REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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A I D FUEL OILS LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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FOR |
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A I D FUEL OILS LIMITED |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 10 |
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Other Comprehensive Income | 11 |
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Statement of Financial Position | 12 |
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Statement of Changes in Equity | 13 |
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Statement of Cash Flows | 14 |
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Notes to the Statement of Cash Flows | 15 |
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Notes to the Financial Statements | 17 |
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A I D FUEL OILS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants and Statutory Auditor |
34 Waterloo Road |
Wolverhampton |
West Midlands |
WV1 4DG |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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The directors present their strategic report for the year ended 30 September 2021. |
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REVIEW OF BUSINESS |
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The principal activity of the company is the supply of industrial and domestic fuel oils and lubricants and the marketing of fuel cards. |
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RESULTS AND PERFORMANCE |
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The results for the year show a profit before tax of £941,105 (2020: £1,128,232). A summary of the results of the years trading is given on page 10 of the accounts. The directors consider both the profit achieved on ordinary activities before taxation and the state of affairs of the company at 30th September 2021 to be satisfactory. |
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BUSINESS ENVIRONMENT |
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The company operates in a sector of the oil market subject to volatile price fluctuations, which can impact margins and profitability. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
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The company would face a potential risk if there was to be any disruption to the supply chain of the oil market. The demand for fuels is also impacted directly by the winter conditions, in particular the demand for heating oil products. The assessment of credit risk in the commercial sector is also an underlying uncertainty within the business and the company operates a bad debt insurance policy in order to minimise the risk. |
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In addition, the on going impact of the Coronavirus will continue to have an effect on the business but the extent of this impact is difficult to evaluate at this point in time. |
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FINANCIAL KEY PERFORMANCE INDICATORS |
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The key performance indicators used by the directors in assessing the performance of the company revolves around the monthly margin and volume analysis, for each product sector, with the performance of the company reviewed at the monthly director's management meeting, to examine the results and take any corrective action needed to maximize growth in target sectors and enhance profitability. The sales compared with last year were £49 million (2020: £46.6 million) the increase a result in the rise in oil prices across the year, this rise had no impact on the profitability of the Company. |
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FUTURE DEVELOPMENTS |
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Although the UK economy has suffered as a result of the global pandemic, the risks to economic growth remain significant and future prospects may be influenced by developments in the Eurozone and the broader UK economy. |
The level of profitability in the coming year will as always be partly dependent on the wholesale price of fuel, the severity of competition and the ability of the company to generate extra growth in target sectors, whilst retaining volumes in existing profitable areas. |
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Quality of staff is an important factor in terms of providing reliable products and service to existing customers and to enable the company to grow. It is AID Fuel Oils policy to ensure that it employs sufficient staff, adequately trained and of the right calibre to meet these requirements. |
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The company therefore has a strong basis for believing it will at least retain it's market position, maintain profitability at satisfactory levels and continue to generate cash through the forthcoming year. |
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ON BEHALF OF THE BOARD: |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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28 March 2022 |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the supply of industrial and domestic fuel oils and lubricants. |
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DIVIDENDS |
The profit for the year, after taxation amounted to £667,352 (2020: £959,590). A dividend of £NIL (2020: £NIL) has been voted during the year ended 30 September 2021. |
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DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 October 2020 to the date of this report. |
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The beneficial interests of the directors holding office at 30 September 2021 in the shares of the company, according to the register of directors' interests, were as follows: |
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30.9.21 | 1.10.20 |
Ordinary Shares shares of £1 each |
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50,000 | 50,000 |
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50,000 | 50,000 |
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- | - |
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These directors did not hold any non-beneficial interests in the shares of the company. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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AUDITORS |
The auditors, Crombies Accountants Limited, 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 |
A I D FUEL OILS LIMITED |
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Opinion |
We have audited the financial statements of A I D Fuel Oils Limited (the 'company') for the year ended 30 September 2021 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A I D FUEL OILS LIMITED |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A I D FUEL OILS LIMITED |
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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 engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
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-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the oil sector; |
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-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
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-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
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To address the risk of fraud through management bias and override of controls, we: |
-performed analytical procedures to identify any unusual or unexpected relationships; |
-tested journal entries to identify unusual transactions; |
-assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and |
-investigated the rationale behind significant or unusual transactions. |
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
-agreeing financial statement disclosures to underlying supporting documentation; |
-reading the minutes of meetings of those charged with governance; |
-enquiring of management as to actual and potential litigation and claims; and |
-reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
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There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A I D FUEL OILS LIMITED |
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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 and Statutory Auditor |
34 Waterloo Road |
Wolverhampton |
West Midlands |
WV1 4DG |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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805,606 | 1,008,349 |
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Other operating income |
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OPERATING PROFIT | 4 |
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Interest receivable and similar income |
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944,654 | 1,131,337 |
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Interest payable and similar expenses | 5 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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PROFIT FOR THE FINANCIAL YEAR |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Revaluation of investments |
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Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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STATEMENT OF FINANCIAL POSITION |
30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
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Investments | 8 |
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Investment property | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Investments | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
14 |
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( |
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PROVISIONS FOR LIABILITIES | 16 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Fair value 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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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 October 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 September 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30 September 2021 |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest element of hire purchase payments
paid |
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( |
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Revaluation of current asset investment | ( |
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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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Sale of fixed asset investments |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Capital repayments in year |
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Amount introduced by directors | 2 | 147 |
Amount withdrawn by directors | (569,001 | ) | (150,000 | ) |
Net cash from financing activities | ( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
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2 |
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1,723,279 |
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Cash and cash equivalents at end of year | 2 | 2,511,717 | 2,665,704 |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 SEPTEMBER 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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(Profit)/loss on disposal of fixed assets | ( |
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Finance costs | 3,549 | 3,105 |
Finance income | (28,419 | ) | (21,375 | ) |
1,171,462 | 1,345,669 |
(Increase)/decrease in stocks | ( |
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(Increase)/decrease in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
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Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 2,511,717 | 2,665,704 |
Year ended 30 September 2020 |
30.9.20 | 1.10.19 |
£ | £ |
Cash and cash equivalents | 2,665,704 | 1,723,279 |
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A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.10.20 | Cash flow | At 30.9.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,665,704 | (153,987 | ) | 2,511,717 |
2,665,704 | ( |
) | 2,511,717 |
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Liquid resources |
Current asset investments | 3,160,800 | 784,631 | 3,945,431 |
3,160,800 | 784,631 | 3,945,431 |
Debt |
Finance leases | (206,747 | ) | (136,133 | ) | (342,880 | ) |
(206,747 | ) | (136,133 | ) | (342,880 | ) |
Total | 5,619,757 | 494,511 | 6,114,268 |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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1. | STATUTORY INFORMATION |
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A I D Fuel Oils Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. (See later note) |
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Preparation of consolidated financial statements |
The financial statements contain information about A I D Fuel Oils Limited as an individual company and do not contain consolidated financial information as the parent of a group. The directors consider that the activities of the subsidiary company are immaterial and have therefore taken advantage of the exemption under Section 405 of the Companies Act 2006 not to prepare consolidated financial statements. |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
In preparing these financial statements, the directors have had to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenditure. |
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The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have significant risk of material adjustments to carrying amount of assets and liabilities are: |
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-Tangible fixed assets |
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Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors, In re-assessing asset lives, factors such as technical innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
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-Stock provisions |
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The company has recognised provisions for the impairment of stock. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. In the case of the provisions for the impairment of stock, this covers obsolescence through technological or customer specific reasons. This provision is based on the assessment of stock value and ageing, quantities on hand, usage, changes in the market, technical developments and warranty periods. The value of stock included in the financial statements is net of the provision for the impairment of stock. |
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-Bad debt provision |
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The company has recognised provisions against specific trade debtor balances. The judgements and estimates necessary to calculate these provisions are based on historical experience and other reasonable factors. This provision is based on the age of debt balances and the assessed recoverability. The value of trade debtors in note 11 is stated net of the provision of bad debts. |
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Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and it can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is recognised from the sale of goods when the entity has transferred to the buyer the significant risks and rewards of ownership of the goods. This occurs when the buyer takes possession of the goods. |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Tangible assets 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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The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the statement of income and retained earnings during the period in which they are incurred. |
|
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | 2% on cost (see note below) |
Plant & machinery | 15% reducing balance |
Office equipment | 15% reducing balance |
Computers | 20% on cost |
|
|
Freehold land is not depreciated. |
|
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
|
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
|
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its net realisable value. The impairment loss is recognised immediately in the financial statements. |
|
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. |
|
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. |
|
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. |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
2. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
Financial assets |
|
Financial assets comprise cash at bank and in hand, trade debtors, amounts owed by group undertakings and other debtors; these are initially recorded at cost on the date they originate and are subsequently recorded at cost less provisions for impairment. The company considers evidence of impairment for all individual trade and other debtors and amounts owed by group undertakings, and any subsequent impairment is recognised in the statement of income and retained earnings. |
|
Impairment of financial assets |
|
Impairment provisions are recognised when there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes significant financial difficulties of the counterparty, default or significant delays in payment. |
|
Impairment provisions represent the difference between the net carrying amount of a financial asset and the value of the expected future cash receipts from that asset. |
|
Financial liabilities |
|
Financial liabilities comprise trade creditors, other creditors and accruals; these are initially recorded, and subsequently carried, at cost on the date they originate. |
|
Financial liabilities also comprise obligations under finance lease and hire purchase contracts; these are initially recorded at cost on the date they originate and are subsequently carried at amortised cost under the effective interest method. |
|
Current asset investments |
Current asset investments are stated at market value. |
|
|
Interest Income |
|
Interest income is recognised in the financial statements using the effective interest method. |
|
Going concern |
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. |
|
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
|
3. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
3. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Office and management | 16 | 16 |
Drivers, sales & maintenance | 28 | 27 |
|
|
|
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
|
|
|
4. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
|
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Hire purchase |
|
|
|
6. | 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 |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
6. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2021 | 2020 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
|
|
Effects of: |
Utilisation of tax losses | ( |
) |
|
Expenses not deductible for tax purposes | 4,319 | 3,781 |
Capital allowances for period in excess of depreciation | (128,297 | ) | (14,503 | ) |
accrual |
|
|
Deferred Tax | 220,000 | (35,000 | ) |
Total tax charge | 273,753 | 168,642 |
|
Tax effects relating to effects of other comprehensive income |
|
2021 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of investments |
|
- | 671,824 |
|
2020 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of investments | ( |
) | - | (265,903 | ) |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
7. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2020 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
At 30 September 2021 |
|
|
|
|
DEPRECIATION |
At 1 October 2020 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) |
At 30 September 2021 |
|
|
|
|
NET BOOK VALUE |
At 30 September 2021 |
|
|
|
|
At 30 September 2020 |
|
|
|
|
|
The company's freehold and investment properties have been revalued according to professional valuations carried out by Andrew Dixon & Company Chartered Surveyors. The valuations in respect of the properties owned and used by the company at the start of the year are the same market value as when the last valuation was undertaken and therefore no adjustments have been made in respect of those freehold properties and investment property during the year. |
|
Cost or valuation at 30 September 2021 is represented by: |
|
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings | Totals |
£ | £ | £ | £ |
Valuation in 2018 | 361,990 | - | - | 361,990 |
Cost | 1,808,581 | 3,593,179 | 143,257 | 5,545,017 |
2,170,571 | 3,593,179 | 143,257 | 5,907,007 |
|
If freehold properties had not been revalued they would have been included at the following historical cost: |
|
2021 | 2020 |
£ | £ |
Cost | 1,808,581 | 1,808,581 |
Aggregate depreciation | 59,952 | 56,527 |
|
Freehold properties held then were valued on an open market value basis on 20 January 2021 by Andrew Dixon & Company . |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
7. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 October 2020 |
|
Additions |
|
Transfer to ownership | (110,000 | ) |
At 30 September 2021 |
|
DEPRECIATION |
At 1 October 2020 |
|
Charge for year |
|
Transfer to ownership | (42,446 | ) |
At 30 September 2021 |
|
NET BOOK VALUE |
At 30 September 2021 |
|
At 30 September 2020 |
|
|
8. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2020 |
and 30 September 2021 |
|
PROVISIONS |
At 1 October 2020 |
and 30 September 2021 | 450,000 |
NET BOOK VALUE |
At 30 September 2021 |
|
At 30 September 2020 |
|
|
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
|
|
Registered office: Cocksparrow Lane, Huntington, Cannock, West Midlands, WS12 4PB |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
|
|
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
9. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 October 2020 |
and 30 September 2021 |
|
NET BOOK VALUE |
At 30 September 2021 |
|
At 30 September 2020 |
|
|
10. | STOCKS |
2021 | 2020 |
£ | £ |
Goods for resale |
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
|
12. | CURRENT ASSET INVESTMENTS |
2021 | 2020 |
£ | £ |
Listed investments | 3,945,431 | 3,160,800 |
Market value of listed investments at 30 September 2021 - £ 3,945,431 (2020 - £ 3,160,800 ). |
|
The investments consist of a portfolio of authorised unit trusts and bank balances. |
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' loan accounts | 484,911 | 1,053,910 |
Accrued expenses |
|
|
|
|
|
14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 15) |
|
|
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments under hire purchase fall due as follows: |
|
2021 | 2020 |
£ | £ |
Gross obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Finance charges repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
16. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 475,000 | 255,000 |
|
Deferred |
tax |
£ |
Balance at 1 October 2020 |
|
Accelerated capital allowances | 220,000 |
Balance at 30 September 2021 |
|
|
17. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary Shares | £1 | 100,000 | 100,000 |
A I D FUEL OILS LIMITED (REGISTERED NUMBER: 01445830) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
|
18. | RESERVES |
Fair |
Retained | value |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 October 2020 |
|
|
6,102,298 |
Profit for the year |
|
|
Revaluation of current asset |
investments | - | 671,824 | 671,824 |
At 30 September 2021 |
|
|
7,441,474 |
|
19. | PENSION COMMITMENTS |
|
The assets of the pension scheme's are held separately from those of the company in independently administered fund's. |
|
20. | ULTIMATE CONTROLLING PARTY |
|
A W Whitehouse and T J W Whitehouse jointly control the company by virtue of their each holding 50% of the issued share capital of the company. |