Company Registration No. 00814563 (England and Wales)
BARROW,LANE & BALLARD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
BARROW,LANE & BALLARD LIMITED
COMPANY INFORMATION
Directors
Mr S S Stimler
Mr M Stimler
Mr A H Stimler
Mr M D Gravette
Company number
00814563
Registered office
Honeypot House
56a Crewys Road
London
NW2 2AD
Auditor
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow, Middlesex
HA1 2AW
Business address
Honeypot House
56a Crewys Road
London
NW2 2AD
Bankers
Lloyds Bank Plc
Faryners House
25 Monument Street
London
EC3R 8BQ
BARROW,LANE & BALLARD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 25
BARROW,LANE & BALLARD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 1 -
The directors present their strategic report for the year ended 30 September 2019.
Principal activities
The principal activity of the company continued to be that of import, export and distribution of edible nuts and dried fruits.
Fair review of the business
The Key Performance Indicators of
Barrow,Lane & Ballard
Limited over the last two years are detailed below:
201
9
201
8
Turnover (£'000)
113,
440
123,821
Gross profit %
2.
89
2.71
Net profit %
after tax
0.
45
0.52
Net assets (
£'000)
7,
627
7,112
The company's turnover has
decreased
by
8.
38% during the
year. The gross profit margins have
increased slightly from 2.71% to 2.89% due to strategic buying in the market.
The company has achieved a
lower
net profit margin
than the previous year, due to the decrease in turnover and a slight increase in overheads.
T
he results for the year and the financial position at the year end were considered satisfactory by the directors who expect to improve these in the foreseeable future.
Principal Risks and Uncertainties
The principal risks and uncertainties facing Barrow,Lane & Ballard Limited are:
Financial instruments
The company's principal financial instruments comprise bank loans, overdrafts and trade payables. The main purpose of these financial instruments is to raise finance for the company's operations. The company has various other financial assets such as trade receivables, cash and short-term deposits which arise directly from its operations.
The main risks arising from the company's financial instruments are credit risk, liquidity risk and foreign currency exposure. The board reviews and agrees policies for managing each of these risks and they are summarised below.
Credit risk
The company performs ongoing credit evaluations of its customers and to date has not experienced any material losses.
Liquidity risk
Liquidity risk arises in relation to the company's management of working capital and the risk that the company will encounter difficulties in meeting financial obligations as and when they fall due. To minimise this risk, the liquidity position and ongoing working capital requirements are regularly reviewed by the directors.
Foreign currency exposure
A major risk attached to the company's business relates to foreign exchange exposures by virtue of its commodity dealings. These exposures are eliminated by an appropriate contract with a bank as they arise. The company enters into contracts with both buyers and sellers often well in advance of actual performance. It therefore incurs counter-party risk particularly given that the market prices of the commodities concerned may move considerably over the intervening period to performance. The company is aware of such exposure and has various systems to monitor and control it.
BARROW,LANE & BALLARD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
Interest risk
The company is subject to interest risks. This is mitigated by continually monitoring the rates available to the company.
Brexit risk
The company trades with entities based in European countries and the move towards exiting the European Union poses a risk for the company due to the uncertainty with trade agreements. Company management is monitoring and will respond to any changes arising from Brexit.
Development and performance
The directors consider the results for the year and the financial position at the year end to be encouraging as the company results indicates continued profit year on year.
Mr S S Stimler
Director
25 March 2020
BARROW,LANE & BALLARD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2019.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S S Stimler
Mr M Stimler
Mr A H Stimler
Mr M D Gravette
Mr M K Gulamali
(Resigned 31 January 2020)
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Future developments
The directors expect to trade a similar tonnage of the commodities in which they deal as in previous years.
Auditor
The auditor, RDP Newmans LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr S S Stimler
Director
25 March 2020
BARROW,LANE & BALLARD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARROW,LANE & BALLARD LIMITED
- 4 -
Opinion
We have audited the financial statements of Barrow,Lane & Ballard Limited (the 'company') for the year ended 30 September 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 September 2019 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.
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
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BARROW,LANE & BALLARD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARROW,LANE & BALLARD LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Lyndon Perez FCA (Senior Statutory Auditor)
for and on behalf of RDP Newmans LLP
31 March 2020
Chartered Accountants
Statutory Auditor
Lynwood House
373-375 Station Road
Harrow, Middlesex
HA1 2AW
BARROW,LANE & BALLARD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
3
113,440,220
123,821,143
Cost of sales
(110,167,353)
(120,466,986)
Gross profit
3,272,867
3,354,157
Administrative expenses
(1,747,135)
(1,689,785)
Operating profit
4
1,525,732
1,664,372
Interest receivable and similar income
8
29,984
21,012
Interest payable and similar expenses
9
(925,206)
(895,237)
Profit before taxation
630,510
790,147
Tax on profit
10
(116,108)
(151,513)
Profit for the financial year and total comprehensive income
514,402
638,634
BARROW,LANE & BALLARD LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2019
30 September 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
12
10,781
-
Tangible assets
13
25,450
29,326
Investments
14
434,584
353,820
470,815
383,146
Current assets
Stocks
18
13,304,860
12,062,627
Debtors
19
18,048,654
18,248,225
Cash at bank and in hand
1,631,020
717,596
32,984,534
31,028,448
Creditors: amounts falling due within one year
20
(25,822,787)
(24,294,191)
Net current assets
7,161,747
6,734,257
Total assets less current liabilities
7,632,562
7,117,403
Provisions for liabilities
22
(5,690)
(4,933)
Net assets
7,626,872
7,112,470
Capital and reserves
Called up share capital
25
100,001
100,001
Profit and loss reserves
7,526,871
7,012,469
Total equity
7,626,872
7,112,470
The financial statements were approved by the board of directors and authorised for issue on 25 March 2020 and are signed on its behalf by:
Mr S S Stimler
Mr M Stimler
Director
Director
Company Registration No. 00814563
BARROW,LANE & BALLARD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2017
100,001
6,773,835
6,873,836
Year ended 30 September 2018:
Profit and total comprehensive income for the year
-
638,634
638,634
Dividends
11
-
(400,000)
(400,000)
Balance at 30 September 2018
100,001
7,012,469
7,112,470
Year ended 30 September 2019:
Profit and total comprehensive income for the year
-
514,402
514,402
Balance at 30 September 2019
100,001
7,526,871
7,626,872
BARROW,LANE & BALLARD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 9 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,234,658
2,245,288
Interest paid
(925,206)
(895,237)
Income taxes paid
(86,043)
(162,833)
Net cash inflow from operating activities
1,223,409
1,187,218
Investing activities
Purchase of intangible assets
(11,500)
-
Purchase of tangible fixed assets
(1,944)
(4,309)
Purchase of associates
(80,764)
(156,817)
Interest received
29,984
21,012
Net cash used in investing activities
(64,224)
(140,114)
Financing activities
Proceeds of derivatives
6,749
489,524
Repayment of derivatives
(49,485)
(6,749)
Dividends paid
-
(400,000)
Net cash (used in)/generated from financing activities
(42,736)
82,775
Net increase in cash and cash equivalents
1,116,449
1,129,879
Cash and cash equivalents at beginning of year
(18,581,954)
(19,711,833)
Cash and cash equivalents at end of year
(17,465,505)
(18,581,954)
Relating to:
Cash at bank and in hand
1,631,020
717,596
Bank overdrafts included in creditors payable within one year
(19,096,525)
(19,299,550)
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 10 -
1
Accounting policies
Company information
Barrow,Lane & Ballard Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Honeypot House, 56a Crewys Road, London, NW2 2AD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
Barrow,Lane & Ballard Limited is a wholly owned subsidiary of Loudwater Management Limited and the results of Barrow,Lane & Ballard Limited are included in the consolidated financial statements of Loudwater Management Limited which are available from Honeypot House, 56a Crewys Road, London NW2 2AD.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods net of VAT and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
25% reducing balance
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 11 -
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
10% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
Investments comprise investment in unquoted equity instruments which are measured at fair value. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 12 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Within each commodity grouping at the year end a comparison is made of inventories and forward purchases contracts which correspond with forward sales contracts. Potential losses and profits are treated on the following basis:
(i) Any potential loss arising from comparing that quantity of inventories and net forward purchase contracts which correspond with forward sales contracts is provided. Any net profit is carried forward as in (ii).
(ii) Remaining inventories, forward purchases and sales are compared with market values. Any potential net loss is provided for except to the extent that it can be offset by a potential profit arising in (i) above.
Any provision is deducted from the book value of commodity inventories which are otherwise stated at cost.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or forward commitments associated with commodity sales.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
The company contributes to the personal pension arrangements of some directors and employees. Contributions payable are charged to the profit and loss account in the year they are earned.
2
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 about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant
effect on amounts recognised in the financial statements.
Coronavirus pandemic
The directors have assessed the impact of the Coronavirus pandemic on the company and are of the opinion that, despite there being a short term downturn in the business, this should not materially impact the company in the long term.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Sales of goods
113,440,220
123,821,143
2019
2018
£
£
Other significant revenue
Interest income
29,984
21,012
In the opinion of the directors it would be seriously prejudicial to the interest of the company to disclose the particulars of the
geographical
turnover of the company. Consequently, in accordance with the provisions of the Companies Act 2006, the directors have not disclosed the particulars of turnover.
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
5,820
5,550
Amortisation of intangible assets
719
-
Cost of stocks recognised as an expense
110,167,353
120,466,986
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,500
15,000
For other services
Taxation compliance services
-
800
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Sales and distribution
5
5
Administration and logistics
8
8
13
13
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
876,893
843,494
Social security costs
97,983
103,278
Pension costs
73,909
57,107
1,048,785
1,003,879
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
230,920
252,142
Company pension contributions to defined contribution schemes
40,541
38,521
271,461
290,663
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
126,517
137,262
Company pension contributions to defined contribution schemes
15,554
16,651
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 18 -
8
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
29,730
21,012
Other interest income
254
-
Total income
29,984
21,012
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
29,730
21,012
9
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
925,206
895,237
10
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
118,171
151,848
Adjustments in respect of prior periods
(2,820)
-
Total current tax
115,351
151,848
Deferred tax
Origination and reversal of timing differences
757
(335)
Total tax charge
116,108
151,513
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
10
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
630,510
790,147
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
119,797
150,128
Tax effect of expenses that are not deductible in determining taxable profit
(63)
1,624
Permanent capital allowances in excess of depreciation
(1,563)
96
Under/(over) provided in prior years
(2,820)
-
Deferred tax
757
(335)
Taxation charge for the year
116,108
151,513
11
Dividends
2019
2018
£
£
Interim paid
-
400,000
12
Intangible fixed assets
Software
£
Cost
At 1 October 2018
-
Additions
11,500
At 30 September 2019
11,500
Amortisation and impairment
At 1 October 2018
-
Amortisation charged for the year
719
At 30 September 2019
719
Carrying amount
At 30 September 2019
10,781
At 30 September 2018
-
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 20 -
13
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 October 2018
108,398
24,963
133,361
Additions
1,944
-
1,944
At 30 September 2019
110,342
24,963
135,305
Depreciation and impairment
At 1 October 2018
94,563
9,472
104,035
Depreciation charged in the year
4,271
1,549
5,820
At 30 September 2019
98,834
11,021
109,855
Carrying amount
At 30 September 2019
11,508
13,942
25,450
At 30 September 2018
13,835
15,491
29,326
14
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
15
100
100
Investments in associates
16
434,484
353,720
434,584
353,820
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 October 2018
353,820
Additions
80,764
At 30 September 2019
434,584
Carrying amount
At 30 September 2019
434,584
At 30 September 2018
353,820
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 21 -
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2019 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Longson-BLB (UK) Limited
1
Ordinary shares
100.00
0
Registered office addresses (all UK unless otherwise indicated):
1
56a Crewys Road, London, United Kingdom, NW2 2AD
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Longson-BLB (UK) Limited
100
16
Associates
Details of the company's associates at 30 September 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Long Son - BLB Company Limited
Vietnam
Ordinary shares
30.00
0
17
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
17,789,454
18,074,084
Instruments measured at fair value through profit or loss
49,485
6,749
Carrying amount of financial liabilities
Measured at amortised cost
25,754,070
24,255,162
18
Stocks
2019
2018
£
£
Finished goods and goods for resale
13,304,860
12,062,627
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 22 -
19
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
15,670,614
16,372,377
Amounts owed by undertakings in which the company has a participating interest
891,876
918,830
Derivative financial instruments
49,485
6,749
Other debtors
1,360,060
865,542
Prepayments and accrued income
76,619
84,727
18,048,654
18,248,225
20
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans and overdrafts
21
19,096,525
19,299,550
Trade creditors
6,466,371
4,356,069
Corporation tax
40,611
11,303
Other taxation and social security
28,106
27,726
Other creditors
100
400,100
Accruals and deferred income
191,074
199,443
25,822,787
24,294,191
21
Loans and overdrafts
2019
2018
£
£
Bank overdrafts
19,096,525
19,299,550
Payable within one year
19,096,525
19,299,550
Bank overdrafts amounting to £
19,096,525
(201
8: £19,299,550
) have been secured by way of
fixed
and floating
charge
s
over
the assets of the company.
22
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
23
5,690
4,933
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 23 -
23
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
5,690
4,933
2019
Movements in the year:
£
Liability at 1 October 2018
4,933
Charge to profit or loss
757
Liability at 30 September 2019
5,690
24
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
73,909
57,107
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
There were no outstanding contributions at the reporting date (2018: £
3,819
).
25
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of 1p each
1
1
100,000 Deferred shares of £1 each
100,000
100,000
100,001
100,001
Deferred shares have attached to them full dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption and are non-voting shares.
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 24 -
26
Financial commitments, guarantees and contingent liabilities
The company's bankers hold a cross guarantee between Barrow,Lane & Ballard Limited and Atlantix Commodities LLC, in respect of any amounts due to them. Barrow,Lane & Ballard Limited and Atlantix Commodities LLC are related by virtue of having common directors.
27
Related party transactions
Remuneration of key management personnel
The company's key management personnel are considered to be the directors. Their remuneration during the year is shown in note 7.
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2019
2018
2019
2018
£
£
£
£
Entities over which the entity has control, joint control or significant influence
-
-
1,561,281
394,445
Other related parties
424,927
1,039,808
-
-
Rent and service charge
Management charge
2019
2018
2019
2018
£
£
£
£
Entities with control, joint control or significant influence over the company
52,749
44,622
107,561
109,820
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
3,593
-
Entities over which the entity has control, joint control or significant influence
89,489
50,000
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
11,350
11,350
Entities over which the entity has control, joint control or significant influence
891,876
918,830
Other related parties
1,223,038
1,362,796
BARROW,LANE & BALLARD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 25 -
28
Ultimate controlling party
The immediate parent company is Loudwater Management Limited. The ultimate
parent company is
Loudwater Trade and Finance Limited, a company in which Mr M Stimler and Mr S S Stimler are the directors and shareholders
.
All these companies are
incorporated in England & Wales and the registered office is situated at Honeypot House, 56a Crewys Road, London, NW2 2AD
.
The consolidated financial statements of
Loudwater Trade and Finance Limited
are available to the public and can be obtained from Companies House.
29
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
514,402
638,634
Adjustments for:
Taxation charged
116,108
151,513
Finance costs
925,206
895,237
Investment income
(29,984)
(21,012)
Amortisation and impairment of intangible assets
719
-
Depreciation and impairment of tangible fixed assets
5,820
5,550
Movements in working capital:
(Increase)/decrease in stocks
(1,242,233)
3,667,005
Decrease/(increase) in debtors
242,307
(3,485,197)
Increase in creditors
1,702,313
393,558
Cash generated from operations
2,234,658
2,245,288
2019-09-30
2018-10-01
false
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
Mr S S Stimler
Mr M Stimler
Mr A H Stimler
Mr M D Gravette
Mr M K Gulamali
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