Bertschi U. K. Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02408671 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2020

for

Bertschi U. K. Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

H J Bertschi

Frau B Berner

N Brown

SECRETARY:

Frau B Berner

REGISTERED OFFICE:

Middlesbrough Road East

Southbank

Middlesbrough

Cleveland

TS6 6TZ

REGISTERED NUMBER:

02408671 (England and Wales)

AUDITORS:

Davies Tracey

Chartered Accountants and Statutory Auditors

Swan House

Westpoint Road

Teesdale Business Park

Stockton on Tees

TS17 6BP

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

REVIEW OF BUSINESS

The business environment continues to be challenging. Haulage and transport turnover increased by £485,000 to £7,928,202 as a result of near record levels of throughput.

Turnover from warehousing fell by approximately £630,000 to £7,342,093 as the effects of Brexit eased.

The company benefitted from lower fuel prices for part of the year while both staff costs and depreciation charges levelled off following increases over recent years.

Overall, the company generated an operating profit for the year of £1,346,301 compared with an operating loss in 2019 of £160,368 and a pre-tax profit of £1,179,048 compared with a pre-tax loss of £326,144 in 2019.

Working capital at 31 December 2020 has increased by approximately £790,000 compared with 2019. Net assets at 31 December 2020 stand at £4,138,271.

PRINCIPAL RISKS AND UNCERTAINTIES

The board aims to minimised financial risk at all times.

The financial risks faced by the company are mitigated as the majority of the haulage and transport operations are carried out on behalf of the parent company. Furthermore, financing is provided by the parent company and other group companies at low interest rates. Policies and procedures exist to ensure that appropriate credit limits are set and debts monitored in respect of third party customers.Credit references are obtained for new customers where considered appropriate.

ON BEHALF OF THE BOARD:

Frau B Berner - Secretary

23 March 2021

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2020.

FUTURE DEVELOPMENTS

The company will complete the development of its container and handling area during 2021 and it is hoped that this will result in significant cost savings going forward.

DIRECTORS

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

H J Bertschi

Frau B Berner

N Brown

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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;

-	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.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Frau B Berner - Secretary

23 March 2021

Opinion

We have audited the financial statements of Bertschi U. K. Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the 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, 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 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 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.

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 the extent to which an audit conducted under ISAs (UK) is capable of detecting irregularity, including fraud. Our audit procedures included (but were not limited to) gaining an understanding of the business, communication with those charged with the governance of the company (both verbal and written), gaining an understanding of the company's system of internal control and performing such audit work we considered necessary to assess the risk of management override of internal controls.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Neasham (Senior Statutory Auditor)

for and on behalf of Davies Tracey

Chartered Accountants and Statutory Auditors

Swan House

Westpoint Road

Teesdale Business Park

Stockton on Tees

TS17 6BP

1 April 2021

TURNOVER

2

15,270,295

15,415,225

Cost of sales

5,657,237

8,010,472

GROSS PROFIT

9,613,058

7,404,753

Administrative expenses

8,329,400

7,639,277

1,283,658

(234,524

)

Other operating income

62,643

74,156

OPERATING PROFIT/(LOSS)

4

1,346,301

(160,368

)

Interest receivable and similar income

2,451

3,464

1,348,752

(156,904

)

Interest payable and similar expenses

5

169,704

169,240

PROFIT/(LOSS) BEFORE TAXATION

1,179,048

(326,144

)

Tax on profit/(loss)

6

262,650

(21,947

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

916,398

(304,197

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

916,398

(304,197

)

FIXED ASSETS

Tangible assets

7

10,229,086

10,186,247

CURRENT ASSETS

Stocks

8

185,937

105,167

Debtors

9

2,411,951

2,187,541

Cash at bank and in hand

1,546,963

885,402

4,144,851

3,178,110

CREDITORS

Amounts falling due within one year

10

1,889,562

1,712,251

NET CURRENT ASSETS

2,255,289

1,465,859

TOTAL ASSETS LESS CURRENT LIABILITIES

12,484,375

11,652,106

CREDITORS

Amounts falling due after more than one year

11

(8,346,104

)

(8,346,104

)

PROVISIONS FOR LIABILITIES

13

-

(84,129

)

NET ASSETS

4,138,271

3,221,873

CAPITAL AND RESERVES

Called up share capital

14

300,000

300,000

Retained earnings

15

3,838,271

2,921,873

SHAREHOLDERS' FUNDS

19

4,138,271

3,221,873

The financial statements were approved by the Board of Directors and authorised for issue on 23 March 2021 and were signed on its behalf by:

H J Bertschi - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

300,000

3,226,070

3,526,070

Changes in equity

Total comprehensive income

-

(304,197

)

(304,197

)

Balance at 31 December 2019

300,000

2,921,873

3,221,873

Changes in equity

Total comprehensive income

-

916,398

916,398

Balance at 31 December 2020

300,000

3,838,271

4,138,271

Cash flows from operating activities

Cash generated from operations

1

2,239,570

1,593,339

Tax paid

(51,246

)

(67,605

)

Net cash from operating activities

2,188,324

1,525,734

Cash flows from investing activities

Purchase of tangible fixed assets

(1,363,130

)

(1,464,039

)

Sale of tangible fixed assets

3,156

500

Interest received

2,451

3,464

Net cash from investing activities

(1,357,523

)

(1,460,075

)

Cash flows from financing activities

Loan interest paid

(169,240

)

(223,516

)

Net cash from financing activities

(169,240

)

(223,516

)

Increase/(decrease) in cash and cash equivalents

661,561

(157,857

)

Cash and cash equivalents at beginning of year

2

885,402

1,043,259

Cash and cash equivalents at end of year

2

1,546,963

885,402

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

2020

2019

£

£

Profit/(loss) before taxation

1,179,048

(326,144

)

Depreciation charges

1,315,404

1,373,365

Loss/(profit) on disposal of fixed assets

1,731

(39

)

Finance costs

169,704

169,240

Finance income

(2,451

)

(3,464

)

2,663,436

1,212,958

(Increase)/decrease in stocks

(80,770

)

89,480

Increase in trade and other debtors

(375,323

)

(353,605

)

Increase in trade and other creditors

32,227

644,506

Cash generated from operations

2,239,570

1,593,339

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

1,546,963

885,402

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

885,402

1,043,259

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank and in hand

885,402

661,561

1,546,963

885,402

661,561

1,546,963

Total

885,402

661,561

1,546,963

1.	ACCOUNTING POLICIES

General information and 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.

Bertschi U. K. Limited is a private company limited by shares, incorporated in England and Wales. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are warehousing and haulage contractors.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £1.

Turnover

The company's turnover represents the value of goods and services supplied to customers during the year, exclusive of value added tax.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

10% on cost, 5% on cost and 2% on cost

Motor vehicles

-

25% on cost

Equipment

-

20% on cost

There is no depreciation on freehold land.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks

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

Deferred taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

2.

TURNOVER

The turnover and profit (2019 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2020

2019

£

£

Haulage and Transport

7,928,202

7,443,417

Warehousing

7,342,093

7,971,808

15,270,295

15,415,225

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

4,686,622

4,660,014

Social security costs

481,427

467,059

Other pension costs

130,748

114,891

5,298,797

5,241,964

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

2020

2019

Number of directors

3

3

Number of distribution staff

136

137

Number of administrative staff

11

11

150

151

2020

2019

£

£

Directors' remuneration

59,410

57,508

Directors' pension contributions to money purchase schemes

1,738

1,695

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

4.	OPERATING PROFIT/(LOSS)

The operating profit (2019 - operating loss) is stated after charging/(crediting):

2020

2019

£

£

Other operating leases

449,913

123,969

Depreciation - owned assets

1,315,404

1,373,365

Loss/(profit) on disposal of fixed assets

1,731

(39

)

Auditors' remuneration

3,800

3,700

Foreign exchange differences

(3,250

)

84,790

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Interest on other loans

169,704

169,240

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

350,035

-

Over/under provision in prior year

-

(93,425

)

Total current tax

350,035

(93,425

)

Deferred tax

(87,385

)

71,478

Tax on profit/(loss)

262,650

(21,947

)

UK corporation tax has been charged at 19% (2019 - 19%).

Reconciliation of total tax charge/(credit) 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:

2020

2019

£

£

Profit/(loss) before tax

1,179,048

(326,144

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

224,019

(61,967

)

Effects of:

Expenses not deductible for tax purposes

38,631

40,020

rate

Total tax charge/(credit)

262,650

(21,947

)

7.	TANGIBLE FIXED ASSETS

Assets

Freehold

Plant and

under

property

machinery

construction

£

£

£

COST

At 1 January 2020

4,192,383

9,592,402

-

Additions

-

61,435

1,265,018

Disposals

-

(23,000

)

-

At 31 December 2020

4,192,383

9,630,837

1,265,018

DEPRECIATION

At 1 January 2020

904,287

4,044,814

-

Charge for year

72,163

502,128

-

Eliminated on disposal

-

(18,113

)

-

At 31 December 2020

976,450

4,528,829

-

NET BOOK VALUE

At 31 December 2020

3,215,933

5,102,008

1,265,018

At 31 December 2019

3,288,096

5,547,588

-

Motor

vehicles

Equipment

Totals

£

£

£

COST

At 1 January 2020

9,925,279

124,804

23,834,868

Additions

35,930

747

1,363,130

Disposals

(20,680

)

-

(43,680

)

At 31 December 2020

9,940,529

125,551

25,154,318

DEPRECIATION

At 1 January 2020

8,597,297

102,223

13,648,621

Charge for year

730,941

10,172

1,315,404

Eliminated on disposal

(20,680

)

-

(38,793

)

At 31 December 2020

9,307,558

112,395

14,925,232

NET BOOK VALUE

At 31 December 2020

632,971

13,156

10,229,086

At 31 December 2019

1,327,982

22,581

10,186,247

8.

STOCKS

2020

2019

£

£

Consumables

185,937

105,167