Stag Group Limited - Limited company accounts 20.1

Stag Group Limited - Limited company accounts 20.1

STAG GROUP LIMITED - Company Information

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IRIS Accounts Production v21.1.6.35 06570222 Board of Directors 31.12.20 1.1.20 31.12.20 31.12.20 trading in aerospace and defence related components. true true true false true true false false false false false true false Ordinary A 0 Ordinary B 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pure065702222019-12-31065702222020-12-31065702222020-01-012020-12-31065702222018-12-31065702222019-01-012019-12-31065702222019-12-3106570222ns16:EnglandWales2020-01-012020-12-3106570222ns15:PoundSterling2020-01-012020-12-3106570222ns11:Director12020-01-012020-12-3106570222ns11:Consolidated2020-12-3106570222ns11:ConsolidatedGroupCompanyAccounts2020-01-012020-12-3106570222ns11:PrivateLimitedCompanyLtd2020-01-012020-12-3106570222ns11:FRS102ns11:Consolidated2020-01-012020-12-3106570222ns11:Consolidatedns11:Audited2020-01-012020-12-3106570222ns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2020-01-012020-12-3106570222ns11:LargeMedium-sizedCompaniesRegimeForAccounts2020-01-012020-12-3106570222ns11:Consolidatedns11:LargeMedium-sizedCompaniesRegimeForDirectorsReport2020-01-012020-12-3106570222ns11:LargeMedium-sizedCompaniesRegimeForAccountsns11:Consolidated2020-01-012020-12-3106570222ns11:FullAccounts2020-01-012020-12-3106570222ns6:Subsidiary12020-01-012020-12-3106570222ns6:Subsidiary22020-01-012020-12-3106570222ns6:Subsidiary42020-01-012020-12-3106570222ns11:OrdinaryShareClass12020-01-012020-12-3106570222ns11:OrdinaryShareClass22020-01-012020-12-3106570222ns11:Consolidated2020-01-012020-12-3106570222ns11:Director22020-01-012020-12-3106570222ns11:Director32020-01-012020-12-3106570222ns11:RegisteredOffice2020-01-012020-12-3106570222ns11:Consolidated2019-01-012019-12-3106570222ns6:CurrentFinancialInstruments2020-12-3106570222ns6:CurrentFinancialInstruments2019-12-3106570222ns6:ShareCapital2020-12-3106570222ns6:ShareCapital2019-12-3106570222ns6:RetainedEarningsAccumulatedLosses2020-12-3106570222ns6:RetainedEarningsAccumulatedLosses2019-12-3106570222ns6:ShareCapital2018-12-3106570222ns6:RetainedEarningsAccumulatedLosses2018-12-3106570222ns6:RetainedEarningsAccumulatedLosses2019-01-012019-12-3106570222ns6:RetainedEarningsAccumulatedLosses2020-01-012020-12-3106570222ns6:NetGoodwill2020-01-012020-12-3106570222ns6:IntangibleAssetsOtherThanGoodwill2020-01-012020-12-3106570222ns6:PatentsTrademarksLicencesConcessionsSimilar2020-01-012020-12-3106570222ns6:FurnitureFittings2020-01-012020-12-3106570222ns6:ComputerEquipment2020-01-012020-12-310657022222020-01-012020-12-310657022222019-01-012019-12-310657022232020-01-012020-12-310657022232019-01-012019-12-310657022252020-01-012020-12-310657022252019-01-012019-12-3106570222ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2020-01-012020-12-3106570222ns6:PlantEquipmentOtherAssetsUnderOperatingLeases2019-01-012019-12-3106570222ns6:OwnedAssets2020-01-012020-12-3106570222ns6:OwnedAssets2019-01-012019-12-3106570222ns6:NetGoodwill2019-01-012019-12-3106570222ns6:PatentsTrademarksLicencesConcessionsSimilar2019-01-012019-12-3106570222ns6:NetGoodwill2019-12-3106570222ns6:PatentsTrademarksLicencesConcessionsSimilar2019-12-3106570222ns6:NetGoodwill2020-12-3106570222ns6:PatentsTrademarksLicencesConcessionsSimilar2020-12-3106570222ns6:NetGoodwill2019-12-3106570222ns6:PatentsTrademarksLicencesConcessionsSimilar2019-12-3106570222ns6:CostValuation2019-12-3106570222ns6:ProvidedReleasedInPeriodProvisionsForImpairmentInvestments2020-12-3106570222ns6:CostValuation2020-12-31065702221ns6:Subsidiary12020-01-012020-12-3106570222ns6:Subsidiary12020-12-3106570222ns6:Subsidiary12019-12-3106570222ns6:Subsidiary12019-01-012019-12-3106570222ns6:Subsidiary232020-01-012020-12-3106570222ns6:Subsidiary22020-12-3106570222ns6:Subsidiary22019-12-3106570222ns6:Subsidiary472020-01-012020-12-3106570222ns6:Subsidiary42020-12-3106570222ns6:Subsidiary42019-12-3106570222ns6:Subsidiary42019-01-012019-12-3106570222ns11:OrdinaryShareClass12020-12-3106570222ns11:OrdinaryShareClass22020-12-3106570222ns6:RetainedEarningsAccumulatedLosses2019-12-31
REGISTERED NUMBER: 06570222 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

STAG GROUP LIMITED
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow
Statement
16

Notes to the Consolidated Financial
Statements
18


STAG GROUP LIMITED


COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2020







DIRECTORS: V Genna
F Scannapieco
G Di Capua





REGISTERED OFFICE: 1 Lyon Road
Walton on Thames
Surrey
KT12 3PU





REGISTERED NUMBER: 06570222 (England and Wales)





AUDITORS: Lawes & Co UK Limited (Statutory Auditor)
Boyce's Building
Regent Street
Clifton
Bristol
BS8 4HU
Page 1
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020

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

REVIEW OF BUSINESS
2020 was a very successful year for ALA UK, seeing turnover increase by 59% (2019 £13.17m, 2020 £20.91m). This was due to the successful delivery of a one off contract, valued at £10m in year. Organic growth continued to be positive, delivering very favourable gross margins (2019 £3.71m, 2020 £6.69m).

Overheads, whilst increasing in 2020 due to the delivery of the aforementioned contract were still controlled well allowing a record operating profit performance, (2019 1.34m, 2020 £3.26m). The company continued to invest in stocking fast moving and strategic parts to maintain a competitive edge in the market.

From ALA France side, the main impact of the Covid-19 virus, which has been affecting France since March 2020, is a decrease of activity, especially during periods of confinement. ALA France very quickly set up a teleworking for all office employees, and a rotation of two limited logistics teams in the warehouse during the lockdown. During the summer, the company also had to apply short-time working.

The decline in activity over the months of April to December 2020 is about -55% compared to 2019 on the same period. To compensate for this decline, we contracted general expenses to the extent of the possible, including commercial and travel expenses. During the month of August 2020, ALA France had to have recourse to the economic dismissal of the purchasing department. This department has been redirected and centralized at our parent company in Italy.

The impact of the Covid-19 pandemic on the Aerospace industry saw a significant downturn in new orders booked from April 2020 onwards. However, 2021 is forecast to return to a similar trading platform as beforehand with the one-off contract ending.

PRINCIPAL RISKS AND UNCERTAINTIES
As for many businesses of our size, the business environment in which we operate continues to be challenging. With these risks and uncertainties in mind, we are satisfied with the level of trading that has been achieved this year and forecast slow but steady growth over the next year.

There is currently significant uncertainty due to the worldwide Covid-19 pandemic. However, the Directors have taken all reasonable steps to ensure that the group is able to continue through the uncertainty and for a period of at least 12 months. As a result, the Directors' consider it appropriate to continue preparing the accounts on a going concern basis.

ON BEHALF OF THE BOARD:





F Scannapieco - Director


22 September 2021

Page 2
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2020

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

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2020 will be £Nil (2019 £Nil).

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

V Genna
F Scannapieco
G Di Capua

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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.

Page 3
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2020


AUDITORS
The auditors, Lawes & Co UK Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





F Scannapieco - Director


22 September 2021

Page 4

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAG GROUP LIMITED

Opinion
We have audited the financial statements of Stag Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, Consolidated Other 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 31 December 2020 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.

Material uncertainty related 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.

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAG GROUP LIMITED


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.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAG GROUP 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.

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:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and indirect taxes impacting the different territories, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of stock values and management bias in accounting estimates. Furthermore, the additional pressures from the Covid-19 pandemic are considered to have inherently increased the overall risks. Audit procedures performed by the engagement team included, but were not limited to:

- enquiries with management, internal audit and the Company's legal counsel (internal and, where relevant, external), including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;
- reading key correspondence with regulatory authorities in relation to compliance with certain employment laws and indirect tax matters;
- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities;
- challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to stock values and stock provisions;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users.

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

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

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
STAG GROUP 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.




Paul Freeman BA FCA FCCA (Senior Statutory Auditor)
for and on behalf of Lawes & Co UK Limited (Statutory Auditor)
Boyce's Building
Regent Street
Clifton
Bristol
BS8 4HU

22 September 2021

Page 8
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £   

TURNOVER 27,115,171 23,470,354

Cost of sales 18,657,480 17,258,880
GROSS PROFIT 8,457,691 6,211,474

Administrative expenses 5,708,184 5,086,454
OPERATING PROFIT 2,749,507 1,125,020

Interest receivable and similar
income
-
60
2,749,507 1,125,080

Interest payable and similar
expenses
5
722,974
(195,947
)
PROFIT BEFORE TAXATION 6 2,026,533 1,321,027

Tax on profit 7 548,681 233,480
PROFIT FOR THE FINANCIAL YEAR 1,477,852 1,087,547
Profit attributable to:
Owners of the parent 1,477,852 1,087,547

The notes form part of these financial statements

Page 9
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £   

PROFIT FOR THE YEAR 1,477,852 1,087,547


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR
1,477,852
1,087,547

Total comprehensive income attributable to:
Owners of the parent 1,477,852 1,087,547

The notes form part of these financial statements

Page 10
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


CONSOLIDATED BALANCE SHEET
31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 41,470 208,443
Tangible assets 10 35,298 145,714
Investments 11 - -
76,768 354,157

CURRENT ASSETS
Stocks 12 12,796,842 12,557,338
Debtors 13 7,893,777 5,505,068
Cash at bank 216,610 413,874
20,907,229 18,476,280
CREDITORS
Amounts falling due within one year 14 14,294,682 13,618,974
NET CURRENT ASSETS 6,612,547 4,857,306
TOTAL ASSETS LESS CURRENT
LIABILITIES
6,689,315
5,211,463

CAPITAL AND RESERVES
Called up share capital 18 100,000 100,000
Retained earnings 19 6,589,315 5,111,463
SHAREHOLDERS' FUNDS 6,689,315 5,211,463

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2021 and were signed on its behalf by:





F Scannapieco - Director


The notes form part of these financial statements

Page 11
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


COMPANY BALANCE SHEET
31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 1,201,880 1,925,658
1,201,880 1,925,658

CREDITORS
Amounts falling due within one year 14 726,111 716,611
NET CURRENT LIABILITIES (726,111 ) (716,611 )
TOTAL ASSETS LESS CURRENT
LIABILITIES
475,769
1,209,047

CAPITAL AND RESERVES
Called up share capital 18 100,000 100,000
Retained earnings 19 375,769 1,109,047
SHAREHOLDERS' FUNDS 475,769 1,209,047

Company's (loss)/profit for the
financial year
(733,278
)
1,955,074

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2021 and were signed on its behalf by:





F Scannapieco - Director


The notes form part of these financial statements

Page 12
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2019 100,000 4,023,916 4,123,916

Changes in equity
Total comprehensive income - 1,087,547 1,087,547
Balance at 31 December 2019 100,000 5,111,463 5,211,463

Changes in equity
Total comprehensive income - 1,477,852 1,477,852
Balance at 31 December 2020 100,000 6,589,315 6,689,315

The notes form part of these financial statements

Page 13
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2019 100,000 (846,027 ) (746,027 )

Changes in equity
Total comprehensive income - 1,955,074 1,955,074
Balance at 31 December 2019 100,000 1,109,047 1,209,047

Changes in equity
Total comprehensive income - (733,278 ) (733,278 )
Balance at 31 December 2020 100,000 375,769 475,769

The notes form part of these financial statements

Page 14
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020

31.12.20 31.12.19
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,619,315 406,981
Interest paid (722,974 ) 195,947
Tax paid (280,477 ) (101,725 )
Net cash from operating activities 1,615,864 501,203

Cash flows from investing activities
Purchase of intangible fixed assets (2,248 ) (58,793 )
Purchase of tangible fixed assets (16,637 ) (6,873 )
Sale of tangible fixed assets - 2,614
Effect of foreign exchange rate changes - 77,016
Interest received - 60
Net cash from investing activities (18,885 ) 14,024

Cash flows from financing activities
Loan repayments in year - (216,398 )
Net cash from financing activities - (216,398 )

Increase in cash and cash equivalents 1,596,979 298,829
Cash and cash equivalents at
beginning of year
2
(1,675,559
)
(1,974,388
)

Cash and cash equivalents at end
of year
2
(78,580
)
(1,675,559
)

The notes form part of these financial statements

Page 15
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.20 31.12.19
£    £   
Profit before taxation 2,026,533 1,321,027
Depreciation charges 307,769 339,447
Finance costs 722,974 (195,947 )
Finance income - (60 )
3,057,276 1,464,467
Increase in stocks (239,504 ) (410,964 )
Increase in trade and other debtors (2,388,709 ) (1,042,632 )
Increase in trade and other creditors 2,190,252 396,110
Cash generated from operations 2,619,315 406,981

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 216,610 413,874
Bank overdrafts (295,190 ) (2,089,433 )
(78,580 ) (1,675,559 )
Year ended 31 December 2019
31.12.19 1.1.19
£    £   
Cash and cash equivalents 413,874 280,913
Bank overdrafts (2,089,433 ) (2,255,301 )
(1,675,559 ) (1,974,388 )


The notes form part of these financial statements

Page 16
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED 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 413,874 (197,264 ) 216,610
Bank overdrafts (2,089,433 ) 1,794,243 (295,190 )
(1,675,559 ) 1,596,979 (78,580 )
Debt
Debts falling due within 1 year (223,597 ) 110,981 (112,616 )
(223,597 ) 110,981 (112,616 )
Total (1,899,156 ) 1,707,960 (191,196 )

The notes form part of these financial statements

Page 17
STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020

1. STATUTORY INFORMATION

Stag Group Limited 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.


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.

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

Goodwill
Goodwill, being the amount paid in connection with the acquisition of, Aircraft Components & Equipment Supplies Limited in 2011, Spectech France SAS in 2012 was being amortised evenly over its estimated useful life of 20 years. From 1 January 2014 the amortisation period was reduced to 5 years from that date in line with the new guidelines for amortisation of goodwill.

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.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost
Computer equipment - 25% on cost and 25% on reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES - continued

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


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.

Foreign currency translations
The closing rate method has been used for the translation of the results of Spectech France SAS and Spectech Aerospace LLC.

3. EMPLOYEES AND DIRECTORS
31.12.20 31.12.19
£    £   
Wages and salaries 2,784,158 2,639,567
Social security costs 151,589 132,593
Other pension costs 206,705 225,652
3,142,452 2,997,812

The average number of employees during the year was as follows:
31.12.20 31.12.19

63 94

31.12.20 31.12.19
£    £   
Directors' remuneration - -

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

4. EXCEPTIONAL ITEMS
31.12.20 31.12.19
£    £   
Overseas penalties and fines (61,751 ) (71,417 )

During the year the following exceptional expenses were incurred:

£
Redundancy149,239
transaction indemnity16,893
Redeployment offer8,662

174,794

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.20 31.12.19
£    £   
Bank interest 4,788 51,718
Other Interest 24,290 49,735
Foreign exchange losses 370,903 (450,872 )
Loan 99,599 39,165
Bank charges 223,394 114,307
722,974 (195,947 )

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

31.12.20 31.12.19
£    £   
Hire of plant and machinery 10,687 16,359
Depreciation - owned assets 128,325 136,538
Goodwill amortisation - 100
Patents and licences amortisation 179,444 236,602
Auditors' remuneration 44,750 46,500
Foreign exchange differences (19,168 ) -

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.20 31.12.19
£    £   
Current tax:
UK corporation tax 549,948 221,747
Statutory Taxes 15,568 29,695
Total current tax 565,516 251,442

Deferred tax (16,835 ) (17,962 )
Tax on profit 548,681 233,480

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.20 31.12.19
£    £   
Profit before tax 2,026,533 1,321,027
Profit multiplied by the standard rate of corporation tax in the
UK of 19% (2019 - 19%)
385,041
250,995

Effects of:
Expenses not deductible for tax purposes 111 243
Depreciation for period in excess of capital allowances 53,017 56,909
Forward/ Bought Forward
Foreign tax difference 127,347 (13,543 )
Deferred tax (16,835 ) (17,963 )
Research and Development claim - (43,154 )
Interest on Corporation Tax payment - (7 )
Total tax charge 548,681 233,480

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

9. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2020 (393,257 ) 940,952 547,695
Additions - 2,248 2,248
Exchange differences - 46,148 46,148
At 31 December 2020 (393,257 ) 989,348 596,091
AMORTISATION
At 1 January 2020 (393,257 ) 732,509 339,252
Amortisation for year - 179,444 179,444
Exchange differences - 35,925 35,925
At 31 December 2020 (393,257 ) 947,878 554,621
NET BOOK VALUE
At 31 December 2020 - 41,470 41,470
At 31 December 2019 - 208,443 208,443

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

10. TANGIBLE FIXED ASSETS

Group
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2020 371,060 639,956 1,011,016
Additions 16,637 - 16,637
Disposals - (441 ) (441 )
Exchange differences 13,072 5,013 18,085
At 31 December 2020 400,769 644,528 1,045,297
DEPRECIATION
At 1 January 2020 342,797 522,505 865,302
Charge for year 11,776 116,549 128,325
Eliminated on disposal - (441 ) (441 )
Exchange differences 11,888 4,925 16,813
At 31 December 2020 366,461 643,538 1,009,999
NET BOOK VALUE
At 31 December 2020 34,308 990 35,298
At 31 December 2019 28,263 117,451 145,714

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertaki
£   
COST
At 1 January 2020 1,925,658
Impairments (723,778 )
At 31 December 2020 1,201,880
NET BOOK VALUE
At 31 December 2020 1,201,880
At 31 December 2019 1,925,658

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

11. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Advanced Logistics for Aerospace UK Limited
Registered office: 1 Lyon Road, Walton on Thames, Surrey, KT12 3PU
Nature of business: Aerospace Components
%
Class of shares: holding
Ordinary 100.00
31.12.20 31.12.19
£    £   
Aggregate capital and reserves 7,117,372 4,835,714
Profit for the year 2,281,658 1,114,665

Aircraft Components and Equipment Supplies Limited
Registered office: 1 Lyon Road, Walton on Thames, Surrey, KT12 3PU
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
31.12.20 31.12.19
£    £   
Aggregate capital and reserves 1,000 1,000

Advanced Logistics for Aerospace France SAS
Registered office: 8 Ave Sadi Carnot, 40010, Mont De Marsan Cedex, France
Nature of business: Aerospace Components
%
Class of shares: holding
Ordinary 100.00
31.12.20 31.12.19
£    £   
Aggregate capital and reserves 297,055 1,091,359
Loss for the year (794,306 ) (17,168 )


12. STOCKS

Group
31.12.20 31.12.19
£    £   
Stocks 12,796,842 12,557,338

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
31.12.20 31.12.19
£    £   
Trade debtors 7,177,225 4,399,269
Other debtors 617,347 1,060,714
VAT 53,032 -
Deferred tax asset 24,406 7,570
Prepayments and accrued income 21,767 37,515
7,893,777 5,505,068

Deferred tax asset
Group
31.12.20 31.12.19
£    £   
Deferred tax 24,406 7,570

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.20 31.12.19 31.12.20 31.12.19
£    £    £    £   
Bank loans and overdrafts (see note 15)
407,806
2,313,030
-
-
Trade creditors 6,681,520 4,773,057 - -
Tax 549,948 264,909 - 11
Social security and other taxes 501,069 215,467 - -
VAT - 62,025 - -
Factoring Company (254,595 ) 1,369,571 - -
Other Creditors 6,288,675 4,329,792 706,111 696,600
Accrued expenses 120,259 291,123 20,000 20,000
14,294,682 13,618,974 726,111 716,611

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

15. LOANS

An analysis of the maturity of loans is given below:

Group
31.12.20 31.12.19
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 295,190 2,089,433
Bank loans 112,616 223,597
407,806 2,313,030

16. SECURED DEBTS

The company's bankers hold a Debenture incorporating a Fixed and Floating charge over all the current and future assets of the company. They also have a letter of set off which applies to all companies in the group.

17. DEFERRED TAX

Group
£   
Balance at 1 January 2020 (7,570 )
Provided during year (16,836 )
Balance at 31 December 2020 (24,406 )

18. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number: Class: Nominal 31.12.20 31.12.19
value: £    £   
50,000 Ordinary A £1 50,000 50,000
50,000 Ordinary B £1 50,000 50,000
100,000 100,000

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STAG GROUP LIMITED (REGISTERED NUMBER: 06570222)


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2020

19. RESERVES

Group
Retained
earnings
£   

At 1 January 2020 5,111,463
Profit for the year 1,477,852
At 31 December 2020 6,589,315

Company
Retained
earnings
£   

At 1 January 2020 1,109,047
Deficit for the year (733,278 )
At 31 December 2020 375,769


20. ULTIMATE PARENT COMPANY

Advanced Logistics for Aerospace SPA (incorporated in Italy ) is regarded by the directors as being the company's ultimate parent company.

21. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Advanced Logistics for Aerospace SPA.

Page 27