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EUROPEAN OAT MILLERS LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 OCTOBER 2015 |
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REGISTERED NUMBER:
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EUROPEAN OAT MILLERS LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 OCTOBER 2015 |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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Company Information | 1 |
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Strategic Report | 2 | to | 3 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 5 | to | 6 |
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Profit and Loss Account | 7 |
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Balance Sheet | 8 |
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Cash Flow Statement | 9 |
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Notes to the Cash Flow Statement | 10 | to | 11 |
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Notes to the Financial Statements | 12 | to | 23 |
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EUROPEAN OAT MILLERS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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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 |
& Statutory Auditor |
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SOLICITORS: |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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The directors present their strategic report for the year ended 31 October 2015. |
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REVIEW OF BUSINESS |
Principal activities |
The business has continued to be that of the manufacture of cereal based ingredients. |
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Results and performance |
The directors and shareholders are satisfied that the company performed in line with expectations in the |
financial year. |
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The financial year was the first full year of reporting the results under the new shareholder arrangement |
after Mr WJ Jordan and Mr RD Jordan bought out the 50 % shareholding of Mr MZ Karsan. It was also the |
first year of stewardship under the new Chairman of European Oat Millers Limited (EOM), Mr P Baker. |
This was also the first full year of Mr MR Bonynge as an EOM director. As a consequence of all the Board |
changes a new business plan was presented to the new Board and was accepted by the Board. A major |
strategic decision was made to exit the retail business in which the previous EOM Board invested in |
heavily in the previous financial year. Strategically it was decided that EOM should focus on its core |
strategy namely being a supplier of grain base raw materials for food and beverage manufacturers. It |
was decided that the Hudson Road facility will become a base from where to develop and produced most |
of EOM's value added ingredients including the manufacturing of wheat flakes and extruded cereals. |
Hudson Road still carried the heavier cost base of staff and infrastructure, originally recruited to serve the |
retail business, for a vast period of the year and later also the cost of redundancies and obsolete raw |
material and packaging material write offs as a result of exiting these retail commitments. The Hudson |
Road site will only see the benefit of this strategy in the 2016/2017 financial year. |
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The Milling division experienced a much improved year with yield moving closer to historical averages due |
to a better oat harvest. The UK oat crop was larger than the historical average in size and the supply of |
oats exceeded the demand of oats for most parts of the year. This effected sales revenue in value terms |
because the input costs also reduced translating into lower prices to customers. Offal prices also |
remained low and effected both sales revenue and profitability in the year. |
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The previous financial year was a 15 month period to enable the business to budget with the full |
knowledge of the harvest conditions. Harvest conditions can materially affect the financial results. Factors |
like the size of the crop and the quality of the crop can materially affect the financial performance of any |
company in the agri-food industry. The reason for the drop in sales revenue of £11,932,286 between the |
year ended 31/10/14 and 31/10/15 is mainly due to the 3 months shorter financial year but also the |
reduction in underlying base commodity prices. Sales volumes actually grew over the two financial |
periods. |
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For the year under review the company made a loss of £694 before taxation on revenue of £44,472,405. |
The shareholder funds at 31 October 2015 total £6,055,133. |
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Key performance indicators |
The company utilises standard performance indicators to measure and monitor business performance on |
a daily, weekly, monthly, and yearly basis. The indicators used, but not limited to, measure turnover, |
gross margin, EBITDA, grain yield and balance sheet strength. |
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Future developments |
The Mill underwent a major upgrade in the period under review as part of an initiative to improve all key |
areas to ensure the company is well positioned to handle future growth and to ensure we can continue to |
please the high standard of our customers. This program will continue over the next 2 financial years to |
enable EOM to continuously being able to expand the business. Certain production lines will be relocated |
from our Mill to our Hudson Road site in the next financial year. |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The biggest single risk in the business remains the volatility in raw material pricing. It remains important |
to incentivise farmers to grow oats. The oats crop in the UK remains a minority crop and fluctuations of a |
small percentage in oat supply can affect the price strongly. The quality of the raw material is also |
unpredictable and affects yields and therefore profitability. Grain prices in the UK can also not be seen in |
isolation and will continue to be greatly affected by worldwide commodity pricing and international macro |
-economic conditions. The objectives of the EOM Board will continue to minimise all these risks by |
working closely with the entire supply chain. All other risks are managed diligently by the Senior EOM |
Management team and are reported to the EOM Board during Board Meetings. |
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ON BEHALF OF THE BOARD: |
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28 July 2016 |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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The directors present their report with the financial statements of the company for the year ended 31 October 2015. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 October 2015. |
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FUTURE DEVELOPMENTS |
Information can be found in the strategic report. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2014 to the |
date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing 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; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and |
explain the company's transactions and disclose with reasonable accuracy at any time the financial |
position of the company and enable them to ensure that the financial statements comply with the |
Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for |
taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the |
steps that he ought to have taken as a director in order to make himself aware of any relevant audit |
information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROPEAN OAT MILLERS LIMITED |
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We have audited the financial statements of European Oat Millers Limited for the year ended |
31 October 2015 on pages seven to twenty three. The financial reporting framework that has been |
applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom |
Generally Accepted Accounting Practice). |
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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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Respective responsibilities of directors and auditors |
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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. |
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Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements |
sufficient to give reasonable assurance that the financial statements are free from material misstatement, |
whether caused by fraud or error. This includes an assessment of: whether the accounting policies are |
appropriate to the company's circumstances and have been consistently applied and adequately |
disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall |
presentation of the financial statements. In addition, we read all the financial and non-financial |
information in the Strategic Report and the Report of the Directors to identify material inconsistencies |
with the audited financial statements and to identify any information that is apparently materially |
incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of |
performing the audit. If we become aware of any apparent material misstatements or inconsistencies we |
consider the implications for our report. |
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Opinion on financial statements |
In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 October 2015 and of its loss for
the year then ended; |
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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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Opinion on other matter prescribed by the Companies Act 2006 |
In our opinion 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
EUROPEAN OAT MILLERS LIMITED |
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Matters on which we are required to report by exception |
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: |
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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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for and on behalf of
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Chartered Accountants |
& Statutory Auditor |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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Year Ended | Period |
31/10/15 | 1/8/13 to 31/10/14 |
Notes | £ | £ | £ | £ |
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TURNOVER | 2 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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1,069,975 | 2,423,542 |
728,304 | 618,915 |
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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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741,045 | 643,243 |
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Interest payable and similar charges | 6 |
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LOSS ON ORDINARY ACTIVITIES
BEFORE TAXATION |
( |
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( |
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Tax on loss on ordinary activities | 7 |
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( |
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LOSS FOR THE FINANCIAL YEAR | ( |
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CONTINUING OPERATIONS |
None of the company's activities were acquired or discontinued during the current year or previous |
period. |
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TOTAL RECOGNISED GAINS AND LOSSES |
The company has no recognised gains or losses other than the losses for the current year or previous |
period. |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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BALANCE SHEET |
31 OCTOBER 2015 |
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2015 | 2014 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
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Tangible assets | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than
one year |
13 |
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( |
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PROVISIONS FOR LIABILITIES | 17 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Share premium | 19 |
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Capital redemption reserve | 19 |
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Profit and loss account | 19 |
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SHAREHOLDERS' FUNDS | 24 |
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The financial statements were authorised for issue by the Board of Directors on
signed on its behalf by: |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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Year Ended | Period |
31/10/15 | 1/8/13 to 31/10/14 |
Notes | £ | £ | £ | £ |
Net cash inflow |
from operating activities | 1 | 2,236,082 | 2,150,878 |
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Returns on investments and |
servicing of finance | 2 | (637,478 | ) | (598,739 | ) |
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Taxation |
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( |
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Capital expenditure | 2 | (1,161,555 | ) | (2,381,148 | ) |
538,057 | (930,825 | ) |
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Financing | 2 | (398,696 | ) | (187,631 | ) |
Increase/(decrease) in cash in the period |
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Reconciliation of net cash flow |
to movement in net debt | 3 |
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Increase/(decrease) |
in cash in the period |
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( |
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Cash outflow |
from decrease in debt and lease
financing |
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Change in net debt resulting |
from cash flows |
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( |
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New finance leases |
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( |
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Loan write off | 600,000 | 1,000,000 |
Movement in net debt in the period |
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( |
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Net debt at 1 November | ( |
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Net debt at 31 October | ( |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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1. |
RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATING
ACTIVITIES |
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Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Operating profit |
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Depreciation charges | 1,434,381 | 1,463,842 |
Extraordinary items | (965,605 | ) | (1,724,694 | ) |
Written off supplier claim accrual | - | (200,000 | ) |
Decrease in stocks | 597,171 | 177,858 |
Decrease in debtors | 722,001 | 962,338 |
(Decrease)/increase in creditors | (292,150 | ) | 828,291 |
Net cash inflow from operating activities | 2,236,082 | 2,150,878 |
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2. | ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT |
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Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Returns on investments and servicing of finance |
Interest received | 761 | - |
Interest paid | (568,613 | ) | (496,895 | ) |
Interest element of hire purchase payments | (69,626 | ) | (101,844 | ) |
Net cash outflow for returns on investments and servicing
of finance |
(637,478 |
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(598,739 |
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Capital expenditure |
Purchase of tangible fixed assets | (1,164,055 | ) | (2,382,248 | ) |
Sale of tangible fixed assets | 2,500 | 1,100 |
Net cash outflow for capital expenditure | (1,161,555 | ) | (2,381,148 | ) |
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Financing |
New loans in year | - | 600,000 |
Loan repayments in year | (160,152 | ) | (193,673 | ) |
Capital repayments in year | (604,149 | ) | (593,958 | ) |
Amount introduced by directors | 365,605 | - |
Net cash outflow from financing | (398,696 | ) | (187,631 | ) |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
At | non-cash | At |
1/11/14 | Cash flow | changes | 31/10/15 |
£ | £ | £ | £ |
Net cash: |
Cash at bank and in hand |
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506,757 |
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Bank overdrafts | ( |
) | (367,396 | ) | ( |
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(5,804,142 | ) |
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(5,664,781 | ) |
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Debt: |
Hire purchase | ( |
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( |
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Debts falling due |
within one year | (760,111 | ) | 112,298 | 600,000 | (47,813 | ) |
Debts falling due |
after one year | (519,945 | ) | 47,854 | - | (472,091 | ) |
(2,537,817 | ) |
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600,000 | (1,173,516 | ) |
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Total | ( |
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( |
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EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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1. | ACCOUNTING POLICIES |
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Accounting convention |
The financial statements have been prepared under the historical cost convention and in |
accordance with applicable accounting standards. |
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Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. |
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Goodwill |
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Tangible fixed assets |
Depreciation is provided at the following rates in order to write off each asset over its estimated |
useful life: |
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Leasehold buildings and improvements | - 2%, 7% and 33.3% straight line |
Plant and machinery | - 7%, 10% and 33.3% straight line |
Motor vehicles | - 25% straight line |
Fixtures and fittings | - 33.3% straight line |
Assets in the course of construction | No depreciation is provided until the asset |
is brought into use |
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Stocks |
Groats are valued according to the percentage yield which is obtained from the cereal. Finished |
goods are valued at the cost price of grain plus costs to process, where processing costs cannot be |
readily identified they are valued at selling price less the expected profit per ton and the cost of |
the packaging material used. All other stocks are valued at the lower of cost and net realisable |
value. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed |
at the balance sheet date. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange |
ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at |
the rate of exchange ruling at the date of transaction. Exchange differences are taken into account |
in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets held under finance leases and hire purchase contracts are capitalised in the balance sheet |
and depreciated over their expected useful lives. The interest element of the leasing payments |
represents a constant proportion of the capital balance outstanding and is charged to the profit |
and loss account over the period of the lease. |
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All other leases are regarded as operating leases and the payments made under them are charged |
to the profit and loss account on a straight line basis over the lease term. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to the profit and loss account in the period to which they |
relate. |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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1. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Financial instruments held as hedges are matched with their underlying hedge item. Each |
instrument's gain or loss is brought into the profit and loss account, and its fair value into the |
balance sheet, at the same time and in the same place as is the matched underlying asset, |
liability, income or cost. For commodity instruments, this will be in the operating profit matched |
against the relevant purchase or sale. The profit or loss on an instrument may be deferred if the |
hedged transaction is expected to take place or would normally be accounted for in the future. |
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The costs incurred in obtaining the financial instruments are expensed to the profit and loss |
account when they arise. |
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2. | TURNOVER |
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The turnover and loss before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
United Kingdom | 39,918,414 | 48,971,865 |
Europe | 1,042,216 | 1,942,825 |
Middle East | 702,174 | 1,151,524 |
Africa | 2,005,377 | 3,814,962 |
Asia | 804,224 | 523,515 |
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3. | STAFF COSTS |
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average monthly number of employees during the year was as follows: |
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
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Management | 3 | 5 |
Administration, accounts and sales | 18 | 16 |
Production | 106 | 116 |
127 | 137 |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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4. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Hire of plant and machinery | 11,571 | 5,296 |
Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts |
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Auditors' remuneration |
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Auditors' remuneration for non audit work |
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Net (gains)/losses on foreign currencies | 23,169 | 96,108 |
Exceptional items | (965,605 | ) | (1,724,694 | ) |
Operating leases | 421,735 | 694,959 |
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Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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Compensation to director for loss of office |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes | 2 | 4 |
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Information regarding the highest paid director is as follows: |
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Emoluments etc |
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Pension contributions to money purchase schemes |
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5. | EXCEPTIONAL ITEMS |
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Exceptional items is the net effect of the following: |
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£ | £ |
Directors' loans written off | (365,605 | (750,000 | ) |
Accrued interest on directors' loan written off | - | (174,694 | ) |
Related party loan written off | (600,000 | (1,000,000 | ) |
Release of provision for a counter claim (from 2011) against a
supplier |
- |
|
200,000 |
(965,605 | (1,724,694 | ) |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
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6. | INTEREST PAYABLE AND SIMILAR CHARGES |
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Bank interest | 672,113 | 409,227 |
Other loan interest | - | 87,500 |
Interest on directors' loan accounts | - | 77,256 |
Hire purchase | 69,626 | 101,844 |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss on ordinary activities for the year was as follows: |
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Current tax: |
UK corporation tax |
|
( |
) |
(Over) / under provided in earlier years | (7,167 | ) | - |
Total current tax | ( |
) | ( |
) |
|
Deferred tax: |
Accelerated capital allowances |
|
|
Tax on loss on ordinary activities |
|
( |
) |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
7. | TAXATION - continued |
|
Factors affecting the tax charge/(credit) |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
difference is explained below: |
|
Period |
1/8/13 |
Year Ended | to |
31/10/15 | 31/10/14 |
£ | £ |
Loss on ordinary activities before tax | ( |
) | ( |
) |
Loss on ordinary activities |
multiplied by the standard rate of corporation tax |
in the UK of
|
( |
) | ( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Other short term timing differences | 453 | (44,953 | ) |
Revenue expenses treated as capital | - | (25,014 | ) |
Loan write off not subject to tax | (120,000 | ) | (200,000 | ) |
Difference in tax rate on carry back of losses | - | (7,794 | ) |
Trading losses | 124,912 | 391,024 |
Current tax charge/(credit) | ( |
) | ( |
) |
|
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2014 |
|
Disposals | ( |
) |
At 31 October 2015 |
|
AMORTISATION |
At 1 November 2014 |
|
|
Eliminated on disposal | ( |
) |
At 31 October 2015 |
|
NET BOOK VALUE |
At 31 October 2015 |
|
At 31 October 2014 |
|
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
9. | TANGIBLE FIXED ASSETS |
Short | Long | Plant and |
leasehold | leasehold | machinery |
£ | £ | £ |
COST |
At 1 November 2014 |
|
|
|
Reclassification/transfer |
|
|
|
At 31 October 2015 |
|
|
|
DEPRECIATION |
At 1 November 2014 |
|
|
|
Charge for year |
|
|
|
At 31 October 2015 |
|
|
|
NET BOOK VALUE |
At 31 October 2015 |
|
|
|
At 31 October 2014 |
|
|
|
|
Fixtures | Assets |
and | Motor | under |
fittings | vehicles | construction | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2014 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
Reclassification/transfer |
|
|
( |
) |
|
At 31 October 2015 |
|
|
|
|
DEPRECIATION |
At 1 November 2014 |
|
|
|
|
Charge for year |
|
|
|
|
At 31 October 2015 |
|
|
|
|
NET BOOK VALUE |
At 31 October 2015 |
|
|
|
|
At 31 October 2014 |
|
|
|
|
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 November 2014 |
|
|
|
Reclassification/transfer |
|
( |
) | ( |
) |
At 31 October 2015 |
|
|
|
DEPRECIATION |
At 1 November 2014 |
|
|
|
Charge for year |
|
|
|
Reclassification/transfer |
|
( |
) | ( |
) |
At 31 October 2015 |
|
|
|
NET BOOK VALUE |
At 31 October 2015 |
|
|
|
At 31 October 2014 |
|
|
|
|
10. | STOCKS |
2015 | 2014 |
£ | £ |
Raw materials | 870,141 | 1,286,086 |
Finished goods |
|
|
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2015 | 2014 |
£ | £ |
Trade debtors | 7,973,677 | 7,898,647 |
Other debtors | 34,257 | 71,705 |
Futures trading account | 1,576 | 434,463 |
Tax | - | 93,841 |
VAT |
|
|
Prepayments and accrued income | 172,866 | 543,731 |
|
|
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
|
Included within trade debtors is £7,814,116 (2014: £7,478,840) of debts secured to provide |
overdraft facilities. |
|
During the normal course of business, the company enters into wheat futures and foreign |
exchange contracts to stabilise the production costs of raw materials and value of overseas sales. |
The carrying value represents available cash held on account by the hedging agent £1,576 (2014: |
£434,463). No provision for unrealised losses at the year end has been made (2014: nil). |
Unrealised profits of £1,130 have been carried forward as deferred income (2014: £98,462). |
|
The open market value of the hedge positions maintained at the year end was £4,764 (2014: |
£494,672, negative) with unrealised profits and losses at the year end being matched to related |
purchases and sales in accordance with the accounting policy. |
|
In addition: |
2015 | 2014 |
£ | £ |
Aggregate losses / (gains) recognised in the year | 831,269 | (145,287 | ) |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2015 | 2014 |
£ | £ |
Bank loans and overdrafts (see note
14) |
|
|
Other loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
13. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2015 | 2014 |
£ | £ |
Bank loans (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2015 | 2014 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
Other loans | - | 600,000 |
6,472,755 | 6,817,657 |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
14. | LOANS - continued |
2015 | 2014 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans | 324,923 | 362,697 |
|
The two bank loans are repayable by monthly instalments. The first loan has interest being |
charged at 2% above the bank's base rate, the loan is due for repayment by November 2015. The |
second loan has an interest rate of 2.5% over LIBOR, the loan is due for repayment by September |
2029. |
|
15. | OBLIGATIONS UNDER HIRE PURCHASE CONTRACTS AND LEASES |
|
Hire purchase |
contracts |
2015 | 2014 |
£ | £ |
Net obligations repayable: |
Within one year | 304,094 | 604,178 |
Between one and five years | 349,518 | 653,583 |
653,612 | 1,257,761 |
|
The following operating lease payments are committed to be paid within one year: |
|
Land and buildings |
Other operating
leases |
2015 | 2014 | 2015 | 2014 |
£ | £ | £ | £ |
Expiring: |
Within one year |
|
|
|
|
Between one and five years |
|
|
|
|
In more than five years |
|
|
|
|
|
|
|
|
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2015 | 2014 |
£ | £ |
Bank overdrafts |
|
|
Bank loans |
|
|
|
|
|
The bank overdraft and loans are secured by a mortgage debenture in respect of all company |
assets and a first legal charge over all land and buildings. In addition, one of the overdraft facilities |
is secured on trade debtors as stated within note 11. Additional security has been given by the |
shareholders by way of personal guarantees totalling £1,500,000. |
|
17. | PROVISIONS FOR LIABILITIES |
2015 | 2014 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1 November 2014 |
|
Movement in tax rate |
Accelerated capital allowances | 25,152 |
Balance at 31 October 2015 |
|
|
18. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2015 | 2014 |
value: | £ | £ |
|
A Ordinary | £1 |
|
|
|
On 29 October 2015 a resolution was made to re-classify the ordinary shares as A ordinary shares. |
|
19. | RESERVES |
Profit | Capital |
and loss | Share | redemption |
account | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 November 2014 |
|
|
|
|
Deficit for the year | ( |
) | - | - | ( |
) |
At 31 October 2015 |
|
|
|
|
|
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
20. | PENSION COMMITMENTS |
|
The company operates a defined contribution pension scheme and contributes to a number of |
personal pension plans. The charge for the year is shown in note 3. The amount of contributions |
outstanding at the year end was £18,970 (2014: £16,703). |
|
21. | CAPITAL COMMITMENTS |
2015 | 2014 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | - |
|
In addition to the contracted capital commitments the company had authorised expenditure of |
£407,587 (2014: £165,000). |
|
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the year ended 31 October 2015 |
and the period ended 31 October 2014: |
|
2015 | 2014 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) |
|
Balance outstanding at end of year |
|
|
|
The loan was advanced in January 2015 and was due for repayment on a monthly basis over a |
twelve month period, with interest being charged at 2%. The balance on the loan was repaid in full |
in May 2015. |
EUROPEAN OAT MILLERS LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2015 |
|
|
23. | RELATED PARTY DISCLOSURES |
|
Mr W J Jordan (director) and Mr R D Jordan (director) advanced the company a total of £365,605 |
in June 2015. On 31 October 2015 the directors advised the company to write off the loans as a |
contribution to capital expenditure, this is shown within exceptional items in note 5. |
|
Consultancy fees were paid to Blounce Limited, of which P Baker is a director, totalling £21,000 |
(2014: £22,500). |
|
Consultancy fees of £23,750 (2014: £2,500) were paid to Prosperity Wealth Management Limited, |
a company of which M Bonynge is a director. |
|
W Jordan & Son (Holdings) Limited is a company in which Mr W J Jordan and Mr R D Jordan are |
directors and sole shareholders. During the course of the year the following transactions took |
place: |
|
2015 | 2014 |
£ | £ |
Rent paid to W Jordan & Son (Holdings) Limited | 200,000 | 625,000 |
Expenses recharged to W Jordan & Son (Holdings) Limited | - | 437,810 |
Sales | 4,733 | - |
Loan advance by W Jordan & Son (Holdings) Limited | - | 600,000 |
Loan written off | (600,000 | ) | (1,000,000 | ) |
Interest paid to W Jordan & Son (Holdings) Limited | - | 87,500 |
|
Rent paid to during the year was less than the market rate as the company waived the rent for the |
year on the Hudson Road site, amount waived £150,000. |
|
As at the balance sheet date the following amounts we due to or by W Jordan & Son (Holdings) |
Limited: |
|
2015 | 2014 |
£ | £ |
Trade debtors | - | 108,868 |
Trade creditors | 95,000 | 50,000 |
Other loans | - | 600,000 |
|
24. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
2015 | 2014 |
£ | £ |
Loss for the financial year | ( |
) | ( |
) |
Net reduction of shareholders' funds | ( |
) | ( |
) |
Opening shareholders' funds |
|
|
Closing shareholders' funds |
|
|
|
25. | CONTROLLING PARTY |
|
In the opinion of the directors, the company is controlled by the Board of Directors. |