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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 March 2018 |
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for |
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Ivor Shaw Limited |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 March 2018 |
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for |
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Ivor Shaw Limited |
Ivor Shaw Limited (Registered number: 00755641) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2018 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Profit and Loss Account | 9 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Notes to the Financial Statements | 13 |
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Ivor Shaw Limited |
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Company Information |
for the Year Ended 31 March 2018 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
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BANKERS: |
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25 Gresham Street |
London |
EC2V 7HN |
Ivor Shaw Limited (Registered number: 00755641) |
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Strategic Report |
for the Year Ended 31 March 2018 |
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The directors present their strategic report for the year ended 31 March 2018. |
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REVIEW OF BUSINESS |
Ivor Shaw Limited, trading as Pennine Healthcare, specialises in the production of sterile products for |
anaesthetic, respiratory, gastroenterology, urology and surgical suction applications. In addition, the company |
assembles customised packs for a wide variety of surgical procedures for veterinary and medical applications |
and buys medical supplies and equipment for resale to customers to extend its product offering. |
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Results for the company show an operating profit of £319k for the year ending March 2018, compared to a |
£179k loss for the previous year. Turnover was £22.5m compared to £26.1m in the last year. Gross profit was |
£4.7m equivalent to 21.0% of sales, compared to £4.6m and 17.6% in the previous year. The main reason for |
the reduction in sales was due to the divestment of the UK pack business in the year ending 2017. |
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Research and development |
Continuing investment in research and development is key to the success of the business. New products |
have been designed and bought to market during the year. Bespoke machinery is designed by a technical |
engineering team from Riverside Medical. The company is able to retain control over product manufacturing |
methods and can readily adapt its product offering to respond swiftly to new markets and advances in surgical |
techniques. |
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Brexit |
Brexit will impact the company as European sales make up 46.6% of the business. The business continues to |
increase our share of the European pack business through key relationships with distributors. The strength of |
the euro following the referendum has been positive as we are a net exporter to the Eurozone and have a |
positive cash flow of euros. |
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Over recent weeks and months we have been engaging more and more with suppliers with regards to Brexit; |
as a result, we have written to all our customers with our views. We believe that a "deal" will take place and |
there will be no hard Brexit; if that is the case, we see very little change and it will be business as usual. |
However, it is important we plan for the unlikely situation that we will have "no deal" and the Pennine team |
have been working on a number of initiatives to offset any short and long-term issues that may arise. We are |
in advance discussions with an EU Approved Representative to ensure that there are no CE mark and |
regulatory issues, so that goods can move freely across Europe. We are discussing contingency plans with |
our suppliers particularly those in Europe to ensure that they are increasing stock levels and working on any |
regulatory requirements importing goods into the UK. |
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Dependent on the deal achieved, exchange rates and the duty rate on goods we supply to the Eurozone may |
change. However, the largest sales volume is on goods we directly ship from China to Germany where the |
duty rates will not change. |
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For supplies into the company, there could be a change in duty to be paid to the UK government. At the |
current moment in time, our view is that the UK government is unlikely to make changes that could adversely |
impact UK business and we are expecting duty rates for incoming goods to remain the same. |
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The fall in the pound compared to the US dollar following the referendum hit the company hard as we |
purchase many of our pack components in US dollars. A further fall has been seen recently following the |
protectionist policies from the Trump government. We are not expecting any further rate changes with the |
dollar as a result of Brexit going forward. |
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Future outlook |
The business won additional NHS business in April 2018, which started in July 2018. New product lines have |
been agreed with one of our key UK customers from August 2018. Additional European pack business has |
recently been secured and there are further opportunities being developed. |
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We introduced a new Orthopaedic business stream in Autumn 2017 and will be expanding our product |
offering to grow the business and attract new customers. |
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The company continues to explore and develop other overseas markets to compensate for the increased risk |
in the Eurozone. Despite these challenges, excellent opportunities remain for the development of both our |
core and new business and we are confident that we will maintain our performance. |
Ivor Shaw Limited (Registered number: 00755641) |
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Strategic Report |
for the Year Ended 31 March 2018 |
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Capital investment will be required to reduce operating costs and maintain our market share. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the business's strategy are subject to a number of |
risks. |
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The key business risks and uncertainties affecting the business relate to competition from low-cost |
manufacturing economies, foreign currency fluctuations and changes in regulatory framework. |
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Key performance indicators |
Given the straightforward nature of the business, the company's directors are of the opinion that no further |
analysis using KPIs is required to provide an appreciation of the development, performance or position of the |
business's performance beyond debtor and creditor analysis. |
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Financial risk management objectives and policies |
The company uses basic financial instruments, comprising bank borrowings and other liquid resources and |
various other items such as trade debtors and creditors that arise directly from its operations. The main |
purpose of these financial instruments is to maintain finance for operations. The main risks arising from the |
financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for |
managing each of these risks and they are summarised below: |
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Interest rate risk |
The company finances its operations through a mixture of retained profits, director's loans and bank |
borrowings. In 2017, the company moved from a traditional overdraft facility with the bank to a new invoicing |
loan facility where the company can borrow against the sterling invoices raised at an agreed rate of interest. |
This has worked well to fund the new business opportunities and has minimised the exposure to interest rate |
fluctuations. |
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Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable |
needs. Primarily this was achieved through increased bank borrowings and an additional director's loan in the |
financial year. |
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EMPLOYMENT POLICIES |
Within the bounds of confidentiality, staff at all levels are kept fully informed of matters that affect the |
progress of the business and are of interest to them as employees. |
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Disabled persons are given full and fair consideration for all types of vacancy. If an existing employee |
becomes disabled, such steps as are practical and reasonable are taken to retain him/her in employment. |
Where appropriate, assistance with rehabilitation and suitable training are given. |
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Disabled persons have equal opportunities for training, career development and promotion, except insofar as |
such opportunities are constrained by the practical limitations of their disability. |
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GOVERNANCE |
L R Fryer remains Chief Executive and is responsible for the day to day running of the business. Mrs E J |
Fothergill continues the responsibility of Chair providing strategic guidance to the overall business and the |
board. |
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ON BEHALF OF THE BOARD: |
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Ivor Shaw Limited (Registered number: 00755641) |
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Report of the Directors |
for the Year Ended 31 March 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2018. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the manufacture and distribution of |
medical products. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2018. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this |
report. |
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CHARITABLE CONTRIBUTIONS |
During the year, the company paid charitable donations of £3,651 to various small local charities and sent |
medical packs and consumables to the value of £860 to charities working in Africa and Romania. |
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DISCLOSURE IN THE STRATEGIC REPORT |
The matters required to be disclosed under SI (2008) 410 Sch 7 relating to financial instruments, research |
and development and employees are contained within the Strategic Report as applicable in accordance with |
s414C(11) of the Companies Act 2006. |
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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. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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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. |
Ivor Shaw Limited (Registered number: 00755641) |
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Report of the Directors |
for the Year Ended 31 March 2018 |
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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. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Ivor Shaw Limited |
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Opinion |
We have audited the financial statements of Ivor Shaw Limited (the 'company') for the year ended |
31 March 2018 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity |
and Notes to the Financial Statements, including a summary of significant accounting policies. The financial |
reporting framework that has been applied in their preparation is applicable law and United Kingdom |
Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard |
applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 March 2018 and of its profit for the
year then ended; |
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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. |
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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. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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. |
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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. |
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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 there is a |
material misstatement in the financial statements or a material misstatement of the other information. 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. |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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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 |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
Report of the Independent Auditors to the Members of |
Ivor Shaw Limited |
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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. |
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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: |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair |
view, and for such internal control as the directors determine necessary to enable the preparation of financial |
statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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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. |
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As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain |
professional scepticism throughout the audit. We also: |
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the directors. |
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern. |
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Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
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We communicate with those charged with governance regarding, among other matters, the planned scope |
and timing of the audit and significant audit findings, including any significant deficiencies in internal control |
that we identify during our audit. |
Report of the Independent Auditors to the Members of |
Ivor Shaw Limited |
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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. |
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for and on behalf of
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Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
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Ivor Shaw Limited (Registered number: 00755641) |
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Profit and Loss Account |
for the Year Ended 31 March 2018 |
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2018 | 2018 | 2018 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales | ( |
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( |
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GROSS PROFIT |
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Distribution costs | ( |
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( |
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Administrative expenses | ( |
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( |
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OPERATING PROFIT | 5 |
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Interest payable and similar expenses | 6 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 | ( |
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( |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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Ivor Shaw Limited (Registered number: 00755641) |
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Profit and Loss Account |
for the Year Ended 31 March 2018 |
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2017 | 2017 | 2017 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales | ( |
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GROSS PROFIT |
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Distribution costs | ( |
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Administrative expenses | ( |
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OPERATING (LOSS)/PROFIT | 5 | ( |
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( |
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Interest receivable and similar income |
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Interest payable and similar expenses | 6 | ( |
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( |
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(LOSS)/PROFIT BEFORE TAXATION | ( |
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( |
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Tax on (loss)/profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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Ivor Shaw Limited (Registered number: 00755641) |
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Balance Sheet |
31 March 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investments | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 18 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Retained earnings | 20 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
its behalf by: |
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Ivor Shaw Limited (Registered number: 00755641) |
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Statement of Changes in Equity |
for the Year Ended 31 March 2018 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 March 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2018 |
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Ivor Shaw Limited (Registered number: 00755641) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2018 |
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1. | STATUTORY INFORMATION |
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Ivor Shaw Limited is a
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company's registered number and registered office address can be found on the Company Information |
page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and |
Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Turnover |
Turnover represents net invoiced sales of goods excluding VAT plus finished goods stock allocated to |
a binding order awaiting despatch to the customer, which includes relevant costs, overheads and |
attributable profit based on sales value at the balance sheet date. |
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Amounts recoverable on contracts are valued at anticipated net sales value of allocated finished goods |
after provision for contingencies and anticipated future losses. |
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Goodwill |
The deemed goodwill arising on the subsidiary acquired in 2008 is being amortised over 10 years from |
April 2009. |
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Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated |
impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset |
to the location and condition necessary for it to be capable of operating in the manner intended by |
management. |
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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. |
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Assets in the course of construction | - not provided |
Plant and machinery | - 10% - 20% on cost |
Fixtures and office equipment | - 10% - 20% on cost |
Motor vehicles | - 20% on cost |
Computer equipment | - 33% on cost |
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted |
prospectively if appropriate, or if there is an indication of a significant change since the last reporting |
date. |
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount |
and are recognised within 'cost of sales' and 'administrative expenses' in the profit and loss account. |
Ivor Shaw Limited (Registered number: 00755641) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after making due |
allowance for obsolete and slow moving items. |
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Cost represents the purchase invoice value of materials on a first in first out basis. Cost includes all |
direct expenditure and an appropriate proportion of fixed and variable overheads. |
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Net realisable value is based on estimated selling price less further costs expected to be incurred to |
completion and disposal. |
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At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is |
reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the |
profit and loss account. |
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Consignment stock |
Consignment stock included within both revenue and cost of sales is accounted for when the company |
obtains the risks and rewards of ownership. |
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Deferred tax |
Deferred tax arises from timing differences that are differences between taxable total profits and total |
comprehensive income as stated in the financial statements. These timing differences arise from the |
inclusion of income and expenses in tax assessments in periods different from those in which they are |
recognised in the financial statements. |
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A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable |
profits from which the future reversal of underlying timing differences and losses can be deducted. |
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Provision is made at current rates for taxation deferred in respect of all material timing differences. |
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Research and development |
Expenditure on research and development is written off in the period in which it is incurred. |
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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. |
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The company uses derivative financial instruments to reduce exposure to foreign exchange risk, the |
company does not hold or issue derivatives for speculative purposes. |
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Derivatives are initially recognised at fair value at the date the derivative contract is entered into and |
are subsequently re-measured to their fair value at each reporting date. The resulting gain or loss is |
recognised in the profit and loss account immediately unless the derivative is designated and effective |
as a hedging instrument, in which event the timing of the recognition in the profit and loss account |
depends on the nature of the hedge relationship. |
Ivor Shaw Limited (Registered number: 00755641) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
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2. | ACCOUNTING POLICIES - continued |
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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 the profit and loss account over the relevant |
period using the effective rate of interest. The capital element of the future payments is treated as a |
liability. |
|
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis |
over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution plan for its employees and a self-administered scheme |
for its directors. A defined contribution plan is a pension plan under which the company pays fixed |
contributions into a separate entity. Once the contributions have been paid, the company has no |
further payments obligations. The contributions are recognised as an expense when they fall due. |
Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held |
separately from the company in independently administered funds. |
|
Consolidation of subsidiary undertakings and related parties |
The company is an intermediate parent. It has taken advantage of the exemption provided by section |
400 of the Companies Act 2006 not to prepare group accounts as its results are included in the |
consolidated accounts of SP 225 Limited, accordingly the information presented in these financial |
statements relates to the company only. |
|
Related parties |
The company is a wholly owned subsidiary undertaking of SP 225 Limited. The company has taken |
advantage of the exemption contained within Financial Reporting Standard 102 and has therefore not |
disclosed transactions with entities which form part of the group, other than as normally disclosed in |
the notes to the financial statements. |
|
Fixed asset investments |
Fixed asset investments are stated at cost less provision for permanent diminution in value. |
|
Bank financing arrangements |
The gross equivalent of trade debts subject to a receivables financing agreement is included within |
trade debtors with the corresponding amount relating to the discounted sums received from the facility |
provider included within creditors. The interest element and other facility provider's charges are |
recognised within the profit and loss account as they accrue. |
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
2. | ACCOUNTING POLICIES - continued |
|
Judgements in applying accounting policies and key estimation uncertainties |
In the application of the company's accounting policies, the directors are required to make judgements, |
estimates and assumptions about the carrying amounts of the company's assets and liabilities. These |
are based on historical experience and other factors that are considered relevant and are reviewed on |
a regular basis and recognised in the period in which the estimate is revised. Actual results may differ |
from these estimates. |
|
The following are the critical judgements and, where relevant, the key sources of estimation |
uncertainty: |
|
Tangible fixed assets are depreciated over their useful economic lives, taking in to 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 cost. |
|
The value of stock is assessed for inclusion of costs of conversion and for impairment. In re-assessing |
the stock value, factors such as absorption of costs directly related to the units of production, slow |
movement and obsolescence are taken in to account. |
|
In making its judgement as to revenue recognition, management considered the detailed criteria set |
out in FRS 102 section 23 "Revenue" and, in particular, where the company had transferred to the |
buyer the significant risks and rewards of ownership of goods made to order. |
|
3. | TURNOVER |
|
The turnover and profit (2017 - loss) before taxation are attributable to the one principal activity of the |
company. |
|
An analysis of turnover by geographical market is given below: |
|
2018 | 2017 |
£ | £ |
UK | 9,280,049 | 14,853,262 |
EU | 10,488,974 | 9,096,607 |
Rest of the world | 2,736,546 | 2,184,422 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2018 | 2017 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2018 | 2017 |
|
Management and administration | 35 | 39 |
Production | 195 | 231 |
Selling and distribution | 35 | 58 |
|
|
|
2018 | 2017 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2018 | 2017 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT/(LOSS) |
|
The operating profit (2017 - operating loss) is stated after charging/(crediting): |
|
2018 | 2017 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Goodwill amortisation |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Research and development |
|
|
Operating lease payments |
|
|
Foreign exchange differences | ( |
) |
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2018 | 2017 |
£ | £ |
Bank interest |
|
|
Interest on taxation |
|
|
Director's loan interest |
|
|
Hire purchase and finance lease interest |
|
|
|
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
7. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Current tax: |
Tax under/(over) provided in previous periods | 125,600 | (292,158 | ) |
|
Deferred tax: |
Origination and reversal of timing differences | ( |
) | ( |
) |
Tax on profit/(loss) |
|
( |
) |
|
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
difference is explained below: |
|
2018 | 2017 |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of |
|
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods |
|
( |
) |
Research and development enhanced deduction | (169,026 | ) | (93,819 | ) |
Utilisation of losses | - | 101,964 |
Lower rate on deferred tax | - | (6,945 | ) |
Other permanent differences | (4,493 | ) | - |
Total tax charge/(credit) | 14,091 | (312,158 | ) |
|
8. | DIVIDENDS |
2018 | 2017 |
£ | £ |
Ordinary £1 shares of £1 each |
Interim | - | 1,000,000 |
Ordinary A shares of 25p each |
Special | - | 2,167,447 |
|
|
|
The special dividend is the dividend in specie arising from the divestment of the UK & Ireland theatre |
pack business in the prior year. |
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2017 |
and 31 March 2018 |
|
AMORTISATION |
At 1 April 2017 |
|
Amortisation for year |
|
At 31 March 2018 |
|
NET BOOK VALUE |
At 31 March 2018 |
|
At 31 March 2017 |
|
|
10. | TANGIBLE FIXED ASSETS |
Assets in | Fixtures |
the | Plant, | and |
course of | machinery | office |
construction | & instruments | equipment |
£ | £ | £ |
COST |
At 1 April 2017 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) |
|
Reclassification/transfer | ( |
) |
|
|
At 31 March 2018 |
|
|
|
DEPRECIATION |
At 1 April 2017 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) |
|
At 31 March 2018 |
|
|
|
NET BOOK VALUE |
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2017 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) |
|
( |
) |
At 31 March 2018 |
|
|
|
DEPRECIATION |
At 1 April 2017 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) |
|
( |
) |
At 31 March 2018 |
|
|
|
NET BOOK VALUE |
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
|
The net book value of tangible fixed assets includes £Nil (2017: £137,917) in respect of assets held |
under hire purchase contracts. |
|
11. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2017 |
and 31 March 2018 |
|
|
1,052,786 |
PROVISIONS |
At 1 April 2017 |
and 31 March 2018 | 886,571 | 166,210 | 1,052,781 |
NET BOOK VALUE |
At 31 March 2018 |
|
|
5 |
At 31 March 2017 |
|
|
5 |
|
The company's investments at the Balance Sheet date in the share capital of companies include the |
following: |
|
|
Registered office: City Gate, London Road, Derby, DE24 8WY |
Nature of business:
|
% |
Class of shares: | holding |
|
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
12. | STOCKS |
2018 | 2017 |
£ | £ |
Raw materials |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
|
|
Amounts recoverable on contracts |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Other loans (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 549,712 | 733,591 |
Accrued expenses |
|
|
|
|
|
15. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2018 | 2017 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Director's loan account | 840,000 | 750,000 |
Invoice financing | 1,912,961 | - |
|
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2018 | 2017 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
|
Non-cancellable |
operating leases |
2018 | 2017 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2018 | 2017 |
£ | £ |
Bank overdrafts |
|
|
Hire purchase contracts | - | 28,584 |
Invoice financing | 1,912,961 | - |
|
|
|
A bank overdraft facility, which is repayable on demand, is secured by way of an unlimited debenture |
providing a fixed and floating charge over the company's assets. |
|
An invoice financing facility is secured by way of a receivables finance agreement with standard terms |
and conditions, an all assets debenture with a deed of priority and fraud warranties from current |
directors and any future appointees. |
|
18. | PROVISIONS FOR LIABILITIES |
2018 | 2017 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 20,492 | 132,000 |
|
Deferred |
tax |
£ |
Balance at 1 April 2017 |
|
Utilised during year | ( |
) |
Balance at 31 March 2018 |
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
19. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
|
Ordinary £0.25 | £0.25 | 8,004 | 8,004 |
|
20. | RESERVES |
Retained |
earnings |
£ |
|
At 1 April 2017 |
|
Profit for the year |
|
At 31 March 2018 |
|
|
21. | ULTIMATE PARENT COMPANY |
|
The company's immediate and ultimate parent undertaking is SP 225 Limited. Copies of the |
consolidated financial statements of SP 225 Limited are available from the Registrar of Companies, |
Companies House, Crown Way, Cardiff, CF14 3UZ. |
|
22. | RELATED PARTY DISCLOSURES |
|
During the current year, a loan previously made by one of the directors was repaid. The gross interest |
for the year was £1,568 (2017: £6,462) of which £Nil (2017: £1,127) was outstanding at the year end. |
Contained within "Other loans" in the creditors note are the total of two loans, less repayments, as at |
the year end made by one of the directors. The first is a loan brought forward from previous years |
which is repayable in quarterly instalments of £65,000 with interest due on the balance at 2%. The |
gross interest for the year was £10,887 (2017 - £3,849) of which £Nil (2017 - £3,849) was outstanding |
at the year end. The second relates to a further loan which was made in the year which is repayable in |
quarterly instalments of £50,000 with interest due on the balance at 2.5%. The gross interest for the |
year was £6,876 (2017 - £Nil) of which £Nil (2017 - £Nil) was outstanding at the year end. In respect of |
both loans, a clause is set out in the agreements that allows the director to request repayment in full |
and on demand with 3 months written notice. |
|
Transactions arose during the year with companies in which two of the directors have an interest as a |
director and a shareholder. |
|
Goods and services were provided during the year ended 31 March 2018 as follows: |
|
Sales | Purchases | Debtors | Creditors |
£ | £ | £ | £ |
198,047 | 320,050 | 83,880 | 105,188 |
|
The following amounts relate to the year ended 31 March 2017: |
|
Sales | Purchases | Debtors | Creditors |
£ | £ | £ | £ |
314,778 | 740,150 | 125,660 | 171,547 |
|
A pension scheme, of which two of the directors are trustees and members, leased property to the |
company for £419,167 (2017 - £411,500). |
|
23. | ULTIMATE CONTROLLING PARTY |
|
The ultimate controlling party is
|
Ivor Shaw Limited (Registered number: 00755641) |
|
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2018 |
|
24. | EMPLOYEE BENEFITS |
|
Included in the notes to the financial statements are payments to the defined contribution pension |
scheme. |