Safeguard Europe Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 01721203 (England and Wales)

Safeguard Europe Limited

Audited Financial Statements for the Year Ended 31 December 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr D J C Lambert

Mr H J Lambert

Mr R D Lambert

Dr E A Rirsch

REGISTERED OFFICE:

Unit 2

Redkiln Close

Redkiln Way

Horsham

West Sussex

RH13 5QL

REGISTERED NUMBER:

01721203 (England and Wales)

AUDITORS:

Swindells LLP

Chartered Accountants

and Statutory Auditor

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

FIXED ASSETS

Intangible assets

4

859

1,237

Tangible assets

5

532,987

393,936

Investments

6

17,986

17,986

551,832

413,159

CURRENT ASSETS

Stocks

1,625,750

1,185,530

Debtors

7

4,223,749

1,127,374

Cash at bank and in hand

482,947

2,640,697

6,332,446

4,953,601

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

8

955,818

1,130,118

NET CURRENT ASSETS

5,376,628

3,823,483

TOTAL ASSETS LESS CURRENT LIABILITIES

5,928,460

4,236,642

PROVISIONS FOR LIABILITIES

85,267

70,477

NET ASSETS

5,843,193

4,166,165

CAPITAL AND RESERVES

Called up share capital

10

3,000

3,000

Capital redemption reserve

2,000

2,000

Retained earnings

5,838,193

4,161,165

5,843,193

4,166,165

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2022 and were signed on its behalf by:

Mr H J Lambert - Director

Mr R D Lambert - Director

1.	STATUTORY INFORMATION

Safeguard Europe 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Safeguard Europe Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Safeguard Holdings Limited, Unit 2 Redkiln Close, Redkiln Way, Horsham, West Sussex, United Kingdom, RH13 5QL.

Related party exemption

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.

Turnover

Turnover represents revenue, net of VAT, from commercial transactions under which the company supplies customers the goods that it is in business to provide and it is recognised when it obtains, through performance under contract, the right to consideration for those goods.

Trademarks

Trademarks are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives of 10, 5 and 3 years. Amortisation commences on assets at the point in which they are brought to market.

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

-

25% on cost and 25% on reducing balance

Fixtures and fittings

-

33% on cost and 25% on reducing balance

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less a provision for any impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value. The majority of stock held relates to direct materials used in production but finished goods are also held for distribution. Stock levels are reviewed on a monthly basis and allowances are included when required for obsolete and slow moving items.

The accounting policy for stock has changed in this financial year. In previous years, the costs for stock items included an element of overhead recovery, based upon a proportion of overhead costs incurred in the period.

The directors consider that this policy should be amended and that cost of stock should no longer include recovery of overheads. The overhead element of costs included in the value of stock in the prior year amounted to £109,961. No prior year adjustment has been made in respect of this change.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company contributes to 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.

Going concern

The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. This assessment has been required in the light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus.

At the time of approving the financial statements the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2020 - 41 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2021

and 31 December 2021

54,816

AMORTISATION

At 1 January 2021

53,579

Charge for year

378

At 31 December 2021

53,957

NET BOOK VALUE

At 31 December 2021

859

At 31 December 2020

1,237

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST

At 1 January 2021

198,963

703,732

162,802

1,065,497

Additions

79,126

186,140

40,605

305,871

Disposals

-

(14,055

)

-

(14,055

)

At 31 December 2021

278,089

875,817

203,407

1,357,313

DEPRECIATION

At 1 January 2021

185,901

354,039

131,621

671,561

Charge for year

14,669

119,106

20,137

153,912

Eliminated on disposal

-

(1,147

)

-

(1,147

)

At 31 December 2021

200,570

471,998

151,758

824,326

NET BOOK VALUE

At 31 December 2021

77,519

403,819

51,649

532,987

At 31 December 2020

13,062

349,693

31,181

393,936

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2021

and 31 December 2021

17,986

NET BOOK VALUE

At 31 December 2021

17,986

At 31 December 2020

17,986

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

801,069

997,616

Amounts owed by group undertakings

3,261,072

5,838

Other debtors

161,608

123,920

4,223,749

1,127,374

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

413,475

391,954

Taxation and social security

375,948

591,915

Other creditors

166,395

146,249

955,818

1,130,118

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

160,473

54,771

Between one and five years

544,991

28,771

In more than five years

517,395

-

1,222,859

83,542

10.	CALLED UP SHARE CAPITAL

Number:

Class:

Nominal value

2021

2020

£

£

2,100

Ordinary A

£1

2,100

2,100

300

Ordinary B

£1

300

300

300

Ordinary C

£1

300

300

300

Ordinary D

£1

300

300

3,000

3,000

All of the shares in issue have equal unrestricted voting rights and rank pari passu in all respects.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Robert Willison FCCA (Senior Statutory Auditor)

for and on behalf of Swindells LLP

12.	CONTINGENT LIABILITIES

The company has provided a cross guarantee to its parent company in respect of third party loans to the parent company amounting to £2,594,232.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date a director owed the company £nil (2020 - £25,000). This balance is interest free, unsecured, and repayable on demand.

14.	RELATED PARTY DISCLOSURES

During the year dividends were paid to directors amounting to £322,924 (2020 - £343,877).