BBG Industries Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 09144241 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30th June 2021

for

BBG Industries Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

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

14

DIRECTORS:

T M Best

G Blunden

N A Boyles

K J Deegan

S J Gregan

C Roy

D Gibbs

SECRETARY:

S J Gregan

REGISTERED OFFICE:

Trios House

Reform Road

Maidenhead

Berkshire

SL6 8DA

BUSINESS ADDRESS:

Central Way

Feltham

Middlesex

TW14 0XJ

REGISTERED NUMBER:

09144241 (England and Wales)

AUDITORS:

Hannaways

Chartered Accountants

and Statutory Auditors

Trios House

Reform Road

Maidenhead

Berkshire

SL6 8BY

The directors present their strategic report of the company and the group for the year ended 30th June 2021.

REVIEW OF BUSINESS

The results for the year are set out on page 7.

The Directors are pleased to report a significant trading improvement in the year. Turnover increased in the year to £17,520,920, increasing from £13,859,167 for the year to 30th June 2020. Additionally, there was an increase in Profit Before Tax for the year, which was £1.924,879, compared to a Loss Before Tax of £568,583 for the year to 30th June 2020.

This was achieved through better performing trading contracts with the gross profit margin increasing to 24.82% from 22.69% for the year to 30th June 2020.

The group also received an insurance claim paid out under the company's Business Interruption insurance.

PRINCIPAL RISKS AND UNCERTAINTIES

The Covid pandemic continues to create ongoing issues for the construction industry but disruption has and will continue to be minimised by good operational controls and a successful vaccine roll out.

The industry faces new challenges including raw material shortages, labour shortages and the associated price increases. However, despite the continuing difficult trading climate, the Directors are confident that a similar trading result will be delivered for the year to June 2022.

ON BEHALF OF THE BOARD:

S J Gregan - Secretary

5th November 2021

The directors present their report with the financial statements of the company and the group for the year ended 30th June 2021.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of architectural metalwork and steel fabrication.

DIVIDENDS

No dividends will be distributed for the year ended 30th June 2021.

DIRECTORS

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

T M Best

G Blunden

N A Boyles

K J Deegan

S J Gregan

C Roy

Other changes in directors holding office are as follows:

D Gibbs was appointed as a director after 30th June 2021 but prior to the date of this report.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S J Gregan - Secretary

5th November 2021

Opinion

We have audited the financial statements of BBG Industries Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th June 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30th June 2021 and of the group's 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 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 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 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the group and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management. We considered the significant laws and regulations to be the Companies Act 2006 and Health and Safety regulations. As part of our audit work we reviewed the reports of any Health and Safety audits carried out by independent assessors in the year. We also reviewed minutes of the Board meetings throughout the year.

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our audit work focused on revenue recognition, amounts recoverable on contracts and deferred income, as these areas were subject to significant judgement and estimation techniques, and as such the risk of material misstatement due to fraud is the greatest. Our audit work in these areas consisted of substantive tests of detail on a sample of the population of contracts ongoing and existing at the year end to confirm the appropriateness of the estimates used in the stage of completion of the contract.

We addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to, the testing of journals, reviewing accounting estimates for evidence of bias and evaluating the business rationale of any significant transactions that were unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery. misrepresentation or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

Christopher Northwood BSc FCA (Senior Statutory Auditor)

for and on behalf of Hannaways

Chartered Accountants

and Statutory Auditors

Trios House

Reform Road

Maidenhead

Berkshire

SL6 8BY

5th November 2021

TURNOVER

3

17,520,920

13,859,167

Cost of sales

13,172,900

10,713,638

GROSS PROFIT

4,348,020

3,145,529

Administrative expenses

3,607,620

3,395,676

740,400

(250,147

)

Other operating income

4

1,201,087

149,874

OPERATING PROFIT/(LOSS)

1,941,487

(100,273

)

Goodwill amortisation

6

-

468,446

1,941,487

(568,719

)

Interest receivable and similar income

7

42

136

1,941,529

(568,583

)

Interest payable and similar expenses

8

16,650

-

PROFIT/(LOSS) BEFORE TAXATION

9

1,924,879

(568,583

)

Tax on profit/(loss)

10

348,871

(209,660

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,576,008

(358,923

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,576,008

(358,923

)

Profit/(loss) attributable to:

Owners of the parent

1,576,008

(358,923

)

Total comprehensive income attributable to:

Owners of the parent

1,576,008

(358,923

)

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

83,335

102,001

Investments

14

-

-

83,335

102,001

CURRENT ASSETS

Stocks

15

10,200

10,200

Debtors

16

2,241,429

2,445,923

Cash at bank and in hand

4,932,927

2,654,259

7,184,556

5,110,382

CREDITORS

Amounts falling due within one year

17

7,477,548

6,998,048

NET CURRENT LIABILITIES

(292,992

)

(1,887,666

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(209,657

)

(1,785,665

)

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

(210,657

)

(1,786,665

)

SHAREHOLDERS' FUNDS

(209,657

)

(1,785,665

)

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

S J Gregan - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

3,600,000

3,600,000

3,600,000

3,600,000

CURRENT ASSETS

Debtors

16

700

700

Cash at bank

66

76

766

776

CREDITORS

Amounts falling due within one year

17

1,978,845

1,978,745

NET CURRENT LIABILITIES

(1,978,079

)

(1,977,969

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,621,921

1,622,031

CAPITAL AND RESERVES

Called up share capital

20

1,000

1,000

Retained earnings

21

1,620,921

1,621,031

SHAREHOLDERS' FUNDS

1,621,921

1,622,031

Company's loss for the financial year

(110

)

(5,699,866

)

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

S J Gregan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2019

1,000

(1,427,742

)

(1,426,742

)

Changes in equity

Total comprehensive income

-

(358,923

)

(358,923

)

Balance at 30th June 2020

1,000

(1,786,665

)

(1,785,665

)

Changes in equity

Total comprehensive income

-

1,576,008

1,576,008

Balance at 30th June 2021

1,000

(210,657

)

(209,657

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2019

1,000

7,320,897

7,321,897

Changes in equity

Total comprehensive income

-

(5,699,866

)

(5,699,866

)

Balance at 30th June 2020

1,000

1,621,031

1,622,031

Changes in equity

Total comprehensive income

-

(110

)

(110

)

Balance at 30th June 2021

1,000

1,620,921

1,621,921

Cash flows from operating activities

Cash generated from operations

1

1,726,567

2,511,214

Interest paid

(16,650

)

-

Tax paid

-

(32,295

)

Taxation refund

116,352

93,308

Net cash from operating activities

1,826,269

2,572,227

Cash flows from investing activities

Sale of tangible fixed assets

-

6,999

Interest received

42

136

Net cash from investing activities

42

7,135

Cash flows from financing activities

Bank loans advanced

450,000

-

Amount introduced by directors

2,357

-

Amount withdrawn by directors

-

(19,244

)

Net cash from financing activities

452,357

(19,244

)

Increase in cash and cash equivalents

2,278,668

2,560,118

Cash and cash equivalents at beginning of year

2

2,654,259

94,141

Cash and cash equivalents at end of year

2

4,932,927

2,654,259

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit/(loss) before taxation

1,924,879

(568,583

)

Depreciation charges

18,666

24,926

Loss on disposal of fixed assets

-

1,512

Goodwill amortisation

-

468,446

Finance costs

16,650

-

Finance income

(42

)

(136

)

1,960,153

(73,835

)

Increase in stocks

-

(667,366

)

Decrease in trade and other debtors

88,142

669,213

(Decrease)/increase in trade and other creditors

(321,728

)

2,583,202

Cash generated from operations

1,726,567

2,511,214

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 30th June 2021

30.6.21

1.7.20

£

£

Cash and cash equivalents

4,932,927

2,654,259

Year ended 30th June 2020

30.6.20

1.7.19

£

£

Cash and cash equivalents

2,654,259

94,141

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.20

Cash flow

At 30.6.21

£

£

£

Net cash

Cash at bank and in hand

2,654,259

2,278,668

4,932,927

2,654,259

2,278,668

4,932,927

Debt

Debts falling due within 1 year

(1,978,745

)

(450,000

)

(2,428,745

)

(1,978,745

)

(450,000

)

(2,428,745

)

Total

675,514

1,828,668

2,504,182

1.	STATUTORY INFORMATION

BBG Industries Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The company's business address can also be found on the Company Information page.

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.

Basis of consolidation

The group financial statements consolidate the financial statements of BBG Industries Limited and its subsidiary undertakings drawn up to 30th June 2021.

In the company's financial statements, investments in subsidiaries are stated at cost less impairment.

Significant judgements and estimates

The preparation of the group financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates and judgements.

The judgements, estimates and assumptions that have the most significant effect on amounts recognised in the group financial statements are as follows.

Revenue recognition, amounts recoverable on contracts and deferred income

The group makes an estimate of the stage completion of a construction contract based on costs incurred and revenue earned at the balance sheet date. The method used is as stated in the construction contract turnover accounting policy. Estimation uncertainty will exist with regard the gross profit being recognised at the year end.

Turnover

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

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Turnover from construction contracts represents turnover received from construction work carried out in the year and includes an appropriate proportion of revenue receivable from contracts which are recognised by reference to the stage of completion of the contract at the balance sheet date. Stage of completion is assessed by reference to the proportion of the contract costs incurred for the work performed to date relative to the estimated total costs to complete the contract.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Deferred taxation

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.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Fixed asset investments

Investments in subsidiary companies are stated at deemed cost, which is the carrying amount at the date of transition as determined under previous UK GAAP.

Short term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction cost. Any losses from impairment are recognised in the profit and loss account.

Going concern and covid 19

Following the outbreak of the COVID 19 pandemic and the subsequent national lockdowns, the industry sector and the group faced uncertainty and received help from the Government in the form of furlough grants.

The group has however been relatively unaffected by the pandemic and the group's forecasts show that the group should continue to operate within the level of it's current financing arrangement.

The directors have a reasonable expectation that the group had adequate resources to continue in operational existence for the foreseeable future and therefore, the group continues to adopt the going concern basis of accounts preparation.

3.

TURNOVER

The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the group.

4.	OTHER OPERATING INCOME

2021

2020

£

£

Sundry receipts

1,155,000

-

Government grants

46,087

149,874

1,201,087

149,874

Sundry receipts relates to an insurance claim less associated costs received in the year relating to a claim under the company's business interruption insurance policy.

Government grants relates to furlough claims receivable in the year of £29,437 (2020 £149,874) and bank loan interest paid by the Government on the CIBLS bank loan of £16,650 (2020 £nil).

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

3,540,681

3,235,477

Social security costs

346,300

316,395

Other pension costs

79,744

72,325

3,966,725

3,624,197

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

2021

2020

Office and management

44

43

Production

61

50

105

93

2021

2020

£

£

Directors' remuneration

392,100

303,500

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

101,800

80,000