FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
COMPANY INFORMATION
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FRAMPTONS LIMITED
CONTENTS
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FRAMPTONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2021
The principal activities of the Company during the period remain the manufacture and sale of liquid and cooked egg products and the contract manufacture of other liquid food, beverage and juice products for brand owners. The directors do not envisage a change in the activities of the Company in the foreseeable future.
The results, compared with the previous year, can be summarised as follows:
∙
A 5% decline in contract pack sales revenue.
∙
An 10% decline in egg product sales revenue.
∙
Resulting in 6% decline in total sales revenues.
∙
A 2% increase in gross margin earned, before direct costs, primarily due to the change in mix of products.
∙
A 5% increase in direct costs, distribution and administrative overheads.
∙
Company operating profit before interest, tax and depreciation was 62% down on FY20.
∙
Company is reporting a net loss before tax of £828k, which is down on last year’s result of £526k profit.
These results essentially reflect the impacts of multiple COVID-19 national lockdowns imposed by the government during the financial year with the loss of egg product sales into the hospitality industry and a reduction in demand for products sold through convenience outlets. While every measure possible was taken to mitigate the impact of COVID-19 on the business, we had to take a view on the longer term and the need to maintain supply to all customers and be ready to meet future demands as and when business’ reopened.
At the time of writing we are seeing a recovery of sales volumes post COVID-19 together with a strong increase in demand for plant-based milk alternative products, for which we are well equipped to satisfy. Having continued to invest in capacity and equipment reliability during the pandemic, we are expecting to see a return to profitability for the next financial year and a significant uplift in sales revenue into FY 2023.
Operational, commercial and financial risks are all considered in establishing and maintaining the Company’s control environment. The principle risks and uncertainties faced by the Company, in line with the rest of the food manufacturing sector, have been identified as: consumer, and therefore customer demand; competitor activity; pricing and availability of raw materials; liquidity and credit risks; production issues and external factors creating food safety issues; business continuity; recruitment and retention of key staff; health and safety.
At this time last year we reported little impact from Brexit. However, in the current climate we are seeing a significant increase in supply chain lead times resulting in the need to hold higher levels of stock, increasing competition for labour resulting in high wages inflation, and very significant increases in energy cost due largely to the conflict in Europe. The decision in 2020 to invest in a new energy centre providing power and heat through a gas fired CHP installation and heat from a bio-mass boiler is proving to have been a sound decision. The energy centre is due to be operational by mid-2022 and should provide significant energy cost savings for the business as well as around 50%+ reduction in our carbon footprint. The Group has a programme for continuous review of risk and also maintains an appropriate portfolio of insurance policies in line with the nature, size and complexity of the business. |
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FRAMPTONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
The Directors have determined that the following KPI’s are the most effective measure of progress towards achieving the objectives of the business. The current financial year is not considered to be reflective of normal operational performance due to the short term impact of COVID-19:
∙
Sales growth – year on year growth in sales revenue
∙
Gross margin – gross profit as a % of sales revenue
∙
Operating margin – operating profit as a % of sales revenue
∙
EBITDA – current minimum EBITDA requirement of £2.2m
2021 2020
Sales growth (6.3)% (0.6)% Gross profit 16.7% 19.3% Operating profit (1.29)% 2.03% EBITDA £0.689m £1.879m
The board of directors of the Company consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and having regard (amongst other matters) to factors (a) to (f) S172 Companies Act 2006, in the decisions taken during the year ended 30 June 2021. Specifically, the Board ensure in all decisions taken that:
∙
Business is conducted morally and ethically, in line with the Company’s Code of Conduct
∙
Short-term gains do not have an adverse consequence on the Company’s long-term strategy, success and benefits
∙
Employee welfare, training and interests are taken care of
∙
Customer and supplier relationships are strong, mutually beneficial and comply with Company’s policies (such as anti-bribery and corruption, anti-slavery and human trafficking and corporate social responsibility)
∙
Any community and environmental impacts as a result of the Company’s operations are considered
During the financial year, the company:
∙
Worked closely with its suppliers and customers to ensure that the cashflow impact of Covid was mitigated to the greatest extent possible for the benefit of all parties
∙
the Company continued to invest in its infrastructure throughout the last financial year, notwithstanding the significant financial pressures, in order to improve the customer experience
∙
Informally consulted with its employees continually throughout the Covid pandemic to ensure its workspaces and working practices were Covid compliant, staff felt safe in their working environment, be that at home, the office or elsewhere, and on staff’s mental wellbeing.
This report was approved by the board
and signed on its behalf.
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FRAMPTONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
The directors present their report and the financial statements for the year ended 30 June 2021.
The directors do not envisage a change in the activities of the company in the foreseeable future.
The loss for the year, after taxation, amounted to £
758,677
(2020:
profit
£
354,402
)
.
The directors who served during the year were:
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FRAMPTONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
Material uncertainty in relation to going concern
During the year ended 30 June 2021 the company made a loss of £758,677 and as at 30 June 2021 had net current liabilities of £4,091,673. The company is reliant on proceeds of factored debts which are secured against trade debtors and a mortgage debenture over all the assets in the company. The £6,500,000 invoice finance line is due for renewal on 24th July 2022. In addition, there is a CBILS term loan of £800,000 with an expiry of 27th April 2027 and a £600,000 term loan with and expiry of 23 September 2026.
Since the year end (30 June 2021) and into the first quarter of 2022, Covid-19 continued to impact the business in terms of factory labour (reduced capacity) and depressed demand for products supplied into the food service industry (revenue and marginal income loss), resulting in ongoing losses for the company and group. This situation was further exacerbated by the unprecedented rise in energy prices resulting in further pressure on profit margins.
In addition to the above the group experienced a series of one-off setbacks in April and May 2022 directly related to the energy situation. The decision to utilise back-up generators to offset high electricity costs resulted in further capacity losses due to unexpected reliability issues. Following this, grid supplied gas pressure interruptions resulted in interruptions to steam supply which is essential to the factory processes. Both of these issues have now been resolved with a reliable return to full factory operational capacity going forward.
Early 2020 the Directors approved the investment in a new ‘energy centre’ development comprising a gas fired CHP plant (power and heat) and a biomass boiler. The energy centre will be capable of meeting 70% of the company’s power requirements and up to 100% of its heat requirements while providing an estimated annual cost saving for power and heat of at least £300,000. The energy centre was due to be commissioned in the first quarter 2021. However, due primarily to Covid- 19 impact on the planning process and early site preparation and building works, and later cost and supply issues, commissioning is now expected for Q3 2022. It is expected that the new energy centre will reduce operational cost and improve reliability while significantly reducing the company’s carbon footprint.
Having regard to the financial statements contained herein the Directors have considered the financial position of the company and the group, events since the balance sheet date up to and including the date of the signing of the financial statements, Strategic report, and the Directors report.
During the period under review Management:
∙
Have confirmed that all stated third party liabilities as at the balance sheet date have been discharged
∙
Confirm that all Trade Debtors have been received
∙
Continue to carefully manage Cashflows and the Working Capital for the company, group, and all group companies.
To help offset the impact of the pandemic the company and group have put in place a turnaround plan which gains efficiencies through consolidation and review of the overall cost base.
The directors have prepared cash flow forecasts which indicate that the company and the group will
have sufficient funds, through its financing facilities, improved operational performance, and based on ongoing support from HSBC bank, to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
Accordingly on the basis of all available information and having regard to all relevant parties the directors have concluded that the principle of ‘Going Concern’ remains applicable.
The directors intend to continue the development of the company's principal activities.
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FRAMPTONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.
The Company also places considerable value on the relationship it holds with suppliers, customers and other stakeholders.
Our customers are essential to our business and we aim to work openly and transparently in fostering long-term customer relationships. Our business decisions and priorities are based on a good understanding of our customers and their requirements. We hold regular meetings with most of our customers at all levels within the business including the supply chain and commercial teams. Directors are involved in many of these meetings as and when required. The Company recognises the key role many of our suppliers play in supporting our ability to meet our customer requirements. Company policies in terms of specification, quality and supplier practices are applied in our selection of suppliers. To this end we proactively manage key supplier relationships and hold regular meetings where possible to ensure expectations and requirements for both parties are met. Directors are involved where necessary and where regular market reviews are strategic to the company and its customers. The Company aims to foster open and transparent dialogue with the regulatory and industry bodies relevant to the company’s business operations and products it produces. This also applies in its relationship with other key stakeholders such as its bankers, other funders, and external advisors.
The Company has continued with investments aimed at improving energy efficiencies across its operations. The main area of focus for the year was in progressing planning approval and commencing construction of the new Energy Centre, gas fired combined heat and power and biomass heat, which was reported last year. This was expected to be operational towards the end of 2021.
However, due primarily to COVID-19 impacts on both the planning approval process as well as lead times on construction materials, it is now expected to be operational in May / June 2022.
For the year ended 30 June 2021 the Company’s energy consumption (in KwH) and the CO2 equivalent emissions in tonnes (tCO2e) were:
2021 2020 KwH tCO2e KwH tCO2e Direct (Gas, transport & liquid fuels) 46,139,319 8,454 24,751,179 4,594 Indirect (purchased electricity) 9,640,699 2,047 9,508,587 2,430 Indirect (employee owned cars) 1,318 0.3 106,673 26 Intensity Ratio 0.14 0.11
The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance, these are addressed in the Strategic Report.
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FRAMPTONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming Bath Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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FRAMPTONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
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FRAMPTONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRAMPTONS LIMITED
We have audited the financial statements of Framptons Limited (the 'Company') for the year ended 30 June 2021, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity
and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 2.4 in the financial statements, which indicates that Framptons Limited, has net current liabilities totalling £4,091,673 at 30 June 2021. Since the year end the Covid- 19 pandemic has continued to impact the company financial position with the unaudited management accounts recording further losses in the period to May 2022. As stated in note 2.4, these events or conditions, along with the other matters as set forth in note 2.4, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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FRAMPTONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRAMPTONS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report 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.
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 Directors' Report.
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FRAMPTONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRAMPTONS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
• We have considered the nature of the industry and sector, control environment, and business performance;
•We have considered the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity; and
•We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating effectively, in line with documentation.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override. We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or avoid a material penalty. These included health and safety regulations and employment law. Our procedures to respond to risks identified included the following: • Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • Enquiring of management in relation to actual and potential claims or litigation; • Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • Reviewing board meeting minutes; • Performing detailed testing in relation to the recognition of revenue with a particular focus around the year-end cut off; and • In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. |
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FRAMPTONS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FRAMPTONS LIMITED (CONTINUED)
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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FRAMPTONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
REGISTERED NUMBER:
00927723
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on form part of these financial statements.
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FRAMPTONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2021
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 JUNE 2020
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Framptons Limited is a limited liability company which is incorporated in England and Wales. The address of the registered office is 76 Charlton Road, Shepton Mallet, Somerset, BA4 5PD.
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The financial statements are prepared in sterling which is the functional currency of the company.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 7 Statement of Cash Flows;
∙
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Framptons Group Holdings Limited as at 30 June 2021 and these financial statements may be obtained from Companies House.
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
During the year ended 30 June 2021 the company made a loss of £758,677 and as at 30 June 2021 had net current liabilities of £4,091,673. The company is reliant on proceeds of factored debts which are secured against trade debtors and a mortgage debenture over all the assets in the company. The £6,500,000 invoice finance line is due for renewal on 24th July 2022. In addition, there is a CBILS term loan of £800,000 with an expiry of 27th April 2027 and a £600,000 term loan with an expiry of 23 September 2026.
Since the year end (30 June 2021) and into the first quarter of 2022, Covid-19 continued to impact the business in terms of factory labour (reduced capacity) and depressed demand for products supplied into the food service industry (revenue and marginal income loss), resulting in ongoing losses for the company and group. This situation was further exacerbated by the unprecedented rise in energy prices resulting in further pressure on profit margins. In addition to the above the group experienced a series of one-off setbacks in April and May 2022 directly related to the energy situation. The decision to utilise back-up generators to offset high electricity costs resulted in further capacity losses due to unexpected reliability issues. Following this, grid supplied gas pressure resulted in interruptions to steam supply which is essential to the factory processes. Both of these issues have now been resolved with a reliable return to full factory operational capacity going forward. Early in 2020 the Directors approved the investment in a new ‘energy centre’ development comprising a gas fired CHP plant (power and heat) and a biomass boiler. The energy centre will be capable of meeting 70% of the company’s power requirements and up to 100% of its heat requirements while providing an estimated annual cost saving for power and heat of at least £300,000. The energy centre was due to be commissioned in the first quarter 2021. However, due primarily to Covid- 19 impact on the planning process and early site preparation and building works, and later cost and supply issues, commissioning is now expected for Q3 2022. It is expected that the new energy centre will reduce operational cost and improve reliability while significantly reducing the company’s carbon footprint. Having regard to the financial statements contained herein the Directors have considered the financial position of the company and the group, events since the balance sheet date up to and including the date of the signing of the financial statements, Strategic report, and the Directors report. During the period under review Management:
∙
Have confirmed that all stated third party liabilities as at the balance sheet date have been discharged
∙
Confirm that all Trade Debtors have been received
∙
Continue to carefully manage Cashflows and the Working Capital for the company, group, and all group companies.
To help offset the impact of the pandemic the company and group have put in place a strategic plan which gains efficiencies through consolidation and review of the overall cost base.
The directors have prepared cash flow forecasts which indicate that the company and the group will have sufficient funds, through its financing facilities, improved operational performance, and based on ongoing support from HSBC bank, to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Accordingly on the basis of all available information and having regard to all relevant parties the directors have concluded that the principle of ‘Going Concern’ remains applicable. |
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
Sale of goods
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
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.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Office equipment has been included within plant and machinery on note 12.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income. |
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Functional and presentation currency
Transactions and balances
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.
ACCOUNTING POLICIES (continued)
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Accrued Income Certain customers of Framptons Limited are invoiced in arrears on a weekly basis. These invoices are in relation to multiple deliveries made that week. As a result, management have deemed it reasonable to recognise a percentage of these invoices at the year end based upon the number of days that related to this financial year. Stock Provision Management have considered slow moving reports, expiry reports and expected future custom in relation to the year end stock listing. As a result, management have deemed it reasonable to recognise a provision against the stock value held at the year end. Overhead Absorption Management have reviewed the processes involved in manufacturing the finished goods stock and have made their best estimate in attributing overhead costs such as electricity, freezing and staff time. Dilapidations Management have considered the cost of returning the leasehold property back to its original condition on expiry of the leases. The value recognised in the accounts is management's best estimate based upon available information.
The whole of the turnover is attributable to the principal activity of the company.
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
10.
TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Capital redemption reserve
Profit and loss account
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £198,150 (2020: £184,336). Contributions totalling £43,128 (2020: £74,241) were payable to the fund at the reporting date.
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FRAMPTONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
The ultimate parent company is Framptons Group Holdings Limited, a company registered in England and Wales.
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