George Abrahams Limited - Limited company accounts 20.1
George Abrahams Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| FOR |
| GEORGE ABRAHAMS LIMITED |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| for the year ended 31 December 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Director | 4 |
| Report of the Independent Auditors | 5 |
| Income Statement | 9 |
| Other Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Cash Flow Statement | 13 |
| Notes to the Cash Flow Statement | 14 |
| Notes to the Financial Statements | 16 |
| GEORGE ABRAHAMS LIMITED |
| COMPANY INFORMATION |
| for the year ended 31 December 2020 |
| DIRECTOR: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Certified Accountants |
| 19-20 Bourne Court |
| Southend Road |
| Woodford Green |
| Essex |
| IG8 8HD |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| STRATEGIC REPORT |
| for the year ended 31 December 2020 |
| The director presents his strategic report for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| The company has had a challenging year due to the Covid-19 pandemic and two lockdowns in the year thus ended. A number of customers supply into the hospitality sector which was severely affected by the lockdowns. The company reduced its costs accordingly and took advantage of government help schemes. A CBILS loan of £2.5m was taken to fund working capital. The company has achieved a turnover of £27.6m (2019: £56.7m for a period of 18 months). There has been a reduction in gross margin from 6.79% to 6.18%. |
| EBITDA was £108,056 loss (2019: £1,219,247). |
| The state of affairs at the balance sheet date is considered to be strong with net assets reducing to £4.56m (2019: £5.29m). |
| The key financial performance indicators for the company are as follows:- |
| KPI | 2020 | 2019 | Measure |
| Gross Profit Margin | 6.18% | 6.79% | Gross Profit/Turnover |
| Debtors days | 35 days | 35 days | Trade Debtors/Turnover |
| Creditors days | 31 days | 20 days | Trade Creditors/Cost of Sales |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principal risks and uncertainties affecting the business include:- |
| - Retention of customers - the company maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels. |
| - Competitive risk - the company offers a range of products to meet the demands of its customer base. Its cost base is kept under constant review to ensure it is efficient. |
| - Market conditions - the company's ability to adapt quickly to changes in the marketplace mitigates the risk of this area. |
| - Exchange rate risk - the company has exchange risk on imports and exports. The director monitors trading and their exposure to such risk and takes action needed to hedge such risk. |
| - Coronavirus risk - the onset of the pandemic at the end of March led to the closure of the shop and office for 3 months under Government guidelines. Since re-opening, trade has been very good and the order book continues to be buoyant. |
| - Brexit risk - the director has assessed the risks. The Netherlands based GAE Europe BV subsidiary is positioned to take advantage of prevailing market and regulatory conditions.Therefore this risk is not a major concern. |
| - Resources risk - the director believes that the company has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately. |
| FUTURE DEVELOPMENTS |
| The company will continue to seek new customers in new markets whilst concentrating on products that deliver higher margins. |
| The director is confident of delivering sustainable future growth in its sector. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| STRATEGIC REPORT |
| for the year ended 31 December 2020 |
| EMPLOYEES |
| The company operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability. |
| Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should, for whatever reason, an employee of the company become disabled whilst in our employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable re-training. |
| The company maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the company is responsive to the needs of the employees and the environment. |
| FINANCIAL INSTRUMENTS |
| The company has banking facilities in place with HSBC Bank and operates within its facility limits. |
| The company entered into forward exchange contracts to hedge its forward commitments in foreign currencies. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end. |
| COVID-19 |
| Whilst there is little doubt that these are uncertain times, George Abrahams Limited is in a strong position as we exit from the effects of the pandemic. |
| The shop can operate in a Covid safe way and this has allowed trade to continue. |
| The company took a £2,500,000 CBILS loan in May 2020 from HSBC to ensure it had adequate financial resources to cope with any downturn. |
| With the vaccination program proceeding well and there being an exit in sight, the director is confident that the business will continue to see increased volumes and margins. |
| ON BEHALF OF THE BOARD: |
| 28 February 2022 |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| REPORT OF THE DIRECTOR |
| for the year ended 31 December 2020 |
| The director presents his report with the financial statements of the company for the year ended 31 December 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of wholesale of meat and meat products. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2020. |
| DIRECTOR |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GEORGE ABRAHAMS LIMITED |
| Opinion |
| We have audited the financial statements of George Abrahams Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its 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 |
| In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GEORGE ABRAHAMS LIMITED |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director. |
| 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 director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GEORGE ABRAHAMS LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company's sector; |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation. |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected transactions; |
| - tested the appropriateness of journal entries; |
| - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
| - investigated the rationale behind significant or unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing correspondence with HMRC and relevant regulators. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GEORGE ABRAHAMS LIMITED |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Certified Accountants |
| 19-20 Bourne Court |
| Southend Road |
| Woodford Green |
| Essex |
| IG8 8HD |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| INCOME STATEMENT |
| for the year ended 31 December 2020 |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| Notes | £ | £ |
| TURNOVER |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| (748,314 | ) | 9,591 |
| Other operating income |
| OPERATING (LOSS)/PROFIT | 4 | ( |
) |
| Loan written off | 5 | ( |
) |
| (445,492 | ) | (7,165,974 | ) |
| Income from shares in group undertakings |
| Interest receivable and similar income | 6 |
| (226,834 | ) | (5,746,342 | ) |
| Interest payable and similar expenses | 7 | ( |
) | ( |
) |
| LOSS BEFORE TAXATION | ( |
) | ( |
) |
| Tax on loss | 8 | ( |
) |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| OTHER COMPREHENSIVE INCOME |
| for the year ended 31 December 2020 |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| Notes | £ | £ |
| LOSS FOR THE YEAR | ( |
) | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| BALANCE SHEET |
| 31 December 2020 |
| 2020 | 2019 |
| as restated |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Stocks | 13 |
| Debtors | 14 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 15 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Revaluation reserve | 22 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the director and authorised for issue on |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| STATEMENT OF CHANGES IN EQUITY |
| for the year ended 31 December 2020 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 July 2018 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2019 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2020 |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| CASH FLOW STATEMENT |
| for the year ended 31 December 2020 |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) | ( |
) |
| Interest paid | ( |
) | ( |
) |
| Tax paid | ( |
) |
| Net cash from operating activities | ( |
) | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Dividends received |
| Net cash from investing activities |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 514,440 | 277,008 |
| Amount withdrawn by directors | (199,123 | ) | (261,693 | ) |
| Net cash from financing activities | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
(6,229,218 |
) |
(1,877,762 |
) |
| Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE CASH FLOW STATEMENT |
| for the year ended 31 December 2020 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Loss before taxation | ( |
) | ( |
) |
| Depreciation charges |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| - | 923 |
| Finance costs | 279,226 | 416,009 |
| Finance income | (218,658 | ) | (1,419,632 | ) |
| (437,482 | ) | (7,154,176 | ) |
| (Increase)/decrease in stocks | ( |
) |
| Decrease in trade and other debtors |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations | ( |
) | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2020 |
| 31.12.20 | 1.1.20 |
| £ | £ |
| Cash and cash equivalents | 18,745 | 285,279 |
| Bank overdrafts | ( |
) | ( |
) |
| (3,871,931 | ) | (6,229,218 | ) |
| Period ended 31 December 2019 |
| 31.12.19 | 1.7.18 |
| as restated |
| £ | £ |
| Cash and cash equivalents | 285,279 | 2,392,012 |
| Bank overdrafts | ( |
) | ( |
) |
| (6,229,218 | ) | (1,877,762 | ) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE CASH FLOW STATEMENT |
| for the year ended 31 December 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.20 | Cash flow | At 31.12.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 285,279 | (266,534 | ) | 18,745 |
| Bank overdrafts | (6,514,497 | ) | 2,623,821 | (3,890,676 | ) |
| (6,229,218 | ) | (3,871,931 | ) |
| Debt |
| Debts falling due within 1 year | (68,047 | ) | (261,948 | ) | (329,995 | ) |
| Debts falling due after 1 year | (324,992 | ) | (2,137,592 | ) | (2,462,584 | ) |
| (393,039 | ) | (2,399,540 | ) | (2,792,579 | ) |
| Total | (6,622,257 | ) | (42,253 | ) | (6,664,510 | ) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS |
| for the year ended 31 December 2020 |
| 1. | STATUTORY INFORMATION |
| George Abrahams Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the accounting policies. The following principal accounting policies have been applied. |
| Going concern |
| The director has also considered the effects of Covid-19 on its operations for the foreseeable future. After making appropriate enquiries and assessing the support available, the director has formed a judgement that the entity will have sufficient resources available to neutralise the effect of the pandemic. |
| Preparation of consolidated financial statements |
| The financial statements contain information about George Abrahams Limited as an individual company and do not contain consolidated financial information as the parent of a group. The subsidiary, GA Europe B.V has been excluded from consolidation as its inclusion is not material for the purpose of giving a true and fair view. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| Tangible fixed assets |
| Fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and product life cycles are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
| Revaluation of leasehold land and property included in tangible fixed assets |
| Leasehold land and property included in tangible fixed assets are carried at fair value less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Their value is considered annually and revalued by the director. In assessing the fair value of the leasehold land and property included in tangible fixed asset, factors such as surveyor valuations on an open market for existing use basis as well as relevant recent sales prices are considered. |
| Stock provision |
| Stock is valued at the lower of cost and net realisable value. Management is required to consider the net realisable value of stock and whether an impairment is appropriate. When calculating the stock impairment provision, management considers the nature, condition, ageing and expiry date of stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. |
| Deferred tax |
| Management is required to assess whether it is appropriate to recognise a deferred tax asset relating to taxable losses available to the company. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of losses and other deductions can be deducted. |
| To determine the future taxable profits, reference is made to the latest available forecasts. Therefore, this involves judgement regarding the future financial performance of the company in which a deferred tax asset has been recognised. |
| Bad debt provision |
| The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Revenue |
| Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
| Sale of goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| - the company has transferred the significant risks and rewards of ownership to the buyer; |
| - the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - the amount of revenue can be measured reliably; |
| - it is probable that the company will receive the consideration due under the transaction; and |
| - the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| 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 |
| Leasehold property | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. |
| The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
| Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
| Revaluation of tangible fixed assets |
| Individual leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance Sheet date. |
| Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. |
| Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Government grants |
| Government grants, including non-monetary grants shall not be recognised until there is reasonable assurance that: |
| (a) the entity will comply with the conditions attaching to them; and |
| (b) the grants will be received. |
| Investments in subsidiaries |
| Investments in subsidiaries are measured at cost less accumulated impairment. |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
| At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Debtors and creditors |
| Debtors |
| Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Creditors |
| Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Foreign currencies translation |
| 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. |
| Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
| Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
| 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. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. |
| 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. |
| Cash and cash equivalents |
| Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
| In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. |
| Provisions and liabilities |
| Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
| Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
| When payments are eventually made, they are charged to the provision carried in the balance sheet. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 3. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| Selling and distribution | 18 | 14 |
| Office | 9 | 9 |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Director's remuneration |
| 4. | OPERATING (LOSS)/PROFIT |
| The operating loss (2019 - operating profit) is stated after charging/(crediting): |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Loss/(profit) on disposal of fixed assets | ( |
) |
| Auditors' remuneration |
| Foreign exchange differences |
| Government grant | ( |
) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 5. | EXCEPTIONAL ITEMS |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Loan written off | ( |
) |
| Loan written off in prior year is in respect of a balance due from GA International Food Services Ltd, a 100% owned subsidiary, that ceased trading in June 2018 and ultimately dissolved on 30th March 2021. |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Interest receivable and other |
| income |
| Interest income is recognised in the profit or loss using the effective interest method. |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Bank interest |
| Other interest |
| Interest and other borrowing costs are recognised in the profit or loss in the period in which they are incurred. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 8. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the loss for the year was as follows: |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Current tax: |
| Overprovision in previous year | (61,892 | ) | (71,286 | ) |
| Deferred tax: |
| Origination and reversal of |
| timing differences |
| Tax on loss | ( |
) |
| Reconciliation of total tax (credit)/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: |
| Period |
| 1.7.18 |
| Year Ended | to |
| 31.12.20 | 31.12.19 |
| as restated |
| £ | £ |
| Loss before tax | ( |
) | ( |
) |
| Loss multiplied by the standard rate of corporation tax in the UK of (2019 - |
( |
) |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
| (Profit)/Loss on disposal of fixed assets | 446 | (190 | ) |
| Income from shares in group undertakings | - | (214,220 | ) |
| Tax loss carried forward | 93,859 | 1,381,088 |
| Deferred tax | 4,161 | 285,000 |
| Total tax (credit)/charge | (57,731 | ) | 213,714 |
| Factors that may affect future tax charges |
| From 1 April 2023, the corporation tax main rate for non-ring fenced profits will be increased to 25% applying to profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 9. | PRIOR YEAR ADJUSTMENT |
| A prior year adjustment for £285,000 was made in the previous year to account for the deferred tax arising on the revaluation of leasehold property. |
| 10. | INTANGIBLE FIXED ASSETS |
| Computer |
| software |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| AMORTISATION |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| 11. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Leasehold | Plant and | and | Computer |
| property | machinery | fittings | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2020 |
| Disposals | ( |
) | ( |
) |
| At 31 December 2020 |
| DEPRECIATION |
| At 1 January 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The leasehold properties are listed buildings. Renewal of these leases is mandatory and set in statute. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 12. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: 2 Wageningselaan. 3903LA, Veenendaal, Netherlands |
| Nature of business: |
| % |
| Class of shares: | holding |
| £ | £ |
| Aggregate capital and reserves |
| Loss for the year | ( |
) | ( |
) |
| GA Europe B.V. represents a direct investment. |
| Registered office: 218 London Central Markets, London, EC1A 9LH |
| Nature of business: |
| % |
| Class of shares: | holding |
| Market Provisions (Smithfield) Ltd has been dormant since 28th June 2019. Mr George Abrahams holds the shares of Market Provisions (Smithfield) Limited on trust on behalf of George Abrahams Limited. |
| Registered office: 218 London Central Markets, London, EC1A 9LH |
| Nature of business: |
| % |
| Class of shares: | holding |
| GA International Food Services Ltd, a subsidiary of George Abrahams Ltd, was dissolved on 30th March 2021, with last accounts made up to 28th June 2018. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 13. | STOCKS |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Goods for resale |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Trade debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Directors' current accounts | 137,599 | 452,916 |
| Tax |
| VAT |
| Prepayments |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Bank loans and overdrafts (see note 17) |
| Other loans (see note 17) |
| Trade creditors |
| Social security and other taxes |
| Other creditors |
| Accrued expenses |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Bank loans (see note 17) |
| Other loans (see note 17) |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Other loans |
| Amounts falling due between one and two years: |
| Bank loans |
| Other loans | 172,809 |
| Amounts falling due between two and five years: |
| Bank loans |
| Other loans |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Within one year |
| Between one and five years |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 19. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Bank loans |
| Bank loans and overdraft | 3,890,676 | 6,514,497 |
| Other loans | 292,579 | 68,047 |
| The bank overdrafts and loans are secured by a fixed and floating charge over the assets of the company and a personal guarantee from Mr G Abrahams. |
| Within bank loans and overdrafts is an amount of £1,073,018 (2019 - £2,710,038) which relates to the company's invoice discounting facility. Invoice discounting amounts are secured over the company's trade debtors, inventory and leasehold property. |
| Within bank loans and overdrafts is an amount of £1,145,194 (2019 - £1,728,765) which relates to the company's inventory based finance facility. |
| Other loans include an amount of £292,579 (2019: £368,584) relating to the loan from the George Abrahams Pension Scheme, a related party, which was renewed on 9 August 2018. The loan bears interest at 5.25% per annum and is due for repayment by annual instalments from August 2019 to August 2024. Of this total, £79,995 (2019: £43,592) is payable within one year and £212,584 (£324,992) is payable after more than one year. This loan is secured by way of a fixed and floating charge the over the shares and the assets of the company. |
| Bank loans for £2,500,000 (2019: Nil) is in respect of a Coronavirus Business Interruption Loan Scheme (CBILS) which the company took in May 2020. |
| 20. | PROVISIONS FOR LIABILITIES |
| 2020 | 2019 |
| as restated |
| £ | £ |
| Deferred tax | 88,111 | 83,950 |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2020 |
| Provided during year |
| Balance at 31 December 2020 |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | as restated |
| £ | £ |
| Ordinary | £1 | 100,000 | 100,000 |
| Ordinary A | £1 | 100 | 100 |
| 100,100 | 100,100 |
| 22. | RESERVES |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 January 2020 | 4,907,846 |
| Deficit for the year | ( |
) | ( |
) |
| At 31 December 2020 | 4,459,517 |
| 23. | PENSION COMMITMENTS |
| The company operates a fully insured defined contribution pension scheme for certain members of staff and the director. The pension charge represents the amounts paid by the company to the fund during the year. Payments during the year, amounted to £29,797 (2020 - £27,922). These contributions are invested separately from the company's assets. |
| 24. | CONTINGENT LIABILITIES |
| There were no contingent liabilities at either the beginning or the end of the financial year. |
| 25. | RELATED PARTY DISCLOSURES |
| Included within other debtors is £4,135,419 (2019 - £3,824,735) due from Baycrest Development Limited and Baycrest Property Limited, companies controlled by Mr G C Abrahams. Interest is currently being charged at 7% per annum until the loans are repaid. Moreover, the company has charged management fees of £196,000 (2019: Nil) to Baycrest Development Limited. |
| Included within other debtors is £137,599 (2019 - £452,916) due from Mr G C Abrahams, a director of the company. During the period the director was advanced amounts totalling £439,419 (2019 - £261,693) and repaid amounts totalling £514,440 (2019 - £277,008). As at the period end date there was accrued interest receivable of £98,000 (2019 - £74,000). |
| Included in " Interest receivable and similar income" in Note 6 are interest receivable from the director for £24,000 (2019: £24,000) and from Baycrest Development Ltd for £170,273 (2019: £268,159). Interest on all related party loans has been charged at the market rate. |
| Included in administrative expenses are salaries paid to the director's son and wife amounting to £96,958 (2019: £94,600) and £12,500 (2019: £11,547) respectively. |
| GEORGE ABRAHAMS LIMITED (REGISTERED NUMBER: 02500029) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| for the year ended 31 December 2020 |
| 26. | AUDITOR LIABILITY LIMITATION AGREEMENT |
| The company has entered into a liability limitation agreement with Raffingers, the statutory auditor, in respect of the statutory audit for the period ended 31 March 2020. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and was approved by the member on 8th September 2021. |
| 27. | ULTIMATE CONTROLLING PARTY |
| Mr G C Abrahams, controls the company by virtue of holding 99.9% of the issued share capital and voting rights. |