Company Registration No. 01607961 (England and Wales)
A.T. LITTLE & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
A.T. LITTLE & SONS LIMITED
COMPANY INFORMATION
Directors
Mrs Y J Stafford
Mr A T Little
Mr J J Little
Company number
01607961
Registered office
22-28 George Street
Hull
HU1 3AP
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
A.T. LITTLE & SONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
A.T. LITTLE & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 1 -
The directors present the strategic report for the year ended 28 February 2019.
Fair review of the business
The Board is able report another pleasing financial performance during the year, including increasing turnover to £17,093,168 (2018: £16,677,871). The principal themes driving such growth are carried over from those seen in the previous years, delivered from a mix of existing customers expanding their order book with the company and through new connections. It is pleasing to again note that the company derives income from both overseas and domestic sales, given the continued marketing efforts in the year.
The company specialises in the supply of books, e-books, DVDs and related services to schools, colleges and academic institutions throughout the United Kingdom and overseas. Educational institutions have been under budget pressure for a number of years which is a significant risk to operations, even though reading materials and complementary services are essential to them.
The directors monitor performance using levels of turnover, gross margin and by comparing actual results with budgets so again, on all levels, the financial performance was excellent. Gross margins were increased at 15.1% (2018: 14.8%) demonstrating the company has retained the efficient manner in which it delivers all service offerings to our customers, alongside the vast range available to purchase.
In the same report for the 2017/18 financial period, the Board noted its aim of further fuelling growth with the investments in additional staffing, provision of a modern working environment, the utilisation of the latest technology and novel marketing techniques. Each facet of this approach is aimed as a continued investment to future proof the company and aid its position within the principal markets in which it operates. Average staff numbers, being a non-financial KPI, increased to 71 (2018: 63). There are plans to continue this strategy in the year ahead. Due to these continued investments operating profits reduced to £440,328 (2018: £720,502), which the Board accept is necessary to effect the plans noted above.
A further key performance indicator is the significant positive cash at bank balance of £1,753,961 (2018: £2,033,840). The directors and company finance department monitor working capital controls tightly given the sometime fragmented profile of the company's turnover over the course of a twelve month period. The company therefore remains highly liquid and so has the ability to be agile in its operations where opportunities may present themselves. A key component of working capital management is the monitoring of credit risk. Partly due to the typical nature of the company's customer base, allied with the company's controls, it has not suffered any bad debts in the year. Financial risk management is further referenced within the Directors' Report.
The company increased its balance sheet after tax and dividends to £1,617,882 (2018: £1,451,233), providing a strong base from which to operate in the year ahead. In light of this, the directors consider that the company remains well placed to continue to deliver the sustainable growth set out as part of their plans. As part of these plans the company has invested in a 'Book Bus' which was operational from April 2018. The 'Book Bus' is now touring book fairs and educational establishments throughout the country and has demonstrated tangible success in further connecting its customer base with the company's services, supply chain and publishers alike. The company has received significant positive feedback from visits and school children, in particular, are enthused about reading after spending time aboard. Coupled to this the Board will continually explore all angles to further the company and its reputation within the markets in which it operates.
A.T. LITTLE & SONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 2 -
Finally, the directors would like to place on record their sincere thanks to the dedicated and talented staff employed throughout the company, without whose efforts the company would not continue to thrive.
On behalf of the board
Mrs Y J Stafford
Director
18 June 2019
A.T. LITTLE & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 3 -
The directors present their annual report and financial statements for the year ended 28 February 2019.
Principal activities
The principal activity of the company is the supply of books, e-books, DVDs and related services to libraries and educational establishments.
The company specialises in the supply of books and related services to schools, colleges and academic institutions throughout the United Kingdom and overseas.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs Y J Stafford
Mr A T Little
Mr J J Little
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.
Financial instruments
Financial risk managment objectives and policies
The company's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effect of these risks on the performance of the company. The company does not use derivative financial instruments and as such no hedge accounting is applied.
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department.
Credit Risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made.
Liquidity and interest rate risk
The company currently has sufficient cash balances to make debt finance unnecessary. Bank interest rates are monitored to ensure the company is earning maximum interest whilst maintaining liquidity.
Auditor
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Information referred to in the strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
future developments.
A.T. LITTLE & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs Y J Stafford
Director
18 June 2019
A.T. LITTLE & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK 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.
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.
A.T. LITTLE & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A.T. LITTLE & SONS LIMITED
- 6 -
Opinion
We have audited the financial statements of A.T. Little & Sons Limited (the 'company') for the year ended 28 February 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 28 February 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
Auditor's
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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
A.T. LITTLE & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.T. LITTLE & SONS LIMITED
- 7 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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.
Auditor's 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
A.T. LITTLE & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.T. LITTLE & SONS LIMITED
- 8 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Joe Sullivan (Senior Statutory Auditor)
for and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
26 June 2019
A.T. LITTLE & SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 9 -
2019
2018
Notes
£
£
Turnover
3
17,093,168
16,677,871
Cost of sales
(14,519,893)
(14,204,747)
Gross profit
2,573,275
2,473,124
Distribution costs
(229,501)
(191,275)
Administrative expenses
(1,969,117)
(1,600,024)
Other operating income
65,671
38,677
Operating profit
4
440,328
720,502
Interest receivable and similar income
7
14,407
7,824
Profit before taxation
454,735
728,326
Tax on profit
8
(88,086)
(139,209)
Profit for the financial year
366,649
589,117
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
A.T. LITTLE & SONS LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2019
28 February 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
10
261,619
144,625
Current assets
Stocks
11
23,014
14,401
Debtors
12
1,749,729
1,741,266
Cash at bank and in hand
1,753,961
2,033,840
3,526,704
3,789,507
Creditors: amounts falling due within one year
13
(2,170,441)
(2,482,899)
Net current assets
1,356,263
1,306,608
Total assets less current liabilities
1,617,882
1,451,233
Capital and reserves
Called up share capital
16
10,000
10,000
Profit and loss reserves
1,607,882
1,441,233
Total equity
1,617,882
1,451,233
The financial statements were approved by the board of directors and authorised for issue on 18 June 2019 and are signed on its behalf by:
Mrs Y J Stafford
Mr J J Little
Director
Director
Company Registration No. 01607961
A.T. LITTLE & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2017
10,000
1,302,116
1,312,116
Year ended 28 February 2018:
Profit and total comprehensive income for the year
-
589,117
589,117
Dividends
9
-
(450,000)
(450,000)
Balance at 28 February 2018
10,000
1,441,233
1,451,233
Year ended 28 February 2019:
Profit and total comprehensive income for the year
-
366,649
366,649
Dividends
9
-
(200,000)
(200,000)
Balance at 28 February 2019
10,000
1,607,882
1,617,882
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 12 -
1
Accounting policies
Company information
A.T. Little & Sons Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
22-28 George Street, Hull, HU1 3AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
The Little Group Limited
. These consolidated financial statements are available from its registered office,
1 Whittle Drive, Willingdon Drove, Eastbourne, BN23 6QH
.
1.2
Going concern
The directors have prepared budgets and projected cash flow information for the period following the balance sheet date. On the basis of these documents and the directors' knowledge of the company's financial position and prospects, they consider it appropriate to prepare the financial statements on the going concern basis.
true
1.3
Turnover
Turnover represents the net amounts invoiced by the company in respect of goods and services supplied during the year and is stated net of trade discounts and value added tax. Income is recognised on despatch of physical books, or when e-books are downloaded. Income in respect of services provided is recognised when that service is delivered.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
- 5% per annum straight line
Fixtures, fittings and equipment
- 15% per annum reducing balance
Computer equipment
- 20% per annum straight line
Motor vehicles
- 25% per annum reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible
assets
to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct
purchase expense
and, where applicable, those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment
due to obsolescence or slow moving stock
. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies
(Continued)
- 14 -
Other financial assets
All of the company's financial assets are basic financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from
fellow group companies that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
All of the company's financial liabilities are basic financial instruments.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies
(Continued)
- 15 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balances sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The company operates two contributory pension schemes for the employees. Both are defined contribution schemes, the assets of which are held separately from those of the company. Contributions are charged to the profit and loss account as they become payable.
The company also operates a Group Life scheme (a defined contribution scheme) under a centralised scheme administered by Gardeners Book Limited, and contributions are charged to the profit and loss account as they become payable.
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Useful economic life of tangible fixed assets
The useful economic life of tangible fixed assets is judged at the point of purchase and reviewed at each balance sheet date. Further details are provided within note 1.4 to the financial statements.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Provision for irrecoverable trade debtors
At each balance sheet date, management undertake a review of the outstanding trade debtor balances and estimate the balance that should either be impaired or provided against.
This calculation is based on the financial position of the customers, the historical speed of payment compared to approved credit terms and the status/progress of any ongoing communications with them.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Attributable to the company's continuing principal activities
17,093,168
16,677,871
2019
2018
£
£
Other significant revenue
Interest income
14,407
7,824
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
3
Turnover and other revenue
(Continued)
- 17 -
2019
2018
£
£
Turnover analysed by geographical market
UK
15,145,368
14,580,011
Overseas
1,947,800
2,097,860
17,093,168
16,677,871
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,400
7,950
Depreciation of owned tangible fixed assets
62,334
36,677
Loss on disposal of tangible fixed assets
517
-
Cost of stocks recognised as an expense
14,376,622
14,045,235
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Administration
27
25
Directors
3
3
Sales and management
12
11
Warehouse and production
29
24
71
63
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,150,864
1,023,002
Social security costs
87,271
77,887
Pension costs
42,021
14,642
1,280,156
1,115,531
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 18 -
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
65,792
66,000
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
14,407
7,824
8
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
88,697
140,038
Deferred tax
Origination and reversal of timing differences
(611)
(829)
Total tax charge
88,086
139,209
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
454,735
728,326
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.08%)
86,400
138,965
Tax effect of expenses that are not deductible in determining taxable profit
1,614
136
Effect of change in corporation tax rate
72
108
Taxation charge for the year
88,086
139,209
9
Dividends
2019
2018
£
£
Final paid
200,000
450,000
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 19 -
10
Tangible fixed assets
Leasehold land and buildings
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2018
151,953
128,968
147,672
88,795
517,388
Additions
395
10,186
58,278
110,986
179,845
Disposals
-
-
(67,341)
-
(67,341)
At 28 February 2019
152,348
139,154
138,609
199,781
629,892
Depreciation and impairment
At 1 March 2018
117,566
85,926
115,628
53,643
372,763
Depreciation charged in the year
2,246
7,321
16,640
36,127
62,334
Eliminated in respect of disposals
-
-
(66,824)
-
(66,824)
At 28 February 2019
119,812
93,247
65,444
89,770
368,273
Carrying amount
At 28 February 2019
32,536
45,907
73,165
110,011
261,619
At 28 February 2018
34,387
43,042
32,044
35,152
144,625
11
Stocks
2019
2018
£
£
Finished goods and goods for resale
23,014
14,401
12
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
1,683,949
1,632,912
Other debtors
46,475
33,068
Prepayments and accrued income
15,920
72,512
1,746,344
1,738,492
2019
2018
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 14)
3,385
2,774
Total debtors
1,749,729
1,741,266
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 20 -
13
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
36,316
11,335
Amounts owed to group undertakings
1,980,484
2,273,400
Corporation tax
27,827
63,067
Other taxation and social security
38,225
30,200
Accruals and deferred income
87,589
104,897
2,170,441
2,482,899
14
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2019
2018
Balances:
£
£
Decelerated capital allowances
3,385
2,774
2019
Movements in the year:
£
Liability/(Asset) at 1 March 2018
(2,774)
Credit to profit or loss
(611)
Liability/(Asset) at 28 February 2019
(3,385)
The deferred tax asset set out above in respect of decelerated capital allowances is not expected to reverse over the next five years in the majority. As a consequence deferred tax has been provided for at a rate of 17% as this has been substantively enacted at the balance sheet date.
15
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,021
14,642
The company operates defined contribution pension scheme
s
for all qualifying employees.
The assets of the schemes are held separately from those of the company in an independently administered fund.
A.T. LITTLE & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 21 -
16
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
17
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
11,430
1,616
Between two and five years
37,450
2,381
48,880
3,997
18
Ultimate controlling party
The ultimate parent undertaking is The Little Group Limited, a company registered in England and Wales. Copies of its group financial statements, which include A. T. Little & Sons Limited, are publicly available at Companies House.
The directors consider that the Little family possess ultimate control of the company.
2019-02-28
2018-03-01
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