Fencebanner Limited - Limited company accounts 20.1
Fencebanner Limited - Limited company accounts 20.1
REGISTERED NUMBER: 05031476 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 30 April 2021 |
for |
Fencebanner Limited |
Fencebanner Limited (Registered number: 05031476) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Independent Auditors' Report | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
Fencebanner Limited |
Company Information |
for the Year Ended 30 April 2021 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Fencebanner Limited (Registered number: 05031476) |
Group Strategic Report |
for the Year Ended 30 April 2021 |
The director presents his strategic report of the Company and the Group for the year ended 30 April 2021. |
REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year-end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
Turnover increased by £1,743k (8.7%) to £21,851k, and the gross profit percentage increased to 21% (2020: 20.5%) resulting in a £479k increase in gross profit to £4,595k (2020: £4,116k). |
Administrative expenses increased by £149k (4.5%) which, taken with the increase in gross profit, resulted in the company recording a profit before tax of £1,278k (2020: £866k). |
From mid-March 2020 the global COVID-19 pandemic has hugely impacted the UK and caused enormous |
disruption across the whole society, economy and businesses in all sectors, including the electrical retailing industry.The impact of the pandemic, in conjunction with the United Kingdom's departure from the EU on 1 January 2021 and the related trade agreement are constantly monitored by the directors in order for the related risks to be managed swiftly and effectively. |
However, as noted above, the Company performed very strongly during 2020/21 and this strong performance has continued into the current year. The Company has a strong balance sheet and has sufficient funds and facilities to withstand any further disruption for the foreseeable future. Accordingly the directors have a reasonable expectation that the Company has adequate financial resources to continue in operational existence for the foreseeable future and so the financial statements are prepared on a going concern basis. |
PRINCIPAL RISKS AND UNCERTAINTIES |
COVID-19 - As described in the Review of Business above, the global COVID-19 pandemic has caused significant disruption globally and from mid-March 2020 to the whole of society, economy and businesses in the UK, including our own electrical retailing industry. This disruption is likely to continue for the foreseeable future and is a risk to our business although activity levels have to date continued to grow during the pandemic. |
Price risk - The company has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before credit sales are made. |
Liquidity risk - The company actively maintains a mixture of long-term and short-term debt to ensure that the company has sufficient available funds for its operations. |
Interest rate cashflow risk - The company has interest bearing liabilities by way of bank loans and overdrafts, and therefore is exposed to interest rate cashflow risk. The board of directors regularly review the level and mix of debt to manage interest rate risk. |
Key performance indicators - We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being profit margins, as well as liquidity and activity ratios. |
Fencebanner Limited (Registered number: 05031476) |
Group Strategic Report |
for the Year Ended 30 April 2021 |
KEY PERFORMANCE INDICATORS |
Management use a range of performance measures to monitor and manage the business. The performance measures are split into financial and non-financial key performance indicators as set out below. |
2021 | 2020 |
Profit ratios: | Gross profit margin | 21.02% | 20.47% |
Net profit margin | 4.73% | 3.46% |
Liquidity ratios: | Current ratio | 2.05:1 | 1.65:1 |
Activity ratios: | Debtor days | 7.1 days | 10.6 days |
Creditors days | 39.6 days | 40.4 days |
Stock turnover | 8.71 times | 6.35 times |
ON BEHALF OF THE BOARD: |
Fencebanner Limited (Registered number: 05031476) |
Report of the Director |
for the Year Ended 30 April 2021 |
The director presents his report with the financial statements of the Company and the Group for the year ended 30 April 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the year under review was that of electrical retailing. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2021 will be £233,600. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, Harris & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Fencebanner Limited |
Opinion |
We have audited the financial statements of Fencebanner Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 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 30 April 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 qualified 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director 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 Director have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Fencebanner Limited |
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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the Group or the Parent Company or to cease operations, or has 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
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: |
- Enquiring of management, including obtaining and reviewing supporting documentation, concerning the |
company's policies and procedures relating to: |
- Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- 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 risk related to fraud or non-compliance with laws & regulations; |
- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act, UK Generally Accepted Accounting Practice, tax legislation and the Government's Coronavirus Business Support Schemes. |
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. |
Independent Auditors' Report to the Members of |
Fencebanner Limited |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess |
compliance with relevant laws and regulations; |
- Enquiring of management concerning actual and potential litigation and claims; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; and |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of |
journal entries and other adjustments; assessing the judgements used in accounting estimates to assess |
whether these may be indicative of potential bias; and evaluating the business rationale of any significant |
transactions that are unusual or outside the normal course of business. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
for and on behalf of |
Chartered Accountants & Statutory Auditor |
Marland House |
13 Huddersfield Road |
Barnsley |
South Yorkshire |
S70 2LW |
Fencebanner Limited (Registered number: 05031476) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 21,850,947 | 20,108,261 |
Cost of sales | 17,255,702 | 15,991,863 |
GROSS PROFIT | 4,595,245 | 4,116,398 |
Administrative expenses | 3,430,752 | 3,281,761 |
1,164,493 | 834,637 |
Other operating income | 4 | 130,873 | 63,640 |
OPERATING PROFIT | 6 | 1,295,366 | 898,277 |
Interest receivable and similar income | 1 | 2 |
1,295,367 | 898,279 |
Interest payable and similar expenses | 7 | 17,176 | 32,447 |
PROFIT BEFORE TAXATION | 1,278,191 | 865,832 |
Tax on profit | 8 | 244,091 | 169,992 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,034,100 |
695,840 |
Profit attributable to: |
Owners of the parent | 1,034,100 | 695,840 |
Total comprehensive income attributable to: |
Owners of the parent | 1,034,100 | 695,840 |
Fencebanner Limited (Registered number: 05031476) |
Consolidated Balance Sheet |
30 April 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 1,919,485 | 1,971,040 |
Investments | 12 | 500 | 500 |
1,919,985 | 1,971,540 |
CURRENT ASSETS |
Stocks | 13 | 4,980,468 | 2,513,474 |
Debtors | 14 | 466,572 | 656,665 |
Cash at bank and in hand | 145,279 | 1,024,669 |
5,592,319 | 4,194,808 |
CREDITORS |
Amounts falling due within one year | 15 | 2,733,395 | 2,544,715 |
NET CURRENT ASSETS | 2,858,924 | 1,650,093 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,778,909 |
3,621,633 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(1,059,244 |
) |
(692,693 |
) |
PROVISIONS FOR LIABILITIES | 20 | (67,392 | ) | (77,167 | ) |
NET ASSETS | 3,652,273 | 2,851,773 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Retained earnings | 22 | 3,652,173 | 2,851,673 |
SHAREHOLDERS' FUNDS | 3,652,273 | 2,851,773 |
The financial statements were approved by the director and authorised for issue on 20 December 2021 and were signed by: |
Mr R J Moore - Director |
Fencebanner Limited (Registered number: 05031476) |
Company Balance Sheet |
30 April 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | - | - |
Investments | 12 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 232,386 | 194,001 |
The financial statements were approved by the director and authorised for issue on |
Fencebanner Limited (Registered number: 05031476) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2019 | 100 | 2,348,833 | 2,348,933 |
Changes in equity |
Dividends | - | (193,000 | ) | (193,000 | ) |
Total comprehensive income | - | 695,840 | 695,840 |
Balance at 30 April 2020 | 100 | 2,851,673 | 2,851,773 |
Changes in equity |
Dividends | - | (233,600 | ) | (233,600 | ) |
Total comprehensive income | - | 1,034,100 | 1,034,100 |
Balance at 30 April 2021 | 100 | 3,652,173 | 3,652,273 |
Fencebanner Limited (Registered number: 05031476) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2019 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2021 |
Fencebanner Limited (Registered number: 05031476) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (753,008 | ) | 1,932,416 |
Interest paid | (10,959 | ) | (27,703 | ) |
Interest element of hire purchase payments paid |
(6,217 |
) |
(4,744 |
) |
Tax paid | (263,482 | ) | (89,378 | ) |
Net cash from operating activities | (1,033,666 | ) | 1,810,591 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (22,479 | ) | (84,509 | ) |
Sale of tangible fixed assets | 11,695 | 32,649 |
Interest received | 1 | 2 |
Net cash from investing activities | (10,783 | ) | (51,858 | ) |
Cash flows from financing activities |
New loans in year | 500,000 | - |
Loan repayments in year | (90,948 | ) | - |
Capital repayments in year | (18,061 | ) | 16,430 |
Amount introduced by directors | 13,219 | 2,325 |
Amount withdrawn by directors | (5,551 | ) | (11,755 | ) |
Equity dividends paid | (233,600 | ) | (193,000 | ) |
Net cash from financing activities | 165,059 | (186,000 | ) |
(Decrease)/increase in cash and cash equivalents | (879,390 | ) | 1,572,733 |
Cash and cash equivalents at beginning of year |
2 |
1,024,669 |
(548,064 |
) |
Cash and cash equivalents at end of year |
2 |
145,279 |
1,024,669 |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation | 1,278,191 | 865,832 |
Depreciation charges | 65,570 | 68,479 |
Profit on disposal of fixed assets | (3,231 | ) | (5,781 | ) |
Finance costs | 17,176 | 32,447 |
Finance income | (1 | ) | (2 | ) |
1,357,705 | 960,975 |
(Increase)/decrease in stocks | (2,466,994 | ) | 1,148,951 |
Decrease in trade and other debtors | 182,425 | 213,167 |
Increase/(decrease) in trade and other creditors | 173,856 | (390,677 | ) |
Cash generated from operations | (753,008 | ) | 1,932,416 |
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 30 April 2021 |
30/4/21 | 1/5/20 |
£ | £ |
Cash and cash equivalents | 145,279 | 1,024,669 |
Year ended 30 April 2020 |
30/4/20 | 1/5/19 |
£ | £ |
Cash and cash equivalents | 1,024,669 | 30,252 |
Bank overdrafts | - | (578,316 | ) |
1,024,669 | (548,064 | ) |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1/5/20 | Cash flow | At 30/4/21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,024,669 | (879,390 | ) | 145,279 |
1,024,669 | (879,390 | ) | 145,279 |
Debt |
Finance leases | (143,504 | ) | 18,061 | (125,443 | ) |
Debts falling due within 1 year | (39,215 | ) | (10,472 | ) | (49,687 | ) |
Debts falling due after 1 year | (587,926 | ) | (398,580 | ) | (986,506 | ) |
(770,645 | ) | (390,991 | ) | (1,161,636 | ) |
Total | 254,024 | (1,270,381 | ) | (1,016,357 | ) |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2021 |
1. | STATUTORY INFORMATION |
Fencebanner Limited is a |
The presentation and functional currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in compliance with FRS 102, 'The Financial Standard Applicable in the UK and the Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. |
Going concern |
The global COVID-19 pandemic has hugely impacted the UK and caused enormous disruption across the whole society, economy and businesses in all sectors, including the electrical retail industry. However, the company has a strong balance sheet and has sufficient funds and facilities to withstand this disruption for the foreseeable future. Accordingly the directors have a reasonable expectation that the company has adequate financial resources to continue in operational existence for the foreseeable future and so the financial statements are prepared on a going concern basis. |
Basis of consolidation |
The financial statements incorporate the financial statements of the company and all group |
undertakings made up to 30 April 2021. A subsidiary is an entity controlled by the company. Control exists when the company has power, directly or indirectly to govern the operating policies of the entity so as to derive benefits from its activities. |
The consolidation of the subsidiary companies has been accounted for using the acquisition method of accounting. Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control. The financial statements of all subsidiary companies are prepared to the same accounting date as the parent company. Uniform accounting policies are followed throughout the group. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
The significant judgements and estimates applied in the preparation of these financial statements are the useful lives and residual values of property; stock provisions; and dilapidation provisions. All accounting policies, judgements and estimates have been consistently applied to all years presented unless otherwise stated. |
Turnover |
Turnover represents amounts earned on goods and services provided during the year and derives from the provision of goods and services falling within the company's ordinary activities. |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
3. | ACCOUNTING POLICIES - continued |
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 | - | not provided as in the opinion of the directors theresidual value of the freehold buildings at the end of their useful life is not significantly less than original cost. |
Long leasehold | - | Over the life of the lease straight line |
Fixtures and fittings | - | 25% on reducing balance, 20% on cost straight line and 10% onreducing balance |
All fixed assets are initially recorded at cost. |
Government grants |
Government grants are recognised in accordance with the accrual model of Section 24 of FRS 102. |
Grants became receivable as compensation for expenses already incurred for the purpose of giving immediate financial support to the entity with no future related costs recognised in income in the period in which the grant became receivable. |
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 Consolidated 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. |
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. |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
4. | OTHER OPERATING INCOME |
2021 | 2020 |
£ | £ |
Rents received |
Sundry receipts | 18,051 | 7,000 |
Government grants |
130,873 | 63,640 |
Government grants relate to coronavirus job retention support scheme grants, as well as business rates relief and support for business grants received from the government during the pandemic. In the opinion of the directors, there are no material unfulfilled conditions or other contingencies relating to this income. |
5. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Directors | 2 | 2 |
Administrative | 37 | 39 |
The average number of employees by undertakings that were proportionately consolidated during the year was 39 (2020 - 41 ) . |
2021 | 2020 |
£ | £ |
Director's remuneration |
Director's pension contributions to money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
Hire purchase |
8. | 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 |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Deferred tax | (7,975 | ) | (8,491 | ) |
Total tax charge | 244,091 | 169,992 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
10. | DIVIDENDS |
2021 | 2020 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
B Ordinary shares of £1 each |
Interim |
C Ordinary shares of £1 each |
Interim |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and |
property | fittings | Totals |
£ | £ | £ |
COST |
At 1 May 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2021 |
DEPRECIATION |
At 1 May 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2021 |
NET BOOK VALUE |
At 30 April 2021 |
At 30 April 2020 |
Included within fixed assets are assets held under hire purchase with a net book value of £110,789 |
(2020 - £147,719). Depreciation for the year amounted to £36,930 (2020 - £34,012). |
Freehold buildings are maintained to a high standard. In addition, in the opinion of the directors the |
residual value of the freehold buildings at the end of their useful life is not significantly less than original cost and so no depreciation is necessary. |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
12. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 May 2020 |
and 30 April 2021 | 500 |
NET BOOK VALUE |
At 30 April 2021 | 500 |
At 30 April 2020 | 500 |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 May 2020 |
and 30 April 2021 |
NET BOOK VALUE |
At 30 April 2021 |
At 30 April 2020 |
The Group or the Company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
2021 | 2020 |
£ | £ |
Stocks | 4,980,468 | 2,513,474 |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Trade debtors | 422,940 | 586,567 |
Directors' current accounts | 1,706 | 9,374 |
VAT | 232 | - |
Prepayments and accrued income | 41,694 | 60,724 |
466,572 | 656,665 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 49,687 | 39,215 |
Hire purchase contracts (see note 18) | 52,705 | 38,737 |
Trade creditors | 2,370,826 | 1,769,451 |
Corporation tax | 167,067 | 178,483 |
Social security and other taxes | 31,849 | 28,320 |
VAT | - | 367,664 | - | - |
Other creditors | 17,225 | 6,194 |
Accruals and deferred income | 44,036 | 116,651 |
2,733,395 | 2,544,715 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Bank loans (see note 17) | 986,506 | 587,926 |
Hire purchase contracts (see note 18) | 72,738 | 104,767 |
1,059,244 | 692,693 |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 49,687 | 39,215 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 150,816 | 39,215 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 373,528 | 117,644 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more than 5 years |
by instalments | 462,162 | 431,067 |
462,162 | 431,067 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year | 52,705 | 38,737 |
Between one and five years | 72,738 | 104,767 |
125,443 | 143,504 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
£ | £ |
Bank loans | 1,036,193 | 627,141 |
Hire purchase contracts | 125,443 | 143,504 |
1,161,636 | 770,645 |
The bank loans are secured on certain properties by means of legal mortgages and a debenture. |
The net obligations under hire purchase contracts are secured on the asset which is the subject of the |
contract. |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 14,392 | 22,367 |
Other provisions | 53,000 | 54,800 |
Aggregate amounts | 67,392 | 77,167 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 May 2020 | 22,367 | 54,800 |
Credit to Statement of Comprehensive Income during year | (7,975 | ) | - |
Balance at 30 April 2021 | 14,392 | 54,800 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
A Ordinary | £1 | 75 | 75 |
B Ordinary | £1 | 15 | 15 |
C Ordinary | £1 | 10 | 10 |
100 | 100 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 May 2020 | 2,851,673 |
Profit for the year | 1,034,100 |
Dividends | (233,600 | ) |
At 30 April 2021 | 3,652,173 |
Fencebanner Limited (Registered number: 05031476) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2021 |
22. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 May 2020 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2021 |
23. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 April 2021 and 30 April 2020: |
2021 | 2020 |
£ | £ |
Mr R J Moore |
Balance outstanding at start of year | 9,373 | - |
Amounts advanced | 5,551 | 11,698 |
Amounts repaid | (13,219 | ) | (2,325 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,705 | 9,373 |
24. | RELATED PARTY DISCLOSURES |
There is an unlimited multilateral guarantee between Fencebanner Limited, Crampton and Moore (Television) Limited and Horsleygate Hall Limited. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are RJ and MJ Moore. |
26. | SUBSEQUENT EVENTS |
After the year-end, the group purchased new premises for £4,100,000, funded by bank borrowings secured on the new premises. |