BLM Group UK Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 03301614 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

BLM GROUP UK LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

15

DIRECTORS:

P A Lake

S E Colombo

J Curtis

P Colombo

SECRETARY:

P A Lake

REGISTERED OFFICE:

4 Ampthill Business Park

Ampthill

Bedfordshire

MK45 2QW

REGISTERED NUMBER:

03301614 (England and Wales)

AUDITORS:

Landers Accountants Ltd

Church View Chambers

38 Market Square

Toddington

Bedfordshire

LU5 6BS

The directors present their strategic report for the year ended 31 December 2020.

REVIEW OF BUSINESS

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

Sales Growth

Gross Profit Margin

Net Profit Margin

%

%

%

2020

(14.05)

18.34

1.30

2019

(2.50)

16.91

2.80

2018

3.33

17.07

1.03

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

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

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

PRINCIPAL RISKS AND UNCERTAINTIES

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

Principal risks are: -

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

- exchange rate fluctuations

- not achieving the highest levels of customer service

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

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

ON BEHALF OF THE BOARD:

P A Lake - Director

21 July 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

P A Lake

S E Colombo

J Curtis

P Colombo

PRINCIPAL ACTIVITY

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

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

P A Lake - Director

21 July 2021

Opinion

We have audited the financial statements of BLM Group UK Ltd (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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:

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

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

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

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

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

Use of our report

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

Robert Brown (Senior Statutory Auditor)

for and on behalf of Landers Accountants Ltd

Church View Chambers

38 Market Square

Toddington

Bedfordshire

LU5 6BS

21 July 2021

REVENUE

3

8,896,699

10,350,550

Cost of sales

7,265,287

8,599,899

GROSS PROFIT

1,631,412

1,750,651

Administrative expenses

1,583,444

1,471,906

47,968

278,745

Other operating income

62,618

-

OPERATING PROFIT

5

110,586

278,745

Interest receivable and similar income

4,695

11,594

PROFIT BEFORE TAXATION

115,281

290,339

Tax on profit

6

26,461

56,330

PROFIT FOR THE FINANCIAL YEAR

88,820

234,009

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

88,820

234,009

FIXED ASSETS

Property, plant and equipment

7

119,606

135,325

Investments

8

49,593

47,049

169,199

182,374

CURRENT ASSETS

Inventories

9

274,925

605,227

Debtors

10

2,163,946

1,410,219

Cash at bank and in hand

9,024,989

5,623,792

11,463,860

7,639,238

CREDITORS

Amounts falling due within one year

11

10,573,442

6,848,967

NET CURRENT ASSETS

890,418

790,271

TOTAL ASSETS LESS CURRENT LIABILITIES

1,059,617

972,645

PROVISIONS FOR LIABILITIES

12

4,894

6,742

NET ASSETS

1,054,723

965,903

CAPITAL AND RESERVES

Called up share capital

13

1,000

1,000

Retained earnings

14

1,053,723

964,903

SHAREHOLDERS' FUNDS

1,054,723

965,903

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 21 July 2021 and were signed on its behalf by:

P A Lake - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

1,000

730,894

731,894

Changes in equity

Total comprehensive income

-

234,009

234,009

Balance at 31 December 2019

1,000

964,903

965,903

Changes in equity

Total comprehensive income

-

88,820

88,820

Balance at 31 December 2020

1,000

1,053,723

1,054,723

Cash flows from operating activities

Cash generated from operations

1

170,871

223,897

Tax paid

(54,492

)

(17,482

)

Net cash from operating activities

116,379

206,415

Cash flows from investing activities

Purchase of tangible fixed assets

(44,703

)

(133,042

)

Sale of tangible fixed assets

1,040

-

Government grants

62,618

-

Interest received

4,695

11,594

Net cash from investing activities

23,650

(121,448

)

Cash flows from financing activities

Amounts owed to group

3,261,168

(2,203,127

)

Net cash from financing activities

3,261,168

(2,203,127

)

Increase/(decrease) in cash and cash equivalents

3,401,197

(2,118,160

)

Cash and cash equivalents at beginning of year

2

5,623,792

7,741,952

Cash and cash equivalents at end of year

2

9,024,989

5,623,792

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

31.12.20

31.12.19

£

£

Profit before taxation

115,281

290,339

Depreciation charges

53,455

23,533

Loss on disposal of fixed assets

967

-

Exchange rate difference - subsidiary

(2,544

)

2,543

Payments on account

207,654

185,739

Government grants

(62,618

)

-

Finance income

(4,695

)

(11,594

)

307,500

490,560

Decrease/(increase) in inventories

330,302

(435,174

)

(Increase)/decrease in trade and other debtors

(753,727

)

695,573

Increase/(decrease) in trade and other creditors

286,796

(527,062

)

Cash generated from operations

170,871

223,897

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

9,024,989

5,623,792

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

5,623,792

7,741,952

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank and in hand

5,623,792

3,401,197

9,024,989

5,623,792

3,401,197

9,024,989

Total

5,623,792

3,401,197

9,024,989

1.	COMPANY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

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

Tangible fixed assets

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

Short leasehold

-

over the term of the lease

Plant and machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

Investments in subsidiaries

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

Inventories

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

Financial instruments

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Pension costs and other post-retirement benefits

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

3.

REVENUE

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

An analysis of revenue by geographical market is given below:

31.12.20

31.12.19

£

£

United Kingdom

7,418,183

10,350,550

Rest of the world

1,478,516

-

8,896,699

10,350,550

4.	EMPLOYEES AND DIRECTORS

31.12.20

31.12.19

£

£

Wages and salaries

1,050,960

1,163,674

Social security costs

136,000

138,763

Other pension costs

31,117

25,279

1,218,077

1,327,716

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

31.12.20

31.12.19

Directors

4

4

Sales, admin and support engineers

11

12

15

16

31.12.20

31.12.19

£

£

Directors' remuneration

493,734

617,851

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

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

31.12.20

31.12.19

£

£

Emoluments etc

363,178

476,709

5.	OPERATING PROFIT

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

31.12.20

31.12.19

£

£

Depreciation - owned assets

53,455

23,529

Loss on disposal of fixed assets

967

-

Auditors' remuneration

11,880

11,000

Foreign exchange differences

60,973

(231,517

)

6.

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

28,309

54,492

Deferred tax

(1,848

)

1,838

Tax on profit

26,461

56,330

UK corporation tax has been charged at 19% (2019 - 19%).

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

115,281

290,339

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

21,903

55,164

Effects of:

Expenses not deductible for tax purposes

-

1,165

Capital allowances in excess of depreciation

-

(1,838

)

Depreciation in excess of capital allowances

6,406

-

Deferred tax: origination and reversal of timing differences

(1,848

)

1,839

Total tax charge

26,461

56,330

7.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2020

14,978

7,408

71,287

152,782

246,455

Additions

-

-

3,456

41,247

44,703

Disposals

-

-

(2,480

)

(13,200

)

(15,680

)

At 31 December 2020

14,978

7,408

72,263

180,829

275,478

DEPRECIATION

At 1 January 2020

14,978

7,408

56,899

31,845

111,130

Charge for year

-

-

3,947

49,508

53,455

Eliminated on disposal

-

-

(2,480

)

(6,233

)

(8,713

)

At 31 December 2020

14,978

7,408

58,366

75,120

155,872

NET BOOK VALUE

At 31 December 2020

-

-

13,897

105,709

119,606

At 31 December 2019

-

-

14,388

120,937

135,325

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2020

47,049

Exchange differences

2,544

At 31 December 2020

49,593

NET BOOK VALUE

At 31 December 2020

49,593

At 31 December 2019

47,049

9.	INVENTORIES

31.12.20

31.12.19

£

£

Stocks

274,925

605,227