Aldridge Security Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00835629 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2021

for

Aldridge Security Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Patrick Cook

Ainsley Hawkins

Gregg Peyton

Graeme Hall

SECRETARY:

Gregg Peyton

REGISTERED OFFICE:

22 Parr Street

London

N1 7GW

REGISTERED NUMBER:

00835629 (England and Wales)

AUDITORS:

Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

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

The results for the year were in line with expectations.

The management of the business and the execution of the company's strategy are subject to a number of risks, but the following have been identified by the directors as being the main risks that could potentially impact on the company's operating and financial performance.

1. The economy

The industry is affected by economic cycles and levels of business confidence. The directors have attempted to reduce this cyclical risk by expanding geographically and increasing customer base.

2. Competition

The company operates in a highly competitive market with the mitigation of risk being achieved by the continuous review by the directors of competitors and potential opportunities available.

3. Financial - Foreign currency

The company's principal foreign currency exposures arise from trading with overseas companies. Company policy is that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

The directors continuously monitor the performance of the company and at present consider turnover, stock turnover, creditors & debtors days, net and gross profit to be their key performance indicators.

Given the current economic conditions, the directors are very pleased with the results for the year.

ON BEHALF OF THE BOARD:

Ainsley Hawkins - Director

27 September 2022

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of wholesale locksmiths and security specialists.

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.

Patrick Cook

Ainsley Hawkins

Gregg Peyton

Graeme Hall

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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, Cartwrights, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Ainsley Hawkins - Director

27 September 2022

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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

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

We ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations, and that they remained alert to instances of non-compliance throughout the audit.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- based on our understanding of the company and industry, and through discussions with directors and key management,

we identified any specific laws and regulations which we considered may have a direct material effect on the financial

statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; and

- we assessed the extent of compliance with these laws and regulations through making enquiries of management and

inspecting legal correspondence

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an

understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries, particularly focused around the year-end, to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates in the notes to the financial statements were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which

included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances

of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the

financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not

detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion

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.

Eric McIntyre FCCA (Senior Statutory Auditor)

for and on behalf of Cartwrights

Chartered Accountants and Business Advisors

Statutory Auditor

Regency House

33 Wood Street

Barnet

Hertfordshire

EN5 4BE

27 September 2022

TURNOVER

34,172,443

30,530,284

Cost of sales

(24,553,987

)

(22,220,628

)

GROSS PROFIT

9,618,456

8,309,656

Administrative expenses

(8,480,321

)

(7,636,011

)

OPERATING PROFIT and

PROFIT BEFORE TAXATION

1,138,135

673,645

Tax on profit

5

(207,478

)

(133,063

)

PROFIT FOR THE FINANCIAL YEAR

930,657

540,582

PROFIT FOR THE YEAR

930,657

540,582

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

930,657

540,582

FIXED ASSETS

Tangible assets

6

1,198,592

1,420,465

CURRENT ASSETS

Stocks

7

4,900,740

4,033,453

Debtors

8

6,099,305

6,065,871

Cash at bank

5,156,145

4,329,988

16,156,190

14,429,312

CREDITORS

Amounts falling due within one year

9

2,974,735

2,369,858

NET CURRENT ASSETS

13,181,455

12,059,454

TOTAL ASSETS LESS CURRENT LIABILITIES

14,380,047

13,479,919

PROVISIONS FOR LIABILITIES

10

184,513

215,042

NET ASSETS

14,195,534

13,264,877

CAPITAL AND RESERVES

Called up share capital

11

25,000

25,000

Retained earnings

12

14,170,534

13,239,877

SHAREHOLDERS' FUNDS

14,195,534

13,264,877

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2022 and were signed on its behalf by:

Ainsley Hawkins - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2020

25,000

12,699,295

12,724,295

Changes in equity

Total comprehensive income

-

540,582

540,582

Balance at 31 December 2020

25,000

13,239,877

13,264,877

Changes in equity

Total comprehensive income

-

930,657

930,657

Balance at 31 December 2021

25,000

14,170,534

14,195,534

Cash flows from operating activities

Cash generated from operations

1

1,011,341

3,825,951

Tax paid

(161,764

)

(18,000

)

Net cash from operating activities

849,577

3,807,951

Cash flows from investing activities

Purchase of tangible fixed assets

(68,420

)

(10,367

)

Sale of tangible fixed assets

45,000

-

Net cash from investing activities

(23,420

)

(10,367

)

Increase in cash and cash equivalents

826,157

3,797,584

Cash and cash equivalents at beginning of year

2

4,329,988

532,404

Cash and cash equivalents at end of year

2

5,156,145

4,329,988

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

31/12/21

31/12/20

£

£

Profit before taxation

1,138,135

673,645

Depreciation charges

254,953

250,429

Profit on disposal of fixed assets

(9,696

)

-

Other movements

-

14,384

1,383,392

938,458

(Increase)/decrease in stocks

(867,287

)

2,024,064

(Increase)/decrease in trade and other debtors

(132,170

)

1,264,555

Increase/(decrease) in trade and other creditors

627,406

(401,126

)

Cash generated from operations

1,011,341

3,825,951

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2021

31/12/21

1/1/21

£

£

Cash and cash equivalents

5,156,145

4,329,988

Year ended 31 December 2020

31/12/20

1/1/20

£

£

Cash and cash equivalents

4,329,988

532,404

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/21

Cash flow

At 31/12/21

£

£

£

Net cash

Cash at bank

4,329,988

826,157

5,156,145

4,329,988

826,157

5,156,145

Total

4,329,988

826,157

5,156,145

1.	STATUTORY INFORMATION

Aldridge Security Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Compliance with accounting standards

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.

Turnover

Turnover 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 and depreciation

Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Leasehold buildings

Over 10 years

Plant and machinery

10% - 20% on cost

Motor vehicles

20% on cost

Stocks

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2021 nor for the year ended 31 December 2020.

The average number of employees during the year was NIL (2020 - NIL).

31/12/21

31/12/20

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

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

31/12/21

31/12/20

£

£

Depreciation - owned assets

254,989

255,199

Profit on disposal of fixed assets

(9,696

)

-

Foreign exchange differences

-

14,385

5.

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

241,606

162,972

Prior Year Adjustment

(3,599

)

(121

)

Total current tax

238,007

162,851

Deferred tax

(30,529

)

(29,788

)

Tax on profit

207,478

133,063

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

1,138,135

673,645

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

216,246

127,993

Effects of:

Depreciation in excess of capital allowances

24,481

-

Other tax adjustments

(963

)

5,070

Prior year adjustment

(3,599

)

-

Deferred tax charge

(30,529

)

-

Disposal of fixed assets

1,842

-

Total tax charge

207,478

133,063

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2021

54,155

3,422,700

65,804

130,682

3,673,341

Additions

-

68,420

-

-

68,420

Disposals

-

-

-

(103,190

)

(103,190

)

At 31 December 2021

54,155

3,491,120

65,804

27,492

3,638,571

DEPRECIATION

At 1 January 2021

23,028

2,130,672

24,892

74,284

2,252,876

Charge for year

5,416

221,898

6,581

21,094

254,989

Eliminated on disposal

-

-

-

(67,886

)

(67,886

)

At 31 December 2021

28,444

2,352,570

31,473

27,492

2,439,979

NET BOOK VALUE

At 31 December 2021

25,711

1,138,550

34,331

-

1,198,592

At 31 December 2020

31,127

1,292,028

40,912

56,398

1,420,465

7.

STOCKS

31/12/21

31/12/20

£

£

Stocks

4,900,740

4,033,453

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/21

31/12/20

£

£

Trade debtors

4,215,068

4,097,635

Amounts owed by group undertakings

1,816,830

1,915,566

Other debtors

67,407

52,670

6,099,305

6,065,871

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/21

31/12/20

£

£

Trade creditors

2,005,810

1,161,633

Amounts owed to group undertakings

572,123

572,123

Tax

238,845

162,602

Social security and other taxes

30,354

30,354

VAT

127,603

422,030

Accruals and deferred income

-

21,116

2,974,735

2,369,858

10.	PROVISIONS FOR LIABILITIES

31/12/21

31/12/20

£

£

Deferred tax

184,513

215,042

Deferred

tax

£

Balance at 1 January 2021

215,042

Credit to Income Statement during year

(30,529

)

Balance at 31 December 2021

184,513

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/21

31/12/20

value:

£

£

25,000

Ordinary

£1

25,000

25,000

12.

RESERVES

Retained

earnings

£

At 1 January 2021

13,239,877

Profit for the year

930,657

At 31 December 2021

14,170,534

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

14.

CONTROL

The ultimate parent company is C&M Ventures Limited, a company registered in England & Wales. C&M Ventures Limited prepares group financial statements and copies can be obtained from the registered office.

The ultimate controlling party is Mr Ainsley Hawkins by virtue of his shareholding in the ultimate parent company.