Company registration number 01777602 (England and Wales)
AANCO (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
AANCO (UK) LIMITED
COMPANY INFORMATION
Directors
Mr BJ Gaunt
Mr AR Gaunt
Mr CS Wann
(Appointed 1 October 2021)
Mr AR Gaunt
(Appointed 1 October 2021)
Mr DT Jones
(Appointed 1 April 2022)
Company number
01777602
Registered office
Wellington House
Wynyard Avenue
Wynyard
Billingham
Co. Durham
TS22 5TB
Auditor
Davies Tracey
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
AANCO (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 23
AANCO (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The principal activities of the company are design and manufacture of Aluminium Bi-folding doors and Roof Lanterns for sale to trade partners nationally under the trading name of 'Made For Trade' and the Korniche brand.
In 2021 the business benefitted from exceptional trading conditions post Covid, with turnover increasing in the year by almost £8.5m (or 30.6%) to £36.1m. The gross margin of the company increased to 3
2
% helped by the favourable trading conditions and continued success of the Korniche branded lantern. The net effect of the rise in turnover was an increase in gross profits of £
3.2
m to £1
1
.
4
m. Marketing costs increased in the year as did fleet costs to support the commercial growth. The net effect of the above was an increase in profits before tax of £2.2m to £6.9m.
After deducting a tax charge of £0.
6
m and paying dividends of £0.8m, the company retained profits of £5.
5
m and so net assets increased by this amount to £15.
7
m. Cash fell slightly by £0.4m and net current assets rose by £5.1m to stand at £7.2m and £12.
6
m, respectively, at balance sheet date.
Key Performance Indicators
The directors consider the following to be key performance indicators:
2021
2020
£
£
Gross profit
1
1
,
417,835
8,260,391
Profit before tax
6,9
34
,
345
4,685,956
Within the year the business added a further manufacturing unit giving capacity for further growth.
Principal risks and uncertainties
The uncertain economic outlook for the UK market and reducing consumer confidence is likely to lead to a reduction in market size in the second half of 2022. The directors believe that the company is well placed to grow market share with the addition to the range of the Korniche branded bifold door but the level of growth seen in 2021 is unlikely to be repeated. However the directors expect the company to continue to trade profitably for the foreseeable future.
Mr BJ Gaunt
Director
17 August 2022
AANCO (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £798,577. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr BJ Gaunt
Mr AR Gaunt
Mr CS Wann
(Appointed 1 October 2021)
Mr AR Gaunt
(Appointed 1 October 2021)
Mr DT Jones
(Appointed 1 April 2022)
Research and development
The company continues to invest with further expansion of the R&D department for future invention and design.
Future developments
Since 2016 the in house designed Korniche Aluminium Roof Lantern has grown rapidly, becoming the market leading product and winning many industry awards. The new in house innovatively designed Korniche Bi-folding Door has continued to receive excellent feedback wherever it has been exhibited with ground breaking design innovations having a real impact.
As a result of the launch of the Korniche Bi-folding door the Smart Bi-folding door will be discontinued in summer 2022, as will the Smart Patio door. Sales of the patio door had not matched our expectations but the excellent Hartlepool facility will be repurposed for product(s) currently going through development.
The company is actively seeking to grow and improve its business and has improved customer service by integrating the delivery of glass and lanterns into the in-house distribution.
The directors are pleased with the company's progress to date and are confident that the enlarged manufacturing and distributing capabilities, aligned with new company designed products, will have a positive impact going forward.
AANCO (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Statement of directors' responsibilities
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;
-
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.
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
Mr BJ Gaunt
Director
17 August 2022
AANCO (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AANCO (UK) LIMITED
- 4 -
Opinion
We have audited the financial statements of Aanco (UK) Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 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.
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
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.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
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.
AANCO (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AANCO (UK) LIMITED
- 5 -
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 or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which 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
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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is the extent to which an audit conducted under ISAs (UK) is capable of detecting irregularity, including fraud. Our procedures include:
-
obtaining an understanding of the legal and regulatory frameworks applicable to the company, such as the Companies Act
2006;
-
obtaining an understanding of how the company complies with the applicable legal and regulatory frameworks;
-
assessing the susceptibility of the company's financial statements to material misstatement, including how fraud might
occur, with audit procedures including reviewing internal controls, testing supporting documentation, enquiring of
company management and obtaining written confirmation.
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. We are not responsible for
preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with
laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
AANCO (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AANCO (UK) LIMITED
- 6 -
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.
Christopher Neasham (Senior Statutory Auditor)
for and on behalf of Davies Tracey
Chartered Accountants and Statutory Auditors
Swan House
Westpoint Road
Teesdale Business Park
Stockton on Tees
TS17 6BP
17 August 2022
AANCO (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
36,128,724
27,648,346
Other operating income
447,077
610,838
Raw materials and consumables
(19,777,544)
(15,267,554)
Staff costs
4
(4,933,345)
(4,544,844)
Depreciation and other amounts written off tangible and intangible fixed assets
3
(1,047,987)
(811,017)
Other operating expenses
(3,862,932)
(2,940,004)
Operating profit
3
6,953,993
4,695,765
Interest receivable and similar income
6
2,906
6,117
Interest payable and similar expenses
7
(22,554)
(15,926)
Profit before taxation
6,934,345
4,685,956
Tax on profit
8
(622,064)
(556,005)
Profit for the financial year
6,312,281
4,129,951
AANCO (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
10
194,372
195,724
Tangible assets
11
4,174,226
3,687,279
4,368,598
3,883,003
Current assets
Stocks
12
4,352,823
2,524,155
Debtors
13
7,568,346
2,812,191
Cash at bank and in hand
7,240,489
7,683,714
19,161,658
13,020,060
Creditors: amounts falling due within one year
14
(6,577,361)
(5,585,341)
Net current assets
12,584,297
7,434,719
Total assets less current liabilities
16,952,895
11,317,722
Creditors: amounts falling due after more than one year
15
(483,522)
(578,478)
Provisions for liabilities
Deferred tax liability
17
633,311
399,896
(633,311)
(399,896)
Deferred income
18
(122,650)
(139,640)
Net assets
15,713,412
10,199,708
Capital and reserves
Called up share capital
20
20,000
20,000
Profit and loss reserves
21
15,693,412
10,179,708
Total equity
15,713,412
10,199,708
The financial statements were approved by the board of directors and authorised for issue on 17 August 2022 and are signed on its behalf by:
Mr BJ Gaunt
Director
Company Registration No. 01777602
AANCO (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
20,000
6,847,757
6,867,757
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
4,129,951
4,129,951
Dividends
9
-
(798,000)
(798,000)
Balance at 31 December 2020
20,000
10,179,708
10,199,708
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
6,312,281
6,312,281
Dividends
9
-
(798,577)
(798,577)
Balance at 31 December 2021
20,000
15,693,412
15,713,412
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Aanco (UK) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Wellington House, Wynyard Avenue, Wynyard, Billingham, Co. Durham, TS22 5TB.
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 under 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:
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
- 5 years
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
20% on cost on buildings
Leasehold improvements
in accorance with the lease
Plant and equipment
15% on cost
Office Equipment
15% - 33% on cost
Motor vehicles
15% - 20% on cost
Showsite
10% - 20% on cost
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
.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. 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.
1.8
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, 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
, bank loans, loans from
fellow group companies and preference shares 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
paymen
ts 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
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.15
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
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.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
3
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(29,742)
8,132
Government grants
(46,669)
(436,483)
Fees payable to the company's auditor for the audit of the company's financial statements
7,500
7,000
Depreciation of owned tangible fixed assets
681,164
546,197
Depreciation of tangible fixed assets held under finance leases
223,375
129,875
Loss on disposal of tangible fixed assets
81,010
89,006
Amortisation of intangible assets
60,899
45,939
Loss on disposal of intangible assets
1,539
Operating lease charges
728,592
494,460
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production
149
122
Administration
48
54
Distribution
10
10
Directors
2
3
Total
209
189
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
4,474,415
4,137,241
Social security costs
362,706
325,748
Pension costs
96,224
81,855
4,933,345
4,544,844
5
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
44,901
20,996
Company pension contributions to defined contribution schemes
4,424
4,000
49,325
24,996
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
5
Directors' remuneration
(Continued)
- 16 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 1).
6
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
535
3,552
Other interest income
2,371
2,565
Total income
2,906
6,117
7
Interest payable and similar expenses
2021
2020
£
£
Interest on finance leases and hire purchase contracts
22,554
15,926
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
692,458
589,625
Adjustments in respect of prior periods
(303,809)
(150,736)
Total current tax
388,649
438,889
Deferred tax
Origination and reversal of timing differences
233,415
117,116
Total tax charge
622,064
556,005
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Taxation
(Continued)
- 17 -
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:
2021
2020
£
£
Profit before taxation
6,934,345
4,685,956
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,317,526
890,332
Tax effect of expenses that are not deductible in determining taxable profit
23,433
51,059
Adjustments in respect of prior years
(303,809)
(150,736)
Effect of change in corporation tax rate
151,994
Permanent capital allowances in excess of depreciation
(19,584)
Deferred tax adjustments in respect of prior years
(31,281)
Enhanced expenditure
(516,215)
(234,650)
Taxation charge for the year
622,064
556,005
9
Dividends
2021
2020
£
£
Interim paid
798,577
798,000
10
Intangible fixed assets
Software
£
Cost
At 1 January 2021
264,100
Additions
106,985
Disposals
(51,197)
At 31 December 2021
319,888
Amortisation and impairment
At 1 January 2021
68,376
Amortisation charged for the year
60,899
Disposals
(3,759)
At 31 December 2021
125,516
Carrying amount
At 31 December 2021
194,372
At 31 December 2020
195,724
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Office Equipment
Motor vehicles
Showsite
Total
£
£
£
£
£
£
£
Cost
At 1 January 2021
1,248,862
2,757,734
313,350
1,151,829
40,733
5,512,508
Additions
121,925
343,870
628,571
149,125
301,005
1,544,496
Disposals
(95,204)
(357,646)
(163,537)
(139,005)
(40,733)
(796,125)
Transfers
(59,526)
59,526
At 31 December 2021
121,925
1,438,002
3,088,185
298,938
1,313,829
6,260,879
Depreciation and impairment
At 1 January 2021
275,782
991,957
244,676
272,081
40,733
1,825,229
Depreciation charged in the year
10,160
157,752
445,967
52,652
238,008
904,539
Eliminated in respect of disposals
(79,716)
(251,638)
(142,954)
(128,074)
(40,733)
(643,115)
Transfers
(7,290)
7,290
At 31 December 2021
10,160
346,528
1,193,576
154,374
382,015
2,086,653
Carrying amount
At 31 December 2021
111,765
1,091,474
1,894,609
144,564
931,814
4,174,226
At 31 December 2020
973,080
1,765,777
68,674
879,748
3,687,279
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Tangible fixed assets
(Continued)
- 19 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
72,159
169,944
Motor vehicles
715,383
749,415
787,542
919,359
12
Stocks
2021
2020
£
£
Raw materials and goods for resale
4,352,823
2,524,155
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,146,032
2,295,346
Corporation tax recoverable
35,809
Amounts owed by group undertakings
5,166,950
362,000
Other debtors
19,233
2,232
Prepayments and accrued income
200,322
152,613
7,568,346
2,812,191
14
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
16
232,876
232,963
Trade creditors
3,579,272
3,427,911
Amounts owed to group undertakings
750
Corporation tax
320,028
Other taxation and social security
329,968
629,010
Other creditors
70,107
515,286
Accruals and deferred income
2,364,388
460,143
6,577,361
5,585,341
Obligations under finance leases are secured against the assets to which they relate.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
15
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
16
483,522
578,478
Obligations under finance leases are secured against the assets to which they relate.
16
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
250,234
253,006
In two to five years
502,828
604,876
753,062
857,882
Less: future finance charges
(36,664)
(46,441)
716,398
811,441
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
635,177
401,813
Other timing differences
(1,866)
(1,917)
633,311
399,896
2021
Movements in the year:
£
Liability at 1 January 2021
399,896
Charge to profit or loss
117,010
Effect of change in tax rate - profit or loss
116,405
Liability at 31 December 2021
633,311
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
18
Deferred income
2021
2020
£
£
Other deferred income
122,650
139,640
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,224
81,855
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
20,000
20,000
20,000
20,000
21
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
10,179,708
6,847,757
Profit for the year
6,312,281
4,129,951
Dividends declared and paid in the year
(798,577)
(798,000)
At the end of the year
15,693,412
10,179,708
22
Financial commitments, guarantees and contingent liabilities
The company guarantees its products for up to ten years. Rectification work is considered to be an ongoing charge but the company accepts that it has contingent liability to carry out this work. The value of this liability cannot be ascertained with any accuracy but the company's past experience of rectification work indicates that it will not be material to the reading of these financial statements and therefore no provision has been made.
Grants receivable may be repayable in part or in full if certain conditions associated with the grants are not met.
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
23
Operating lease commitments
Lessee
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:
2021
2020
£
£
Within one year
604,047
234,013
Between two and five years
1,265,703
911,063
1,869,750
1,145,076
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2021
2020
£
£
Acquisition of tangible fixed assets
19,976
138,750
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2021
2020
£
£
Other related parties
27,498
153,002
Dividends payable
2021
2020
£
£
Entities with control, joint control or significant influence over the company
798,577
798,000
2021
2020
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
(6,928)
(7,555)
AANCO (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
25
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
3,828
-
Other related parties
6,334
-
26
Directors' transactions
During the year the company made advances to directors of £
6,841
and £
3,012
was repaid by the directors (20
20
- £151,881 and £157,718 respectively). Interest
where applicable
was charged at 2.5% per annum. All amounts were repayable on demand.
27
Ultimate controlling party
The only group in which the results are consolidated is that headed by the company's ultimate parent undertaking Aanco Holdings Limited, whose registered office is:
Wellington House
Wynyard Avenue
Billingham
TS22 5TB
Consolidated financial statements are available to the public and can be obtained from Companies House.
Aanco Holdings Limited is controlled by Mr B Gaunt.
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.200
No description of principal activity
Mr BJ Gaunt
Mr AR Gaunt
Mr CS Wann
Mr AR Gaunt
Mr DT Jones
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