REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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BROOM BOATS LIMITED |
REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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for |
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BROOM BOATS LIMITED |
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Contents of the Financial Statements |
for the year ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 |
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Income Statement | 6 |
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Other Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Notes to the Financial Statements | 10 |
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BROOM BOATS LIMITED |
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Company Information |
for the year ended 31 December 2019 |
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Directors: |
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Registered office: |
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Registered number: |
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Auditors: |
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Coopers House |
65a Wingletye Lane |
Hornchurch |
Essex |
RM11 3AT |
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Strategic Report |
for the year ended 31 December 2019 |
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The directors present their strategic report for the year ended 31 December 2019. |
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The principal activities of the Company during the year were boat servicing, repairs and the operation of a marina. |
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Review of business |
Turnover saw a planned reduction, ending the year at £888,813, down from £2,126,453 in 2018, reflecting the first year with no new boat building activities. The removal of the boat building business allowed a renewed focus on the core servicing, repairs and marina business, facilitating strong improvement in gross margin to 41% (up from 37% in 2018). |
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As a result of the planned streamlining of operations and cost reduction programme, overheads fell to £849,648 from £1,607,438 in 2018, resulting in the loss before taxation being almost halved compared to 2018 at £494,691 (2018 - £847,970). |
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The directors are pleased to have achieved significant improvement in operational efficiencies through the streamlining of activities and consider that the business is now in a better position to focus on its key, profitable business streams, with further progress being made in 2020. |
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Principal risks and uncertainties |
The impact of Covid-19 has been significant for the business and the directors are mindful of the general economic risk to the marine services and mooring business as many people's disposable income continues to stagnate or decline. The directors feel that continuing to offer quality service and good value will ensure customers continue to be attracted and retained with results in 2020, during difficult trading conditions remaining encouraging. There is reasonable hope that the growth in the 'staycation' market Covid restrictions are likely to stimulate, will benefit the business in 2020 and 2021. |
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The outcome of Brexit negotiations is a considerable uncertainty; however, with the cessation of boat building in 2018, the business has protected itself from significant EU supply chain exposure. Any impact on tourism arising from Brexit negotiations, whilst considered by the directors, is not anticipated to significantly affect the business. |
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The company, through ceasing boat building activities, considers any exposure to foreign exchange risk to be negligible. |
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Financial key performance indicators |
The directors believe that the key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole, these being turnover, gross profit and loss / profit before tax (all noted above). |
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On behalf of the board: |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Report of the Directors |
for the year ended 31 December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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Principal activity |
The principal activity of the company in the year under review was that of boat servicing, repairs and the operation of a marina. |
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Directors |
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Other changes in directors holding office are as follows: |
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Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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. |
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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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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Auditors |
The auditors, Haines Watts Essex LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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On behalf of the board: |
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Report of the Independent Auditors to the Members of |
Broom Boats Limited |
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Opinion |
We have audited the financial statements of Broom Boats Limited (the 'company') for the year ended 31 December 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss 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: |
- | 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. |
However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in note 2 to the financial statements. |
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In forming our opinion, which is not modified in this respect, we have considered the adequacy of the disclosures made in the financial statements concerning the Company's ability to continue as a going concern. The Company has net liabilities of £5,315,445 for the year ended 31 December 2019 with a net loss of £494,691. The Company meets its day to day working capital requirements through a combination of bank borrowings and support from its parent undertakings. These conditions, along with the other matters explained in the notes to the financial statements, indicate the existence of material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the Company was unable to continue as a going concern. |
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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. |
Report of the Independent Auditors to the Members of |
Broom Boats Limited |
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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: |
- | 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. |
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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: |
- | 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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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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Coopers House |
65a Wingletye Lane |
Hornchurch |
Essex |
RM11 3AT |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Income Statement |
for the year ended 31 December 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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Administrative expenses |
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(483,001 | ) | (813,906 | ) |
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Other operating income |
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Operating loss | 6 | ( |
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Interest payable and similar expenses | 7 |
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Loss before taxation | ( |
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Tax on loss | 8 |
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Loss for the financial year | ( |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Other Comprehensive Income |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
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Loss for the year | ( |
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Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Balance Sheet |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 |
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Tangible assets | 10 |
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Current assets |
Stocks | 11 |
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Debtors | 12 |
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Cash in hand |
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Creditors |
Amounts falling due within one year | 13 |
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Net current liabilities | ( |
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Total assets less current liabilities | ( |
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Creditors |
Amounts falling due after more than one
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14 |
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Net liabilities | ( |
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Capital and reserves |
Called up share capital | 17 |
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Share premium | 18 |
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Revaluation reserve | 18 |
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Retained earnings | 18 | ( |
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Shareholders' funds | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Statement of Changes in Equity |
for the year ended 31 December 2019 |
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Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1 January 2018 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2018 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2019 |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements |
for the year ended 31 December 2019 |
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1. | Statutory information |
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Broom Boats Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 01147080 and registered office address is The Yacht Station, Riverside, Brundall, Norwich, Norfolk, NR13 5PX. |
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2. | Accounting policies |
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Basis of preparing the financial statements |
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Going concern |
The Company incurred a net loss of £494,691 during the year ended 31 December 2019 and at that date the Company had net current liabilities of £10,003,136 and net liabilities of £5,315,445. The Company meets its day to day working capital requirements through a combination of formal bank borrowings and support from its parent undertakings. The bank facilities of £1,025,154 are secured over the assets of the Company. Included in the bank facility is an overdraft of £400,000. The parent undertakings have confirmed their loans of £8,184,704 will not be withdrawn in the foreseeable future unless funds permit. Management believe that the business is making strong progress in its turnaround and also that there is significant potential value in the current operating site. |
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The directors reviewed and considered relevant information, including the annual budgets and forecasts of the company in making their assessment. In particular, in response to the COVID-19 pandemic, the directors have taken into account the impact on their business of COVID-19, alongside the measures that they can take to mitigate the future impact. To date, management have acted swiftly and decisively in enacting cost saving measures and obtaining suitable government support, leaving the business well positioned to continue its planned turnaround throughout FY21. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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This information is included in the consolidated financial statements of M Scott Proprty Group Limited as at 31 December 2018.and these financial statements may be obtained from Companies House. |
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Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
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There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets. |
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There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of. |
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There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable. |
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
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Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and amounts reported for income and expenditure during the year. However, the nature of estimation mean that actual outcomes could differ from those estimates. No judgements (apart from those involving estimates) have been made when preparing the financial statements. |
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The key assumptions concerning the future and other key sources of estimating uncertainty at the reporting date that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: |
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- Stock provision |
A provision for stock where net realisable value is expected to be less than cost has been included in the financial statements to ensure the stock balance represents a recoverable amount. The stock provision at 31 December 2019 was £292,824. |
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- Amounts recoverable on contracts |
Amounts recoverable on contracts are assessed on a contract by contract basis and turnover and related costs are recognised as the activity progresses. |
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- Amortisation and impairment of development costs |
Development costs consist of expenditure incurred by the company in the design and development of new boating models. Amortisation of 2% per use has been applied. |
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- Useful economic life of tangible fixed assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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On the sale of standard products and repairs, revenue is recognised by the company on completion of the job. |
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On the sale of boats, revenue is recognised across the life of the build. |
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Intangible assets |
Intangible assets are initially measured at cost. After recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Any impairment loss is to be recognised in the Income Statement following an assessment at the Balance Sheet date indicating the recoverable amount was less than its carrying value. |
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Development costs are being amortised evenly over their estimated useful life of 50 years. |
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Development costs are capitalised within intangible assets where they can be identified with a specific product or project anticipated to produce future benefits and are amortised over the anticipated life of the benefits arising from the completed product or project. Development costs are reviewed annually, and where benefits are deemed to have ceased or to be in doubt, the balance of any related development is written off to the Statement of Comprehensive Income. |
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
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Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
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Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
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Freehold property | - | 2% straight line |
Improvements to freehold property | - | 10% straight line |
Plant and machinery | - | 10% - 25% reducing balance |
Motor vehicles | - | 25% straight line |
Fixtures, fittings & computer equipment | - | 25% reducing balance |
Website & software | - | 25% - 33% straight line |
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Moulds included within plant and machinery, are written off over their useful economic lives. The useful economic lives are assessed annually by the directors. |
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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. Work in progress and finished goods include labour and attributable overheads. |
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Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
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Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
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Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts. |
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Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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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 balance sheet date. |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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3. | Turnover |
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The turnover and loss before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2019 | 2018 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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2019 | 2018 |
£ | £ |
United Kingdom |
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4. | Employees and directors |
2019 | 2018 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2019 | 2018 |
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Boat building and repairing | 14 | 30 |
Selling, distribution and administration | 19 | 16 |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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5. | Directors' emoluments |
2019 | 2018 |
£ | £ |
Directors' remuneration |
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6. | Operating loss |
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The operating loss is stated after charging/(crediting): |
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2019 | 2018 |
£ | £ |
Hire of plant and machinery |
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Depreciation - owned assets |
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Profit on disposal of fixed assets | ( |
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Auditors' remuneration |
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7. | Interest payable and similar expenses |
2019 | 2018 |
£ | £ |
Bank overdraft interest | ( |
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Bank loan interest |
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8. | Taxation |
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Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
Prior year over provision | - | 15,087 |
Tax on loss |
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9. | Intangible fixed assets |
Development |
Trademarks | costs | Totals |
£ | £ | £ |
Cost |
At 1 January 2019 |
and 31 December 2019 |
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Amortisation |
At 1 January 2019 |
and 31 December 2019 |
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Net book value |
At 31 December 2019 |
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At 31 December 2018 |
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BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
10. | Tangible fixed assets |
Freehold | Improvements | Other fixed |
property | to property | assets | Totals |
£ | £ | £ | £ |
Cost or valuation |
At 1 January 2019 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) | ( |
) | ( |
) |
At 31 December 2019 |
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|
|
|
Depreciation |
At 1 January 2019 |
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|
|
|
Charge for year |
|
|
|
|
At 31 December 2019 |
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|
|
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Net book value |
At 31 December 2019 |
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|
|
At 31 December 2018 |
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|
|
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Cost or valuation at 31 December 2019 is represented by: |
|
Freehold | Improvements | Other fixed |
property | to property | assets | Totals |
£ | £ | £ | £ |
Valuation in 2009 | 1,515,121 | - | - | 1,515,121 |
Cost | 1,484,879 | 191,720 | 3,021,041 | 4,697,640 |
3,000,000 | 191,720 | 3,021,041 | 6,212,761 |
|
If the land and buildings had not been revalued they would have been included at the following historical cost: |
|
2019 | 2018 |
£ | £ |
Cost | 1,484,879 | 1,484,879 |
Aggregate depreciation | 366,291 | 366,291 |
|
Value of land in freehold land and buildings | 1,118,588 | 1,118,588 |
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Included in freehold property is freehold land and moorings at a valuation of £2,250,000 (original cost £4,700) which is not depreciated. |
|
11. | Stocks |
2019 | 2018 |
£ | £ |
Stocks |
|
|
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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|
12. | Debtors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
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Other debtors |
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|
|
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13. | Creditors: amounts falling due within one year |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
VAT | 632 | 36,648 |
Other creditors |
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Accruals and deferred income |
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|
|
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14. | Creditors: amounts falling due after more than one year |
2019 | 2018 |
£ | £ |
Other creditors |
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|
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15. | Loans |
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An analysis of the maturity of loans is given below: |
|
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
Bank overdrafts | 211,191 | 154,247 |
|
|
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Bank facilities of £1,025,154 (2018 £1,062,396) are secured over the industrial premises, debentures and bank ,balances of the Company along with a cross guarantee with Broom Marine Group Limited. |
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Some of the Company's bank loan agreements are subject to covenant clauses, whereby the Company is required to meet certain key financial ratios. The Company did not fulfill the profit before interest and tax / interest charge ratio as required. Due to this breach of the covenant clause, the bank is contractually entitled to request immediate repayment of the outstanding loan of £813,963. The outstanding balance is presented as a current liability as at 31 December 2019. |
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The bank has not requested early repayment of the loan as of the date these financial statements were approved by the Board of Directors. |
BROOM BOATS LIMITED (REGISTERED NUMBER: 01147080) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
16. | Leasing agreements |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
|
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Between one and five years |
|
|
|
|
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17. | Called up share capital |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 58,210 | 58,210 |
|
18. | Reserves |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 January 2019 | ( |
) |
|
|
(4,878,964 | ) |
Deficit for the year | ( |
) | ( |
) |
At 31 December 2019 | ( |
) |
|
|
(5,373,655 | ) |
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19. | Pension commitments |
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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 for the year was £15,500 (2018 £16,992). £3,177 (2018 £2,306) contributions were payable to the fund at the balance sheet date. |
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20. | Ultimate parent company |
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M Scott Property Group (incorporated in UK ) is regarded by the directors as being the company's ultimate parent company. |
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21. | Related party disclosures |
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The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
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At the year end £150,000 was due to directors. |
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During the year, a total of key management personnel compensation of £
|
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22. | Ultimate controlling party |
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The ultimate controlling party is M Scott. |