BLM Group UK Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 03301614 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

BLM GROUP UK LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

15

DIRECTORS:

P A Lake

S E Colombo

J Curtis

P Colombo

SECRETARY:

P A Lake

REGISTERED OFFICE:

4 Ampthill Business Park

Ampthill

Bedfordshire

MK45 2QW

REGISTERED NUMBER:

03301614 (England and Wales)

AUDITORS:

Landers Accountants Ltd

Church View Chambers

38 Market Square

Toddington

Bedfordshire

LU5 6BS

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face. In our opinion the key financial performance indicators are sales growth, gross profit percentage and net profit percentage. These are as follows for the last 3 years.

Sales Growth

Gross Profit Margin

Net Profit Margin

%

%

%

2021

18.2

15.08

0.86

2020

(14.05)

18.34

2.80

2019

(2.50)

16.91

1.03

In order to improve its operations, the company is constantly striving to explore new markets and customer bases.The financial risk management operations are managed centrally. Exposure to the risk of fluctuation in exchange rates arises from the company's dealings with group companies in Euros. The company carries out forward currency transactions to manage this risk. Credit risk is monitored by the group's finance department and the group has a prudent policy of managing liquidity risk.

The company has sufficient financial resources together with reliable customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the company is well placed to manage its business risk successfully despite the current uncertain economic outlook. The company meets its day to day working capital requirements through its cash reserves.

The directors have a reasonable expectation therefore, that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

PRINCIPAL RISKS AND UNCERTAINTIES

Our ultimate strategy is to maintain or increase our products' market share in the UK.

Principal risks are: -

- the strength of the UK economy in general and the manufacturing sector in particular

- exchange rate fluctuations

- not achieving the highest levels of customer service

All these prime risk areas are managed and monitored on a continuous daily basis.

We have recognised the economic risk created in particular, by the economic downturn from the COVID-19 pandemic.

ON BEHALF OF THE BOARD:

P A Lake - Director

19 July 2022

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS

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

P A Lake

S E Colombo

J Curtis

P Colombo

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the sale and maintenance of tube bending and cutting machines.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Landers Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P A Lake - Director

19 July 2022

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- Results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Brown (Senior Statutory Auditor)

for and on behalf of Landers Accountants Ltd

Church View Chambers

38 Market Square

Toddington

Bedfordshire

LU5 6BS

19 July 2022

REVENUE

3

10,517,606

8,896,699

Cost of sales

8,931,449

7,265,287

GROSS PROFIT

1,586,157

1,631,412

Administrative expenses

1,515,185

1,583,444

70,972

47,968

Other operating income

18,839

62,618

OPERATING PROFIT

5

89,811

110,586

Interest receivable and similar income

448

4,695

PROFIT BEFORE TAXATION

90,259

115,281

Tax on profit

6

16,029

26,461

PROFIT FOR THE FINANCIAL YEAR

74,230

88,820

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

74,230

88,820

FIXED ASSETS

Property, plant and equipment

7

137,186

119,606

Investments

8

46,259

49,593

183,445

169,199

CURRENT ASSETS

Inventories

9

1,150,018

274,925

Debtors

10

2,539,923

2,163,946

Cash at bank and in hand

11,786,712

9,024,989

15,476,653

11,463,860

CREDITORS

Amounts falling due within one year

11

14,526,954

10,573,442

NET CURRENT ASSETS

949,699

890,418

TOTAL ASSETS LESS CURRENT LIABILITIES

1,133,144

1,059,617

PROVISIONS FOR LIABILITIES

12

4,191

4,894

NET ASSETS

1,128,953

1,054,723

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Retained earnings

14

1,127,953

1,053,723

SHAREHOLDERS' FUNDS

1,128,953

1,054,723

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 19 July 2022 and were signed on its behalf by:

P A Lake - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2020

1,000

964,903

965,903

Changes in equity

Total comprehensive income

-

88,820

88,820

Balance at 31 December 2020

1,000

1,053,723

1,054,723

Changes in equity

Total comprehensive income

-

74,230

74,230

Balance at 31 December 2021

1,000

1,127,953

1,128,953

Cash flows from operating activities

Cash generated from operations

1

203,840

170,871

Tax paid

(28,309

)

(54,492

)

Net cash from operating activities

175,531

116,379

Cash flows from investing activities

Purchase of tangible fixed assets

(90,544

)

(44,703

)

Sale of tangible fixed assets

37,816

1,040

Government grants

18,839

62,618

Interest received

448

4,695

Net cash from investing activities

(33,441

)

23,650

Cash flows from financing activities

Amounts owed to group

2,619,633

3,261,168

Net cash from financing activities

2,619,633

3,261,168

Increase in cash and cash equivalents

2,761,723

3,401,197

Cash and cash equivalents at beginning of year

2

9,024,989

5,623,792

Cash and cash equivalents at end of year

2

11,786,712

9,024,989

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

31.12.21

31.12.20

£

£

Profit before taxation

90,259

115,281

Depreciation charges

50,634

53,455

(Profit)/loss on disposal of fixed assets

(15,486

)

967

Exchange rate difference - subsidiary

3,334

(2,544

)

Payments on account

1,147,317

207,654

Government grants

(18,839

)

(62,618

)

Finance income

(448

)

(4,695

)

1,256,771

307,500

(Increase)/decrease in inventories

(875,093

)

330,302

Increase in trade and other debtors

(375,977

)

(753,727

)

Increase in trade and other creditors

198,139

286,796

Cash generated from operations

203,840

170,871

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

11,786,712

9,024,989

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

9,024,989

5,623,792

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.21

Cash flow

At 31.12.21

£

£

£

Net cash

Cash at bank and in hand

9,024,989

2,761,723

11,786,712

9,024,989

2,761,723

11,786,712

Total

9,024,989

2,761,723

11,786,712

1.	COMPANY INFORMATION

BLM Group (UK) Limited is a private company, limited by shares, registered in England and Wales. Its registered office is No 4 Ampthill Business Park, Ampthill, Bedfordshire, MK45 2QW.

Its principal place of business is No 4 Ampthill Business Park, Ampthill, Bedfordshire, MK45 2QW.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis (see note 17).

Turnover

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

Tangible fixed assets

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

Short leasehold

-

over the term of the lease

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less provision for any permanent diminution in value.

Inventories

Inventories are measured at the lower of cost and selling price less cost to sell. Cost is calculated on a first in, first out basis and includes all costs to purchase, and other costs incurred in bringing the inventories to their present location and condition.

Financial instruments

Financial instruments are classified by the directors as basic or advanced following the conditions in FRS102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method. The only advanced instruments recognised by the company are derivatives (being interest rate swaps and forward foreign exchange contracts). Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in arriving at profit before tax. Derivative assets are included in other debtors and derivative liabilities are included in other creditors.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

REVENUE

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

An analysis of revenue by geographical market is given below:

31.12.21

31.12.20

£

£

United Kingdom

10,281,192

7,418,183

Rest of the world

236,414

1,478,516

10,517,606

8,896,699

4.	EMPLOYEES AND DIRECTORS

31.12.21

31.12.20

£

£

Wages and salaries

1,180,676

1,050,960

Social security costs

129,505

136,000

Other pension costs

13,953

31,117

1,324,134

1,218,077

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

31.12.21

31.12.20

Directors

2

2

Sales, admin and support engineers

11

11

13

13

31.12.21

31.12.20

£

£

Directors' remuneration

521,940

493,734

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

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

31.12.21

31.12.20

£

£

Emoluments etc

385,825

363,178

5.	OPERATING PROFIT

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

31.12.21

31.12.20

£

£

Depreciation - owned assets

50,634

53,455

(Profit)/loss on disposal of fixed assets

(15,486

)

967

Auditors' remuneration

11,800

11,880

Foreign exchange differences

(161,832

)

60,973

6.

TAXATION

Analysis of the tax charge

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

31.12.21

31.12.20

£

£

Current tax:

UK corporation tax

16,732

28,309

Deferred tax

(703

)

(1,848

)

Tax on profit

16,029

26,461

UK corporation tax has been charged at 19% (2020 - 19%).

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.21

31.12.20

£

£

Profit before tax

90,259

115,281

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

17,149

21,903

Effects of:

Depreciation in excess of capital allowances

-

6,406

Deferred tax: origination and reversal of timing differences

(1,120

)

(1,848

)

Total tax charge

16,029

26,461

7.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2021

14,978

7,408

72,263

180,829

275,478

Additions

-

-

1,266

89,278

90,544

Disposals

-

-

-

(53,434

)

(53,434

)

At 31 December 2021

14,978

7,408

73,529

216,673

312,588

DEPRECIATION

At 1 January 2021

14,978

7,408

58,366

75,120

155,872

Charge for year

-

-

5,478

45,156

50,634

Eliminated on disposal

-

-

-

(31,104

)

(31,104

)

At 31 December 2021

14,978

7,408

63,844

89,172

175,402

NET BOOK VALUE

At 31 December 2021

-

-

9,685

127,501

137,186

At 31 December 2020

-

-

13,897

105,709

119,606

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2021

49,593

Exchange differences

(3,334

)

At 31 December 2021

46,259

NET BOOK VALUE

At 31 December 2021

46,259

At 31 December 2020

49,593

9.	INVENTORIES

31.12.21

31.12.20

£

£

Stocks

1,150,018

274,925