material impact upon profitability. (ii) Employment Recruitment is proving to be increasingly a more difficult challenge in not only permanent colleague positions but also the availability of temporary labour. We have a strong colleague proposition and are confident in our ability to retain colleagues but the availability of labour to accelerate growth is a challenge and we are having to focus more resource in recruitment to ensure we attract new colleagues in the future.
This report was approved by the board of directors on 11 May 2022 and signed on behalf of the board by:
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Director |
Registered office: |
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Directors' Report |
Year ended 31 December 2021
The directors present their report and the financial statements of the company for the year ended
31 December 2021
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Directors
The directors who served the company during the year were as follows:
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Dividends
The directors do not recommend the payment of a dividend.
Future developments
We are in the midst of advanced plans to add a seventh unit to our warehouse estate. The continued growth reflects the continuing strong sales pipeline and the conversion rates therein. The diversification of the business remains a key and important focus, as activity from our POS/Print clients whilst not declining, has remained stagnant in recent years. The strides we have already made to diversify, with several key client wins in 2021 and some already in 2022, puts us in good stead to continue to grow the business further.
Employment of disabled persons
Employee involvement
Directors' responsibilities statement
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
11 May 2022
and signed on behalf of the board by:
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Director |
Registered office: |
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Independent Auditor's Report to the Members of
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Year ended 31 December 2021
Opinion
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Responsibilities of directors
Auditor's responsibilities for the audit of the financial statements
Use of own 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 an auditor's report 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.
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(Senior Statutory Auditor) |
For and on behalf of |
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Chartered accountants & statutory auditor |
Sterling House |
501 Middleton Road |
Chadderton |
Oldham |
OL9 9LY |
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Statement of Income and Retained Earnings |
Year ended 31 December 2021
2021 |
2020 |
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Note |
£000 |
£000 |
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Turnover |
4 |
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Cost of sales |
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-------- |
-------- |
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Gross profit |
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Administrative expenses |
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Other operating income |
5 |
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-------- |
-------- |
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Operating loss |
6 |
(
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(
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Other interest receivable and similar income |
10 |
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Interest payable and similar expenses |
11 |
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-------- |
-------- |
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Loss before taxation |
(
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(
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Tax on loss |
12 |
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---- |
------- |
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Loss for the financial year and total comprehensive income |
(
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(
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---- |
------- |
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Dividends paid and payable |
13 |
– |
(
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Retained (losses)/earnings at the start of the year |
(
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------- |
------- |
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Retained losses at the end of the year |
(
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(
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------- |
------- |
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All the activities of the company are from continuing operations.
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Statement of Financial Position |
2021 |
2020 |
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Note |
£000 |
£000 |
£000 |
£000 |
Fixed assets
Intangible assets |
14 |
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Tangible assets |
15 |
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-------- |
-------- |
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Current assets
Stocks |
16 |
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Debtors |
17 |
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Cash at bank and in hand |
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-------- |
-------- |
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Creditors: amounts falling due within one year |
18 |
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-------- |
-------- |
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Net current assets |
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-------- |
-------- |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year |
19 |
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Provisions |
21 |
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-------- |
-------- |
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Net assets |
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-------- |
-------- |
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Capital and reserves
Called up share capital |
25 |
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Profit and loss account |
26 |
(
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(
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-------- |
-------- |
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Shareholders funds |
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-------- |
-------- |
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These financial statements were approved by the
board of directors
and authorised for issue on
11 May 2022
, and are signed on behalf of the board by:
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Director |
Company registration number:
02165614
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Notes to the Financial Statements |
Year ended 31 December 2021
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is MDA, Walker Park, Blackamoor Road, Blackburn, BB1 2LG.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of
Staci SAS
which are available from head office at ZI du Vert Galant, 36 Avenue du Fond de Vaux, Saint-Ouen-l'Aumône 95310, France. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and key sources of estimation uncertainty
Revenue recognition
Income tax
Operating leases
Goodwill
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill |
- |
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If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings |
- |
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Plant and machinery |
- |
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Fixtures and fittings |
- |
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Equipment |
- |
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Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Finance leases and hire purchase contracts
Government grants
Provisions
Financial instruments
Defined contribution plans
4.
Turnover
Turnover arises from:
2021 |
2020 |
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£000 |
£000 |
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Sale of goods |
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Rendering of services |
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-------- |
-------- |
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-------- |
-------- |
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The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Other operating income
2021 |
2020 |
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£000 |
£000 |
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Government grant income |
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---- |
------- |
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6.
Operating profit
Operating profit or loss is stated after charging:
2021 |
2020 |
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£000 |
£000 |
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Amortisation of intangible assets |
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Depreciation of tangible assets |
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Foreign exchange differences |
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Operating lease charges |
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------- |
------- |
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7.
Auditor's remuneration
2021 |
2020 |
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£000 |
£000 |
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Fees payable for the audit of the financial statements |
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---- |
---- |
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8.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2021 |
2020 |
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No. |
No. |
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Administrative staff |
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Management staff |
11 |
12 |
Number of sales staff |
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Number of warehouse staff |
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---- |
---- |
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---- |
---- |
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The aggregate payroll costs incurred during the year, relating to the above, were:
2021 |
2020 |
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£000 |
£000 |
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Wages and salaries |
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Social security costs |
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Other pension costs |
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-------- |
-------- |
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-------- |
-------- |
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9.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2021 |
2020 |
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£000 |
£000 |
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Remuneration |
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Company contributions to defined contribution pension plans |
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---- |
---- |
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---- |
---- |
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Remuneration of the highest paid director in respect of qualifying services:
2021 |
2020 |
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£000 |
£000 |
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Aggregate remuneration |
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Company contributions to defined contribution pension plans |
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---- |
---- |
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---- |
---- |
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10.
Other interest receivable and similar income
2021 |
2020 |
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£000 |
£000 |
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Interest on cash and cash equivalents |
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---- |
---- |
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11.
Interest payable and similar expenses
2021 |
2020 |
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£000 |
£000 |
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Interest on obligations under finance leases and hire purchase contracts |
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---- |
---- |
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12.
Tax on loss
Major components of tax expense
2021 |
2020 |
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£000 |
£000 |
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Current tax:
UK current tax expense |
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Adjustments in respect of prior periods |
– |
(
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---- |
---- |
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Total current tax |
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---- |
---- |
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---- |
---- |
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Tax on loss |
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---- |
---- |
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Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the year is higher than (2020: higher than) the
standard rate of corporation tax in the UK
of
19
% (2020:
19
%).
2021 |
2020 |
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£000 |
£000 |
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Loss on ordinary activities before taxation |
(
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(
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---- |
---- |
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Loss on ordinary activities by rate of tax |
(
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(
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Adjustment to tax charge in respect of prior periods |
– |
(
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Effect of expenses not deductible for tax purposes |
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– |
Effect of goodwill amortisation |
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---- |
---- |
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Tax on loss |
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---- |
---- |
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13.
Dividends
2021 |
2020 |
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£000 |
£000 |
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Dividends paid during the year (excluding those for which a liability existed at the end of the prior year ) |
– |
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---- |
---- |
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14.
Intangible assets
Goodwill |
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£000 |
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Cost |
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At 1 January 2021 and 31 December 2021 |
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-------- |
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Amortisation |
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At 1 January 2021 |
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Charge for the year |
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-------- |
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At 31 December 2021 |
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-------- |
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Carrying amount |
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At 31 December 2021 |
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-------- |
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At 31 December 2020 |
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-------- |
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15.
Tangible assets
Land and buildings |
Plant and machinery |
Fixtures and fittings |
Equipment |
Assets under construction |
Total |
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£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
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Cost |
||||||
At 1 Jan 2021 |
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Additions |
– |
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– |
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Transfers |
– |
– |
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(
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(
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------- |
------- |
------- |
---- |
---- |
------- |
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At 31 Dec 2021 |
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– |
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------- |
------- |
------- |
---- |
---- |
------- |
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Depreciation |
||||||
At 1 Jan 2021 |
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– |
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Charge for the year |
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– |
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------- |
------- |
------- |
---- |
---- |
------- |
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At 31 Dec 2021 |
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– |
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------- |
------- |
------- |
---- |
---- |
------- |
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Carrying amount |
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At 31 Dec 2021 |
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– |
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------- |
------- |
------- |
---- |
---- |
------- |
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At 31 Dec 2020 |
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------- |
------- |
------- |
---- |
---- |
------- |
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Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery |
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£000 |
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At 31 December 2021 |
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---- |
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At 31 December 2020 |
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---- |
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16.
Stocks
2021 |
2020 |
|
£000 |
£000 |
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Raw materials and consumables |
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Work in progress |
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---- |
---- |
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---- |
---- |
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17.
Debtors
2021 |
2020 |
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£000 |
£000 |
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Trade debtors |
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Amounts owed by group undertakings |
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Prepayments and accrued income |
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Other debtors |
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-------- |
-------- |
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-------- |
-------- |
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18.
Creditors:
amounts falling due within one year
2021 |
2020 |
|
£000 |
£000 |
|
Trade creditors |
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Amounts owed to group undertakings |
– |
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Accruals and deferred income |
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Corporation tax |
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Social security and other taxes |
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Obligations under finance leases and hire purchase contracts |
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Other creditors |
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-------- |
-------- |
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-------- |
-------- |
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Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
19.
Creditors:
amounts falling due after more than one year
2021 |
2020 |
|
£000 |
£000 |
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Accruals and deferred income |
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Obligations under finance leases and hire purchase contracts |
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---- |
---- |
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---- |
---- |
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Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
20.
Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2021 |
2020 |
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£000 |
£000 |
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Not later than 1 year |
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Later than 1 year and not later than 5 years |
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---- |
---- |
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---- |
---- |
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21.
Provisions
Deferred tax (note 22) |
Dilapidations |
Total |
|
£000 |
£000 |
£000 |
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At 1 January 2021 |
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Additions |
– |
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---- |
------- |
------- |
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At 31 December 2021 |
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---- |
------- |
------- |
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22.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
2021 |
2020 |
|
£000 |
£000 |
|
Included in provisions (note 21) |
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---- |
---- |
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The deferred tax account consists of the tax effect of timing differences in respect of:
2021 |
2020 |
|
£000 |
£000 |
|
Accelerated capital allowances |
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Provisions |
(
|
(
|
---- |
---- |
|
83 |
83 |
|
---- |
---- |
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23.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
310,470
(2020: £
285,818
).
24.
Government grants
The amounts recognised in the financial statements for government grants are as follows:
2021 |
2020 |
|
£000 |
£000 |
|
Recognised in creditors:
Deferred government grants due within one year |
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Deferred government grants due after more than one year |
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---- |
---- |
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---- |
---- |
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Recognised in other operating income:
Government grants recognised directly in income |
442 |
1,130 |
Government grants released to profit or loss |
48 |
48 |
---- |
------- |
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---- |
------- |
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25.
Called up share capital
Issued, called up and fully paid
2021 |
2020 |
|||
No. |
£000 |
No. |
£000 |
|
|
|
36,964 |
|
36,964 |
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-------- |
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26.
Reserves
27.
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2021 |
2020 |
|
£000 |
£000 |
|
Not later than 1 year |
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Later than 1 year and not later than 5 years |
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Later than 5 years |
– |
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------- |
-------- |
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------- |
-------- |
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28.
Contingencies
29.
Related party transactions
The company is exempt from disclosing related party transactions as they are with other companies that are wholly owned within the Group.
30.
Controlling party
The company's immediate parent undertaking, and the smallest group in which the results of the company are consolidated is
Staci S
AS, a company incorporated in France. Copies of Staci SAS's financial statements can be obtained from the head office at ZI du Vert Galant, 5/7 Avenue des Gros Chevaux, 95310 Saint-Ouen l'Aumône, France
. The ultimate parent undertaking and largest group in which the results of the company are consolidated is Augusta Progress
(renamed from Wilson Holdings on April 19th 2021). Copies of their financial statements can be obtained from 5/7 Avenue des Gros Chevaux, ZAC du Vert Galant, 95310 Saint-Ouen l'Aumône, France
. The ultimate controlling party is Ardian France.