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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 30TH JUNE 2019 |
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FOR |
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HINGLEY & CALLOW OILS 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 30TH JUNE 2019 |
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FOR |
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HINGLEY & CALLOW OILS LIMITED |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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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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Statement of Comprehensive Income | 8 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Statement of Cash Flows | 11 |
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Notes to the Statement of Cash Flows | 12 |
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Notes to the Financial Statements | 13 |
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HINGLEY & CALLOW OILS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors and Accountants |
Mountfield House |
661 High Street |
Kingswinford |
West Midlands |
DY6 8AL |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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The directors present their strategic report for the year ended 30th June 2019. |
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PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal activity of the company is the distribution of domestic, agricultural and industrial fuels. However, we also sell |
petrol, oils and associated products from petrol filling stations, and have a portfolio of investment properties. |
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Performance |
The key financial performance indicators are as follows: |
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2019 | 2018 |
£ | £ |
Turnover | 63,251,765 | 60,096,733 |
Gross profit | 6,827,460 | 7,536,151 |
Operating profit | 1,206,405 | 1,772,920 |
Gross profit % | 10.8% | 12.5% |
Average number of employees | 84 | 76 |
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Turnover has increased by 5.3% mainly as a consequence of the continued rise of sales prices within the Petrochemical |
Industry. Domestic fuel requirements however decreased slightly due to a mild winter. Increased competition resulted in |
tighter margins, leading to the gross profit percentage falling to 10.8%. This has also affected operating profit, which has |
fallen by £566,515. The company continues to be competitive within the market sector and retains a very good customer |
base. |
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The portfolio of land and buildings held by the company continues to provide a good return, with net rental income |
increasing by 9% to £220,707. Development work on the investment properties has continued throughout the year. |
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Although it has been another challenging year, the directors are pleased with the profit levels achieved.The balance sheet is |
strong, with good liquidity, and the company maintains an excellent relationship with its key suppliers. |
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Going forward there are no plans to acquire or dispose of any operations. The directors long term strategy is to expand the |
company's market share and improve efficiency, to maximise future profitability and ensure that the company is able to |
respond quickly to increases (and decreases) in the demand for fuel. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company is exposed to interest rate risk on any borrowings. However, overdraft use is minimal and therefore this risk |
continues to be low. The bank is currently satisfied with the company's financial performance and the directors do not think |
there is any risk of facilities being withdrawn. |
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Fuel prices are monitored daily to minimise price risk and ensure the company remains competitive. |
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Credit risk is managed by strict credit control and thorough credit checks on new customers. Customers are encouraged to |
pay a regular amounts by direct debit, to spread the cost of their fuel bills. This means that for most of the year many of the |
sales ledger accounts are in credit. |
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All sales are to UK customers and all suppliers are UK based. There are therefore no risks relating to exchange rate |
movements. |
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KEY PERFORMANCE INDICATORS (KPI) |
The company is result orientated. Actual performance is measured against budgeted performance taking into account the |
impact of world oil prices. The main KPI's used by the company to measure performance are gross margin, earnings before |
interest and tax, evaluation of working capital, capacity, litres sold and cashflow. |
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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ENVIRONMENT |
The company continually seeks to minimise the environmental impact of its operations by complying with all relevant |
legislation and being aware of its environmental responsibilities. |
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EMPLOYEES |
The directors recognise the importance of investing in the training and development of employees. Retention of key staff is |
also an important factor in the ongoing success of the company. |
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ON BEHALF OF THE BOARD: |
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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The directors present their report with the financial statements of the company for the year ended 30th June 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the distribution of domestic, agricultural and |
industrial fuels. However, the company also sells petrol, oils and associated products from petrol filling stations, and has a |
portfolio of investment properties. |
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DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2019. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2018 to the date of this report. |
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DISCLOSURE IN THE STRATEGIC REPORT |
The business review, financial key performance indicators and financial management risk objectives are included in the |
Strategic Report. |
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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). 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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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
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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. |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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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 |
HINGLEY & CALLOW OILS LIMITED |
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Opinion |
We have audited the financial statements of Hingley & Callow Oils Limited (the 'company') for the year ended |
30th June 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of |
Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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: |
- | give a true and fair view of the state of the company's affairs as at 30th June 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. |
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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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Opinions 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 |
- | 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 |
HINGLEY & CALLOW OILS 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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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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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 and Accountants |
Mountfield House |
661 High Street |
Kingswinford |
West Midlands |
DY6 8AL |
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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2019 | 2018 |
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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5,848,340 | 5,979,590 |
979,120 | 1,556,561 |
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Other operating income |
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1,206,405 | 1,772,920 |
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Profit on sale of investments | 5 |
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1,219,587 | 1,777,859 |
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Interest receivable and similar income |
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1,305,338 | 1,821,174 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION | 7 |
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Tax on profit | 8 |
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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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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STATEMENT OF FINANCIAL POSITION |
30TH JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investment property | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Investments | 14 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 15 |
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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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Non distributable reserves | 20 |
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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
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
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Balance at 1st July 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30th June 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30th June 2019 |
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Purchase of investment property | ( |
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Sale of tangible fixed assets |
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Sale of investment property |
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Purchase of current asset investments | ( |
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Sale of current asset investments |
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Interest received |
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Dividends received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Amount introduced by directors | 1,185,391 | 870,555 |
Amount withdrawn by directors | (850,702 | ) | (799,153 | ) |
Net cash from financing activities |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning of
year |
2 |
9,168,264 |
8,875,688 |
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Cash and cash equivalents at end of year | 2 | 10,446,620 | 9,168,264 |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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(Profit)/loss on disposal of fixed assets | ( |
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Fair value adjustments | 4,285 | (5,099 | ) |
Profit on sale of investments | (13,182 | ) | (4,939 | ) |
Profit on sale of investment property | - | (4,940 | ) |
Finance costs | 28,645 | 24,118 |
Finance income | (85,751 | ) | (43,315 | ) |
2,024,385 | 2,517,379 |
Decrease/(increase) in stocks |
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( |
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Decrease/(increase) in trade and other debtors |
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( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these |
Statement of Financial Position amounts: |
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Year ended 30th June 2019 |
30.6.19 | 1.7.18 |
£ | £ |
Cash and cash equivalents | 10,446,620 | 9,168,264 |
Year ended 30th June 2018 |
30.6.18 | 1.7.17 |
£ | £ |
Cash and cash equivalents | 9,168,264 | 8,875,688 |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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1. | STATUTORY INFORMATION |
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Hingley & Callow Oils 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 |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial |
Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial |
statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
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Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, |
including expectations of future events, that are believed to be reasonable under the circumstances. |
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The directors makes estimates and assumptions concerning the future. The resulting accounting estimates will, by |
definition, seldom equal the related actual results. In the opinion of the directors there are no estimates or |
assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and |
liabilities within the next financial year. |
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Revenue |
Revenue from the sale of goods is recognised when the company has transferred the significant risks and rewards of |
ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. |
Revenue is shown net of discounts, rebates, value added tax and other sales taxes. |
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Revenue is recognised at the point that the goods are delivered to or collected by the customer. |
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Other operating income |
Other operating income represents rental income, investment income and other income. Income is recognised in |
accordance with the period to which it relates. |
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Goodwill and single farm payment entitlements |
Goodwill, being the amount paid in connection with the acquisition of two businesses, is being amortised evenly over |
its estimated useful economic life, with impairment adjustment where appropriate. If a reliable estimate cannot be |
made, the useful life of goodwill is assumed to be 5 years. |
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The remaining estimated useful economic life of the two businesses acquired is less than 5 years and therefore the |
directors consider that it is reasonable and appropriate to continue the policy to depreciate the goodwill over its |
remaining useful life. Provision is made for any impairment. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less |
any accumulated amortisation and any accumulated impairment losses. |
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HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Long leasehold | - |
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Short leasehold | - |
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Plant and machinery | - |
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Motor vehicles | - |
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No depreciation has been charged on freehold property as the estimated remaining useful economic life of the |
properties exceeds 50 years and a continuous policy of renewal and maintenance is undertaken. A full review of the |
impairment of freehold property has been completed at the end of the accounting period with no adjustments being |
considered necessary to the value at which these properties are shown in the financial statements.Land is not |
depreciated. |
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Impairment of assets |
At each reporting date assets are reviewed to determine whether there is any indication that those assets have |
suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected |
asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying |
amount is reduced to its estimated recoverable amount, and an impairment loss is immediately recognise in profit or |
loss. |
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If an impairment loss subsequently reverses, the carry amount af the asset is increased to the revised estimate of its |
recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been |
recognised for the asset in prior years. A reversal in an impairment loss is recognised immediately in profit or loss. |
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Investment property |
Investment properties, for which the fair value can be measured reliably without undue cost or effort, are measured at |
fair value at each reporting date, with changes to fair value being recognised in profit or loss. |
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Investments |
Investments comprise investments in quoted shares, which are measured at fair value. Changes in fair value are |
recognised in profit or loss. |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks 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 is based on the cost of purchase on a first in, first out basis |
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At each balance sheet date, stocks are 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 profit or loss. |
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Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at |
fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest |
method, less any impairment. |
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Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of |
not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than 3 months from |
the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in |
value. |
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Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are |
measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the |
effective interest method. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive |
Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement |
of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will |
be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Pension costs and other post-retirement benefits |
The company operates two pension schemes, a self administered scheme (assets held in independently administered |
funds) for the directors, and an automatic enrolment scheme for the employees. Contributions payable for the year |
are charged in the profit and loss account. |
|
Provisions for liabilities |
|
Provisions are recognised where an event has taken place that gives the company a legal or constructive obligation |
that probably requires settlement by transfer of economic benefit, and a reliable estimate can be made of the amount |
of the obligation. |
|
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, |
and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, |
taking into account relevant risks and uncertainties. |
|
Operating leases |
Gross earnings from operating leases are recognised in the profit and loss account on a straight line basis over the |
period of each lease. Any direct costs in arranging the leases are charged to the profit and loss account in the period |
in which they are incurred. |
|
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period |
of the lease. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
2019 | 2018 |
£ | £ |
|
|
|
|
|
|
|
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Administration | 15 | 17 |
Sales and distribution | 66 | 56 |
Works | 3 | 3 |
|
|
|
The company operates two pension schemes, a self administered scheme for the directors and an automatic |
enrolment scheme for the benefit of the employees. The assets of the schemes are administered by independent |
pension providers. Pension payments recognised as an expense during the year amount to £49,692 (2018: £45,667). |
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | EXCEPTIONAL ITEMS |
2019 | 2018 |
£ | £ |
Profit on sale of investments |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Bank interest |
|
|
Other interest |
|
|
|
|
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
7. | PROFIT BEFORE TAXATION |
|
The profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Goodwill amortisation |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Taxation compliance services |
|
|
Operating lease rentals - land and buildings |
|
|
Changes in fair value of investments |
|
( |
) |
|
8. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax: |
Deferred tax | 10,992 | (11,416 | ) |
Deferred tax on fair value |
adjustment of investment |
properties | (155 | ) | 3,038 |
Total deferred tax |
|
( |
) |
Tax on profit |
|
|
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
8. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
rates |
Gains and losses in fair value adjustments | 814 | (1,908 | ) |
Investment property fair value adjustments | (155 | ) | 3,038 |
Total tax charge | 257,601 | 356,819 |
|
9. | INTANGIBLE FIXED ASSETS |
Single |
Farm |
Payment |
Goodwill | entitlements | Totals |
£ | £ | £ |
COST |
At 1st July 2018 |
and 30th June 2019 |
|
|
|
AMORTISATION |
At 1st July 2018 |
|
|
|
Amortisation for year |
|
|
|
At 30th June 2019 |
|
|
|
NET BOOK VALUE |
At 30th June 2019 |
|
|
|
At 30th June 2018 |
|
|
|
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
10. | TANGIBLE FIXED ASSETS |
Freehold | Long | Short |
property | leasehold | leasehold |
£ | £ | £ |
COST |
At 1st July 2018 |
|
|
|
Additions |
|
|
|
At 30th June 2019 |
|
|
|
DEPRECIATION |
At 1st July 2018 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
|
|
At 30th June 2019 |
|
|
|
NET BOOK VALUE |
At 30th June 2019 |
|
|
|
At 30th June 2018 |
|
|
|
|
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st July 2018 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
At 30th June 2019 |
|
|
|
DEPRECIATION |
At 1st July 2018 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30th June 2019 |
|
|
|
NET BOOK VALUE |
At 30th June 2019 |
|
|
|
At 30th June 2018 |
|
|
|
|
Tangible fixed assets with a carrying value of £1,051,373 (2018 £1,051,373) are pledged as security for the |
company's banking and credit facilities. |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1st July 2018 |
|
Additions |
|
At 30th June 2019 |
|
NET BOOK VALUE |
At 30th June 2019 |
|
At 30th June 2018 |
|
|
At 30 June 2019 the company had contractual obligations to develop and enhance investment properties of £56,720 |
(2018 £nil) |
|
Fair value at 30th June 2019 is represented by: |
|
£ |
Valuation in 2005 | 1,318,038 |
Valuation in 2006 | 333,463 |
Valuation in 2008 | 75,965 |
Valuation in 2009 | (4,024 | ) |
Valuation in 2011 | 115,324 |
Valuation in 2012 | 416,965 |
Valuation in 2013 | 446,269 |
Valuation in 2015 | (387,092 | ) |
Valuation in 2016 | 324,365 |
Valuation in 2017 | 27,007 |
Cost | 5,690,565 |
8,356,845 |
|
If the investment properties had not been revalued they would have been included at the following historical cost: |
|
2019 | 2018 |
£ | £ |
Cost | 5,690,565 | 5,007,323 |
|
The investment properties were valued on an open market basis on 30th June 2019 by J D Callow, a director of the company |
. |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
11. | INVESTMENT PROPERTY - continued |
|
Investment properties with a value of £7,424,975 (2018 £7,052,322) are rented out under operating leases. |
|
The future minimum lease payments under non-cancellable operating leases are as follows: |
|
|
2019 | 2018 |
£ | £ |
Expiring: |
Not later than one year | 124,400 | 101,815 |
Later than one year and not later than five years | 135,217 | 183,867 |
Later than five years | - | - |
259,617 | 285,682 |
|
12. | STOCKS |
2019 | 2018 |
£ | £ |
Fuels, oils and lubricants |
|
|
Confectionery and provisions |
|
|
|
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
VAT |
|
|
Prepayments |
|
|
|
|
|
14. | CURRENT ASSET INVESTMENTS |
2019 | 2018 |
£ | £ |
Listed investments | 383,002 | 363,550 |
Market value of listed investments at 30th June 2019 - £ 383,002 (2018 - £ 363,550 ). |
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 994,181 | 659,492 |
Accrued expenses |
|
|
|
|
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
|
|
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2019 | 2018 |
£ | £ |
Trade creditors | 2,962,047 | 2,752,000 |
|
Bank borrowings are secured by a legal charge over certain of the company's land and buildings along with a fixed |
and floating charge over the other assets of the company. |
|
Included within trade creditors are balances of £2,962,047 (2018 - £2,752,000) secured by legal charges over |
certain freehold land and buildings. |
|
18. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 223,666 | 212,674 |
Capital gain on revaluation | 82,685 | 82,840 |
306,351 | 295,514 |
|
Deferred |
tax |
£ |
Balance at 1st July 2018 |
|
Charge to Statement of Comprehensive Income during year |
|
Balance at 30th June 2019 |
|
HINGLEY & CALLOW OILS LIMITED (REGISTERED NUMBER: 00955492) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2019 |
|
19. | CALLED UP SHARE CAPITAL |
|
Allotted and issued: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 2,000 | 2,000 |
|
Each £1 ordinary share carries one voting right. |
|
20. | RESERVES |
Non |
Retained | distributable |
earnings | reserves | Totals |
£ | £ | £ |
|
At 1st July 2018 |
|
|
19,361,019 |
Profit for the year |
|
|
Transfer to non distributable |
reserves | 4,130 | (4,130 | ) | - |
At 30th June 2019 |
|
|
20,380,111 |
|
Called up share capital - represents the nominal value of shares that have been issued. |
|
Profit and loss account - includes all current and prior period retained profits and losses. |
|
Non distributable reserve - includes reserves that are not distributable to shareholders. |
|
21. | CAPITAL COMMITMENTS |
2019 | 2018 |
£ | £ |
Contracted but not provided for in the |
financial statements |
|
|
|
22. | RELATED PARTY DISCLOSURES |
|
During the year, a total of key management personnel compensation of £
|
|
23. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is J D Callow. |