Tallis Amos Group Limited - Period Ending 2020-12-31
Tallis Amos Group Limited - Period Ending 2020-12-31
Registration number:
Tallis Amos Group Limited
for the Year Ended 31 December 2020
Tallis Amos Group Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Tallis Amos Group Limited
Company Information
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Directors |
B J Tallis SCG Amos C Mcintyre M G Blackburn |
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Registered office |
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Bankers |
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Auditors |
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Tallis Amos Group Limited
Strategic Report for the Year Ended 31 December 2020
The directors present their strategic report for the year ended 31 December 2020.
Principal activity
The principal activity of the company is the sale and maintenance of agricultural machinery
Fair review of the business
The company is owned by the Tallis and Amos families, with managing director Ben Tallis based at the Evesham head office and sales director Simon Amos based at Leominster running the company as partners. The company currently has four sites which employ around 130 people.
The company has had a very comparable year showing similar income, margins and profit. This was expected with the market and the continued use of the four depots from budgets prepared last year. 2020 was a very challenging year operating through the Covid 19 pandemic however, the business was fortunate to operate in an industry less affected. The business needed to amend working patterns to ensure social distancing was in force however, as a result of the policies adopted and government support a comparable year was achieved.
The company plans within 2021 to start construction on a new depot to increase customers within the new catchment area acquired in 2018. This will be a purpose built unit to offer all servies including machinery sales and servicing. In addition to this new depot the company plans to continue consolidating its market position with the current geographical locations to maintain the company objectives.
Given the straight forward nature of the business, the company’s directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.
Principal risks and uncertainties
The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent wholesalers and retailers, employee retention and product availability.
Section 172(1) statement
The revised UK Corporate Governance Code (‘2018 Code’) was published in July 2018 and applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 (‘2018 MRR’) require Directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 (‘S172’) when performing their duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. This S172 statement, explains how Tallis Amos Group Limited Directors:
- have engaged with our stakeholders
- have had regard to our stakeholders interests and the effect on principal decisions taken by the company during the financial year.
The S172 statement focuses on matters of strategic importance to Tallis Amos Group Limited, and the level of information disclosed is consistent with the size and the complexity of the business.
Tallis Amos Group Limited
Strategic Report for the Year Ended 31 December 2020
Tallis Amos Group Limited’s Board is suitably composed with an appropriate range of skills and experience allowing them to act, both individually and together, in good faith and in manners to successfully promote the success of the company for the benefit of its stakeholders.
The Board’s aim is to deliver sustainable growth in operating income via a workable business model. The Board is collectively responsible for upholding high standards of corporate governance and leadership and places a high priority on meeting its environmental, social and safety responsibilities while continuing to deliver a high quality service to its stakeholders as described below.
Effective risk management remains critical to the achievement of this strategy and the risk management processes applied throughout the businesses various depots are integrated into our daily business activities.
Engagement with employees
The board engages with the employees through regular meetings with senior department managers who in turn engage directly with the employees to ensure that their interests are maintained and that they are consulted and considered on principal decisions. The business pre covid had an annual meeting of all employees to review the business for the previous year and to discuss plans for the next 12 months. Through the Covid pandemic this was achieved by designing and producing 'TAG Bitesize' a pre-recorded video which was sent to all staff detailing the same objectives and welcoming feedback.
Engagement with suppliers, customers and other relationships
The board engages with customers through regular contact between sales managers and the customers. This enables good relationships to be fostered and that the customer always has access to the business so that the board is able to incorporate their views in long term decision making. The business also sponsors a variety of local events such as ploughing matches and sports teams to involve the local community within the business decision making process.
The board engages with the major suppliers by undertaking annual meetings to review forecasts and busienss plans. This enables good relationships with suppliers to be maintained and the regular contact ensures suppliers are considered in principal business decisions.
Approved by the
.........................................
Director
.........................................
Director
Tallis Amos Group Limited
Directors' Report for the Year Ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company’s activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company’s policies approved by the board of directors. The company does not use derivative financial instruments for speculative purposes.
Tallis Amos Group Limited
Directors' Report for the Year Ended 31 December 2020
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
The company is exposed to commodity price risk. The company does not manage its exposure to commodity price risk due to cost benefit considerations.
Credit risk
The company’s principal financial assets are bank balances and cash, trade and other debtors.
The company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.
The company has no significant concentration of credit risk with exposure spread over a large number of counterparties and customers.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term debt finance.
Cash flow risk
The company’s activities expose it primarily to the financial risks of non paying customers. The company has implemented good credit control procedures and ability to offer credit for customers from credit agencies to mitigate this risk.
Tallis Amos Group Limited
Directors' Report for the Year Ended 31 December 2020
Environmental report
We have considered the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) when preparing this report. These recommendations encourage businesses to increase disclosure of climate-related information, with an emphasis on financial disclosure. Tallis Amos Group Limited supports these recommendations and are committed to disclosing the relevant information which can be found below.
Governance
The business is straightforward and does not have complex climate related risks or opportunties. The business operates from four depots and creates Co2 by virtue of energy consumption in running these depots along with fuel usage incurred in the fleet of vehicles owned by the business.
Emissions and energy consumption
Summary of greenhouse gas emissions and energy consumption for the year ended 31 December 2020:
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description of |
Metric |
Unit of |
2020 |
2019 |
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Electricity usage |
Per depot |
Kgs |
19,600 |
21,325 |
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Gas usage |
Per depot |
Kgs |
9,725 |
11,675 |
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Diesel usage |
Per depot |
Kgs |
74,875 |
87,625 |
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Kerosene usage |
Per depot |
Kgs |
10,525 |
2,350 |
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Propane usage |
Per depot |
Kgs |
3,850 |
4,200 |
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
.........................................
Director
.........................................
Director
Tallis Amos Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Tallis Amos Group Limited
Independent Auditor's Report to the Members of Tallis Amos Group Limited
Opinion
We have audited the financial statements of Tallis Amos Group Limited (the 'company') for the year ended 31 December 2020, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 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 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Tallis Amos Group Limited
Independent Auditor's Report to the Members of Tallis Amos Group Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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.
Auditor’s 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 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:
Tallis Amos Group Limited
Independent Auditor's Report to the Members of Tallis Amos Group Limited
Enquiry of management, those charged with governance around actual and potential litigation and claims.
Enquiry of employees to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to support documentation obtained to assess compliance with applicable laws and regulations.
Auditing the risk of management of controls, including the testing of journals and adjustments for appropriateness, indications of bias 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: 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.
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For and on behalf of
111/113 High Street
Worcestershire
WR11 4XP
Tallis Amos Group Limited
Profit and Loss Account for the Year Ended 31 December 2020
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Note |
2020 |
2019 |
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Turnover |
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|
|
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Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Tallis Amos Group Limited
(Registration number: 04697211)
Balance Sheet as at 31 December 2020
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Note |
2020 |
2019 |
|
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Fixed assets |
|||
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Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
|
Stocks |
|
|
|
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Share premium reserve |
|
|
|
|
Capital redemption reserve |
|
|
|
|
Profit and loss account |
|
3,784,139 |
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Total equity |
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4,883,445 |
Approved and authorised by the
.........................................
Director
.........................................
Director
Tallis Amos Group Limited
Statement of Changes in Equity for the Year Ended 31 December 2020
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2020 |
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|
|
3,784,139 |
4,883,445 |
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Profit for the year |
- |
- |
- |
|
|
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Total comprehensive income |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 December 2020 |
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2019 |
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|
|
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Profit for the year |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
At 31 December 2019 |
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Tallis Amos Group Limited
Statement of Cash Flows for the Year Ended 31 December 2020
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Note |
2020 |
2019 |
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Cash flows from operating activities |
|||
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Profit for the year |
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|
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
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|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
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|
|
|
|
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||
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Working capital adjustments |
|||
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Increase in stocks |
( |
( |
|
|
(Increase)/decrease in trade debtors |
( |
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|
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(Decrease)/increase in trade creditors |
( |
|
|
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Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
( |
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
|
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
|
- |
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 January |
( |
( |
|
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Cash and cash equivalents at 31 December |
(1,536,008) |
(1,429,589) |
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Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, refunds, rebates and discounts and after eliminating sales recharges within the company.
The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and goods have been delivered or service completed.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Tenants improvements |
Straight line over 15 years |
|
Furniture, fittings and equipment |
15% / 33% Straight line |
|
Motor vehicles |
25% Reducing balance |
|
Other property, plant and equipment |
1% Straight line per month |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
20 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Trade debtors
Trade Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment is established when there is objective evidence that the Company not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
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Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sale of goods |
|
|
|
Commissions received |
|
|
|
Other revenue |
|
- |
|
|
|
The analysis of the company's turnover for the year by class of business is as follows:
|
2020 |
2019 |
|
|
Equipment sales |
|
|
|
Hire sales |
|
|
|
Service and part sales |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2020 |
2019 |
|
|
UK |
|
|
|
Europe |
|
|
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Sub lease rental income |
- |
|
|
Miscellaneous other operating income |
|
- |
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
|
2020 |
2019 |
|
|
Gain (loss) on disposal of property, plant and equipment |
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Operating profit |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
139,878 |
|
|
Other employee expense |
|
|
|
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
325,083 |
282,744 |
In respect of the highest paid director:
|
2020 |
2019 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2020 |
2019 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of the financial statements |
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
2019 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2019 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
2019 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
- |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2020 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Tax losses available |
|
- |
|
General provisions |
- |
|
|
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
2019 |
Asset |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
- |
|
|
Tax losses available |
|
- |
|
General provisions |
- |
|
|
|
|
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2020 |
|
|
|
At 31 December 2020 |
|
|
|
Amortisation |
||
|
At 1 January 2020 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2020 |
|
|
|
Carrying amount |
||
|
At 31 December 2020 |
|
|
|
At 31 December 2019 |
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Tangible assets |
|
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2020 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
|
At 31 December 2020 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2020 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
|
At 31 December 2020 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2020 |
|
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
Included within the net book value of land and buildings above is £65,402 (2019 - £42,330) in respect of tenant improvements.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2020 |
2019 |
|
|
Motor vehicles, other property, plant and equipment |
801,794 |
727,181 |
|
Stocks |
|
2020 |
2019 |
|
|
Work in progress |
|
|
|
Stocks |
|
|
|
|
|
|
Debtors |
|
Note |
2020 |
2019 |
|
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
- |
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Cash and cash equivalents |
|
2020 |
2019 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
(1,536,008) |
(1,429,589) |
|
Creditors |
|
Note |
2020 |
2019 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Accruals |
|
|
|
|
Income tax liability |
85,004 |
67,174 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2020 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2020 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £139,877 (2019 - £107,222).
Contributions totalling £22,114 (2019 - £23,639) were payable to the scheme at the end of the year and are included in creditors.
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
4 |
|
4 |
|
|
|
100 |
|
100 |
|
|
|
50 |
|
50 |
|
|
|
|
|
|
|
Loans and borrowings |
|
2020 |
2019 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
- |
|
Hire purchase contracts |
|
|
|
Other borrowings |
|
|
|
|
|
|
|
2020 |
2019 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
- |
|
Bank overdrafts |
|
|
|
Hire purchase contracts |
|
|
|
Other borrowings |
- |
|
|
|
|
|
Bank borrowings
|
The loan is secured by a legal charge over leasehold property known as Land at Hinton On The Green, Evesham, Worcestershire as as a debenture over all present and future assets of the business. |
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
The bank overdraft is denominated in sterling with a nominal interest rate of 2.21% over base, and the facility was renewed in April 2021. The carrying amount at year end is £1,540,218 (2019 - £1,435,644).
The bank overdraft is secured by a legal charge over the leasehold property at Hinton on the Green, Evesham, Worcestershire.
Security is also held by way of floating charges over all present property, book and other debts, chattells, goodwill and uncalled share capital both present and future.
Other borrowings
Loan notes is denominated in sterling with a nominal interest rate of 3%, and the final instalment is due on 31 January 2026. The carrying amount at year end is £245,000 (2019 - £745,000).
Included in the loans and borrowings are the following amounts due after more than five years:
|
2020 |
2019 |
|
|
After more than five years by instalments |
|
|
|
- |
- |
|
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2020 |
2019 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
|
Dividends |
Interim dividends paid
|
2020 |
2019 |
|||
|
Interim dividend of £ |
|
|
||
|
Interim dividend of £ |
|
|
||
|
Interim dividend of £ |
|
|
||
|
|
|
|
Related party transactions |
|
Transactions with directors |
|
2020 |
At 1 January 2020 |
At 31 December 2020 |
|
CJ Tallis |
||
|
Interest free loan repayable on demand |
|
|
|
2019 |
At 1 January 2019 |
At 31 December 2019 |
|
CJ Tallis |
||
|
Interest free loan repayable on demand |
630 |
|
Income and receivables from related parties
|
2020 |
Entities with joint control or significant influence |
Other related parties |
|
Sale of goods |
|
- |
|
|
- |
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Expenditure with and payables to related parties
|
2020 |
Entities with joint control or significant influence |
|
Purchase of goods |
|
|
Leases |
|
|
Transfers under finance arrangements (including loans and equity contributions) |
|
|
|
|
|
2019 |
Entities with joint control or significant influence |
|
Purchase of goods |
|
|
Leases |
|
|
Transfers under finance arrangements (including loans and equity contributions) |
|
|
|
|
Loans to related parties
|
2020 |
Key management |
Total |
|
At start of period |
|
|
|
At end of period |
|
|
|
2019 |
Key management |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
Tallis Amos Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Loans from related parties
|
2020 |
Entities with joint control or significant influence |
|
At start of period |
|
|
Repaid |
( |
|
At end of period |
|
|
2019 |
Entities with joint control or significant influence |
|
At start of period |
|
|
Repaid |
( |
|
At end of period |
|
Terms of loans from related parties
|
Parent and ultimate parent undertaking |
The ultimate controlling party is