Cool-Stak Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01176011 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

COOL-STAK LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

B W Lockwood

Mrs T J Lockwood

R A Lockwood

SECRETARY:

B W Lockwood

REGISTERED OFFICE:

27-29 Old Market

Wisbech

Cambridgeshire

PE13 1NE

BUSINESS ADDRESS:

Lynn Road

West Winch

King's Lynn

Norfolk

PE33 0PD

REGISTERED NUMBER:

01176011 (England and Wales)

ACCOUNTANTS:

Wheelers

Chartered Accountants & Tax Consultants

27-29 Old Market

Wisbech

Cambridgeshire

PE13 1NE

FIXED ASSETS

Intangible assets

4

6,804

-

Tangible assets

5

3,447,532

3,507,776

Investments

6

-

560,871

Investment property

7

300,000

300,000

3,754,336

4,368,647

CURRENT ASSETS

Stocks

3,248

3,926

Debtors

8

218,502

796,584

221,750

800,510

CREDITORS

Amounts falling due within one year

9

430,590

421,220

NET CURRENT (LIABILITIES)/ASSETS

(208,840

)

379,290

TOTAL ASSETS LESS CURRENT LIABILITIES

3,545,496

4,747,937

CREDITORS

Amounts falling due after more than one year

10

(1,372,770

)

(1,517,344

)

PROVISIONS FOR LIABILITIES

(133,263

)

(143,263

)

NET ASSETS

2,039,463

3,087,330

CAPITAL AND RESERVES

Called up share capital

1,050

1,050

Revaluation reserve

13

1,615,727

2,151,473

Retained earnings

422,686

934,807

SHAREHOLDERS' FUNDS

2,039,463

3,087,330

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2021 and were signed on its behalf by:

B W Lockwood - Director

R A Lockwood - Director

1.	STATUTORY INFORMATION

Cool-Stak Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

At the balance sheet date the company had a working capital deficit of £208,840 by virtue of its current liabilities exceeding its current assets. The directors are confident that the going concern basis for the preparation of the financial statements is appropriate, and have confirmed their continuing support for the company in writing.

Changes in accounting policies

The directors have decided that to ensure the financial statements provide more relevant and reliable information regarding the company's financial position, it will change its accounting policy choice to measure freehold property under the revaluation model instead of the cost model as used previously.

In accordance with section 10 of Financial Reporting Standard 102 this change has been applied retrospectively to the comparative information for the prior period.

Turnover

Turnover represents net invoiced sales of goods and provision of warehousing services, excluding value added tax.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold property as a class of assets within property, plant and equipment has been measured under the revaluation model. As such it is carried at its fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Government grants

Government grants have been recognised based on the accrual model. As such, government grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Investment property is carried at fair value determined annually by external valuers or based on the opinion of the board of directors and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the profit and loss account.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Valuation of investments

Investments in subsidiaries are measured at fair value.

Consolidation

The parent company and its subsidiary undertakings comprise a small group. The company has therefore taken advantage of the exemption provided by section 398 of the Companies Act 2006 not to prepare group accounts.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2019 - 19 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

Additions

6,804

At 31 December 2020

6,804

NET BOOK VALUE

At 31 December 2020

6,804

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2020

3,250,000

469,061

34,418

75,176

3,828,655

Additions

-

9,710

4,794

-

14,504

At 31 December 2020

3,250,000

478,771

39,212

75,176

3,843,159

DEPRECIATION

At 1 January 2020

-

284,078

21,888

14,913

320,879

Charge for year

-

57,713

1,969

15,066

74,748

At 31 December 2020

-

341,791

23,857

29,979

395,627

NET BOOK VALUE

At 31 December 2020

3,250,000

136,980

15,355

45,197

3,447,532

At 31 December 2019

3,250,000

184,983

12,530

60,263

3,507,776

Included in cost or valuation of land and buildings is freehold land of £ 690,000 (2019 - £ 690,000 ) which is not depreciated.

Cost or valuation at 31 December 2020 is represented by:

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2020

1,715,991

-

-

-

1,715,991

Cost

1,534,009

478,771

39,212

75,176

2,127,168

3,250,000

478,771

39,212

75,176

3,843,159

If freehold land and buildings had not been revalued it would have been included at the following historical cost:

31.12.20

31.12.19

£

£

Cost

1,534,009

1,534,009

Aggregate depreciation

146,800

110,100

Value of land in freehold land and buildings

690,000

690,000

Freehold land and building were valued on an open market basis on 31 December 2020 by the directors .

During the year the company made a change to its accounting policy choice regarding freehold property and as such has measured this class of assets using the revaluation model.

The fair value of the freehold property increased in July 2019 to £3,250,000 when a valuation was undertaken by external valuers and the directors consider the value to be immaterially different from this at

31 December 2019 and 31 December 2020.

Had this change not occurred then the freehold property would have been carried at the deemed cost at transition to Financial Reporting Standard 102 of £2,525,000. The accumulated depreciation would have been £110,100 at 31 December 2019 and £146,800 at 31 December 2020.

A provision for the deferred tax relating to a capital gain if the property was sold amounting to £100,263 has been included for both years ended 31 December 2019 and 31 December 2020.

Due to the retrospective application of the change of accounting policy, this has resulted in an increase to the revaluation reserve of £652,017 at 31 December 2020 and £645,197 at 31 December 2019.

This has also resulted in an increase in retained earnings of £119,520 in 31 December 2020 and £89,640 in 31 December 2019.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 January 2020

and 31 December 2020

62,990

75,176

138,166

DEPRECIATION

At 1 January 2020

21,259

14,913

36,172

Charge for year

9,449

15,066

24,515

At 31 December 2020

30,708

29,979

60,687

NET BOOK VALUE

At 31 December 2020

32,282

45,197

77,479

At 31 December 2019

41,731

60,263

101,994

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2020

560,871

Disposals

(560,871

)

At 31 December 2020

-

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

560,871

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2020

and 31 December 2020

300,000

NET BOOK VALUE

At 31 December 2020

300,000

At 31 December 2019

300,000

Fair value at 31 December 2020 is represented by:

£

Valuation in 2020

300,000

If investment property had not been revalued it would have been included at the following historical cost:

31.12.20

31.12.19

£

£

Cost

333,109

333,109

Aggregate depreciation

(8,193

)

(5,462

)

Investment property was valued on an open market basis on 31 December 2020 by the directors .

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Trade debtors

176,904

107,617

Amounts owed by group undertakings

-

639,779

Other debtors

41,598

49,188

218,502

796,584

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Bank loans and overdrafts

168,132

241,864

Hire purchase contracts (see note 11)

16,861

28,796

Trade creditors

26,566

36,228

Amounts owed to group undertakings

23,959

-

Taxation and social security

152,999

66,172

Other creditors

42,073

48,160

430,590

421,220

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.20

31.12.19

£

£

Bank loans

1,366,606

1,494,319

Hire purchase contracts (see note 11)

6,164

23,025

1,372,770

1,517,344

Amounts falling due in more than five years:

Repayable by instalments

Bank loan repayable over 5 years

837,432

1,015,401

11.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.20

31.12.19

£

£

Net obligations repayable:

Within one year

16,861

28,796

Between one and five years

6,164

23,025

23,025

51,821

Non-cancellable operating

leases

31.12.20

31.12.19

£

£

Within one year

12,162

12,162

Between one and five years

16,361

28,522

28,523

40,684

12.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.20

31.12.19

£

£

Bank overdrafts

46,426

132,684

Bank loans

1,488,312

1,603,499

Hire purchase contracts

23,025

51,821

1,557,763

1,788,004

The bank loans are secured by way of legal charges in favour of Barclays Bank Plc over freehold property of the company and investment property of the company.

B W & T J Lockwood have also provided a personal guarantee of £350,000 in respect of group bank borrowings for the company and associated companies.

In addition there is an unlimited cross guarantee and debenture in favour of Barclays Bank PLC given by the company and its associated company King's Lynn Warehousing & Distribution Limited in respect of the combined debt.

13.

RESERVES

Revaluation

reserve

£

At 1 January 2020

2,151,473

Reclassification

(535,746

)

At 31 December 2020

1,615,727

14.	EXCEPTIONAL ITEMS

During the year, a group restructuring arrangement has been completed to demerge and separate the family companies. This included the release of the inter-company loan of £632,488 owed to Cool-stak Limited by King's Lynn Warehousing & Distribution Limited, it's former subsidiary company.