Reisser Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01596414 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2021

for

Reisser Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

14

DIRECTORS:

Mr C Ledigo

Mrs J O'Neill

Mr P B Meads

SECRETARY:

Mrs J O'Neill

REGISTERED OFFICE:

Unit 7, Botany Business Park

Lower Macclesfield Road

Whaley Bridge

High Peak

Derbyshire

SK23 7DQ

REGISTERED NUMBER:

01596414 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr I Sluckis BA FCA

AUDITORS:

Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

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

The activity of the company continued to be that of the wholesale distribution of screws, fasteners and drill

accessories.

REVIEW OF BUSINESS

The Key performance indicators (KPl's) are measured by turnover and margin which are shown in the annexed financial statements.

2020/21 was an extremely challenging period, caused by the continued uncertainty surrounding the resilience of the UK economy and the impact of Britain exiting the European Union which has affected business confidence and growth prospects. Covid will really affect the British economy.

Future growth and developments

Following the UK Covid-19 lockdown in April 2020, the company was later classified as an essential business and was permitted to continue trading with the introduction of safe working measures. Sales were initially negatively impacted but quickly returned to even higher levels and the company is forecast to continue its sales growth. The Company made a good recovery from the loss of the previous year and made good profits

PRINCIPAL RISKS AND UNCERTAINTIES

Foreign Exchange Risk

The Company makes purchases in foreign currencies. The Company is therefore exposed to the movement of these currencies against sterling on its foreign currency-denominated purchases.

Also, ongoing concerns regarding a reduction in production capacity in the Far East has increased lead-times as well as increased shipping costs and longer delivery times.

Our core business remains the supply of fixings and fasteners to the retail and merchant trade and we will continue to invest to provide our distributors with innovative quality products and services.

We are very aware that the continuing development of the business depends upon the support of our distributors and suppliers to whom we are very grateful.

The business also depends upon the commitment of our staff and I would like to thank all my colleagues for all their enthusiasm, loyalty, and support

ON BEHALF OF THE BOARD:

Mr C Ledigo - Director

23 December 2021

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

DIVIDENDS

An interim dividend of £4166.67 per share was paid on the Class "A" Ordinary £1 shares on 6 April 2020. No dividends were paid on any other classes of shares.

The total distribution of dividends for the year ended 31 March 2021 will be £ 400,000 .

DIRECTORS

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

Mr C Ledigo

Mrs J O'Neill

Mr P B Meads

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.

AUDITORS

The auditors, Freedman Frankl & Taylor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C Ledigo - Director

23 December 2021

Opinion

We have audited the financial statements of Reisser Limited (the 'company') for the year ended 31 March 2021 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 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 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 detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks to irregularities, including fraud

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

Audit response to risks identified

-

the nature of the industry and sector, control environment and business performance;

-

results of enquiries of management about their own identification and assessment of the risks of irregularities;

-

any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

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

-

the matters discussed among the audit engagement team including significant component audit teams and involving other internal specialists including tax regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risks of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

Audit response to risks identified

As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

-

enquiring of management concerning actual and potential litigation and claims;

-

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

-

obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

-

in addressing the risks 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 indicative of potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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.

Mr I Sluckis BA FCA (Senior Statutory Auditor)

for and on behalf of Freedman Frankl & Taylor

Statutory Auditors

Chartered Accountants

Reedham House

31 King Street West

Manchester

M3 2PJ

23 December 2021

TURNOVER

13,731,848

12,587,751

Cost of sales

10,174,555

10,278,612

GROSS PROFIT

3,557,293

2,309,139

Distribution costs

365,254

339,633

Administrative expenses

1,942,273

2,116,167

2,307,527

2,455,800

1,249,766

(146,661

)

Other operating income

147,638

-

OPERATING PROFIT/(LOSS)

4

1,397,404

(146,661

)

Interest receivable and similar income

11

-

1,397,415

(146,661

)

Interest payable and similar expenses

6

216,631

245,796

PROFIT/(LOSS) BEFORE TAXATION

1,180,784

(392,457

)

Tax on profit/(loss)

7

221,137

(26,426

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

959,647

(366,031

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

959,647

(366,031

)

FIXED ASSETS

Intangible assets

9

-

414,490

Tangible assets

10

-

214,105

-

628,595

CURRENT ASSETS

Stocks

11

8,204,087

8,301,321

Debtors

12

2,839,993

2,299,186

Cash at bank and in hand

459,974

196,188

11,504,054

10,796,695

CREDITORS

Amounts falling due within one year

13

9,281,420

10,172,040

NET CURRENT ASSETS

2,222,634

624,655

TOTAL ASSETS LESS CURRENT LIABILITIES

2,222,634

1,253,250

CREDITORS

Amounts falling due after more than one year

14

(434,307

)

-

PROVISIONS FOR LIABILITIES

18

-

(24,570

)

NET ASSETS

1,788,327

1,228,680

CAPITAL AND RESERVES

Called up share capital

19

200,160

200,160

Share premium

20

11,399

11,399

Capital redemption reserve

20

40

40

Retained earnings

20

1,576,728

1,017,081

SHAREHOLDERS' FUNDS

1,788,327

1,228,680

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

Mr C Ledigo - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 April 2019

200,160

1,683,112

11,399

40

1,894,711

Changes in equity

Dividends

-

(300,000

)

-

-

(300,000

)

Total comprehensive income

-

(366,031

)

-

-

(366,031

)

Balance at 31 March 2020

200,160

1,017,081

11,399

40

1,228,680

Changes in equity

Dividends

-

(400,000

)

-

-

(400,000

)

Total comprehensive income

-

959,647

-

-

959,647

Balance at 31 March 2021

200,160

1,576,728

11,399

40

1,788,327

Cash flows from operating activities

Cash generated from operations

1

401,811

(86,386

)

Interest paid

(215,872

)

(244,965

)

Interest element of hire purchase payments paid

(759

)

(831

)

Tax paid

(12,676

)

(222,305

)

Net cash from operating activities

172,504

(554,487

)

Cash flows from investing activities

Purchase of tangible fixed assets

(1,707

)

(35,659

)

Sale of intangible fixed assets

535,769

-

Sale of tangible fixed assets

190,606

3,760

Interest received

11

-

Net cash from investing activities

724,679

(31,899

)

Cash flows from financing activities

Capital repayments in year

(8,508

)

(14,587

)

Amount introduced by directors

171,088

-

Amount withdrawn by directors

-

(125,396

)

Equity dividends paid

(400,000

)

(300,000

)

Net cash from financing activities

(237,420

)

(439,983

)

Increase/(decrease) in cash and cash equivalents

659,763

(1,026,369

)

Cash and cash equivalents at beginning of year

2

(4,299,355

)

(3,272,986

)

Cash and cash equivalents at end of year

2

(3,639,592

)

(4,299,355

)

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

2021

2020

£

£

Profit/(loss) before taxation

1,180,784

(392,457

)

Depreciation charges

84,419

115,002

Profit on disposal of fixed assets

(180,492

)

-

Finance costs

216,631

245,796

Finance income

(11

)

-

1,301,331

(31,659

)

Decrease/(increase) in stocks

97,234

(34,186

)

Increase in trade and other debtors

(735,197

)

(42,575

)

(Decrease)/increase in trade and other creditors

(261,557

)

22,034

Cash generated from operations

401,811

(86,386

)

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 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

459,974

196,188

Bank overdrafts

(4,099,566

)

(4,495,543

)

(3,639,592

)

(4,299,355

)

Year ended 31 March 2020

31.3.20

1.4.19

£

£

Cash and cash equivalents

196,188

716,269

Bank overdrafts

(4,495,543

)

(3,989,255

)

(4,299,355

)

(3,272,986

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.20

Cash flow

At 31.3.21

£

£

£

Net cash

Cash at bank and in hand

196,188

263,786

459,974

Bank overdrafts

(4,495,543

)

395,977

(4,099,566

)

(4,299,355

)

659,763

(3,639,592

)

Debt

Finance leases

(8,508

)

8,508

-

(8,508

)

8,508

-

Total

(4,307,863

)

668,271

(3,639,592

)

1.	STATUTORY INFORMATION

Reisser 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.

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.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Significant accounting judgements

The significant accounting judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are in respect of fixed assets as discussed below.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

Fixed assets

Fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Interest income

Interest income is recognised in the statement of comprehensive income using the effective interest method.

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.

Trademark are being amortised evenly over their estimated useful life of ten 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.

Improvements to property

-

10% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Government grants

Grants of a revenue nature are credited to income in the period to which they relate.

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 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.

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

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

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

Operating leases are charged to the profit and loss account as they are incurred.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions for the year are charged to the profit and loss account in which they are payable.

Going concern

The company's financial statements for the period ended 31 March 2021 have been prepared on a going concern basis as, after making appropriate enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

3.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

1,107,914

877,489

Social security costs

147,664

127,275

Other pension costs

20,847

20,631

1,276,425

1,025,395

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

2021

2020

Sales & administrative staff

18

18

2021

2020

£

£

Directors' remuneration

489,900

347,470

Directors' pension contributions to money purchase schemes

1,839

1,573

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

286,122

279,341

Pension contributions to money purchase schemes

1,313

1,307