Templeman Trading Limited - Period Ending 2022-03-31
Templeman Trading Limited - Period Ending 2022-03-31
Registration number:
Templeman Trading Limited
for the Year Ended 31 March 2022
Templeman Trading Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Income Statement |
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Consolidated Statement of Financial Position |
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Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Templeman Trading Limited
Company Information
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Directors |
Mr K. Templeman Mrs W. M. Templeman |
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Company secretary |
Mrs W. M. Templeman |
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Registered office |
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Solicitors |
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Bankers |
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Auditor |
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Templeman Trading Limited
Strategic Report for the Year Ended 31 March 2022
The directors present their strategic report for the year ended 31 March 2022.
Principal activity
The principal activity of the company and group is that of an investment holding company for its wholesaling, vending and property rental businesses.
Fair review of the business
2021/22 saw an increase of 53.17% in turnover with an increase in GP% from 15.64% to 17.23% being achieved as the company recovered from the effects of the Covid 19 pandemic. An increase of 9.98% in administrative expenses reflects the need to increase the workforce to meet the demands of the increased workload.
The net assets of the group have increased by £1,996,919 with the group continuing to invest heavily in commercial vehicles showing the directors commitment to seek and achieve continued growth.
The group maintains adequate cash reserves to enable the group to meet the demand of its cashflow cycle. The directors monitor this on a frequent basis.
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2022 |
2021 |
|
|
Sales |
£m |
54.56 |
35.62 |
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Gross profit |
£m |
9.40 |
5.57 |
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Gross profit margin |
% |
17.23 |
15.64 |
|
Net profit margin before tax |
% |
4.82 |
.02 |
Principal risks and uncertainties
The stability of the supply chain is a risk which is mitigated by maintaining strong relationships with key suppliers. Maintaining the customer book in a competitive market is a challenge which can be mitigated by diversifying the group's customer base.
The group maintains adequate cash reserves to enable the group to meet the demands of its cashflow cycle and monitor this on a frequent basis.
Future developments
The board believes that the group is in a very strong position to take advantage of the significant opportunities available to it and looks forward to the forthcoming year and beyond with cautious optimism.
Approved and authorised for issue by the
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Templeman Trading Limited
Directors' Report for the Year Ended 31 March 2022
The directors present their report and the for the year ended 31 March 2022.
Directors of the group
The directors who held office during the year were as follows:
The directors are saddened to report the passing of Mr W N Templeman on 8 October 2022.
Financial instruments
Objectives and policies
The group finances its activities with a combination of bank loans, finance leases and hire purchase contracts, cash and short term deposits. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the group's operating activities.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk is the risk that changes in raw material prices have the potential to impact on the profitability of the group.The group does not consider that it is materially exposed to price risk.
Credit risk is the risk that one party of a financial instrument will cause a financial loss for the other party by failing to discharge its obligation. Group policies are aimed at minimising such losses and require customers to satisfy credit worthiness procedures prior to acceptance of orders. The group does not consider that it is materially exposed to credit risk.
Cash flow and liquidity risk is the risk that a group's available cash will not be sufficient to meet its financial obligations. The group actively manages its cash flow position including collection of debts and timely payment of creditors. This, coupled with the strong cash position of the Group is deemed sufficient to minimise the group's exposure to cash flow and liquidity risk.
Interest rate risk regarding unfavourable movements in interest rates is not perceived as being material to the accounts due to the borrowing agreements in place.
Future developments
See disclosures within the Strategic Report regarding the future developments of the Group.
Templeman Trading Limited
Directors' Report for the Year Ended 31 March 2022 (continued)
Going concern
The group meets its day to day working capital requirements through cash generated from operations as well as external borrowings. At the year end the group had net current assets of £5,651,983 including cash of £897,899.
The directors believe that the group has adequate financial resources to continue in operational existence for at least 12 months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
Azets Audit Services Limited, trading as Azets Audit Services, were appointed auditor to the company following their acquisition of the trade of Tait Walker LLP, trading as MHA Tait Walker, on 1 May 2022.
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Azets Audit Services as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised for issue by the
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Templeman Trading Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 group and parent company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent company's transactions and disclose with reasonable accuracy at any time the financial position of the parent 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Templeman Trading Limited
Independent Auditor's Report to the Members of Templeman Trading Limited
Opinion
We have audited the financial statements of Templeman Trading Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022, which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including 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 March 2022 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The directors are 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.
Templeman Trading Limited
Independent Auditor's Report to the Members of Templeman Trading Limited (continued)
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:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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 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.
Auditor 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 auditor’s 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 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:
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Enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud; |
Templeman Trading Limited
Independent Auditor's Report to the Members of Templeman Trading Limited (continued)
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challenging assumptions and judgements made by management in their significant accounting estimates; and |
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auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness. |
Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); and compliance with the UK Companies Act.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Statutory Auditor
Chartered Accountants
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
Azets Audit Services is a trading name of Azets Audit Services Limited
Templeman Trading Limited
Consolidated Income Statement for the Year Ended 31 March 2022
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Note |
2022 |
2021 |
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Turnover |
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|
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Cost of sales |
( |
( |
|
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Gross profit |
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|
|
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Administrative expenses |
( |
( |
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Other operating income |
|
|
|
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Operating profit |
|
|
|
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Other interest receivable and similar income |
- |
|
|
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Interest payable and similar expenses |
( |
( |
|
|
(57,215) |
(82,319) |
||
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Profit before tax |
|
|
|
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Taxation |
( |
( |
|
|
Profit/(loss) for the financial year |
|
( |
The group has no recognised gains or losses for the year other than the results above.
Templeman Trading Limited
(Registration number: 06553451)
Consolidated Statement of Financial Position as at 31 March 2022
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Note |
2022 |
2021 |
|
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Fixed assets |
|||
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Tangible assets |
|
|
|
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Investments |
|
- |
|
|
|
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||
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Current assets |
|||
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Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
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|
Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
|
|
|
|
Share premium reserve |
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|
|
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Profit and loss account |
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|
|
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Total equity |
|
|
Approved and authorised for issue by the
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Templeman Trading Limited
(Registration number: 06553451)
Statement of Financial Position as at 31 March 2022
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Note |
2022 |
2021 |
|
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Fixed assets |
|||
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Tangible assets |
|
|
|
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Investments |
|
|
|
|
|
|
||
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Current assets |
|||
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
|
|
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Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
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Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Share premium reserve |
|
|
|
|
Profit and loss account |
|
|
|
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Total equity |
|
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The company made a profit after tax for the financial year of £3,744 (2021- loss of £56,993).
Approved and authorised for issue by the
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Templeman Trading Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2022
Equity attributable to the parent company
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
|
At 1 April 2020 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Total comprehensive income |
- |
- |
( |
( |
|
At 31 March 2021 |
|
|
|
|
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
|
At 1 April 2021 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2022 |
|
|
|
|
Templeman Trading Limited
Statement of Changes in Equity for the Year Ended 31 March 2022
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Share capital |
Share premium |
Profit and loss account |
Total |
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At 1 April 2020 |
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
|
Total comprehensive income |
- |
- |
( |
( |
|
At 31 March 2021 |
|
|
|
|
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
|
At 1 April 2021 |
|
|
|
|
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Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 March 2022 |
|
|
|
|
Templeman Trading Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2022
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Note |
2022 |
2021 |
|
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Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Loss from sales of investment properties |
- |
|
|
|
Finance income |
- |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Increase in debtors |
( |
( |
|
|
Increase/(decrease) in creditors |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
- |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Proceeds from sale of investment properties |
- |
|
|
|
Net cash flows from investing activities |
( |
|
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
- |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
897,899 |
1,310,995 |
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are prepared in sterling which is the functional currency of the entity.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
The company has taken advantage of the exemption available under paragraph 33.1A of FRS 102 and does not disclose related party transactions with members of the same group that are wholly owned.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
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2 |
Accounting policies (continued) |
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2022.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Income Statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Going concern
The group meets its day to day working capital requirements through cash generated from operations as well as external borrowings. At the year end the group had net current assets of £5,651,983 including cash of £897,899.
The directors believe that the group has adequate financial resources to continue in operational existence for at least 12 months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
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2 |
Accounting policies (continued) |
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Assessing indicators of impairment - In assessing whether there have been indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Useful economic lives of tangible assets - The annual depreciation charge is sensitive to changes in the estimated useful lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, future investments and economic utilisation. The carrying amount is £8,198,258 (2021 - £7,341,799).
Impairment of debtors - The group makes an estimate of the recoverable value of the trade and other debtors. When assessing impairment of trade and other debtor, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. The carrying amount is £13,571 (2021 - £10,642).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Government grants
Government grants relating to the costs incurred by the group are recognised in the income statement over the period necessary to match them with costs that they are intended to compensate. Government grants are presented separately and disclosed in other operating income in the income statement.
Other operating income includes the UK Government assistance provided through Coronavirus Job Retention Scheme during the Covid-19 pandemic as detailed in Note 4.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
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2 |
Accounting policies (continued) |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
|
Freehold property |
2% straight line |
|
|
Plant and machinery |
20% reducing balance |
|
|
Fixtures and fittings |
15% reducing balance |
|
|
Motor vehicles |
25% reducing balance |
|
|
Equipment |
10% - 20% reducing balance |
|
|
Leasehold |
125 years straight line |
|
|
Leasehold improvements |
10% straight line |
Investment property
Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
2 |
Accounting policies (continued) |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
20% straight line |
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
2 |
Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Turnover |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2022 |
2021 |
|
|
Sale of goods |
|
|
The analysis of the group's Turnover for the year by market is as follows:
|
2022 |
2021 |
|
|
UK |
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2022 |
2021 |
|
|
CJRS income |
|
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
|
2022 |
2021 |
|
|
Gain on disposal of property, plant and equipment |
|
|
|
Gain (loss) on disposal of investment properties |
- |
( |
|
99,192 |
88,674 |
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Operating profit |
Arrived at after charging/(crediting)
|
2022 |
2021 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Bad debts written off |
11,763 |
8,872 |
|
Other interest receivable and similar income |
|
2022 |
2021 |
|
|
Other finance income |
- |
|
|
Interest payable and similar expenses |
|
2022 |
2021 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2022 |
2021 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
9 |
Staff costs (continued) |
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2022 |
2021 |
|
|
Management |
|
|
|
Administration and support |
|
|
|
Operations |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2022 |
2021 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
66,501 |
56,701 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2022 |
2021 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2022 |
2021 |
|
|
Audit of these financial statements |
4,680 |
4,245 |
|
Fee for other group audits |
11,505 |
10,665 |
|
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Taxation |
Tax charged/(credited) in the consolidated income statement
|
2022 |
2021 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
80,380 |
15,536 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Arising from changes in tax rates and laws |
|
- |
|
Total deferred taxation |
|
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2021 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2022 |
2021 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of revenues exempt from taxation |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
UK deferred tax expense relating to changes in tax rates or laws |
|
- |
|
Increase in UK and foreign current tax from adjustment for prior periods |
|
- |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax decrease arising from group relief |
( |
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
( |
|
Total tax charge |
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
12 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
|
2022 |
Liability |
|
Accelerated capital allowances |
|
|
|
|
2021 |
Liability |
|
Accelerated capital allowances |
|
|
|
Company
Deferred tax assets and liabilities
|
2022 |
Liability |
|
Accelerated capital allowances |
|
|
|
|
2021 |
Liability |
|
Accelerated capital allowances |
|
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Intangible assets |
Group
|
Goodwill |
|
|
Cost or valuation |
|
|
At 1 April 2021 |
|
|
At 31 March 2022 |
|
|
Amortisation |
|
|
At 1 April 2021 |
|
|
At 31 March 2022 |
|
|
Carrying amount |
|
|
At 31 March 2022 |
- |
|
At 31 March 2021 |
- |
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Tangible assets |
Group
|
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 April 2021 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
( |
|
At 31 March 2022 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 April 2021 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
( |
|
At 31 March 2022 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 March 2022 |
|
|
|
|
|
|
|
At 31 March 2021 |
|
|
|
|
|
|
Included within the net book value of land and buildings above is £3,435,458 (2021 - £3,473,252) in respect of freehold land and buildings.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
14 |
Tangible assets (continued) |
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2022 |
2021 |
|
|
Motor vehicles |
2,080,539 |
105,533 |
Company
|
Land and buildings |
|
|
Cost or valuation |
|
|
At 1 April 2021 |
|
|
At 31 March 2022 |
|
|
Depreciation |
|
|
At 1 April 2021 |
|
|
Charge for the year |
|
|
At 31 March 2022 |
|
|
Carrying amount |
|
|
At 31 March 2022 |
|
|
At 31 March 2021 |
|
|
Investments |
Company
|
2022 |
2021 |
|
|
Investments in subsidiaries |
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
15 |
Investments (continued) |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2021 |
|
|
At 31 March 2022 |
|
|
Provision |
|
|
At 1 April 2021 |
- |
|
At 31 March 2022 |
- |
|
Carrying amount |
|
|
At 31 March 2022 |
|
|
At 31 March 2021 |
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
15 |
Investments (continued) |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2022 |
2021 |
|||
|
Subsidiary undertakings |
||||
|
|
Earlsway, Team Valley Trading Estate, Gateshead, NE11 0RQ |
Ordinary share capital |
|
|
|
England and Wales |
||||
|
|
Earlsway, Team Valley Trading Estate, Gateshead, NE11 0RQ |
Ordinary share capital |
|
|
|
England and Wales |
||||
|
|
Earlsway, Team Valley Trading Estate, Gateshead, NE11 0RQ |
Ordinary share capital |
|
|
|
England and Wales |
||||
|
|
Earlsway, Team Valley Trading Estate, Gateshead, NE11 0RQ |
Ordinary share capital |
|
|
|
England and Wales |
||||
|
|
Earlsway, Team Valley Trading Estate, Gateshead, NE11 0RQ |
Ordinary share capital |
|
|
|
England and Wales |
||||
The principal activity of Templeman Retailing and Vending Limited is the sale and operation of vending machines and associated products.
The remaining subsidiary undertakings are dormant companies.
The above subsidiary undertakings are included within the consolidated financial statements.
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Stocks |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Goods available for resale |
|
|
- |
- |
|
Debtors |
|
Group |
Company |
||||
|
Note |
2022 |
2021 |
2022 |
2021 |
|
|
Trade debtors |
4,958,784 |
3,085,119 |
- |
- |
|
|
Amounts owed by group undertakings |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Corporation tax asset |
|
|
- |
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2022 |
2021 |
2022 |
2021 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
- |
|
|
Other creditors |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax liability |
10,449 |
- |
10,449 |
- |
|
|
Directors loan accounts |
1,121,360 |
1,560,328 |
1,120,233 |
1,121,392 |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Loans and borrowings |
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase and finance lease liabilities |
182,018 |
304,666 |
- |
- |
|
|
|
- |
- |
|
|
Group |
Company |
|||
|
2022 |
2021 |
2022 |
2021 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase and finance lease liabilities |
651,416 |
101,617 |
- |
- |
|
|
|
- |
- |
|
The obligations under finance leases and hire purchase contracts are secured on the assets to which they relate to.
Bank loans and borrowings are secured against the property assets to which they relate to.
|
Deferred tax and other provisions |
Group
|
Deferred tax |
|
|
At 1 April 2021 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2022 |
|
|
|
|
Company
|
Deferred tax |
|
|
At 1 April 2021 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 March 2022 |
|
|
|
|
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Reserves |
Group
Called up share capital
This represents the nominal value of shares that have been issued.
Share premium
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
Profit and loss account
This reserve records retained earnings and accumulated losses.
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2022 |
2021 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Dividends |
|
2022 |
2021 |
|||
|
£ |
£ |
|||
|
Final dividend of £ |
41,500 |
- |
||
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
Analysis of changes in net debt |
Group
|
At 1 April 2021 |
Financing cash flows |
Other non-cash changes |
At 31 March 2022 |
|
|
Cash and cash equivalents |
||||
|
Cash |
1,310,995 |
(431,096) |
- |
879,899 |
|
Borrowings |
||||
|
Long term borrowings |
(1,280,643) |
(67,890) |
284,565 |
(1,063,968) |
|
Short term borrowings |
(236,372) |
236,372 |
(284,565) |
(284,565) |
|
Lease liabilities |
(642,655) |
(100,779) |
- |
(743,434) |
|
(2,159,670) |
67,703 |
- |
(2,091,967) |
|
|
|
||||
|
( |
( |
- |
( |
|
|
Related party transactions |
Group
Key management compensation
|
2022 |
2021 |
|
|
Salaries and other short term employee benefits |
|
|
|
Transactions with directors |
|
2022 |
At 1 April 2021 |
Advances to director |
Repayments by director |
At 31 March 2022 |
|
Mr W N Templeman (Deceased) |
||||
|
Loan from director |
( |
|
( |
( |
|
2021 |
At 1 April 2020 |
Advances to director |
Repayments by director |
At 31 March 2021 |
|
Mr W N Templeman (Deceased) |
||||
|
Loan from director |
( |
|
( |
( |
|
Terms of loans from directors |
Templeman Trading Limited
Notes to the Financial Statements for the Year Ended 31 March 2022 (continued)
|
27 |
Related party transactions (continued) |
Loans from related parties
|
Other related parties |
||
|
2022 |
2021 |
|
|
At start of period |
|
|
|
Advanced |
( |
( |
|
Repaid |
|
|
|
At end of period |
|
|
|
|
||
Company
|
Transactions with directors |
|
2022 |
At 1 April 2021 |
Advances to director |
Repayments by director |
At 31 March 2022 |
|
Mr W N Templeman (Deceased) |
||||
|
Loan from director |
( |
- |
|
( |
|
2021 |
At 1 April 2020 |
Advances to director |
Repayments by director |
At 31 March 2021 |
|
Mr W N Templeman (Deceased) |
||||
|
Loan from director |
( |
- |
( |
( |
Dividends paid to directors
|
2022 |
2021 |
|||
|
Mrs W. M. Templeman |
||||
|
Equity dividends paid |
41,500 |
- |
||
Loans from related parties
|
Other related parties |
||
|
2022 |
2021 |
|
|
At start of period |
( |
( |
|
Repaid |
|
|
|
At end of period |
( |
( |
|
|
||
|
Parent and ultimate parent undertaking |
The ultimate controlling party is