Cable Services Enterprises Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06699897 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2021

FOR

CABLE SERVICES ENTERPRISES LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J M Williams

J W Bostock

REGISTERED OFFICE:

Bridge House

Bridge Road

Wrexham Industrial Estate

Wrexham

LL13 9PS

REGISTERED NUMBER:

06699897 (England and Wales)

AUDITORS:

M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

BANKERS:

Barclays Bank plc

51-52 Hope Street

Wrexham

LL11 1BB

The directors present their strategic report of the company and the group for the year ended 31st March 2021.

REVIEW OF BUSINESS

The group has had a positive year considering the effect that the Covid-19 pandemic has had on the economy. Our mission remains to further increase the awareness of our brand and cement it into people minds, this will be achieved by continued investment in marketing and social media. Clearly this year has not been without its challenges and, as with many businesses, the impact of the Covid-19 pandemic has presented many operational challenges. We actively engaged with all staff and business partners to enable and ensure everyone can work safely and within the guidelines. Latterly, our supply chain has shown price pressure on the business and is constantly monitored through regular review meetings

KEY PERFORMANCE INDICATORS

The Directors believe that the key performance indicators are those that measure the financial performance of the group. These are Turnover, Gross Profit, overhead levels and cash flow.

Turnover has decreased on the previous year by 16.3%. However the gross profit margin has increased from 23.2% in the previous year to 23.6% in the current year a rise of 0.4%.

Profit before tax has decreased this year by 0.6%.

Non-financial performance indicators are also key to management's holistic approach to all stakeholders. These include customer satisfaction, staff turnover, manufacturing efficiency, hygiene, health and safety and environmental impact.

The average number of employees has decreased from 71 to 64.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is subject to a number of potential risks and uncertainties:

The group operates in a highly competitive and busy specialist sector, particularly with regard to product range, price, service and availability. Failure to pay attention to any of these elements could result in failing to meet customer expectations, potentially reduced sales and excessive stock holdings. To mitigate this there is a considerable focus on service, systems and controls, the monitoring of competitor activities and the constant analysis of the company performance and procedures. The Management team regularly review performance and forecasts to ensure targets are met. The group's cash flows are regularly monitored, and its budget and forecasts reviewed by Management. To meet its obligations the group regularly monitors its liquidity, having regard to its working capital requirements, banking facilities and other financing. The group's sales are all in the United Kingdom and the majority of purchases are outside the European Union, therefore any impact following Brexit has been minimal. However, we will continue to monitor the effects of Brexit closely to ensure we mitigate the associated risks.

Financial risk management

Financial risk management is considered regularly by the Management team and the Directors. Primary risks to which the group could be exposed are interest rate risk, liquidity risk and credit risk.

Interest rate risk

The group has no external debt, therefore any fluctuations in interest rate do not have a significant effect on the group.

Liquidity risk

The group ensures that there are sufficient funds available to meet the requirements of its on-going operations. The group has a significant cash balance of £10.5m at the year end therefore there is sufficient liquidity headroom.

Credit risk

Credit risk principally arises on trade receivables and the group places a lot of emphasis on a stringent credit control policy. Management information is produced and reviewed by Directors comparing it to both budget and previous year to assess performance and identify changing market conditions. Robust controls, policies and procedures are in place to mitigate risk.

DIRECTORS DUTY TO PROMOTE THE SUCCESS OF THE GROUP

The Directors have a duty to promote the success of the group for the benefit of all key stakeholders.

Considering the potential consequences that a decision may have on employees, suppliers, customers and other related parties is paramount. Acting with integrity and promoting high standards across the business reflects positively on the already high regard in which we are held. The group is aware of its responsibility to the local community and the environment, raising funds for local charities continues to be a focus of ours. Elsewhere the group is looking to find ways of reducing energy consumption and its environmental impact across our operations. Fundamental to the business is our ultimate aim of increasing the value of the group and the welfare of our colleagues through building lasting relationships with our partners and creating opportunities for employees to achieve their potential.

ON BEHALF OF THE BOARD:

J M Williams - Director

21st October 2021

The directors present their report with the financial statements of the company and the group for the year ended 31st March 2021.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2021.

FUTURE DEVELOPMENTS

We continue to focus on being increasingly competitive with our marketing activity to further grow brand awareness, taking the business to new heights by building on the success of previous years. The group is committed to returning sales to the levels achieved prior to the Covid-19 pandemic.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1st April 2020 to the date of this report.

The beneficial interests of the directors holding office at 31st March 2021 in the shares of the company, according to the register of directors' interests, were as follows:

31.3.21

1.4.20

Ordinary shares of £1 each

J M Williams

8,539

8,539

J W Bostock

1,970

1,970

These directors did not hold any non-beneficial interests in the shares of the company.

FINANCIAL INSTRUMENTS

The group's operations expose it to a variety of financial risks including credit risk and price risk. The group do not consider cash flow and liquidity to be a risk.

The group does not have material exposure in any of the areas identified above.

The group's principal financial instruments comprise sterling cash and bank deposit, together with trade debtors and trade creditors that arise directly from operations.

POLITICAL DONATIONS AND EXPENDITURE

Charitable donations for the year amounted to £50,000 (2020: £50,000). There were no political donations.

POST BALANCE SHEET EVENTS

There have been no events since the year end which would materially affect the financial statements.

GEOGRAPHICAL AREA

No branches of the group exist outside the United Kingdom.

FINANCIAL RISK MANAGEMENT

To mitigate the effects of such risks the Directors have established procedures and methods which are reviewed on a regular basis, both on a monitoring basis and as a mechanism to identify new risks and uncertainties and to plan accordingly.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Williams - Director

21st October 2021

Opinion

We have audited the financial statements of Cable Services Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2021 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence,

capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and

management;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining accounting estimates were indicative of

potential bias; and

- investigated the rationale behind significant or unusual transactions;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Michael Coxey (Senior Statutory Auditor)

for and on behalf of M. D. Coxey and Co. Limited

Chartered Accountants

and Statutory Auditors

25 Grosvenor Road

Wrexham

LL11 1BT

21st October 2021

TURNOVER

3

32,468,105

38,791,145

Cost of sales

24,812,277

29,807,695

GROSS PROFIT

7,655,828

8,983,450

Administrative expenses

5,774,517

6,631,697

1,881,311

2,351,753

Other operating income

4

319,055

-

OPERATING PROFIT

6

2,200,366

2,351,753

Interest receivable and similar income

7

514

4,604

2,200,880

2,356,357

Interest payable and similar expenses

8

-

10,487

PROFIT BEFORE TAXATION

2,200,880

2,345,870

Tax on profit

9

433,889

488,639

PROFIT FOR THE FINANCIAL YEAR

1,766,991

1,857,231

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,766,991

1,857,231

Profit attributable to:

Owners of the parent

1,766,991

1,857,231

Total comprehensive income attributable to:

Owners of the parent

1,766,991

1,857,231

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

3,186,279

3,262,658

Investments

13

-

-

3,186,279

3,262,658

CURRENT ASSETS

Stocks

14

6,396,679

5,962,617

Debtors

15

7,482,589

6,774,853

Cash at bank and in hand

10,469,780

8,162,742

24,349,048

20,900,212

CREDITORS

Amounts falling due within one year

16

9,922,797

8,328,208

NET CURRENT ASSETS

14,426,251

12,572,004

TOTAL ASSETS LESS CURRENT LIABILITIES

17,612,530

15,834,662

PROVISIONS FOR LIABILITIES

19

275,681

264,804

NET ASSETS

17,336,849

15,569,858

CAPITAL AND RESERVES

Called up share capital

20

13,137

13,137

Retained earnings

21

17,323,712

15,556,721

SHAREHOLDERS' FUNDS

17,336,849

15,569,858

The financial statements were approved by the Board of Directors and authorised for issue on 21st October 2021 and were signed on its behalf by:

J M Williams - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,090,922

1,108,151

Investments

13

4,517,544

4,517,544

5,608,466

5,625,695

CURRENT ASSETS

Debtors

15

135,211

59,616

CREDITORS

Amounts falling due within one year

16

5,361,272

5,358,201

NET CURRENT LIABILITIES

(5,226,061

)

(5,298,585

)

TOTAL ASSETS LESS CURRENT LIABILITIES

382,405

327,110

PROVISIONS FOR LIABILITIES

19

81,072

78,494

NET ASSETS

301,333

248,616

CAPITAL AND RESERVES

Called up share capital

20

13,137

13,137

Retained earnings

21

288,196

235,479

SHAREHOLDERS' FUNDS

301,333

248,616

Company's profit for the financial year

52,717

44,228

The financial statements were approved by the Board of Directors and authorised for issue on 21st October 2021 and were signed on its behalf by:

J M Williams - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2019

13,137

13,699,490

13,712,627

Changes in equity

Total comprehensive income

-

1,857,231

1,857,231

Balance at 31st March 2020

13,137

15,556,721

15,569,858

Changes in equity

Total comprehensive income

-

1,766,991

1,766,991

Balance at 31st March 2021

13,137

17,323,712

17,336,849

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2019

13,137

191,251

204,388

Changes in equity

Total comprehensive income

-

44,228

44,228

Balance at 31st March 2020

13,137

235,479

248,616

Changes in equity

Total comprehensive income

-

52,717

52,717

Balance at 31st March 2021

13,137

288,196

301,333

Cash flows from operating activities

Cash generated from operations

1

3,009,913

2,887,833

Interest paid

-

(10,487

)

Tax paid

(470,664

)

(682,664

)

Net cash from operating activities

2,539,249

2,194,682

Cash flows from investing activities

Purchase of tangible fixed assets

(232,725

)

(1,309,734

)

Sale of tangible fixed assets

-

4,250

Interest received

514

4,604

Net cash from investing activities

(232,211

)

(1,300,880

)

Cash flows from financing activities

Loan repayments in year

-

(475,535

)

Net cash from financing activities

-

(475,535

)

Increase in cash and cash equivalents

2,307,038

418,267

Cash and cash equivalents at beginning of year

2

8,162,742

7,744,475

Cash and cash equivalents at end of year

2

10,469,780

8,162,742

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.21

31.3.20

£

£

Profit before taxation

2,200,880

2,345,870

Depreciation charges

309,103

390,178

Profit on disposal of fixed assets

-

(2,250

)

Finance costs

-

10,487

Finance income

(514

)

(4,604

)

2,509,469

2,739,681

Increase in stocks

(434,062

)

(290,754

)

(Increase)/decrease in trade and other debtors

(633,058

)

1,375,971

Increase/(decrease) in trade and other creditors

1,567,564

(937,065

)

Cash generated from operations

3,009,913

2,887,833

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 31st March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

10,469,780

8,162,742

Year ended 31st March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

8,162,742

7,744,475

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.20

Cash flow

At 31.3.21

£

£

£

Net cash

Cash at bank and in hand

8,162,742

2,307,038

10,469,780

8,162,742

2,307,038

10,469,780

Debt

Debts falling due within 1 year

(2,564,306

)

-

(2,564,306

)

(2,564,306

)

-

(2,564,306

)

Total

5,598,436

2,307,038

7,905,474

1.	STATUTORY INFORMATION

Cable Services Enterprises Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements consolidate the financial statements of Cable Services Enterprises Limited and its subsidiary undertakings. The results of subsidiary undertakings acquired are consolidated from the date of acquisition using the acquisition method of accounting. Uniform accounting policies are applied across the group. Intra-group transactions have been eliminated.

Significant judgements and estimates

In the application of the Company’s accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

- Estimated useful lives and residual values of fixed assets:

The carrying value of fixed assets are reviewed each year end for indicators of impairment triggers. If such triggers exist, management would be required to carry out a formal impairment review using a discounted cash flow model to determine their value in use on a cash-generating unit basis. The value in use calculation requires management to estimate the future cash flows expected to arise from the cash-generating unit and a sustainable discount rate in order to calculate the present value.

Depreciation of tangible and intangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods.

- Estimated write down of stock to net realisable value:

Stock valuation has been based on an estimated useful life and residual value deemed appropriate by the directors. The estimated write down of stock to net realisable value is reviewed annually and revised as appropriate by the directors.

- Revenue recognition:

In making its judgement, management consider the detailed criteria for the recognition of revenue as set out within Section 23 of FRS 102. The directors are satisfied that the recognition point being typically when the service has taken place is correct.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of Value Added Tax.

Sales of goods

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when the risks and rewards of ownership have passed to the customer. This typically happens when goods are delivered and legal title has passed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

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

Freehold property

-

2% on cost

Fixtures and fittings

-

20% on cost and 10% - 20% on cost

Motor vehicles

-

20% on cost

No depreciation will be provided in respect of freehold land.

Stocks

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

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the financial instrument.

Cash and cash equivalents:

These comprise cash at bank and other short-term highly liquid bank deposits with an original maturity of three months or less.

Debtors:

Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Profit and Loss account when there is objective evidence that the asset is impaired.

Trade creditors:

Trade creditors are not interest bearing and are stated at their nominal value.

Intra-group balances (being repayable on demand) are measured at the undiscounted amount of cash or other consideration expected to be paid or received.

Taxation

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

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.

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 transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

During the year the group exported 3.05% of its turnover (2020 - 2.59%).

4.	OTHER OPERATING INCOME

31.3.21

31.3.20

£

£

CJRS grant

259,055

-

Government grants

60,000

-

319,055

-

5.	EMPLOYEES AND DIRECTORS

31.3.21

31.3.20

£

£

Wages and salaries

2,421,394

2,721,360

Social security costs

274,188

304,545

Other pension costs

62,864

58,465

2,758,446

3,084,370