Quin Global Holdings Ltd - Limited company accounts 20.1

REGISTERED NUMBER: SC598159 (Scotland)

for

Page

Group Strategic Report  

1

Report of the Directors  

2

Report of the Independent Auditors  

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet  

8

Company Balance Sheet  

9

Consolidated Statement of Changes in Equity  

10

Company Statement of Changes in Equity  

11

Consolidated Cash Flow Statement  

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

15

The directors present their strategic report of the company and the group for the year ended 31 December 2020.

REVIEW OF BUSINESS

The directors are happy to report a successful year for the group.

The group has generated £20,894,506 (2019: £15,282,232) of turnover due to excellent products and customer service.  The group has generated £1,629,933 (2019: £595,238) of profits before tax to give satisfactory results.

At the period end the group had shareholders funds of £2,457,832 (2019: £1,455,519) including distributable profits of £2,457,692 (2019: £1,455,399).  The directors therefore believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £1,027,611 (2019: net current liabilities £120,318).

The directors believes that there is a strong foundation to build the business further and improve on the current period's results.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the main risk facing the group as being increased competition from other national companies.  These companies are able to sell similar products to those offered by the group at competitive prices, which could lead to decreasing margins. The directors believe that the quality of our products and customer service will help mitigate these risks and hope to see satisfactory trading results in the coming year.

There is a risk of exposure to foreign exchange movements which could impact on the profit margins achieved by the group.  The directors have taken advice on potential hedging strategies to mitigate this risk.

Furthermore, there is risk and uncertainty surrounding the long term implications of Brexit.  The directors are ensuring that the group will be ready to react and take the correct professional advice whatever the outcome.

At the balance sheet signing date, the United Kingdom, Europe and rest of the World is in the middle of a medical and economic crisis due to the Covid-19 global pandemic which is the key risk to all businesses in the country.  The directors of the company have taken steps to ensure the group comes out of the pandemic in as healthy a position as possible, and the group continues to be successful post year-end.

ON BEHALF OF THE BOARD:

Mr A C Fowler - Director

27 September 2021

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

PRINCIPAL ACTIVITY

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2020 will be £391,503.

DIRECTORS

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

Mr A C Fowler

Mr L Fowler

Mr C Fowler

Mrs B Fowler

Mrs L Fowler

Mrs C Fowler

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Mr A C Fowler - Director

27 September 2021

Opinion

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 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 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 group's and the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 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 two, 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 group's and the parent 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 group or the parent 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.

Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities.  We determined that the most likely method of manipulation would be the posting of inappropriate journal entries.  Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above and  the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion.

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

Use of our report

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

David Wheeler (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

Statutory Auditor

Unit 5

Gateway Business Park

Beancross Road

Grangemouth

FK3 8WX

30 September 2021

TURNOVER

3

20,894,506

15,282,232

Cost of sales

(14,694,345

)

(10,793,545

)

GROSS PROFIT

6,200,161

4,488,687

Administrative expenses

(4,697,518

)

(3,947,106

)

1,502,643

541,581

Other operating income

182,252

100,000

OPERATING PROFIT

5

1,684,895

641,581

Interest receivable and similar income

-

16

1,684,895

641,597

Interest payable and similar expenses

6

(54,962

)

(46,359

)

PROFIT BEFORE TAXATION

1,629,933

595,238

Tax on profit

7

(236,137

)

(115,232

)

PROFIT FOR THE FINANCIAL YEAR

1,393,796

480,006

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR

THE YEAR

1,393,796

480,006

Profit attributable to:

Owners of the parent

1,393,796

480,006

Total comprehensive income attributable to:

Owners of the parent

1,393,796

480,006

FIXED ASSETS

Intangible assets

10

304,200

340,800

Tangible assets

11

2,406,095

2,466,055

Investments

12

-

-

Investment property

13

-

-

2,710,295

2,806,855

CURRENT ASSETS

Stocks

14

1,705,315

1,249,399

Debtors

15

2,693,006

1,934,132

Cash at bank

771,749

290,738

5,170,070

3,474,269

CREDITORS

Amounts falling due within one year

16

(4,142,459

)

(3,594,587

)

NET CURRENT ASSETS/(LIABILITIES)

1,027,611

(120,318

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

3,737,906

2,686,537

CREDITORS

Amounts falling due after more than one year

17

(1,164,726

)

(1,150,821

)

PROVISIONS FOR LIABILITIES

21

(115,348

)

(80,197

)

NET ASSETS

2,457,832

1,455,519

CAPITAL AND RESERVES

Called up share capital

22

140

120

Retained earnings

23

2,457,692

1,455,399

SHAREHOLDERS' FUNDS

2,457,832

1,455,519

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2021 and were signed on its behalf by:

Mr A C Fowler - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

220

220

Investment property

13

1,408,303

1,406,366

1,408,523

1,406,586

CURRENT ASSETS

Debtors

15

432

5,531

CREDITORS

Amounts falling due within one year

16

(366,559

)

(320,782

)

NET CURRENT LIABILITIES

(366,127

)

(315,251

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

1,042,396

1,091,335

CREDITORS

Amounts falling due after more than one year

17

(831,215

)

(916,933

)

NET ASSETS

211,181

174,402

CAPITAL AND RESERVES

Called up share capital

22

140

120

Retained earnings

23

211,041

174,282

SHAREHOLDERS' FUNDS

211,181

174,402

Company's profit for the financial year

428,261

397,980

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2021 and were signed on its behalf by:

Mr A C Fowler - Director

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Balance at 1 January 2019

120

1,204,068

1,204,188

Changes in equity

Dividends

-

(228,675

)

(228,675

)

Total comprehensive income

-

480,006

480,006

Balance at 31 December 2019

120

1,455,399

1,455,519

Changes in equity

Issue of share capital

20

-

20

Dividends

-

(391,503

)

(391,503

)

Total comprehensive income

-

1,393,796

1,393,796

Balance at 31 December 2020

140

2,457,692

2,457,832

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Balance at 1 January 2019

120

4,977

5,097

Changes in equity

Dividends

-

(228,675

)

(228,675

)

Total comprehensive income

-

397,980

397,980

Balance at 31 December 2019

120

174,282

174,402

Changes in equity

Issue of share capital

20

-

20

Dividends

-

(391,502

)

(391,502

)

Total comprehensive income

-

428,261

428,261

Balance at 31 December 2020

140

211,041

211,181

Cash flows from operating activities

Cash generated from operations

1

1,564,303

696,121

Interest paid

(43,502

)

(41,302

)

Interest element of hire purchase payments paid

(11,460

)

(5,057

)

Tax paid

-

(71,581

)

Net cash from operating activities

1,509,341

578,181

Cash flows from investing activities

Purchase of intangible fixed assets

-

(300,000

)

Purchase of tangible fixed assets

(433,636

)

(1,270,519

)

Sale of tangible fixed assets

126,296

31,096

Interest received

-

16

Net cash from investing activities

(307,340

)

(1,539,407

)

Cash flows from financing activities

New loans in year

380,411

1,000,000

Loan repayments in year

(114,109

)

(331,801

)

Capital repayments in year

(127,021

)

(102,775

)

Amount introduced by directors

63,549

-

Amount withdrawn by directors

-

(216,335

)

Equity dividends paid

(391,503

)

(228,675

)

Net cash from financing activities

(188,673

)

120,414

Increase/(decrease) in cash and cash equivalents

1,013,328

(840,812

)

Cash and cash equivalents at beginning of year

2

(241,579

)

599,233

Cash and cash equivalents at end of year

2

771,749

(241,579

)

1.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.20

31.12.19

£   

£   

Profit before taxation

1,629,933

595,238

Depreciation charges

382,691

197,968

Loss on disposal of fixed assets

21,208

1,184

Finance costs

54,962

46,359

Finance income

-

(16

)

2,088,794

840,733