Fluorocarbon Company Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00734182 (England and Wales)

FLUOROCARBON COMPANY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

Mr T J Wells

Mr F Wells

SECRETARY:

Mr F Wells

REGISTERED OFFICE:

Fluorocarbon House

Caxton Hill

Hertford, Hertfordshire

United Kingdom

SG13 7NH

REGISTERED NUMBER:

00734182 (England and Wales)

AUDITORS:

Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

The directors present their strategic report for the year ended 31 December 2019.

REVIEW OF BUSINESS

Turnover for the year decreased to £10,960,962 (2018: £12,131,939) with gross profit decreasing to £3,072,656 (2018: £3,339,672). Sales have declined mainly due to a reduction in sales to other Group companies.

The operating loss for the financial year was £1,508,194 (2018: operating profit of £58,821).

Other comprehensive income (before tax related movements) for the year was an expense of £669,000 (2018 : income of £109,000), relating entirely to Pension actuarial assumption changes.

The company has benefited from an increase in value of its freehold property in Hertford, UK, driven by a strong industrial market in the South East of the UK. Post year-end the freehold property was sold for £5,175,000.

The business held cash-in-hand at year-end of £429,902 (2018 : £364,154).

COVID-19

COVID-19 has since impacted the business to the extent that the government furlough scheme was accessed in 2020 and subsequently some headcount was reduced.

MATERIAL UNCERTAINTY RELATED TO GOING CONCERN

As described in Note 3 the company has identified a material uncertainty related to gong concern in relation to the Defined Benefit Pension Scheme, but have concluded that the company is a going concern.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk to the Company relates to its future ability to meet the funding requirements of the Fluorocarbon Company (1974) Pension Fund.

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors, loans to the company and finance lease/hire purchase agreements. The main purpose of these instruments is to raise funds for and finance the company's operations.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company makes use of money market facilities where funds are available.

In respect of loans these comprise loans from group undertakings and loans from financial institutions. The interest rate on the loans from the financial institutions is variable but the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Group loans have been made in awareness of the company's required finance and it has been determined that these will only be repaid, in whole or in part, when finance is available.

The company is a lessee in respect of finance leased/hire purchased assets. The liquidity risk in respect of these is managed in the same way as loans above.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ON BEHALF OF THE BOARD:

Mr F Wells - Director

5 October 2021

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2019.

RESEARCH AND DEVELOPMENT

The company continued to evaluate new products and services for introduction into the marketplace.

FUTURE DEVELOPMENTS

Future plans include maximising plant efficiency and delivering increased performance across all divisions.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report.

T J Wells

F Wells

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, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr F Wells - Director

5 October 2021

Opinion

We have audited the financial statements of Fluorocarbon Company Limited (the 'company') for the year ended 31 December 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 2019 and of its loss 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Material uncertainty related to going concern

We draw attention to Note 3 in the financial statements, which explains that the company is currently negotiating with the Trustees of its Defined Benefit Scheme over the future funding of the deficit which has substantially increased due to market conditions. As stated in Note 3, these conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 three, 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.

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.

Robin Lloyd FCA (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

5 October 2021

TURNOVER

10,960,962

12,131,939

Cost of sales

7,888,306

8,792,267

GROSS PROFIT

3,072,656

3,339,672

Administrative expenses

4,624,265

3,333,069

(1,551,609

)

6,603

Other income

43,415

52,218

OPERATING (LOSS)/PROFIT

6

(1,508,194

)

58,821

Exceptional items

7

306,881

263,535

(1,815,075

)

(204,714

)

Interest receivable and similar income

3,070

4,319

(1,812,005

)

(200,395

)

Interest payable and similar expenses

8

322,383

97,022

Other finance costs

21

110,000

107,000

432,383

204,022

LOSS BEFORE TAXATION

(2,244,388

)

(404,417

)

Tax on loss

9

-

-

LOSS FOR THE FINANCIAL YEAR

(2,244,388

)

(404,417

)

LOSS FOR THE YEAR

(2,244,388

)

(404,417

)

OTHER COMPREHENSIVE INCOME

Actuarial gains/(losses)

(669,000

)

109,000

Income tax relating to other comprehensive income

72,010

(36,231

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(596,990

)

72,769

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,841,378

)

(331,648

)

FIXED ASSETS

Tangible assets

10

6,450,934

6,114,465

CURRENT ASSETS

Stocks

11

1,822,572

1,613,020

Debtors

12

3,877,550

5,582,661

Prepayments and accrued income

646

-

Cash at bank and in hand

429,902

364,154

6,130,670

7,559,835

CREDITORS

Amounts falling due within one year

13

5,972,065

5,189,222

NET CURRENT ASSETS

158,605

2,370,613

TOTAL ASSETS LESS CURRENT LIABILITIES

6,609,539

8,485,078

CREDITORS

Amounts falling due after more than one year

14

(3,374,699

)

(2,787,860

)

PENSION LIABILITY

21

(4,354,308

)

(3,975,308

)

NET (LIABILITIES)/ASSETS

(1,119,468

)

1,721,910

CAPITAL AND RESERVES

Called up share capital

19

10,000

10,000

Share premium account

20

233,180

233,180

Revaluation reserve

20

1,430,424

1,430,424

Retained earnings

20

(2,793,072

)

48,306

SHAREHOLDERS' FUNDS

26

(1,119,468

)

1,721,910

The financial statements were approved by the Board of Directors and authorised for issue on 5 October 2021 and were signed on its behalf by:

Mr F Wells - Director

Called up

Share

share

Retained

premium

Revaluation

Total

capital

earnings

account

reserve

equity

£

£

£

£

£

Balance at 1 January 2018

10,000

379,954

233,180

1,430,424

2,053,558

Changes in equity

Total comprehensive income

-

(331,648

)

-

-

(331,648

)

Balance at 31 December 2018

10,000

48,306

233,180

1,430,424

1,721,910

Changes in equity

Total comprehensive income

-

(2,841,378

)

-

-

(2,841,378

)

Balance at 31 December 2019

10,000

(2,793,072

)

233,180

1,430,424

(1,119,468

)

1.	COMPANY INFORMATION

Fluorocarbon Company Limited was incorporated on 3 September 1962 under the Companies Act 1948, as a private limited company and is registered in England and Wales. The principal activity of Fluorocarbon Company Limited is that of the design, development, manufacture and sale of fluorocarbon products. The address of its head office and registered office is Fluorocarbon House, Caxton Hill, Hertford, Hertfordshire, SG13 7NH.

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, except for the modification to a valuation basis for certain assets as specified in the accounting policies below.

The presentation currency is £ sterling.

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 Section 7 Statement of Cash Flows;

•

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 requirement of paragraph 33.7.

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 net amounts invoiced during the year (excluding value added tax) adjusted for accrued and deferred income where applicable.

Turnover is recognised on the sale of goods, when the goods are delivered and title has passed.

The analysis of turnover and profit before taxation by geographical segment is not disclosed since, in the opinion of the directors, this would be prejudicial to the interests of the company.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided to write off the cost, less estimated residual values of all tangible fixed assets, except freehold land and buildings, evenly over their expected useful lives. It is calculated at the following rates:

Plant and machinery

- 10% to 20% reducing balance

Motor vehicles

- 25% to 33% per annum on cost

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is adjusted prospectively.

Freehold property is carried at either cost or professional valuation and no depreciation is provided in respect of these properties as the depreciation charge would be immaterial due to the high residual values of these assets, which are ensured by a programme of regular maintenance and repair. Freehold properties will be subject to regular review, including a full valuation, at least once every five years.

The Companies Act 2006 requires all fixed assets to be depreciated, however, the directors consider that because of the high residual values of the freehold land and buildings any charge would be immaterial and therefore to depreciate them would not give a true and fair view.

An annual impairment review is undertaken for those tangible fixed assets which are not depreciated.

Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the income statement.

Stocks

Stocks are valued at the lower of cost and net realisable value, on a 'first in, first out' basis. Net realisable value is based on estimated selling price less additional costs to completion and disposal.The net realisable value of the finished stock older than 1 year is reviewed regularly for impairment. Any impairment, to better represent the carrying value of finished stock, is taken to the Income Statement as a stock write-off, and reported in Gross Profit.

For work in progress and finished goods manufactured by the company, cost is taken as production cost, which includes an appropriate proportion of fixed and variable overheads.

Taxation

The charge for taxation is based on the profit for the year and takes into account taxation deferred.

Current tax is measured at amounts expected to be paid using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Where taxable losses are available these are relieved against taxable profits in other group companies. No charge is made for the losses surrendered.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date except that the recognition of deferred tax assets is limited to the extent that the company anticipates generating sufficient taxable profits in the future to fully absorb the reversal of the underlying timing difference.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company accounts for its defined benefit pension scheme in accordance with FRS102.

The pension scheme liabilities are measured using a projected units method. The pension scheme deficit is recognised in full and disclosed on the face of the balance sheet. The movement in the scheme deficit is split between operating profit and finance costs in the income statement and the statement of other comprehensive income.

In addition, the company makes pension contributions to a defined contribution pension scheme, the assets of which are held separately from those of the company in an independently administered fund. Contributions to this scheme are charged to the income statement as they become payable.

Financial instruments

Basic financial instruments are measured at amortised cost.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an operating lease and is therefore not included in the balance sheet.

Deferred tax assets

A deferred tax asset is provided against the defined pension liability. A judgement is made as to whether the asset should be recognised based on the future reversal of the provision.

Other key sources of estimation uncertainty;

Tangible fixed assets

Tangible fixed assets, other than freehold property, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as market conditions, the remaining life of the asset and projected disposal values.

Pension liability

The calculation of the pension liability is determined using actuarial assumptions. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty.

Impairment of tangible fixed assets

For assets that are not depreciated and where there are indicators of impairment, the company performs impairment tests based on a value in use calculation. This calculation is based on a discounted cash flow model and the recoverable amount is most sensitive to the discount rate used.

Exceptional items

Exceptional items are one off, material items outside the normal course of business which are not related to the Company's trading activities.

3.	MATERIAL UNCERTAINTY RELATED TO GOING CONCERN

The Company is the sole sponsoring employer of the Fluorocarbon Company Ltd (1974) Pension Fund and therefore has the obligation of making good over time any deficit of the Fund.

The pension fund deficit on a Technical Provisions basis has increased substantially due to market conditions. Actuarial valuations stated the deficit as at 5th April 2020 as being £13.9m. The valuation of the deficit as at 5th April 2021 was £11.5m, demonstrating the large fluctuations in market conditions.

The Company is unable to confirm that it can meet the funding requirement requested of it by the Trustees of the Fluorocarbon Company Ltd (1974) Pension Fund over a reasonable period of not less than fifteen years. If an agreement cannot be reached regarding the funding for the scheme the Company's ability to continue as a going concern could be affected.

The Directors have been in regular dialogue with the Trustees and are actively looking to secure the best return to the Fund over time. The Directors are exploring funding options, including a Creditors Voluntary Arrangement.

As there are possible options available and under review which could be agreed to meet the funding requirements, the financial statements are prepared on the assumption that the entity is a going concern. Should no agreement be reached, then the Fluorocarbon Company Ltd (1974) Pension Fund would be wound up, leading to a claim being raised on the Company of the pension fund deficit on a s.75 basis.

4.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

2,584,682

2,358,886

Social security costs

265,739

241,566

Other pension costs

231,761

205,457

3,082,182

2,805,909

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

2019

2018

Management

13

10

Administrative and sales

32

33

Production

41

35

86

78

5.	DIRECTORS' EMOLUMENTS

2019

2018

£

£

Directors' remuneration

95,000

205,250

No directors were accruing retirement benefits.

6.	OPERATING (LOSS)/PROFIT

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

2019

2018

£

£

Hire of plant and machinery

39,015

38,878

Depreciation - owned assets

165,933

118,640

Depreciation - assets on hire purchase contracts

49,500

30,665

(Profit)/loss on disposal of fixed assets

(50

)

(45,000)

Foreign exchange (profit)/loss

(48,787

)

(7,963)

Auditors remuneration

13,000

13,813

7.	EXCEPTIONAL ITEMS

Material exceptional items comprise:

2019

2018

£

£

Restructuring costs

96,881

205,168

Refinancing costs

-

58,367

Pension exceptional costs

210,000

-

306,881

263,535

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank interest and associated costs

295,500

90,120

Hire purchase and finance lease charges

26,883

6,902

322,383

97,022

9.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 December 2019 nor for the year ended 31 December 2018.

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:

2019

2018

£

£

Loss before tax

(2,244,388

)

(404,417

)

Loss multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

(426,434

)

(76,839

)

Effects of:

Expenses not deductible for tax purposes

-

862

Deferred tax unprovided

426,434

87,645

Pension fund payments

-

(11,668

)

Total tax charge

-

-

Tax effects relating to effects of other comprehensive income

2019

Gross

Tax

Net

£

£

£

Actuarial gains/(losses)

(669,000

)

72,010

(596,990

)

2018

Gross

Tax

Net

£

£

£

Actuarial gains/(losses)

109,000

(36,231

)

72,769

10.	TANGIBLE FIXED ASSETS

Freehold

Improvements

Plant and

Motor

property

to property

machinery

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2019

4,400,000

286,739

5,655,080

18,488

10,360,307

Additions

-

-

618,723

-

618,723

Disposals

-

-

(43,345

)

-

(43,345

)

Reclassification/transfer

-

95,245

(95,245

)

-

-

At 31 December 2019

4,400,000

381,984

6,135,213

18,488

10,935,685

DEPRECIATION

At 1 January 2019

-

-

4,227,354

18,488

4,245,842

Charge for year

-

49,288

215,433

-

264,721

Eliminated on disposal

-

-

(25,812

)

-

(25,812

)

At 31 December 2019

-

49,288

4,416,975

18,488

4,484,751

NET BOOK VALUE

At 31 December 2019

4,400,000

332,696

1,718,238

-

6,450,934

At 31 December 2018

4,400,000

286,739

1,427,726

-

6,114,465

The freehold property is secured under a fixed charge in favour of Artbuthnot Commercial Asset Based Lending Limited.

Cost or valuation at 31 December 2019 is represented by:

Freehold

Improvements

Plant and

Motor

property

to property

machinery

vehicles

Totals

£

£

£

£

£

Valuation in 2009

903,037

-

-

-

903,037

Valuation in 2012

(100,000

)

-

-

-

(100,000

)

Valuation in 2016

627,387

-

-

-

627,387

Cost

2,969,576

381,984

6,135,213

18,488

9,505,261

4,400,000

381,984

6,135,213

18,488

10,935,685

Freehold land and buildings were valued on an open market basis on 31March 2017 by Strutt & Parker LLP, processed as at 31 December 2016.

The net book value of tangible fixed assets includes £565,943 (2018 - £121,000) in respect of assets held under hire purchase contracts.