REGISTERED NUMBER:
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Morris & Co. (Handlers) Limited |
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Strategic Report, Report of the Directors and |
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Financial Statements For The Year Ended 1 October 2021 |
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REGISTERED NUMBER:
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Morris & Co. (Handlers) Limited |
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Strategic Report, Report of the Directors and |
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Financial Statements For The Year Ended 1 October 2021 |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Contents of the Financial Statements |
For The Year Ended 1 October 2021 |
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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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Statement of Comprehensive Income | 6 |
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Balance Sheet | 7 |
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Statement of Changes in Equity | 8 |
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Cash Flow Statement | 9 |
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Notes to the Cash Flow Statement | 10 |
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Notes to the Financial Statements | 12 |
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Morris & Co. (Handlers) Limited |
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Company Information |
For The Year Ended 1 October 2021 |
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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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Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Strategic Report |
For The Year Ended 1 October 2021 |
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The directors present their strategic report for the year ended 1 October 2021. |
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REVIEW OF BUSINESS |
The 2021 profit before tax fell to £1,891,402 from £2,781,587 in the year to 1 October 2020 |
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The capital and reserves at the end of the year amounted to £4,095,298 (2020: £3,732,187). |
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The directors consider the level of activity and year end position to be satisfactory. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Within the commercial activities the main risk facing the company are the fluctuations in commodity prices which impacts on margins and liquidity risk. |
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SECTION 172(1) STATEMENT |
Morris & Co (Handlers) Limited is strategically operated by the Board of Directors, we make strategic decisions to enable the business to grow and develop. We aim to develop the company to and ensure that the decision making process provides benefit to employees and stakeholders while fairness is maintained. |
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Engaging With Stakeholders; |
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Our key stakeholders and the ways in which we engage with them are as follows; |
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Employees - The company relies on staff to ensure production levels and production quality is maintained |
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- Staff are remunerated at the relevant level dependent on role, qualifications and experience |
- Staff in key roles are involved in decision making processes to ensure they represent interests, increase communication and align expectations within the business. |
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Customers - We strive to maintain a high level of service and quality. We promote and pursue feedback from customers to ensure that levels are achieved and maintained. |
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Suppliers - Supply chain is vital to ensure service and quality. We maintain positive relationships with key suppliers to ensure this is retained. |
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Our Community - We take any community feedback very seriously and take action where any issues have been reported. |
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Our Planet - We always try to be environmentally friendly in how we operate. We engage with specialists, to monitor and understand our energy consumption. With more informed knowledge this allows the board to make more energy efficient decisions for both energy usage and emissions. |
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KEY PERFORMANCE INDICATORS |
During the year the company employed 61 people (58 in 2020) producing a turnover of £50,079,183 (2020: £36,026,363). The turnover shows an increase of 39% compared with the previous year. |
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STREAMLINED ENERGY AND CARBON REPORTING |
UK Greenhouse gas emissions and energy use data for the period 2 October 2020 to 1 October 2021 |
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Consumption | Conversion Factor | CO2 Emissions |
Combustion of gas own use | - | - | - |
Consumption of fuel for the purpose of transport (Litres) | 139,513 | 2.47507 | 345.30 |
Consumption of electricity (kWh) | 2,148,524 | 0.21016 | 451.53 |
Consumption of fuel for the purpose of own use (Litres) | 486,764 | 2.72417 | 1,326.03 |
2,122.87 |
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ON BEHALF OF THE BOARD: |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Report of the Directors |
For The Year Ended 1 October 2021 |
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The directors present their report with the financial statements of the company for the year ended 1 October 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the sale of salvaged and reclaimed materials. |
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DIVIDENDS |
The total distribution of interim dividends for the year ended 1 October 2021 was £1,000,000 (2020: £890,000) |
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The directors recommend that no final dividend be paid. |
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FUTURE DEVELOPMENTS |
The directors constantly review opportunities to improve profitability and performance including production efficiencies. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 2 October 2020 to the date of this 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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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, Kingswood Allotts Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Morris & Co. (Handlers) Limited |
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Opinion |
We have audited the financial statements of Morris & Co. (Handlers) Limited (the 'company') for the year ended 1 October 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 1 October 2021 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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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. |
Report of the Independent Auditors to the Members of |
Morris & Co. (Handlers) Limited |
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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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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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- Enquiry of management, those charged with governance around actual and potential litigation and claims; |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; |
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Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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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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Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Statement of Comprehensive |
Income |
For The Year Ended 1 October 2021 |
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2021 | 2020 |
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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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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2,147,254 | 3,007,252 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Balance Sheet |
1 October 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 12 |
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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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13 |
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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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Revaluation reserve | 20 |
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Capital redemption reserve | 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 and authorised for issue on
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Statement of Changes in Equity |
For The Year Ended 1 October 2021 |
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Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 2 October 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 1 October 2020 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 1 October 2021 |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Cash Flow Statement |
For The Year Ended 1 October 2021 |
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2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Interest element of hire purchase payments
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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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Loan repayments in year | ( |
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Invoice financing | (1,058,064 | ) | 1,268,588 |
Capital repayments in year | ( |
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Amount introduced by directors | 125,965 | 124,601 |
Amount withdrawn by directors | (975,577 | ) | (1,093,149 | ) |
Net cash from financing activities | ( |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning
of year |
2 |
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461,246 |
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Cash and cash equivalents at end of year | 2 | ( |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Notes to the Cash Flow Statement |
For The Year Ended 1 October 2021 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Finance costs | 255,852 | 225,665 |
Finance income | (10,968 | ) | (5,641 | ) |
3,829,019 | 4,347,045 |
Increase in stocks | ( |
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Increase in trade and other debtors | ( |
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Increase/(decrease) 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 Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 1 October 2021 |
1.10.21 | 2.10.20 |
£ | £ |
Cash and cash equivalents | 612 | 217,684 |
Bank overdrafts | ( |
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(16,743 | ) | 217,684 |
Year ended 1 October 2020 |
1.10.20 | 2.10.19 |
£ | £ |
Cash and cash equivalents | 217,684 | 461,246 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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Other |
non-cash |
At 2.10.20 | Cash flow | changes | At 1.10.21 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 217,684 | (217,072 | ) | 612 |
Bank overdrafts | - | (17,355 | ) | (17,355 | ) |
217,684 | ( |
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Debt |
Finance leases | (4,257,449 | ) | 1,590,358 | (817,442 | ) | (3,484,533 | ) |
Debts falling due |
within 1 year | (4,259,270 | ) | 749,604 | - | (3,509,666 | ) |
Debts falling due |
after 1 year | (1,009,682 | ) | 424,069 | - | (585,613 | ) |
(9,526,401 | ) | 2,764,031 | (817,442 | ) | (7,579,812 | ) |
Total | (9,308,717 | ) | 2,529,604 | (817,442 | ) | (7,596,555 | ) |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Notes to the Cash Flow Statement |
For The Year Ended 1 October 2021 |
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4. | MAJOR NON-CASH TRANSACTIONS |
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During the year the company entered into hire purchase and finance lease arrangements in respect of assets with a total capital value at the inception of the leases of £817,442 (2020: £677,174). |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Notes to the Financial Statements |
For The Year Ended 1 October 2021 |
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1. | STATUTORY INFORMATION |
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Morris & Co. (Handlers) Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The directors are aware of the year end net current liabilities of the company and have taken steps to ensure the company has adequate financial resource to continue trading over the next twelve months . The directors have produced forecasts which show that the company can continue to operate within its financial resources for twelve months from the date of this report and management accounts indicate these projections should be achieved. Consequently the directors are confident that the financial statements are properly prepared on a going concern basis. Since the year end new finance facilities have been agreed to replace the existing facilities in place, which will support the business for in excess of 12 months from the date of approval of the financial statements. |
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Changes in accounting policies |
The company has taken advantage of the provisions in section 390 of the Companies Act 2006 which allow the company to make accounts up to a date within seven days of the accounting reference date and consequently these financial statements are made up to 30th September 2021 (2020: 30th September 2020). |
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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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Turnover is recognised when the company has a right to the consideration. |
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Tangible fixed assets |
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Freehold property | - |
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Short leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Computer equipment | - |
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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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Financial instruments |
Financial instruments |
The company holds basic financial instruments as defined by FRS102. The financial assets and financial liabilities of the company and their measurement basis are as follows: |
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Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. |
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Cash at bank - is classified as a basic financial instrument and is measured at face value. |
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Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition. Deferred income is not deemed to be a financial liability, as the cash settlement has already taken place and there is an obligation to deliver services rather than cash or another financial instrument. |
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The company enters into foreign exchange forward contracts to manage its exposure to foreign currency risk. These derivatives are measured at fair value , net of transactions costs, and are measured subsequently at amortised cost using the effective interest method. |
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Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
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2. | ACCOUNTING POLICIES - continued |
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 balance sheet 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 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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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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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 profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2021 | 2020 |
£ | £ |
United Kingdom |
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Europe |
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All turnover relates to the sale of goods. |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
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Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
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4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
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: |
2021 | 2020 |
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Site operatives | 44 | 37 |
Administration | 17 | 21 |
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2021 | 2020 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging: |
|
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
Operating leases - rent |
|
|
|
Loss on disposal of fixed assets includes losses of £277,840 for plant and machinery lost to fire damage. |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest |
|
|
Bank loan interest |
|
|
Hire purchase |
|
|
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Adjustment for earlier years | (77,917 | ) | - |
Total current tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2020 - 19%). |
|
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: |
|
2021 | 2020 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
allowed for tax |
Change of tax rate | 225,647 | - |
Depreciation of ineligible assets | 19,678 | 25,506 |
Relief in relation to R&D claim | (77,917 | ) | - |
Enhanced capital allowance claim | (15,895 | ) | - |
Total tax charge | 528,291 | 580,780 |
|
8. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Interim |
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
9. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 2 October 2020 | 1,431,813 | 579,941 | 11,271,861 |
Additions |
|
|
|
Disposals |
|
|
( |
) |
Reclassification/transfer |
|
|
( |
) |
At 1 October 2021 |
|
|
|
DEPRECIATION |
At 2 October 2020 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
|
( |
) |
Reclassification/transfer |
|
|
( |
) |
At 1 October 2021 |
|
|
|
NET BOOK VALUE |
At 1 October 2021 |
|
|
|
At 1 October 2020 |
|
|
|
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 2 October 2020 | 89,319 | 1,128,909 | 115,490 | 14,617,333 |
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
Reclassification/transfer |
|
|
|
|
At 1 October 2021 |
|
|
|
|
DEPRECIATION |
At 2 October 2020 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) |
Reclassification/transfer |
|
|
|
|
At 1 October 2021 |
|
|
|
|
NET BOOK VALUE |
At 1 October 2021 |
|
|
|
|
At 1 October 2020 |
|
|
|
|
|
Included in cost or valuation of land and buildings is freehold land of £ 396,230 (2020 - £ 396,230 ) which is not depreciated. |
|
Short leasehold property includes £nil (2020: £105,440), freehold property includes £441,307 (2020: £nil) and plant and machinery includes £1,226,094 (2020: £447,291) for assets in the course of construction. These assets have not yet been brought into use and have therefore not been depreciated. |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Cost or valuation at 1 October 2021 is represented by: |
|
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Valuation in 2015 | - | - | 800,000 |
Valuation in 2013 | 970,000 | - | - |
Valuation in 2011 | - | - | 460,000 |
Cost | 1,140,516 | 586,496 | 11,974,996 |
2,110,516 | 586,496 | 13,234,996 |
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2015 | - | - | - | 800,000 |
Valuation in 2013 | - | - | - | 970,000 |
Valuation in 2011 | - | - | - | 460,000 |
Cost | 219,853 | 1,118,403 | 128,422 | 15,168,686 |
219,853 | 1,118,403 | 128,422 | 17,398,686 |
|
If property and static plant had not been revalued they would have been included at the following historical cost |
|
Cost £1,667,332 (2020: £1,667,332) |
|
Aggregate Depreciation £867,697 (2020 £822,675) |
|
Net book value £799,635 (2020: £844,657) |
|
Plant and machinery includes static plant at a written down value of £291,382 (2020: £295,606) that have been revalued by the directors at depreciated replacement cost in prior year. |
|
The land and buildings were revalued on 16th December 2013 as it is the directors' belief that this provides a true and fair view of their value. Properties to the value of £885,000 were valued by Grice & Hunter (Chartered Surveyors) on an open market existing use basis. A further property to the value of £85,000 was valued by the directors at the same time. Furthermore the directors have taken advantage of the transitional provisions of FRS102 to retain the value of these at deemed cost at the transition date of 1 October 2016. |
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Short | Plant and | Motor |
leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 2 October 2020 |
|
|
|
|
Additions | 6,555 |
|
|
|
Transfer to ownership | - | - | (234,100 | ) | (234,100 | ) |
At 1 October 2021 | 356,100 |
|
|
|
DEPRECIATION |
At 2 October 2020 | 16,465 |
|
|
|
Charge for year | 14,011 |
|
|
|
Transfer to ownership | - | - | (112,609 | ) | (112,609 | ) |
At 1 October 2021 | 30,476 |
|
|
|
NET BOOK VALUE |
At 1 October 2021 | 325,624 |
|
|
|
At 1 October 2020 | 333,080 |
|
|
|
|
10. | STOCKS |
2021 | 2020 |
£ | £ |
Stocks |
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Directors' current accounts | 30,047 | - |
Prepayments and accrued income |
|
|
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Other loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Taxation |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 69,471 | 49,036 |
Accruals and deferred income |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
Other loans |
|
|
|
|
|
Amounts falling due between one and two years: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans | 1,684 | 16,667 |
|
Other loans comprise an invoice discounting facility. |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2021 | 2020 |
£ | £ |
Bank loans |
|
|
Hire purchase contracts | 3,484,533 | 4,257,449 |
Invoice Discounting | 3,080,040 | 4,138,104 |
|
|
|
The bank loans (and overdraft facilities) are secured against the business property and additionally there is a charge over the other assets of the company. Further security over the bank loans and overdraft facilities is provided by personal guarantees from the directors amounting to £400,000. |
|
The bank loan comprises: |
|
i) a 60 month £306,648 term loan at a variable interest rate of LIBOR plus margin at 2.55%. The bank loan is repayable by monthly instalments and is due to be repaid in full by January 2025. |
|
ii) a 36 month £750,000 term loan at a variable interest rate of LIBOR plus margin at 2.24%. The bank loan is repayable by quarterly instalments and is due to be repaid in full by July 2023. |
|
Finance leases and hire purchase creditors are secured on the assets concerned. |
|
The invoice discounting facility is secured by an all asset debenture, a joint and several guarantee from the directors amounting to £300,000 and a guarantee from an entity controlled by a director. |
|
17. | FINANCIAL INSTRUMENTS |
|
Financial assets |
2021 | 2020 |
£ | £ |
Financial assets measured at fair value through profit or loss | - | - |
Financial assets that are debt instruments measured at
amortised cost |
|
6,457,337 |
7,079,784 |
6,457,337 | 7,079,784 |
|
|
Financial liabilities |
|
2021 | 2020 |
£ | £ |
Financial liabilities measured at amortised cost | 17,875,847 | 14,789,442 |
17,875,847 | 14,789,442 |
|
|
Financial assets and liabilities measured at fair value through profit or loss comprise contracts to purchase foreign currency at a future date |
|
Financial assets measured at amortised cost comprise trade debtors, other debtors, and cash at bank and in hand. |
|
Financial liabilities measured at amortised cost comprise trade and other payables, and accruals |
|
18. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
18. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred |
tax |
£ |
Balance at 2 October 2020 |
|
Provided during year |
|
Change in rate | 232,503 |
Balance at 1 October 2021 |
|
|
Deferred tax has been provided at 25% (2020: 19%). Subject to further capital expenditure, approximately £155,000 (2020: £74,000) of the above is expected to reverse within one year. |
|
19. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | £1 | 250 | 250 |
|
20. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
|
At 2 October 2020 |
|
|
|
3,731,937 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
Transfer | 52,062 | (52,062 | ) | - | - |
At 1 October 2021 |
|
|
|
4,095,048 |
|
21. | CAPITAL COMMITMENTS |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
|
|
|
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 1 October 2021 and 1 October 2020: |
|
2021 | 2020 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
Morris & Co. (Handlers) Limited (Registered number: 01240380) |
|
Notes to the Financial Statements - continued |
For The Year Ended 1 October 2021 |
|
23. | RELATED PARTY DISCLOSURES |
|
Amounts totalling £69,471 were owed to directors of the company. (2020: £49,036) |
|
Amounts owing from other related parties were £157,041 (2020: £482,041). |
|
Amounts due to other related parties were £28,667 (2020: £6,119). |
|
A related party has provided an unlimited guarantee and indemnity for the company in respect of the invoice discounting facility. Further security over the bank loans and overdraft facilities is provided by personal guarantees amounting to £400,000. |
|
All other transactions with these and other related parties are considered to be under normal market conditions. |