Chicken Cyclekit Limited - Limited company accounts 20.1
Chicken Cyclekit Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
CHICKEN CYCLEKIT LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Statement of Directors' Responsibilities | 4 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 15 |
CHICKEN CYCLEKIT LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditors |
3 Kensworth Gate |
200 - 204 High Street South |
Dunstable |
Bedfordshire |
LU6 3HS |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
The directors present their strategic report for the year ended 31 December 2020. |
REVIEW OF BUSINESS |
The companies principal activity in the year continued to be the importation and sale of frames of bicycle assembly, sale of complete bicycles, and the sale of bicycle spares and accessories primarily from European sources. |
The key financial and other performance indicators in the year were as follows: |
All amounts are denoted in £ 000's |
31 December | 31 December |
2020 | 2019 |
Turnover | 22,552 | 17,136 |
Total Operating Profit | 2,330 | 842 |
Profit after tax | 1,864 | 472 |
Shareholders funds | 6303 | 4941 |
Changes in management mooted last year have now become embedded. The impact of Brexit in particular on the Sterling/Euro currency rate has been managed effectively in the year but remains a concern. The company is however confident in it's plans for the short and medium term. Sales in the year 2021 year to date are in line with the budget and we continue to look to expand our brand and product offering.Confidence in the business remains high. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company imports bicycle componentry for wholesale distribution to the UK bicycle industry. |
The market has been buoyant throughout the year, but the company has taken steps to minimise any impact of currency exposure, extended supplier deliveries and Brexit. |
Environmental and Health and Safety risks are carefully monitored by the directors and management team who ensure the company adhere fully to UK regulations. |
Failure by customers to pay debts due is a risk to the company, however Credit Terms are strictly enforced, and overdue accounts rigorously chased until settled. The directors are of the view that the risk is at an acceptably low level. |
The company has excellent long term relationships with the brand's it represents. It continues to look for opportunities with complimentary brands to increase its' offering to the market. |
Throughout the pandemic, the directors have been mindful of the impact Covid 19 could have on the business and have immediately taken steps to mitigate this with a comprehensive preventative regime. The response from personnel has been extremely positive. |
ON BEHALF OF THE BOARD: |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of importation and sale of frames of bicycle assembly, sale of complete bicycles, and the sale of bicycle spares and accessories primarily from European sources. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2020 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
Other changes in directors holding office are as follows: |
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, Higginson & Co (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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; |
- | 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHICKEN CYCLEKIT LIMITED |
Opinion |
We have audited the financial statements of Chicken Cyclekit Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of 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 2020 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, the Report of the Directors and the Statement of Directors' Responsibilities, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHICKEN CYCLEKIT LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHICKEN CYCLEKIT LIMITED |
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. |
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: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
Audit response to risks identified |
-the nature of the industry and sector, control environment and business performance including the design of the remuneration policy; |
-results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
-any matters we identified having obtained and reviewed the Company documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team, including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included compliance with Financial Conduct Authority regulation for the UK operating segment and compliance with local legislation. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHICKEN CYCLEKIT LIMITED |
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. |
for and on behalf of |
Statutory Auditors |
3 Kensworth Gate |
200 - 204 High Street South |
Dunstable |
Bedfordshire |
LU6 3HS |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,325,055 | 842,001 |
Other operating income |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation of freehold |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
BALANCE SHEET |
31 DECEMBER 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Prepayments and accrued income |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2019 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2019 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2020 |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Amount introduced by directors | 18,113 | - |
Amount withdrawn by directors | - | (738 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
(1,441,506 |
) |
(1,835,001 |
) |
Cash and cash equivalents at end of year | 2 | 1,837,206 | ( |
) |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.20 | 31.12.19 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 18,249 | 44,818 |
2,360,025 | 885,456 |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
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 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 1,837,206 | 138,806 |
Bank overdrafts | ( |
) |
1,837,206 | (1,441,506 | ) |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 138,806 | (13,222 | ) |
Bank overdrafts | ( |
) | ( |
) |
(1,441,506 | ) | (1,835,001 | ) |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.20 | Cash flow | At 31.12.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 138,806 | 1,698,400 | 1,837,206 |
Bank overdrafts | (1,580,312 | ) | 1,580,312 | - |
(1,441,506 | ) | 1,837,206 |
Debt |
Debts falling due within 1 year | (775,365 | ) | 775,365 | - |
Debts falling due after 1 year | (84,309 | ) | (2,004,281 | ) | (2,088,590 | ) |
(859,674 | ) | (1,228,916 | ) | (2,088,590 | ) |
Total | (2,301,180 | ) | 2,049,796 | (251,384 | ) |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
1. | STATUTORY INFORMATION |
Chicken Cyclekit Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23. |
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 |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
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 Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Employer Funded Retirement Benefits Schemes |
During the period the company made no payments to 4 employer financed retirement benefits schemes established previously for the benefit of its officers, employees and their wider families. |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the process of applying the Company's accounting policies, which are described in Note 2, management has made some judgments that have significant effect on the amounts recognized in the financial statements. These also include key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Accounts receivable |
In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance. In making this assessment, management takes into consideration (i) any circumstances of which we are aware regarding a customer's inability to meet its financial obligations; and (ii) our judgments as to potential prevailing economic conditions in the industry and their potential impact on the Company's customers. |
Stock |
Stock is stated at the lower of cost (first-in-first-out method) or net realizable value. The cost of inventories comprise net prices paid for materials purchased, charges for freight and customs duties. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. Inventory provisions are recognized for slow-moving, obsolete or unsalable inventory and are reviewed on a quarterly basis. In determining inventory provisions, we evaluate inventory in excess of our forecasted needs on both technological and economical criteria and make appropriate provisions to reflect the risk of obsolescence. This methodology is significantly affected by our forecasted needs for inventory. If actual demand or usage were to be lower than estimated, additional inventory provisions for excess or obsolete inventory may be required, which could have a material adverse effect on our business, financial condition and results of operations. |
4. | EMPLOYEES AND DIRECTORS |
31.12.20 | 31.12.19 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs | ( |
) |
The average number of employees during the year was as follows: |
31.12.20 | 31.12.19 |
Staff including directors |
31.12.20 | 31.12.19 |
£ | £ |
Directors' remuneration |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.20 | 31.12.19 |
£ | £ |
Depreciation - owned assets |
Audit Fee |
Amount of stocks recognised as an expense during the period |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.20 | 31.12.19 |
£ | £ |
Bank interest |
Loan interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.20 | 31.12.19 |
£ | £ |
Current tax: |
UK corporation tax |
Interest on corporation tax | - | 3,316 |
Over/under provision in prior |
year | (314 | ) | - |
Interest on VAT | - | 9,102 |
Interest on stamp Duty | 6,209 | - |
Total current tax |
Deferred tax |
Tax on profit |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.20 | 31.12.19 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Interest on tax | - | 9,102 |
Interest on Stamp duty | 6,209 | - |
Deferred tax | 7,287 | 157,528 |
Total tax charge | 448,043 | 326,026 |
Tax effects relating to effects of other comprehensive income |
There were no tax effects for the year ended 31 December 2020. |
31.12.19 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold | - | 906,360 |
8. | DIVIDENDS |
31.12.20 | 31.12.19 |
£ | £ |
Ordinary Shares shares of £1 each |
Interim |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
9. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2020 |
Additions |
At 31 December 2020 |
DEPRECIATION |
At 1 January 2020 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2020 |
NET BOOK VALUE |
At 31 December 2020 |
At 31 December 2019 | ( |
) |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2020 |
Additions |
At 31 December 2020 |
DEPRECIATION |
At 1 January 2020 |
Charge for year |
Eliminated on disposal |
At 31 December 2020 |
NET BOOK VALUE |
At 31 December 2020 |
At 31 December 2019 |
Of the amounts in fixed assets HSBC Bank Plc and Cedric and Janet Chicken have a charge over the freehold as stated below. |
Legal Charge dated 11th January 2018 and 19th June 2018 over the Property known as Units B2, and B3, Cherrycourt Way, Leighton Buzzard. |
The Freehold was valued in August 2020 by Aitchison Raffety. The revaluation has been included in the accounts.. |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
9. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 December 2020 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2020 | 2,380,000 | 31,338 | 128,697 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2020 | 23,889 | 109,550 | 2,673,474 |
If the property had not been revalued it would have been included at the following historical cost: |
31.12.20 | 31.12.19 |
£ | £ |
Cost | 1,125,676 | 1,125,676 |
Aggregate depreciation | 204,014 | 204,014 |
The property was valued on a open market basis on 13 August 2020 by The Aitchison Raffety Group . |
10. | STOCKS |
31.12.20 | 31.12.19 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade debtors |
Bad Debts | (30,000 | ) | (30,000 | ) |
Other debtors |
Derivatives | 1,129,307 | 1,646,849 |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Trade creditors |
Corporation tax |
Stamp Duty Liability | 86,397 | 80,188 |
Social security and other taxes |
VAT | 1,146,016 | 225,401 |
Directors' current accounts | 18,113 | - |
Accrued expenses |
Derivatives | 1,112,163 | 1,678,473 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Bank loans (see note 14) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.20 | 31.12.19 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 2,000,000 | - |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.20 | 31.12.19 |
£ | £ |
Bank overdraft |
Bank loans |
HSBC Bank Plc |
First Legal Charge dated 21 October 2011 over the Property known as Units B1, B2, and B3, Cherrycourt Way, Leighton Buzzard. |
Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertakings both present and future dated 09 December 2010. |
A further general pledge in favour of HSBC Bank Plc dated 14 October 2013 |
HSBC Invoice Finance (UK) Ltd registered a charge on the 1st of June 2015. This is in respect of funding provided by invoice factoring and includes a fixed and floating charge. |
On 01 April 2016 HSBC Bank Plc registered a charge. This is a legal assignment of contract monies. |
The bank loan expires in 4 years. The interest rate is 2.25% |
On 11 January 2018 HSBC Bank Plc registered a charge in respect of Units B2 & B3 Cherrycourt Way. |
On 19th June 2018 Cedric Chicken and Janet Chicken registered a charge in respect of Units B2 & B3 Cherrycourt Way. |
16. | PROVISIONS FOR LIABILITIES |
31.12.20 | 31.12.19 |
£ | £ |
Deferred tax | 171,841 | 164,554 |
Deferred |
tax |
£ |
Balance at 1 January 2020 |
Charge to Statement of Comprehensive Income during year |
Revaluation of property |
Balance at 31 December 2020 |
CHICKEN CYCLEKIT LIMITED (REGISTERED NUMBER: 00494617) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
value: | £ | £ |
Ordinary Shares | £1 | 24,500 | 24,500 |
Ordinary B | £1 | 2,000 | 2,000 |
Ordinary D | £1 | 3,000 | 3,000 |
29,500 | 29,500 |
18. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2020 | 4,911,844 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2020 | 6,273,406 |
19. | RELATED PARTY DISCLOSURES |
The company was subject to a management buyout on the 9th of June 2018 by Rule No 10 Limited, a company registered in England & Wales. This company is under the direct control of Mr M Catlin and Mr G Turner. |