PLAYDALE_PLAYGROUNDS_LIMI - Accounts

The directors present the strategic report for the year ended 31 December 2020.

The principal activity of the company continued to be that of design, manufacture, and installation of playground equipment to the UK market with a significant proportion of product only sales to overseas by exporting to the company's extensive and growing network of distributors.

The directors monitor the performance of the company by reference to numerous key performance indicators (KPI's). The financial statements show the results for the year ended 31 December 2020 and the position at that date together with the prior period for the twelve months ended 31 December 2019.

The profit and loss account for the year ended 31 December 2020 is set out on page 9. The turnover was £7.8 million (2019: £10.9 million), Gross Profit margin was 31.1% (2019: 31.3%) and Net Profit after tax for the year was £242k (2019: £425k). All KPI's reported have been directly affected by the Covid-19 pandemic. If normalised the GP margins reported an overall improvement year on year as a result of investment in digitisation, automation of processes along with improved workflows in all areas.

2020 was unprecedented, a year that saw both the UK’s departure from the EU and the Covid-19 global pandemic. Worldwide businesses, schools and playgrounds, leisure and hospitality sectors all closed for a significant period which had a direct impact upon Playdale. Despite this, the Directors are pleased to report a profit for the period.

As the UK went into lockdown at the end of March 2020, the decision was taken to close the factory despite manufacturing being able to remain open, with the welfare and safety of our staff and customers of the upmost importance. The factory remained closed for around six weeks operating with only a skeleton management team working remotely. Playdale quickly secured financial support from the government support programmes available due to the uncertainty of the potential impact the pandemic would have on revenues.

The factory and offices re-opened as a Covid-Secure workplace with remote working for many staff and the business carried out an internal re-structure of its sales, design, and admin functions. The company in line with the market saw a decline in revenues with three lockdowns in total. Playdale reacted quickly to revise financial models to reflect these lower volumes and the success of how these actions were managed can be seen by the results for 2020. The gross margin for the year achieved overall was 31.1% which is consistent with prior years, however it should be noted that in the months excluding the Government assistance and in full trading periods there has been an overall improvement of the gross margin which is expected to continue throughout 2021 and beyond.

The Management Board believes the restructured business is now well positioned to face the demands of the post-Covid market in 2021 as well as the changes from the UK leaving the EU. Playdale continues to monitor very closely the external economic environment with the Board actively managing Playdale's sales, operations, and cash position daily with their team of departmental managers along with a strong external network of support advisors. Investment in the IT infrastructure and the continuing development through digitisation in all areas has led to improved efficiencies across the business. Current 2021 forecasts show a growing, profitable, and sustainable business.

The Management Board would also like to note how dedicated, hardworking, and committed our staff have been throughout a very difficult year. Their resilience to the pressures of working throughout the pandemic has been outstanding.

The focus of the Board continues to be on the company values that were launched in 2019 which seek to give our employees the best possible culture and working environment and continues to provide the training and tools required to upskill our staff. Playdale continue to actively collaborate with third parties such as universities and we are passionate about taking on apprentices to become our future skilled workforce. Throughout the period we have continued to work closely with our suppliers ensuring payments are made on time and DBT kept to zero and that we work with our customers offering credit terms to support them with their projects.

As for many businesses in the UK involved in manufacturing, the environment in which we operate continues to be challenging and even more so at present. There remains strong competition and the spending patterns of our customers may continue to change in 2021 as the recovery from the pandemic emerges. With these risks and uncertainties in mind, we are aware that our plans for future development of the company may be subject to unforeseen events outside our control but following the year of 2020 we have demonstrated that we have a strong team in place to quickly react to these changes.

The Directors are confident that the strategic plans in place within the business and the relationships built with supply chains and customers along with the additional planning following the UK's departure from the EU and emergences from the pandemic will ensure the company is prepared to deal with these uncertainties.

The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and currency risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs.

The following areas are covered as part of the financial risk management:

Foreign currency risk

The company has some exposure to foreign currency risk as some purchases are made in Euros. However, this is mitigated partly by competitive prices offered from suppliers and partly through sales to EU customers in Euros which provide a natural hedge.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Supply chain risk

The directors are aware that the company could be sensitive to any potential failure of a key supplier or delays in supply. To mitigate against the potential disruption to the supply chain, the directors regularly rank suppliers in terms of business risk and adapt supplier selection and procurement practices for the suppliers of key components and supplies.

Pricing risk

The market in which the company operates is highly competitive and price sensitive. In response, the directors undertake a regular review of both the prices charged by suppliers to ensure the company continues to receive best value and of those prices charged to customers to ensure they are competitive.

Covid-19

The Directors are aware that the business could continue to be impacted by the Covid-19 pandemic particularly as the UK was still in lockdown as we started the year 2021. The business has the continued support of the UK Government's furlough scheme should it be required and the funds available from the CBIL loan that was received in April 2020 to support it through any further uncertainty. Continuing the close monitoring of all sales forecast and its financial models Playdale has the ability to react quickly should any significant external factors impact the markets that we operate.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2020.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £140,000. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The industry in which we operate continues to be constrained by the restrictions on UK Government spending and the uncertain outcome of negotiations on the UK's future trading relationships with Europe. During the period the company has continued to undertake research and develop technically innovative products that are suitable for the global market. The company's continued experience in exporting to distributors both within and outside Europe reduces risk associated with potential future adverse impact of being reliant on the UK market.

MHA Moore and Smalley are deemed to be re-appointed under section 487 (2) of the Companies Act 2006.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

•     select suitable accounting policies and then apply them consistently;

•     make judgements and accounting estimates that are reasonable and prudent;

•     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

•     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

We have audited the financial statements of Playdale Playgrounds Limited (the 'company') for the year ended 31 December 2020 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 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 Auditor's 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 and the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

•     adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•     the financial statements are not in agreement with the accounting records and returns; or

•     certain disclosures of directors' remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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 an auditor's report 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.

• enquiring of management and those charged with governance of any actual and potential litigation and claims;

• reviewing the financial statement disclosures and testing of supporting documentation to assess compliance with the relevant laws and regulations;

• assessing whether the judgements made in making accounting estimates are indicative of any potential bias;

• auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Playdale Playgrounds Limited is a private company limited by shares incorporated in England and Wales. The registered office is Haverthwaite, Ulverston, LA12 8AE.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

These financial statements have been prepared on a going concern basis.

The directors consider this to be an appropriate basis and consider that the company is well placed to manage its business risks successfully despite the current uncertain economic environment.

The company has had a successful trading year following the disruptions imposed by three UK lockdowns and other worldwide lockdowns affecting Playdales customers during the peak of the Covid-19 global pandemic and has continued to increase net assets.

A fully integrated financial model allows us to run various 'What If' scenarios on volumes and staffing levels and gives us a 12-month insight of profits and cash requirement for the business should external constraints change. The current model shows a return to significant profits whilst sustaining the improved margins seen at the end of 2020.

These projections show that the company will be able to continue to meet the needs of its working capital requirements through its existing bank facilities and is expecting further improvements in net assets and balance sheet ratios in 2021.

Based on these projections, the directors have a reasonable expectation that the company will have adequate financial resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the balance sheet date. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at fair value of the consideration received or receivable for goods and services in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

The company recognises income when the goods are despatched to the customer and on installation at site.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

No depreciation is provided on freehold land as it has an infinite useful life.

At each reporting period end date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials, labour and overheads and the company operates a standard costing system for stock.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Investments

Fixed asset investments are stated at cost less provision for diminution in value.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in the creditors as payments on account. Profit is recognised on long term contracts, if the final outcome can be assess with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.

Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The company calculates the estimation of the work performed on a contract but not accounted for in the accounts and includes this adjustment in the accounts. The calculation is based upon items delivered to site but not invoiced or items which are completed and are ready for delivery.

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2019 - 3).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Dividends paid after the balance sheet date totalled £65,000 (2019: £20,000).

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Freehold land is carried at valuation. If freehold land was measured using the cost model, the carrying amount would have been £19,936 (2019 - £19,936), being cost £19,936 (2019 - £19,936) and no depreciation in either year.

The freehold land at Woodcroft Farm was valued on a market value basis by an independent firm of RICS chartered surveyors on 5 January 2018 at £367,000.

The directors consider this valuation to be an acceptable indication of the fair value of the freehold land at 31 December 2020.

The associated deferred tax liability relating to the above revaluation and totalling £59,001, representing deferred taxation on the difference between fair value and the indexed base cost for tax purposes of freehold land has been provided for as detailed in note 21 to the financial statements.

The following liabilities disclosed under creditors falling due within one year are secured by the company:

Overdrafts            £Nil (2019 - £307,473)    

Bank loan            £377,632 (2019 - £117,978)

Finance lease and hire purchase    £35,064 (2019 - £45,142)

The bank loan is secured by a legal charge over part of Woodcroft Farm together with a fixed and floating charge over all assets of the company.

Finance lease and hire purchase amounts are secured by fixed charges on the assets concerned.

The following liabilities disclosed under creditors falling due after more than one year are secured by the company:

Bank loan            £1,181,818 (2019 - £205,838)

Finance lease and hire purchase    £84,977 (2019 - £120,040)

The aggregate amount of creditors for which security has been given amounted to £1,679,491 (2019 - £796,471).

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. Contributions totalling £15,280 (2019 - £17,286) were payable to the fund at the period end and are included in creditors.

During a prior period, the company established the Playdale Playgrounds Limited EMI Share Option Plan for the grant of share options to eligible employees of the company as described below:

The options outstanding at 31 December 2020 had an exercise price of £1, and a remaining contractual life of up to 10 years from the dates of grant on 14 November 2017 and 20 December 2017.

The Directors commissioned a formal share option valuation, which concluded that any adjustments to the accounts arising from the existence of the plan would be immaterial. Consequently, no adjustments have been made to the financial statements during the current or prior period in respect of the plan.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The net deferred tax liability described as revaluations set out above represents the potential corporation tax on capital gains that would fall due if the land was sold. There is no deferred tax movement regarding indexation on the revaluation gain as any change would be immaterial.

All shares rank pari passu. Members have the right to receive notice of, attend and vote at general meetings of the company. Members have the right to participate in all legally declared dividends and in the event of winding up are entitled to participate in any distributions. The shares are not redeemable.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company entered into the following transactions with related parties:

A guarantee of £250,000 from a director supported by a charge over personal freehold property has been given to Barclays Bank Plc.