ACCOUNTS - Final Accounts

ACCOUNTS - Final Accounts

REES TRADING UK LTD - Company Information

Print Friendly Version

Caseware UK (AP4) 2021.0.152 2021.0.152 2021-08-312021-08-312021-08-312020-09-01No description of principal activityfalse55falsefalse 07783306 2020-09-01 2021-08-31 07783306 2019-09-01 2020-08-31 07783306 2021-08-31 07783306 2020-08-31 07783306 2019-09-01 07783306 c:Director1 2020-09-01 2021-08-31 07783306 c:RegisteredOffice 2020-09-01 2021-08-31 07783306 d:Buildings 2020-09-01 2021-08-31 07783306 d:Buildings 2021-08-31 07783306 d:Buildings 2020-08-31 07783306 d:Buildings d:OwnedOrFreeholdAssets 2020-09-01 2021-08-31 07783306 d:Buildings d:LeasedAssetsHeldAsLessee 2020-09-01 2021-08-31 07783306 d:PlantMachinery 2020-09-01 2021-08-31 07783306 d:PlantMachinery 2021-08-31 07783306 d:PlantMachinery 2020-08-31 07783306 d:PlantMachinery d:OwnedOrFreeholdAssets 2020-09-01 2021-08-31 07783306 d:PlantMachinery d:LeasedAssetsHeldAsLessee 2020-09-01 2021-08-31 07783306 d:MotorVehicles 2020-09-01 2021-08-31 07783306 d:MotorVehicles 2021-08-31 07783306 d:MotorVehicles 2020-08-31 07783306 d:MotorVehicles d:OwnedOrFreeholdAssets 2020-09-01 2021-08-31 07783306 d:MotorVehicles d:LeasedAssetsHeldAsLessee 2020-09-01 2021-08-31 07783306 d:FurnitureFittings 2020-09-01 2021-08-31 07783306 d:FurnitureFittings 2021-08-31 07783306 d:FurnitureFittings 2020-08-31 07783306 d:FurnitureFittings d:OwnedOrFreeholdAssets 2020-09-01 2021-08-31 07783306 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2020-09-01 2021-08-31 07783306 d:OwnedOrFreeholdAssets 2020-09-01 2021-08-31 07783306 d:LeasedAssetsHeldAsLessee 2020-09-01 2021-08-31 07783306 d:Goodwill 2020-09-01 2021-08-31 07783306 d:CurrentFinancialInstruments 2021-08-31 07783306 d:CurrentFinancialInstruments 2020-08-31 07783306 d:Non-currentFinancialInstruments 2021-08-31 07783306 d:Non-currentFinancialInstruments 2020-08-31 07783306 d:CurrentFinancialInstruments d:WithinOneYear 2021-08-31 07783306 d:CurrentFinancialInstruments d:WithinOneYear 2020-08-31 07783306 d:Non-currentFinancialInstruments d:AfterOneYear 2021-08-31 07783306 d:Non-currentFinancialInstruments d:AfterOneYear 2020-08-31 07783306 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2021-08-31 07783306 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2020-08-31 07783306 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2021-08-31 07783306 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2020-08-31 07783306 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2021-08-31 07783306 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2020-08-31 07783306 d:ShareCapital 2021-08-31 07783306 d:ShareCapital 2020-08-31 07783306 d:ShareCapital 2019-09-01 07783306 d:InvestmentPropertiesRevaluationReserve 2020-09-01 2021-08-31 07783306 d:InvestmentPropertiesRevaluationReserve 2021-08-31 07783306 d:InvestmentPropertiesRevaluationReserve 2020-08-31 07783306 d:InvestmentPropertiesRevaluationReserve 2019-09-01 07783306 d:RetainedEarningsAccumulatedLosses 2020-09-01 2021-08-31 07783306 d:RetainedEarningsAccumulatedLosses 2021-08-31 07783306 d:RetainedEarningsAccumulatedLosses 2019-09-01 2020-08-31 07783306 d:RetainedEarningsAccumulatedLosses 2020-08-31 07783306 d:RetainedEarningsAccumulatedLosses 2019-09-01 07783306 d:AcceleratedTaxDepreciationDeferredTax 2021-08-31 07783306 d:AcceleratedTaxDepreciationDeferredTax 2020-08-31 07783306 d:TaxLossesCarry-forwardsDeferredTax 2021-08-31 07783306 d:TaxLossesCarry-forwardsDeferredTax 2020-08-31 07783306 c:OrdinaryShareClass1 2020-09-01 2021-08-31 07783306 c:OrdinaryShareClass1 2021-08-31 07783306 c:OrdinaryShareClass1 2020-08-31 07783306 c:FRS102 2020-09-01 2021-08-31 07783306 c:Audited 2020-09-01 2021-08-31 07783306 c:FullAccounts 2020-09-01 2021-08-31 07783306 c:PrivateLimitedCompanyLtd 2020-09-01 2021-08-31 07783306 d:Subsidiary1 2020-09-01 2021-08-31 07783306 d:Subsidiary1 1 2020-09-01 2021-08-31 07783306 d:Subsidiary2 2020-09-01 2021-08-31 07783306 d:Subsidiary2 1 2020-09-01 2021-08-31 07783306 d:HirePurchaseContracts d:WithinOneYear 2021-08-31 07783306 d:HirePurchaseContracts d:WithinOneYear 2020-08-31 07783306 d:HirePurchaseContracts d:BetweenOneFiveYears 2021-08-31 07783306 d:HirePurchaseContracts d:BetweenOneFiveYears 2020-08-31 07783306 c:Consolidated 2021-08-31 07783306 c:ConsolidatedGroupCompanyAccounts 2020-09-01 2021-08-31 07783306 2 2020-09-01 2021-08-31 07783306 6 2020-09-01 2021-08-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 07783306










REES TRADING UK LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021
 
REES TRADING UK LTD
 
 
COMPANY INFORMATION


Director
E G Rees 




Registered number
07783306



Registered office
Unit C
Mochdre Industrial Estate

Newtown

Powys

SY16 4LE




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Hafren House

5 St Giles Business Park

Newtown

Powys

SY16 3AJ




 
REES TRADING UK LTD
 

CONTENTS



Page
Group strategic report
 
1 - 2
Director's report
 
3 - 4
Independent auditors' report
 
5 - 9
Consolidated statement of comprehensive income
 
10
Consolidated balance sheet
 
11 - 12
Company balance sheet
 
13 - 14
Consolidated statement of changes in equity
 
15
Company statement of changes in equity
 
16
Consolidated Statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 44

 
REES TRADING UK LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2021

Introduction
 
The principal activity of Rees Trading UK Ltd is to serve as parent to a group of companies. The shareholders and company directors are pleased to introduce the strategic report for year end 31st August 2021.

Business review
 
The main business activity of Rees Trading UK Ltd is contract packing and agricultural contracting. It is parent to Rees Machinery Group ltd (RMGroup), a company that specialises in material handling, process, packaging and robotic automation.   
The directors within the group have a shared commitment to delivering high quality, innovative projects to customer specification. Manufactured product is supplied globally and supported by an aftersales service team.  
In 2021 the total turnover finished up at £9,348,976, near to what was forecasted within the groups planned revenue growth. That scale up remains consistent with the increased net asset figure of £3,946,948. 
Cost of sales increase and a rise in administrative expense is demonstrative of the expanded resource required to facilitate bespoke projects that carried a great deal of R&D expense, and increasing costs of overheads. Within bespoke projects, there were challenges and uncertainties to overcome to achieve innovative design and deliver projects to customer specification.
The financial position of the company remains strong with a healthy balance sheet and over £2m in tangible assets. 
Based on the level of trading, a healthy cash reserve is maintained to meet working capital requirements. For year end 2021, this is just over £2.4m. 

Principal risks and uncertainties
 
Although a record year for the group, the period of reporting wasn’t without challenges faced from the Covid pandemic. As a result, there would be some long-term changes to the business operation, products sold and typical industries of trade. This is apparent given the changes in consumer trends during and post pandemic.
To cover a potential shortfall in revenue from delayed projects, a CBILs loan of £500,000 was applied for. The loan supported cash flow when delays beyond control were incurred on large projects whilst the pandemic was on going. 
Whilst Brexit negotiations were continuing, the group experienced a downturn in sales from the EU. However, to counter the potential decline a US subsidiary, RMGroup US LLC was established within the group. The US being a focal point based on a great deal of interest from existing US customers. RMGroup US LLC, have a small team of operators currently contract packing in the state of Delaware. A business development manager has been appointed to grow the company and its customer base.  

Page 1
 
REES TRADING UK LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021

Financial and other key performance indicators
 
The board of directors will measure performance on the supply of systems, cost of sales and stakeholder satisfaction.
The business outlook includes evaluation of market strategy, well formulated budget and clear leadership directive. 


This report was approved by the board and signed on its behalf.



E G Rees
Director

Date: 31 August 2022

Page 2
 
REES TRADING UK LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2021

The director presents his report and the financial statements for the year ended 31 August 2021.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Results and dividends

The profit for the year, after taxation, amounted to £815,881 (2020 - £606,604).



Director

The director who served during the year was:

E G Rees 

Future developments

A healthy sales pipeline exists for 2022 and 2023, with less emphasis on the development of new product, and increased control over design to refine existing products that are already proven in the marketplace. Adoption of new skills in the sales team have enabled system sales in new markets, with products from partner companies complimentary to the RMGroup standard product range. 
In order to support the delivery of future projects it will be vital to sustain the invested resource in terms of people and machinery/processes in house. The outlay is further capitalised on bespoke projects, where we gain strength as a unique single source supplier for turnkey automation solutions. Whilst we work to highlight the in-house offerings, we will re-organise departments to enable the continued delivery of a streamlined service. 

Page 3
 
REES TRADING UK LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021


Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





E G Rees
Director

Date: 31 August 2022

Page 4
 
REES TRADING UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD
 

Qualified opinion


We have audited the financial statements of Rees Trading UK LTD (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2021, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, 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's affairs as at 31 August 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 qualified opinion


As noted in the other matter section of this report the Group was not required to have its financial statements audited in the prior year to 31 August 2020 and thus we did not observe the counting of physical stocks at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quanties of £689,811 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 31 August 2020 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 August 2021.


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 United Kingdom, including the Financial Reporting Council'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.


Other matter


The comparative information is unuadited as an audit was not required for 2020.


Page 5
 
REES TRADING UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.



Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The director is responsible for the other information contained within the Annual Report.  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. 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 course of 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.


As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £689,811 held at 31 August 2020. We have concluded that where the other information refers to the prior year's stock balance or related balances such as cost of sales, may be materially misstated for the same reason.


Opinion 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Page 6
 
REES TRADING UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)


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 Director's report.


Except for the matter described in the basis for qualified option section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. 
Arising soley from the limitation on the scope of our work relating to the prior year stock, referred to above:
 - we have not obtained all of the information and explanations that we considered necessary for the purpose of our audit; and
 - we were unable to determine whether adequate accounting records have been kept. 
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

 
Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines is 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 director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7
 
REES TRADING UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)


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 an Auditors' report 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company are complying with these frameworks by making enquires of management and those responsible for legal and compliance procedures, We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key managament to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and uusual items and the challenge of significant accounting estimates used in preparing the financial statements.


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


Page 8
 
REES TRADING UK LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF REES TRADING UK LTD (CONTINUED)


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 an Auditors' 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.





John Fletcher FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Hafren House
5 St Giles Business Park
Newtown
Powys
SY16 3AJ

31 August 2022
Page 9
 
REES TRADING UK LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2021

2021
2020
Note
£
£

  

Turnover
 4 
9,348,976
7,503,986

Cost of sales
  
(4,707,954)
(4,202,902)

Gross profit
  
4,641,022
3,301,084

Administrative expenses
  
(3,763,176)
(2,881,626)

Other operating income
 5 
102,242
269,390

Operating profit
 6 
980,088
688,848

Interest receivable and similar income
 10 
-
1,061

Interest payable and similar expenses
 11 
(41,825)
(26,103)

Profit before taxation
  
938,263
663,806

Tax on profit
 12 
(122,382)
(57,202)

Profit for the financial year
  
815,881
606,604

Profit for the year attributable to:
  

Owners of the parent Company
  
815,881
606,604

  
815,881
606,604

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
815,881
606,604

  
815,881
606,604

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 19 to 44 form part of these financial statements.

Page 10
 
REES TRADING UK LTD
REGISTERED NUMBER: 07783306

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2021

2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 14 
39,413
18,779

Tangible assets
 15 
2,124,459
1,827,413

Investment property
 17 
360,000
360,000

  
2,523,872
2,206,192

Current assets
  

Stocks
 18 
676,775
689,811

Debtors: amounts falling due within one year
 19 
2,489,960
2,745,381

Cash at bank and in hand
 20 
2,410,547
1,575,082

  
5,577,282
5,010,274

Creditors: amounts falling due within one year
 21 
(2,526,250)
(2,838,763)

Net current assets
  
 
 
3,051,032
 
 
2,171,511

Total assets less current liabilities
  
5,574,904
4,377,703

Creditors: amounts falling due after more than one year
 22 
(1,391,914)
(1,011,892)

Provisions for liabilities
  

Deferred taxation
 25 
(236,042)
(159,744)

  
 
 
(236,042)
 
 
(159,744)

Net assets
  
3,946,948
3,206,067

Page 11
 
REES TRADING UK LTD
REGISTERED NUMBER: 07783306
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2021

2021
2020
Note
£
£

Capital and reserves
  

Called up share capital 
 26 
300
300

Capital redemption reserve
 27 
6
6

Investment property reserve
 27 
5,004
5,004

Profit and loss account
 27 
3,941,638
3,200,757

Equity attributable to owners of the parent Company
  
3,946,948
3,206,067

  
3,946,948
3,206,067


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




E G Rees
Director

Date: 31 August 2022

The notes on pages 19 to 44 form part of these financial statements.

Page 12
 
REES TRADING UK LTD
REGISTERED NUMBER: 07783306

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2021

2021
2020
Note
£
£

Fixed assets
  

Tangible assets
 15 
628,546
432,554

Investments
 16 
200
200

Investment property
 17 
360,000
360,000

  
988,746
792,754

Current assets
  

Stocks
 18 
36,969
30,738

Debtors: amounts falling due within one year
 19 
209,331
527,452

Cash at bank and in hand
 20 
126,652
112,365

  
372,952
670,555

Creditors: amounts falling due within one year
 21 
(89,117)
(104,171)

Net current assets
  
 
 
283,835
 
 
566,384

Total assets less current liabilities
  
1,272,581
1,359,138

  

Creditors: amounts falling due after more than one year
 22 
(205,815)
(257,955)

Provisions for liabilities
  

Deferred taxation
 25 
(66,149)
(42,019)

  
 
 
(66,149)
 
 
(42,019)

Net assets
  
1,000,617
1,059,164

Page 13
 
REES TRADING UK LTD
REGISTERED NUMBER: 07783306
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2021

2021
2020
Note
£
£


Capital and reserves
  

Called up share capital 
 26 
300
300

Investment property reserve
 27 
5,004
5,004

Profit and loss account
 27 
995,313
1,053,860

  
1,000,617
1,059,164


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


E G Rees
Director

Date: 31 August 2022

The notes on pages 19 to 44 form part of these financial statements.

Page 14
 
REES TRADING UK LTD
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2021


Called up share capital
Capital redemption reserve
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 September 2019
306
-
5,004
2,724,153
2,729,463


Comprehensive income for the year

Profit for the year

-
-
-
606,604
606,604

Dividends: Equity capital
-
-
-
(130,000)
(130,000)

Purchase of own shares
-
6
-
-
6

Shares cancelled during the year
(6)
-
-
-
(6)


Total transactions with owners
(6)
6
-
(130,000)
(130,000)



At 1 September 2020
300
6
5,004
3,200,757
3,206,067


Comprehensive income for the year

Profit for the year

-
-
-
815,881
815,881


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(75,000)
(75,000)


At 31 August 2021
300
6
5,004
3,941,638
3,946,948


The notes on pages 19 to 44 form part of these financial statements.

Page 15
 
REES TRADING UK LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2021


Called up share capital
Investment property revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 September 2019
300
5,004
1,116,962
1,122,266


Comprehensive income for the year

Profit for the year

-
-
66,898
66,898


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(130,000)
(130,000)



At 1 September 2020
300
5,004
1,053,860
1,059,164


Comprehensive income for the year

Profit for the year

-
-
16,453
16,453


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(75,000)
(75,000)


At 31 August 2021
300
5,004
995,313
1,000,617


The notes on pages 19 to 44 form part of these financial statements.

Page 16
 
REES TRADING UK LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2021

2021
2020
£
£

Cash flows from operating activities

Profit for the financial year
815,881
606,604

Adjustments for:

Amortisation of intangible assets
30,522
35,233

Depreciation of tangible assets
347,617
314,339

Loss on disposal of tangible assets
(19,368)
(21,026)

Government grants
(102,242)
(269,390)

Interest paid
41,825
26,103

Interest received
-
(1,061)

Taxation charge
122,382
57,202

Decrease in stocks
13,036
11,502

Decrease/(increase) in debtors
255,515
(1,526,279)

Decrease in amounts owed by groups
-
44

(Decrease)/increase in creditors
(417,229)
1,721,681

Increase/(decrease)) in amounts owed to groups
-
(50)

Corporation tax (paid)/received
(51,712)
-

Net cash generated from operating activities

1,036,227
954,902

Page 17
 
REES TRADING UK LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2021


2021
2020

£
£



Cash flows from investing activities

Purchase of intangible fixed assets
(51,156)
-

Purchase of tangible fixed assets
(712,533)
(373,908)

Sale of tangible fixed assets
87,238
66,199

Government grants received
102,242
269,390

Sale of fixed asset investments
-
6

Interest received
-
1,061

HP interest paid
(9,620)
(7,225)

Net cash from investing activities

(583,829)
(44,477)

Cash flows from financing activities

New secured loans
371,928
90,210

Repayment of/new finance leases
118,344
(52,636)

Dividends paid
(75,000)
(130,000)

Interest paid
(32,205)
(18,878)

Net cash used in financing activities
383,067
(111,304)

Net increase in cash and cash equivalents
835,465
799,121

Cash and cash equivalents at beginning of year
1,575,082
775,961

Cash and cash equivalents at the end of year
2,410,547
1,575,082


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,410,547
1,575,082

2,410,547
1,575,082


Page 18
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

1.


General information

Rees Trading UK Limited, 07783306, is a private company limited by shares, incorporated in England and Wales, with its registered office and principal place of business at Unit C, Mochdre Industrial Estate, Newtown, Powys, SY16 4LE.
The principal activity of the Company is contract packaging in the agricultural industry and property development.
The principal activities of the Group is the supply of a wide range of manual and automated packaging machinery and systems.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent Company disclosure exemptions

In preparing the separate financial statements of the parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:
∙No disclosures have been given for the aggregate remuneration of the key management personnel of the parent Company as their remuneration is included in the totals for the Company as a whole.

The following principal accounting policies have been applied:

Page 19
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

  
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS102 "The Financial Reporting Standard applicable in the UK and Republic or Ireland":
-  the requirements of Section 7 Statement of Cash Flows;
-  the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
-  the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included within the consolidated financial statements.

 
2.3

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 September 2015.

 
2.4

Going concern

After reviewing budgets and forecasts the directors are confident that the company can continue trading for at least the next 12 months and that therefore the going concern basis is appropriate.

Page 20
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 21
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 22
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 23
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 24
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Plant and machinery
-
25%
Motor vehicles
-
25%
Fixtures and fittings
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

The director believes the residual value of the freehold property is similar to that of the cost and therefore deprecation is not applied.

 
2.15

Investment property

Investment property is carried at fair value determined annually by the director and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 25
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 26
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

2.Accounting policies (continued)

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates nor assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Long Term Contracts
Judgement is particularly applied in estimating the completion stage and expected outcomes of long term contracts.


4.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Packaging machinery and system sales
8,987,818
7,127,207

Machinery sales
3,836
40,426

Contract packing and silaging sales
348,988
328,218

Equipment hire and parts sales
8,334
8,136

9,348,976
7,503,987


Analysis of turnover by country of destination:

2021
2020
£
£

United Kingdom
9,348,976
5,774,329

Rest of Europe
-
1,729,657

9,348,976
7,503,986


Page 28
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

5.


Other operating income

2021
2020
£
£

Government grants receivable
102,242
269,390

102,242
269,390



6.


Operating profit

The operating profit is stated after charging:

2021
2020
£
£

Exchange differences
14,139
10,544


7.


Auditors' remuneration

2021
2020
£
£


Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
13,650
-



Page 29
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Wages and salaries
2,080,115
1,662,534
82,606
75,200

Social security costs
217,112
165,380
6,527
6,382

Cost of defined contribution scheme
42,991
34,639
1,712
1,621

2,340,218
1,862,553
90,845
83,203


The average monthly number of employees, including the director, during the year was as follows:



Group
Group
Company
Company
        2021
        2020
        2021
        2020
            No.
            No.
            No.
            No.









Directors
5
4
1
1



Staff
56
49
4
4

61
53
5
5


9.


Director's remuneration

2021
2020
£
£

Director's emoluments
30,000
-

Group contributions to defined contribution pension schemes
713
-

30,713
-



10.


Interest receivable

2021
2020
£
£


Other interest receivable
-
1,061

-
1,061

Page 30
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

11.


Interest payable and similar expenses

2021
2020
£
£


Bank interest payable
29,757
18,863

Finance leases and hire purchase contracts
9,620
7,225

Other interest payable
2,448
15

41,825
26,103


12.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
61,324
22,809

Adjustments in respect of previous periods
(15,240)
-


46,084
22,809


Total current tax
46,084
22,809

Deferred tax


Origination and reversal of timing differences
76,298
34,393

Total deferred tax
76,298
34,393


Taxation on profit on ordinary activities
122,382
57,202
Page 31
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2020 - lower than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Profit on ordinary activities before tax
938,264
663,806


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
178,270
126,123

Effects of:


Non-tax deductible amortisation of goodwill and impairment
712
2,757

Capital allowances for year in excess of depreciation
(24,892)
(6,461)

Other timing differences leading to an increase (decrease) in taxation
76,298
29,128

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(110,622)
(86,470)

Book profit on chargeable assets
(3,680)
(3,994)

Unrelieved tax losses carried forward
6,296
(3,881)

Total tax charge for the year
122,382
57,202


Factors that may affect future tax charges

As of 1 April 2023, the rate of Corporation Tax will change from 19% to 25% for Company profits in excess of £250,000.


13.


Dividends

2021
2020
£
£


Dividends analysis - Ordinary shares
75,000
130,000

75,000
130,000

Page 32
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

14.


Intangible assets

Group and Company





Patents
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 September 2020
2,325
-
350,000
352,325


Additions - internal
-
51,156
-
51,156



At 31 August 2021

2,325
51,156
350,000
403,481



Amortisation


At 1 September 2020
1,046
-
332,500
333,546


Charge for the year on owned assets
233
12,789
17,500
30,522



At 31 August 2021

1,279
12,789
350,000
364,068



Net book value



At 31 August 2021
1,046
38,367
-
39,413



At 31 August 2020
1,279
-
17,500
18,779



Page 33
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

15.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 September 2020
844,773
1,492,260
342,157
200,980
2,880,170


Additions
171,872
271,729
210,420
58,512
712,533


Disposals
-
(63,271)
(57,557)
(3,372)
(124,200)



At 31 August 2021

1,016,645
1,700,718
495,020
256,120
3,468,503



Depreciation


At 1 September 2020
-
767,283
187,152
98,322
1,052,757


Charge for the year on owned assets
-
124,578
33,045
33,090
190,713


Charge for the year on financed assets
-
99,706
50,105
7,092
156,903


Disposals
-
(32,024)
(21,503)
(2,802)
(56,329)



At 31 August 2021

-
959,543
248,799
135,702
1,344,044



Net book value



At 31 August 2021
1,016,645
741,175
246,221
120,418
2,124,459



At 31 August 2020
844,773
724,977
155,005
102,658
1,827,413

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2021
2020
£
£



Plant and machinery
299,118
332,581

Motor vehicles
150,315
33,000

Furniture, fittings and equipment
21,277
-

470,710
365,581

Page 34
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

           15.Tangible fixed assets (continued)


Company






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£

Cost or valuation


At 1 September 2020
131,480
642,598
41,145
4,742
819,965


Additions
171,872
153,350
14,000
482
339,704


Disposals
-
(50,871)
(35,000)
-
(85,871)



At 31 August 2021

303,352
745,077
20,145
5,224
1,073,798



Depreciation


At 1 September 2020
-
378,445
5,781
3,186
387,412


Charge for the year on owned assets
-
73,741
4,135
399
78,275


Charge for the year on financed assets
-
5,742
-
-
5,742


Disposals
-
(21,878)
(4,299)
-
(26,177)



At 31 August 2021

-
436,050
5,617
3,585
445,252



Net book value



At 31 August 2021
303,352
309,027
14,528
1,639
628,546



At 31 August 2020
131,480
264,153
35,365
1,556
432,554






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2021
2020
£
£



Plant and machinery
17,227
22,969

17,227
22,969

Page 35
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2020
200



At 31 August 2021
200





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Rees Machinery Group Limited
Ordinary
100%
Rees Contract Maintenance Limited (Dormant)
Ordinary
100%

Page 36
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

17.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 September 2020
360,000



At 31 August 2021
360,000

All of the Group's investment property is held in the Parent company

The 2021 valuations were made by the director, on an open market value for existing use basis.

2021
2020
£
£

Revaluation reserves


At 1 September 2020
5,004
5,004

At 31 August 2021
5,004
5,004




Page 37
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

18.


Stocks

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Raw materials and consumables
639,806
659,073
-
-

Finished goods and goods for resale
36,969
30,738
36,969
30,738

676,775
689,811
36,969
30,738


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Trade debtors
847,010
607,267
15,105
6,561

Amounts owed by group undertakings
-
-
50
50

Other debtors
671,318
330,339
117,572
328,330

Prepayments and accrued income
933,636
1,749,445
38,608
134,181

Tax recoverable
37,996
58,330
37,996
58,330

2,489,960
2,745,381
209,331
527,452



20.


Cash and cash equivalents

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Cash at bank and in hand
2,410,547
1,575,082
126,652
112,365

2,410,547
1,575,082
126,652
112,365


Page 38
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank loans
158,774
125,671
43,878
36,995

Trade creditors
914,019
1,379,248
12,960
12,579

Corporation tax
59,860
65,394
13,776
42,680

Other taxation and social security
213,226
317,412
2,889
-

Obligations under finance lease and hire purchase contracts
181,487
104,340
7,439
7,063

Other creditors
11,045
7,733
2,208
404

Accruals and deferred income
987,839
838,965
5,967
4,450

2,526,250
2,838,763
89,117
104,171



The following liabilities were secured:
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank loans
123,330
123,274
33,878
34,598

Obligations under finance lease and hire purchase contracts
181,487
104,340
7,439
7,063

304,817
227,614
41,317
41,661

Details of security provided:

The bank loan is secured upon the freehold property, stock and investment property of the Group. Hire purchase liabilities are secured upon the assets to which they relate.
The amount of £10,000 (2020: £2,397) included in creditors due within one year is subject to a UK Government guarantee. The facility is provided through the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The BBLS guarantee is provided to the lender.

Page 39
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank loans
1,056,631
717,806
199,977
244,677

Net obligations under finance leases and hire purchase contracts
335,283
294,086
5,838
13,278

1,391,914
1,011,892
205,815
257,955



The following liabilities were secured:
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Bank loans
1,043,742
670,204
161,644
197,075

Net obligations under finance leases and hire purchase contracts
335,283
294,086
5,838
13,278

1,379,025
964,290
167,482
210,353

Details of security provided:

The bank loan is secured upon the freehold property, stock and investment property of the Group. Hire purchase liabilities are secured upon the assets to which they relate.
The amount of £38,333 (2020: £47,603) included in creditors falling due after one year is subject to a UK Government guarantee. The facility is provided through the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy. The BBLS guarantee is provided to the lender.


The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:
Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Repayable by instalments
683,521
429,885
61,519
83,376

683,521
429,885
61,519
83,376

The following balances due by instalments are payable as follows:
Parent Loan 1: Outstanding: £61,519, £1,438 repayment per month, interest rate of 2.5% over base rate.
Subsidiary Loan 1: Outstanding: £48,393, £545 repayment per month, interest rate of 2.5% over base.
Subsidiary Loan 2: Outstanding: £262,608, £2,966 repayment per month, interest rate of 2.5% over base.
Subsidiary Loan 3: Outstanding: £36,119, £9,096 repayment per month, interest rate of 3.4% over base.

Page 40
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

23.


Loans




Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Amounts falling due within one year

Bank loans
158,774
125,671
43,878
36,995


158,774
125,671
43,878
36,995

Amounts falling due 1-2 years

Bank loans
197,748
75,831
46,470
45,371


197,748
75,831
46,470
45,371

Amounts falling due 2-5 years

Bank loans
545,824
212,090
91,988
115,930


545,824
212,090
91,988
115,930

Amounts falling due after more than 5 years

Bank loans
313,059
429,885
61,519
83,376

313,059
429,885
61,519
83,376

1,215,405
843,477
243,855
281,672



24.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Within one year
181,487
104,340
7,439
7,063

Between 1-5 years
335,283
294,086
5,838
13,278

516,770
398,426
13,277
20,341

Page 41
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

25.


Deferred taxation


Group



2021


£






At beginning of year
159,744


Charged to profit or loss
76,298



At end of year
236,042

Company


2021


£






At beginning of year
42,019


Charged to profit or loss
24,130



At end of year
66,149

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Accelerated capital allowances
(251,192)
(164,962)
(81,299)
(47,237)

Tax losses carried forward
15,150
5,218
15,150
5,218

(236,042)
(159,744)
(66,149)
(42,019)


26.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



300 (2020 - 300) Ordinary shares of £1.00 each
300
300


Page 42
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

27.


Reserves

Investment property revaluation reserve

The investment property revaluation reserve represents the accumulated surplus on the revaluation of the Company's investment property.

Profit and loss account

The profit and loss account represents the accumulated profit of the Company since incorporation less distributions made to shareholders.

28.


Analysis of net debt




At 1 September 2020
Cash flows
At 31 August 2021
£

£

£

Cash at bank and in hand

1,575,082

835,465

2,410,547

Debt due after 1 year

(717,806)

(338,825)

(1,056,631)

Debt due within 1 year

(126,305)

(32,910)

(159,215)

Finance leases

(398,426)

(118,344)

(516,770)


332,545
345,386
677,931


29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £42,991 (2020: £34,639). Contributions totalling £8,819 (2020: £7,503) were payable to the fund at the balance sheet date and are included in creditors.

Page 43
 
REES TRADING UK LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021

30.


Related party transactions

Exemption has been taken from disclosing related party transactions with wholly owned group companies.
During the year the Group made purchases of £420,128 from Atlanta Packaging Company Limited, of which M Tucker is a mutual Director with the subsidiary company, Rees Machinery Group Limited. At the year end £39,265 was due to the Company.
During the year the Group made purchases of £57,477 from Tucker Trading Limited, of which M Tucker is a mutual Director with the subsidiary company, Rees Machinery Group Limited. At the year end £9,330 was due to the Company.
At the year end the Group was owed £500,000 from Base 24 Limited, of which E Rees is a Director.

 
Page 44