Grangewood Fencing Supplies Limited - Limited company accounts 20.1
Grangewood Fencing Supplies Limited - Limited company accounts 20.1
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Statement of Income and Retained Earnings | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 14 |
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditor |
| Oakhurst House |
| 57 Ashbourne Road |
| Derby |
| Derbyshire |
| DE22 3FS |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| The directors present their strategic report for the year ended 30 June 2021. |
| REVIEW OF BUSINESS |
| The directors regard turnover and net profit margin as the key performance indicators of the business. |
| Despite difficult trading conditions caused by the global pandemic, 2021 was a year of exceptional performance. Turnover increased during the year and net profit margin remained strong. |
| The company has continued to increase its stock levels to facilitate efficient delivery lead times in the face of some product shortages caused by Covid and world events. |
| As a result of this programme of investment, the directors believe that the company is now in a strong position to respond to continued demand. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company faces some business risks and uncertainties due to current increases in energy costs which may cause a reduction in household spending. However, this has not been reflected in our performance as yet. World events may require this to be reviewed at a later date. |
| EVENTS SINCE THE END OF THE YEAR |
| We have now expanded our online presence to include eBay which has opened the company up to a much wider market. Such sales are expected to generate revenue of up to £1 million per year at a favourable margin. |
| ON BEHALF OF THE BOARD: |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| The directors present their report with the financial statements of the company for the year ended 30 June 2021. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of the supply of fencing products. |
| DIVIDENDS |
| Interim dividends per share were paid during the year as follows: |
| Ordinary A £1 | - | £ |
| Ordinary B £1 | - | £ |
| Ordinary C £1 | - | £2600 |
| Ordinary D £1 | - | £2000 |
| Ordinary E £1 | - £2000 |
| The total distribution of dividends for the year ended 30 June 2021 will be £ |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 July 2020 to the date of this report. |
| FINANCIAL INSTRUMENTS |
| The company's financial assets of trade debtors, cash balances and stock far exceed it's liabilities of creditors, bank loans and overdrafts. The directors manage the company's exposure to financial risk by researching the credit worthiness of customers. Currency risk is restricted to the short term settlement of trading balances with customers and suppliers. The company does not trade speculatively in derivatives or similar instruments. |
| 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), 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. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 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, Sibbalds Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| Qualified opinion |
| We have audited the financial statements of Grangewood Fencing Supplies Limited (the 'company') for the year ended 30 June 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 June 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 qualified opinion |
| We were not appointed as auditor of the company until after 30 June 2020 and thus did not observe the counting of physical stock at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £590,000 held at 30 June 2020 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount at 30 June 2020 was necessary or whether there was any consequential effect on the cost of sales for the year ended 30 June 2021. In addition, were any adjustment to stock or cost of sales to be required, the strategic report would also need to be amended. |
| We were also not able to obtain sufficient appropriate audit evidence in relation to sales cut off as at 30 June 2020 for the same reason. Consequently, we were unable to determine whether any adjustments are required to turnover or deferred income in that year. We are also unable to determine whether there was any consequential effect on turnover for the year ended 30 June 2021. In addition, were any adjustment to revenue or deferred income to be required, the strategic report would also need to be amended. |
| 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 qualified 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. |
| Key audit matters |
| Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| 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 |
| Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 |
| Except for the matter described in the basis for qualified opinion section of our report, 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. |
| Arising solely from the limitation on the scope of our work as detailed in the 'basis for qualified opinion' section referred to above: |
| - | we have not obtained all the information and explanations that we considered necessary |
| for the purpose of our audit; and |
| - | we were unable to determine whether adequate accounting records have been kept. |
| We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | 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. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Based on our knowledge of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of health and safety laws and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate results and management bias in significant accounting estimates and judgements. Audit procedures performed by the engagement team in relation to these risks included: |
| - | Discussions with the Managing Director, including consideration of known or suspected instances of |
| non-compliance with laws and regulations or fraud; |
| - | Evaluation of management's internal controls designed to prevent and detect irregularities; |
| - | Reviewing sensitive expense accounts for evidence of non-compliance with laws and regulations or fraud. |
- |
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or of exceptional size. |
- |
Challenging assumptions and judgements made by management in their significant accounting estimates and judgements, in particular in relation to investment property valuation. |
| 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. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| GRANGEWOOD FENCING SUPPLIES LIMITED |
| 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditor |
| Oakhurst House |
| 57 Ashbourne Road |
| Derby |
| Derbyshire |
| DE22 3FS |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| STATEMENT OF INCOME AND RETAINED EARNINGS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Year Ended | Period |
| 30.6.21 | 1.3.19 to 30.6.20 |
| as restated |
| Notes | £ | £ | £ | £ |
| TURNOVER |
| Cost of sales |
| GROSS PROFIT |
| Distribution costs |
| Administrative expenses |
| 1,915,746 | 2,614,008 |
| 1,184,581 | 1,050,591 |
| Other operating income |
| OPERATING PROFIT | 4 |
| Intra-group loan write off | 5 |
| 1,237,136 | 1,106,072 |
| Interest receivable and similar income | 6 |
| 1,238,236 | 1,115,658 |
| Interest payable and similar expenses | 7 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 8 |
| PROFIT FOR THE FINANCIAL YEAR |
| Retained earnings at beginning of year as previously reported |
2,866,446 |
2,368,544 |
| Dividends | 9 | ( |
) | ( |
) |
| Prior year adjustment - corrections of material errors |
10 |
108,601 |
- |
| RETAINED EARNINGS AT END OF YEAR |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| BALANCE SHEET |
| 30 JUNE 2021 |
| 2021 | 2020 |
| as restated |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| Investment property | 14 |
| CURRENT ASSETS |
| Stocks | 15 |
| Debtors | 16 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Retained earnings | 2,975,047 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | - | 125,620 |
| Amount withdrawn by directors | (167,140 | ) | (256,410 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Increase in cash and cash equivalents |
| Cash and cash equivalents at beginning of year |
2 |
(71,005 |
) |
| Cash and cash equivalents at end of year | 2 | 1,038,413 | 932,585 |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Finance costs | 44,019 | 87,613 |
| Finance income | (1,100 | ) | (9,586 | ) |
| 1,275,324 | 1,202,770 |
| (Increase)/decrease in stocks | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 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 June 2021 |
| 30.6.21 | 1.7.20 |
| £ | £ |
| Cash and cash equivalents | 1,038,413 | 932,585 |
| Period ended 30 June 2020 |
| 30.6.20 | 1.3.19 |
| as restated |
| £ | £ |
| Cash and cash equivalents | 932,585 | 23,912 |
| Bank overdrafts | ( |
) |
| 932,585 | (71,005 | ) |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.7.20 | Cash flow | At 30.6.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 932,585 | 105,828 | 1,038,413 |
| 932,585 | 1,038,413 |
| Debt |
| Finance leases | (19,599 | ) | 18,560 | (1,039 | ) |
| Debts falling due within 1 year | (121,845 | ) | 45,677 | (76,168 | ) |
| Debts falling due after 1 year | (1,436,728 | ) | 36,783 | (1,399,945 | ) |
| (1,578,172 | ) | 101,020 | (1,477,152 | ) |
| Total | (645,587 | ) | 206,848 | (438,739 | ) |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 1. | STATUTORY INFORMATION |
| Grangewood Fencing Supplies Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| In the previous year, the company has changed its financial year end from 28 February to 30 June due to COVID-19, hence the extended 16 month comparative period. For this reason, the comparative information is not entirely comparable. |
| Preparation of consolidated financial statements |
| The financial statements contain information about Grangewood Fencing Supplies Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
| 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. |
| Critical accounting judgements and key sources of estimation uncertainty |
| In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions regarding the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant. They are reviewed on a regular basis and changes recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
| The following are the critical accounting judgements and key sources of estimation uncertainty: |
| Tangible fixed assets are depreciated over their useful economic lives taking into account their 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 the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. |
| The recoverability of debtors is assessed on the likelihood and circumstances of the particular charge. |
| The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken into account. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover represents the amounts derived from the provision of goods and services to customers during the year. Revenue is recognised in the income statement when a right to the consideration has been obtained through performance. |
| Goodwill |
| Acquired goodwill is written off, in equal instalments, over its estimated useful life of 10 years. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Computer equipment | - |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost less impairment. |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Cost includes all costs incurred in bringing each product to its present location and condition on a FIFO (first in, first out) basis. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Financial liabilities |
| Short term creditors are measured at transaction price. Other financial liabilities, including loans from group companies are measured initially at fair value, net of transaction cost and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
| Financial assets |
| Short term debtors are measured at transaction price, less any impairment. Other financial assets, including loans to group companies are measured initially at fair value, net of transactions cost and are subsequently measured at amortised cost using the effective interest method, less any impairment. |
| Going concern |
| After reviewing the company's forecasts and projections plus the latest financial information, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern policy in preparing its financial statements. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 3. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| Directors | 2 | 2 |
| Admin | 3 | 2 |
| Direct | 22 | 26 |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 4. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| 5. | EXCEPTIONAL ITEMS |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Intra-group loan write off | ( |
) |
| 6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Deposit account interest |
| Other interest receivable |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Bank interest |
| Bank loan interest |
| Interest on taxation |
| Loan interest |
| Hire purchase interest |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Tax adj re previous year | 37,382 | - |
| Total current tax |
| Deferred tax |
| Tax on profit |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 8. | TAXATION - continued |
| 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: |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| Other permanent differences | (13 | ) | 3,262 |
| Adjustments due to changes in tax rates | 34,298 | - |
| Total tax charge | 298,568 | 177,957 |
| In his budget of 3 March 2021. the Chancellor of the Exchequer announced that the UK corporation tax rate will remain at 19% for the years starting 1 April 2021 and 1 April 2022, before increasing to 25% for companies with profits over £250,000 for the year starting 1 April 2023. This has been reflected in the company's financial statements in the current and future years and deferred tax has subsequently been provided at this rate. This will impact the amount of future cash tax payments made by the company. |
| In the future, the company expects to be able to continue to claim capital allowances in excess of depreciation. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 9. | DIVIDENDS |
| Period |
| 1.3.19 |
| Year Ended | to |
| 30.6.21 | 30.6.20 |
| as restated |
| £ | £ |
| Ordinary shares of £1 each |
| Interim | - | 5,000 |
| Ordinary A shares of £1 each |
| Interim |
| Ordinary B shares of £1 each |
| Interim |
| Ordinary C shares of £1 each |
| Interim |
| Ordinary D shares of £1 each |
| Interim |
| Ordinary E shares of £1 each |
| Interim | 20,000 | 42,000 |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 10. | PRIOR YEAR ADJUSTMENT |
| Investment property |
| The comparatives have been restated to adjust for investment property that was incorrectly classified under land and buildings in fixed assets. |
| This has resulted in a £300,000 reduction to freehold property within fixed assets and a £300,000 increase to investment property. |
| These adjustments have had no affect on net profit. |
| Intra-group loan |
| The comparatives have been restated to adjust for an intra-group loan which should have been written off in the previous year as the company involved had been dissolved. |
| This has resulted in a £88,147 reduction to amounts owed by group undertakings within debtors in the balance sheet and a £88,147 increase to exceptional costs in the statement of income and retained earnings. |
| These adjustments have led to a £88,147 reduction to net profit. |
| Wages recharge |
| The comparatives have been restated to adjust for wages which should have been recharged to a subsidiary in the previous year. |
| This has resulted in a £173,948 increase to amounts due from group undertakings within debtors in the balance sheet, a £74,599 decrease to other income and a £248,547 decrease to administrative expenses in the statement of income and retained earnings. |
| These adjustments have led to a £173,948 increase to net profit. |
| Rent recharge |
| The comparatives have been restated to adjust for rent which should have been recharged to a subsidiary in the previous year. |
| This has resulted in a £22,800 increase to amounts due from group undertakings in the balance sheet and a £22,800 increase to other income in the statement of income and retained earnings. |
| These adjustments have led to a £22,800 increase to net profit. |
| Overall |
| In total, the above adjustments have led to a £108,601 increase to net profit in the comparative period. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 11. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 |
| AMORTISATION |
| At 1 July 2020 |
| and 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| 12. | TANGIBLE FIXED ASSETS |
| Freehold | Plant and | Motor | Computer |
| property | machinery | vehicles | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 July 2020 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 June 2021 |
| DEPRECIATION |
| At 1 July 2020 |
| Charge for year | ( |
) |
| Eliminated on disposal | ( |
) | ( |
) |
| At 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| The net book value of tangible fixed assets includes £ 21,466 (2020 - £ 39,236 ) in respect of assets held under hire purchase contracts. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 13. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertaking |
| £ |
| COST |
| At 1 July 2020 |
| and 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| The company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Registered office: |
| Nature of business: |
| % |
| Class of shares: | holding |
| Registered office: |
| Nature of business: |
| % |
| Class of shares: | holding |
| 14. | INVESTMENT PROPERTY |
| Total |
| £ |
| FAIR VALUE |
| At 1 July 2020 |
| and 30 June 2021 |
| NET BOOK VALUE |
| At 30 June 2021 |
| At 30 June 2020 |
| The fair value of investment property has been assessed by the directors based on market conditions present at the year end. There has been no independent professional valuation. |
| If investment property had not been revalued it would have been included at the historical cost of £135,366. |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 15. | STOCKS |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Finished goods |
| 16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Trade debtors |
| Provision for bad debts | - | (99,831 | ) |
| Amounts owed by group undertakings |
| Other debtors |
| Directors' current accounts | 23,443 | 257,414 |
| Prepayments and accrued income |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Bank loans and overdrafts (see note 19) |
| Hire purchase contracts (see note 20) |
| Trade creditors |
| Amounts owed to group undertakings |
| Tax |
| Social security and other taxes |
| VAT | 248,940 | 246,983 |
| Other creditors |
| Directors' current accounts | 116,888 | - |
| Deferred income |
| Accrued expenses |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Bank loans (see note 19) |
| Hire purchase contracts (see note 20) |
| Other creditors |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 19. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 286,762 | 309,277 |
| Bank loans include £394,037 which is repayable in monthly instalments with the balance repayable in full by March 2036. Interest is charged at 2.8% above base rate. |
| Bank loans include £1,032,076 which is repayable in monthly instalments based on a 20 year repayment profile, with the remaining balance repayable in full in September 2022. Interest is charged at 2.55% above base rate. |
| Bank loans include £50,000 which is repayable in monthly instalments after an initial 12 month repayment holiday. During this 12 months the government will cover the interest charge via a business interruption payment. The loan will be fully repaid in January 2027. Interest is charged at 2.5%. |
| 20. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 20. | LEASING AGREEMENTS - continued |
| Non-cancellable operating | leases |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 21. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Bank loans |
| Hire purchase contracts | 1,039 | 19,599 |
| The bank borrowings are secured by a debenture over the company's assets and a first legal charge over the company's freehold properties at Osmaston Road, Derby and Bonehill Road, Tamworth. |
| D S Baskerville has also provided a guarantee amounting to £600,000 on the facilities provided by the banks. |
| Liabilities under hire purchase agreements are secured on the assets concerned. |
| 22. | PROVISIONS FOR LIABILITIES |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Deferred tax | 143,000 | 95,000 |
| Deferred |
| tax |
| £ |
| Balance at 1 July 2020 |
| Charge to Income Statement during year |
| Balance at 30 June 2021 |
| GRANGEWOOD FENCING SUPPLIES LIMITED (REGISTERED NUMBER: 04609510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 30 JUNE 2021 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2021 | 2020 |
| value: | as restated |
| £ | £ |
| Ordinary A | £1 | 48 | 48 |
| Ordinary B | £1 | 27 | 27 |
| Ordinary C | £1 | 5 | 5 |
| Ordinary D | £1 | 10 | 10 |
| 10 | Ordinary E | £1 | 10 | 10 |
| 100 | 100 |
| 24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the year ended 30 June 2021 and the period ended 30 June 2020: |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | ( |
) |
| Balance outstanding at start of year |
| Amounts advanced |
| Amounts repaid | ( |
) | ( |
) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year |
| The above balances are repayable on demand and interest is charged at 2.5%. The total amount of interest charged to the director's loan account at the year end was £1,069 (2020: £9,408). |
| 25. | RELATED PARTY DISCLOSURES |
| 2021 | 2020 |
| as restated |
| £ | £ |
| Sales |
| Rent | 51,241 | 34,160 |
| Amount due from related party |