Amstecos Limited - Limited company accounts 20.1

REGISTERED NUMBER: NI052227 (Northern Ireland)

AMSTECOS LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page

Company Information

1

Strategic Report

2

Directors' Report

4

Independent Auditors' Report

6

Income Statement

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

E Bevan

S Stanford

J Macklin

M Macklin

REGISTERED OFFICE:

462 Antrim Road

Belfast

Co. Antrim

BT15 5GE

REGISTERED NUMBER:

NI052227 (Northern Ireland)

INDEPENDENT AUDITORS:

CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

SOLICITORS:

Pascal O'Hare

Lanyon Quay

Belfast

Co. Antrim

BT1 3LG

The directors present their strategic report for the year ended 31 March 2021.

REVIEW OF BUSINESS

The directors aim to present a balanced and comprehensive view of the development and performance of the company during the year, as well as its position at 31 March 2021. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the company faces.

The business has progressed more than satisfactorily during the year and remains in a sound financial position at the year end. The company continues to increase revenue levels and to generate profits. An analysis of the key financial performance indicators is included below.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the principal risks and uncertainties facing the company to be:

Competition Risk - Competition risk is managed by working closely with local trust authorities to continue to provide the best possible service to residents.

Economic Risk - The company is exposed to spending cuts in the public sector due to its reliance on referrals from Health Trusts.

COVID-19 Risk - The global coronavirus pandemic involving the spread of COVID-19 presents a number of different risks to the business. These risks include a reduction in turnover and an increase in operating costs which has the potential to impact financial results in the next financial year.

Liquidity Risk - The company actively maintain a mixture of long-term and short-term debt finance finance that is designed to ensure that the company has sufficient funds for operations and planned expansions.

Interest Rate Risk - The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to bank loans which bear interest at market rates.

KEY PERFORMANCE INDICATORS

The key performance indicators during the year were as follows:

2021

2020

£

£

Revenue

5,601,948

5,981,125

Net Profit Before Taxation %

16.04%

11.19%

Employee Numbers

178

200

STRATEGY

The company's success is dependant on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with health trusts, patients, staff and financial institutions to carefully manage the company's operations. The directors are continually looking for new opportunities to expand the business and to continue to build a strong image which will allow the company to continue to grow its operations in the incoming year.

BUSINESS ENVIRONMENT

The Health Care sector in Northern Ireland is highly competitive. The company considers itself as having a place in the market as a result of the service it provides to patients and its reputation.

FUTURE DEVELOPMENTS

The company plans to continue its present activities and current to increase trading levels. The directors are committed to long term creation of shareholder value by increasing the market share of the company. Employees are kept as fully informed as practicable about developments within the business.

EMPLOYEES

Amstecos Limited depends on the skills and commitment of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company's success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, marital status, race, age or disability.

Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company performance.

Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members becoming disabled, every effort is made to ensure that their employment with the company continues and appropriate training is arranged. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical of that of a person who does not suffer from a disability.

ON BEHALF OF THE BOARD:

E Bevan - Director

22 November 2021

The directors present their report with the audited financial statements of the Company for the year ended 31 March 2021.

PRINCIPAL ACTIVITY

The principal activity of the company is to provide nursing and respite care for the elderly.

DIVIDENDS

Interim dividends of £2 per share was paid in the year to the 31 March 2021. The directors do not recommend the payment of a final dividend.

The total distribution of dividends for the year ended 31 March 2021 was £80,000 (2020: £80,000).

DIRECTORS

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

E Bevan

S Stanford

J Macklin

M Macklin

POLITICAL AND CHARITABLE DONATIONS AND EXPENDITURE

The company made no political or charitable donations or incurred any political expenditure during the current year (2020: £NIL).

DISCLOSURES REQUIRED UNDER SCHEDULE 7

In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, employment policy and future developments in the Company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' 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), 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 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.

AUDITORS

The auditors, CavanaghKelly, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

E Bevan - Director

22 November 2021

Opinion

We have audited the financial statements of Amstecos Limited (the 'Company') for the year ended 31 March 2021 which comprise the Income Statement, Statement of Financial Position, 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 March 2021 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 Directors' Report, but does not include the financial statements and our Auditors' 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 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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 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 Directors' Responsibilities Statement set out on page four, 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 an Auditors' 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation;

-

We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance;

-

We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations;

-

Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and

-

Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override.

The audit response to risks identified included:

-

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above;

-

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud;

-

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 Auditors' 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 Auditors' 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.

Mr Ryan Falls ACA (Senior Statutory Auditor)

for and on behalf of CavanaghKelly

Chartered Accountants and Statutory Auditors

36-38 Northland Row

Dungannon

Co. Tyrone

BT71 6AP

22 November 2021

TURNOVER

5

5,601,948

5,981,125

Cost of sales

(238,490

)

(304,467

)

GROSS PROFIT

5,363,458

5,676,658

Administrative expenses

(4,677,526

)

(4,939,595

)

OPERATING PROFIT

8

685,932

737,063

Finance income

-

34

685,932

737,097

Finance costs

9

(46,612

)

(67,461

)

PROFIT BEFORE TAXATION

639,320

669,636

Tax on profit

10

(166,702

)

(155,374

)

PROFIT FOR THE FINANCIAL YEAR

472,618

514,262

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

472,618

514,262

NON-CURRENT ASSETS

Intangible assets

12

-

85,000

Tangible assets

13

6,888,775

6,339,778

6,888,775

6,424,778

CURRENT ASSETS

Stocks

14

2,084

4,360

Receivables: amounts falling due within one year

15

41,231

36,494

Cash at bank and in hand

656,920

878,826

700,235

919,680

PAYABLES

Amounts falling due within one year

16

(1,170,570

)

(1,163,731

)

NET CURRENT LIABILITIES

(470,335

)

(244,051

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,418,440

6,180,727

PAYABLES

Amounts falling due after more than one year

17

(1,072,566

)

(1,219,846

)

PROVISIONS FOR LIABILITIES

20

(59,640

)

(67,265

)

NET ASSETS

5,286,234

4,893,616

CAPITAL AND RESERVES

Called up share capital

21

40,000

40,000

Retained earnings

5,246,234

4,853,616

SHAREHOLDERS' FUNDS

5,286,234

4,893,616

The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2021 and were signed on its behalf by:

S Stanford - Director

E Bevan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2019

40,000

4,419,354

4,459,354

Changes in equity

Dividends

-

(80,000

)

(80,000

)

Total comprehensive income

-

514,262

514,262

Balance at 31 March 2020

40,000

4,853,616

4,893,616

Changes in equity

Dividends

-

(80,000

)

(80,000

)

Total comprehensive income

-

472,618

472,618

Balance at 31 March 2021

40,000

5,246,234

5,286,234

Cash flows from operating activities

Cash generated from operations

27

981,307

1,227,820

Interest paid

(46,612

)

(67,461

)

Tax paid

(78,967

)

(199,173

)

Net cash from operating activities

855,728

961,186

Cash flows from investing activities

Purchase of tangible fixed assets

(794,437

)

(548,280

)

Interest received

-

34

Net cash from investing activities

(794,437

)

(548,246

)

Cash flows from financing activities

New loans in year

230,278

-

Loan repayments in year

(424,926

)

(355,133

)

Amount withdrawn by directors

(8,549

)

(20,496

)

Equity dividends paid

(80,000

)

(80,000

)

Net cash from financing activities

(283,197

)

(455,629

)

Decrease in cash and cash equivalents

(221,906

)

(42,689

)

Cash and cash equivalents at beginning of year

28

878,826

921,515

Cash and cash equivalents at end of year

28

656,920

878,826

1.	STATUTORY INFORMATION

Amstecos Limited is a private company, limited by shares, registered within the United Kingdom. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

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 are stated in £ sterling.

The accounting policies detailed below have been applied consistently throughout the year.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires company management to exercise judgement in applying the company's accounting policies (see note 4).

Revenue

Revenue shown in the Income Statement represents amounts received or receivable for services provided in the normal course of business. Revenue is recognised upon the date the patient stays at the home.

Goodwill

Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 5 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business.

Property, plant and equipment and depreciation

Property, plant and equipment are stated at cost, less accumulated depreciation. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The charge to depreciation is calculated to write off the original cost of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Freehold property

- 2% straight line

Plant and machinery

- 20% reducing balance

Fixtures and fittings

- 15% reducing balance

Computer equipment

- 33% reducing balance

The carrying values of property, plant and equipment are reviewed annually for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

Financial instruments

The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

Pension costs

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions are charged to the Income Statement as they are made.

Inventories

Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders

Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

(a) Critical judgements in applying the company's accounting policies.

There are no critical judgements in applying the company's accounting policies.

(b) Key accounting estimates and assumptions

There are no key accounting estimates and assumptions in applying the company's accounting policies.

5.

TURNOVER

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

6.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

3,383,292

3,581,869

Social security costs

271,095

280,737

Other pension costs

93,963

51,920

3,708,350

3,914,526

7.	DIRECTORS' REMUNERATION

2021

2020

£

£

Directors' Remuneration

133,183

178,781

Pension Costs

40,000

40,000

173,183

218,781

During the year, retirement benefits were accruing to 1 directors (2020: 1) in respect of defined contribution pension schemes. The directors are considered to be the key management of the company.

8.	OPERATING PROFIT

2021

2020

£

£

Depreciation - owned assets

245,440

233,480

Goodwill Amortisation

85,000

85,000

Audit Services

6,065

5,775

9.	FINANCE COSTS

2021

2020

£

£

Bank loan interest

46,612

67,461

10.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

174,327

155,868

Deferred tax

(7,625

)

(494

)

Tax on profit

166,702

155,374

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge 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:

2021

2020

£

£

Profit before tax

639,320

669,636

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

121,471

127,231

Effects of:

Depreciation in excess of capital allowances

52,247

27,691

Adjustments to tax charge in respect of previous periods

609

452

Deferred tax movement

(7,625

)

-

Total tax charge

166,702

155,374

11.

DIVIDENDS

2021

2020

£

£

Ordinary shares of 1 each

Interim

80,000

80,000

12.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2020

and 31 March 2021

873,500

AMORTISATION

At 1 April 2020

788,500

Amortisation for year

85,000

At 31 March 2021

873,500

NET BOOK VALUE

At 31 March 2021

-

At 31 March 2020

85,000

13.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 April 2020

6,884,462

13,384

2,493,167

19,011

9,410,024

Additions

781,045

-

13,392

-

794,437

At 31 March 2021

7,665,507

13,384

2,506,559

19,011

10,204,461

DEPRECIATION

At 1 April 2020

1,213,837

10,466

1,831,762

14,181

3,070,246

Charge for year

153,058

583

90,205

1,594

245,440

At 31 March 2021

1,366,895

11,049

1,921,967

15,775

3,315,686

NET BOOK VALUE

At 31 March 2021

6,298,612

2,335

584,592

3,236

6,888,775

At 31 March 2020

5,670,625

2,918

661,405

4,830

6,339,778

14.

STOCKS

2021

2020

£

£

Consumables

2,084

4,360

15.

RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade receivables

28,108

31,189

Prepayments and accrued income

13,123

5,305

41,231

36,494

16.

PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts (see note 18)

424,308

424,308

Trade payables

81,007

91,987

Tax

174,281

78,921

Social security and other taxes

-

75,895

Other payables

26,308

108,308

Directors' current accounts

274,410

282,959

Accruals and deferred income

190,256

101,353

1,170,570

1,163,731

The bank loan is secured by legal charges over properties held at 462-464 Antrim Road Belfast, 44 Fortwilliam Park Belfast and 2 North Circular Lisburn, an assignment of life policies of the directors and by £300,000 personal guarantee from Sean and Maureen Macklin. There is also a debenture held over the assets of the company.

17.

PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR

2021

2020

£

£

Bank loans (see note 18)

1,072,566

1,219,846