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REGISTERED NUMBER:
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RICHARDSON MILLING (UK) 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 31ST DECEMBER 2018 |
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REGISTERED NUMBER:
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RICHARDSON MILLING (UK) 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 31ST DECEMBER 2018 |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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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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Statement of Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Cash Flow Statement | 10 |
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Notes to the Cash Flow Statement | 11 |
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Notes to the Financial Statements | 12 | to | 20 |
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RICHARDSON MILLING (UK) LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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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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82 High Street |
Tenterden |
Kent |
TN30 6JG |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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The directors present their strategic report for the period 1 January 2018 - 31 December 2018. |
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REVIEW OF BUSINESS |
Principal activities |
The principal activity of the business is the manufacturing of cereal based ingredients which takes place |
in Bedfordshire in the United Kingdom. Ingredients are produced and sold globally to customers using it |
to add value to their recipes. |
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Business model and Strategy |
The company buy raw material mainly from British sources and add value through milling, flaking, |
extruded and other technologies and then sell it to customers in the food, beverage and animal feed |
industries. The business benefits from vast intellectual property and expertise gained from the structures |
available through its reporting lines into our shareholder. The business operates in a matrix structure and |
all departments have access to knowledge and resources based in North America. |
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Business Review |
The directors and shareholders are satisfied that the company performed in line with expectations during |
the fiscal year. The Board of Directors were informed of the progress of the UK entity through weekly |
reports and formal Board Meetings. The Board of Directors monitor all areas of the business through a set |
of key performance areas (KPI's) and the company benefits from our shareholder's risk management |
protocol. |
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The business invested substantial capital through the year to increase capacity and to improve the |
business in line with our shareholder's vision to be fully invested. |
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The business environment during the last two quarters of the year was extremely challenging, mainly due |
to the small grain crop that was also of poor quality. This was caused by the extreme warm weather in |
the UK during the summer months. |
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Both the internal and external environment in which the company operates are influenced by weather |
patterns and the global supply and demand forces in both the financial markets in general but also the |
trading of commodities. |
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PRINCIPAL RISKS, UNCERTAINTIES AND TRENDS |
The company processes grains such as oats, wheat and barley which are volatile in terms of quantity and |
quality, both influence availability of supply and prices. We are dependent on crop availability and as part |
of the agricultural cycle have a short available reaction time to address supply and demand dynamics. |
There is currently substantial uncertainty within the Agricultural sector due to a lack of detail on how |
subsidies on farms will look ex-Brexit. We are managing and mitigating risk by working closely with our |
suppliers and the full supply chain. Brexit uncertainty can also impact our labour force. Availability of staff |
with appropriate skills will continue to be very import to the business and we focus on this aspect through |
ensuring our staff are paid well, rewarded, cared for, and properly trained and motivated. Brexit may |
further impact on future exports due to different trade agreements potentially coming into force. |
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The business is committed to providing a safe and healthy environment for all staff and continues to |
invest in training, maintenance and capital replacement to ensure our standards exceed compliance |
requirements and industry standards. We will also continue to upgrade our facilities through investment |
with the focus on safety of staff, food safety and efficiency. |
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Risk in terms of human capital is mitigated through working in a collaborative matrix method with |
colleagues in similar functional areas in North America. |
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Our company is not only fully compliant with anti-slavery, anti-corruption and anti-bribery legislation, but |
will continue to take any known steps possible to ensure our staff are trained and informed about the |
importance of ensuring our own practices are ethical and legal. |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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Financial Risk is monitored through strict KPI's on working capital (stock, debtors and creditors), cash |
flow and general cost control. |
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The business continues to be a responsible citizen. Every effort is made to manage the environmental |
impact of our supply chain and our operational activities. |
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ON BEHALF OF THE BOARD: |
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14th May 2019 |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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The directors present their report with the financial statements of the company for the year ended 31st December 2018. |
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The company's previous year end had been extended by two months to be coterminous with its parent. |
As a consequence the comparatives, which are for a fourteen month period, are not entirely comparable. |
The financial statements are presented in Sterling (£). |
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DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2018. |
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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 1st January 2018 to the |
date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the |
financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that |
law the directors have elected to prepare the financial statements in accordance with United Kingdom |
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). |
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 |
RICHARDSON MILLING (UK) LIMITED |
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Opinion |
We have audited the financial statements of Richardson Milling (UK) Limited (the 'company') for the year |
ended 31st December 2018 which comprise the Statement of Comprehensive Income, Balance Sheet, |
Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to |
the Financial Statements, including a summary of significant accounting policies. The financial reporting |
framework that has been applied in their preparation is applicable law and United Kingdom Accounting |
Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the |
UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31st December 2018 and of its
profit 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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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
applicable law. Our responsibilities under those standards are further described in the Auditors' |
responsibilities for the audit of the financial statements section of our report. We are independent of the |
company in accordance with the ethical requirements that are relevant to our audit of the financial |
statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical |
responsibilities in accordance with these requirements. We believe that the audit evidence we have |
obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require |
us to report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial
statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that
may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information |
in the Strategic Report and the Report of the Directors, but does not include the financial statements and |
our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent |
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information |
and, in doing so, consider whether the other information is materially inconsistent with the financial |
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we |
identify such material inconsistencies or apparent material misstatements, we are required to determine |
whether there is a material misstatement in the financial statements or a material misstatement of the |
other information. If, based on the work we have performed, we conclude that there is a material |
misstatement of this other information, we are required to report that fact. We have nothing to report in |
this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for
which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RICHARDSON MILLING (UK) LIMITED |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the |
course of the audit, we have not identified material misstatements in the Strategic Report or the Report |
of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us |
to report to you if, in our opinion: |
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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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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors |
are responsible for the preparation of the financial statements and for being satisfied that they give a |
true and fair view, and for such internal control as the directors determine necessary to enable the |
preparation of financial statements that are free from material misstatement, whether due to fraud or |
error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to |
continue as a going concern, disclosing, as applicable, matters related to going concern and using the |
going concern basis of accounting unless the directors either intend to liquidate the company or to cease |
operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are |
free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors |
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that |
an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it |
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the |
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the |
basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the |
Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms |
part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 |
of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's |
members those matters we are required to state to them in a Report of the Auditors and for no other |
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone |
other than the company and the company's members as a body, for our audit work, for this report, or for |
the opinions we have formed. |
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for and on behalf of
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82 High Street |
Tenterden |
Kent |
TN30 6JG |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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2,169,883 | 499,995 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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BALANCE SHEET |
31ST DECEMBER 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Stocks | 9 |
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Debtors | 10 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 11 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 15 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 16 |
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Share premium | 17 |
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Capital redemption reserve | 17 |
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Retained earnings | 17 |
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SHAREHOLDERS' FUNDS |
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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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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1st November 2016 |
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Changes in equity |
Issue of share capital |
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Total comprehensive income | - |
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Balance at 31st December 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31st December 2018 |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Loan repayments in year |
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Amount withdrawn by directors | - | (635,000 | ) |
Share issue |
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Net cash from financing activities |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at
beginning of year |
2 |
(3,290,403 |
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(2,647,903 |
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Cash and cash equivalents at end
of year |
2 |
( |
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( |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Finance costs | 78,474 | 113,452 |
3,655,180 | 2,492,134 |
Increase in stocks | ( |
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Increase in trade and other debtors | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
respect of these Balance Sheet amounts: |
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Year ended 31st December 2018 |
31/12/18 | 1/1/18 |
£ | £ |
Cash and cash equivalents | 837,299 | 858,462 |
Bank overdrafts | ( |
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(4,126,382 | ) | (3,290,403 | ) |
Period ended 31st December 2017 |
31/12/17 | 1/11/16 |
£ | £ |
Cash and cash equivalents | 858,462 | 1,089,462 |
Bank overdrafts | ( |
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(3,290,403 | ) | (2,647,903 | ) |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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1. | STATUTORY INFORMATION |
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Richardson Milling (UK) Limited is a
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Wales. The company's registered number and registered office address can be found on the |
Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding |
discounts, rebates and value added tax. It is recognised when the goods are dispatched for |
delivery. |
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Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any |
accumulated impairment losses. Historic cost includes expenditure that is directly attributable to |
bringing the asset to the location and condition necessary for it to be capable of operating in the |
manner intended by management. |
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The company adds to the carrying amount of an item of fixed assets the cost of replacing part of |
such an item when that cost is incurred if the replacement part is expected to provide incremental |
future benefits to the company. The carrying amount of the replacement part is derecognised. |
Repairs and maintenance are charged to the profit or loss during the period in which they are |
incurred. |
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Depreciation is provided at the following rates in order to write off each asset over its estimated |
useful life: |
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Freehold land | - nil |
Freehold buildings | - 2% and 7% straight line |
Leasehold buildings and improvements | - 2% 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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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other |
comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed |
at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that |
are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is |
probable that they will be recovered against the reversal of deferred tax liabilities or other future |
taxable profits. |
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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 profit or loss in the period to which they relate. |
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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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Grain price provisions |
Due to the variation in grain prices throughout a harvest, the company has adopted a policy of |
averaging the cost of grain to match against sales. As the company's period end is not co-terminus |
with the harvest there is a balance on the provision account which is included within creditors. |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Significant judgements and estimates |
In preparing these financial statements, the directors have made the following critical judgements: |
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- Determine whether leases entered into as a lessee are operating leases or finance leases. These |
decisions depend on an assessment of whether the risks and rewards of ownership have been |
transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the company's tangible fixed assets. |
Factors taken into consideration in reaching such a decision include the economic viability and |
expected future financial performance of the asset and where it is a component of a larger |
cash-generating unit, the viability and expected future performance of that unit. |
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Key sources of estimation uncertainty include: |
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- Tangible fixed assets, which are depreciated over their useful lives, taking into account residual |
values where appropriate. The actual lives of the assets and residual values are assessed annually |
and may vary depending on a number of factors. In re-assessing asset lives, factors such as |
technological innovation, product life cycles and maintenance programmes are taken into account. |
Residual value assessments consider issues such as future market conditions, the remaining life of |
the asset and projected disposal values. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the |
company. |
|
An analysis of turnover by geographical market is given below: |
|
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
United Kingdom | 39,452,286 | 44,583,929 |
Europe | 2,743,727 | 1,637,411 |
Middle East | 756,892 | 896,107 |
Africa | 6,137,554 | 5,320,755 |
Asia | 570,636 | 1,416,739 |
Canada | 25,200 | - |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
|
Management | 5 | 9 |
Administration, accounts and sales | 17 | 15 |
Production | 137 | 120 |
|
|
|
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Net (gains)/losses on foreign currencies | ( |
) |
|
Operating leases |
|
|
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Bank interest |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
(Over) / under provided in earlier years | (100,455 | ) | - |
Total current tax |
|
|
|
Deferred tax: |
Accelerated capital allowances | ( |
) | ( |
) |
Change of tax rate | - | (146,641 | ) |
Available trading losses | - | 65,709 |
Total deferred tax | ( |
) | ( |
) |
|
Tax on profit |
|
( |
) |
|
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
difference is explained below: |
|
Period |
1/11/16 |
Year Ended | to |
31/12/18 | 31/12/17 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK
of |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses |
|
( |
) |
Other short term timing differences | (3,526 | ) | 19,647 |
Over provision in previous years | (100,455 | ) | - |
Deferred taxation movements | (18,240 | ) | (213,971 | ) |
Total tax charge/(credit) | 339,234 | (94,213 | ) |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
8. | TANGIBLE FIXED ASSETS |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1st January 2018 |
|
|
|
Disposals |
|
|
( |
) |
Reclassification/transfer |
|
|
|
At 31st December 2018 |
|
|
|
DEPRECIATION |
At 1st January 2018 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
|
( |
) |
At 31st December 2018 |
|
|
|
NET BOOK VALUE |
At 31st December 2018 |
|
|
|
At 31st December 2017 |
|
|
|
|
Fixtures | Assets |
and | Motor | under |
fittings | vehicles | construction | Totals |
£ | £ | £ | £ |
COST |
At 1st January 2018 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
|
( |
) |
Reclassification/transfer |
|
|
( |
) |
|
At 31st December 2018 |
|
|
|
|
DEPRECIATION |
At 1st January 2018 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) |
At 31st December 2018 |
|
|
|
|
NET BOOK VALUE |
At 31st December 2018 |
|
|
|
|
At 31st December 2017 |
|
|
|
|
|
9. | STOCKS |
2018 | 2017 |
£ | £ |
Raw materials |
|
|
Finished goods |
|
|
|
|
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Futures trading account | 318,691 | 85,525 |
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
|
Included within trade debtors is £9,166,116 (2017: £7,570,025) 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 £318,691 |
(2017: £85,525). No provision for unrealised losses at the year end has been made (2017: nil). |
Unrealised losses of £18,790 have been carried forward (2017: £25.545 gains). |
|
The open market value of the hedge positions maintained at the year end was £264,676 (2017: |
£80,035) with unrealised profits and losses at the year end being matched to related purchases |
and sales in accordance with the accounting policy. |
|
In addition: |
2018 | 2017 |
£ | £ |
Aggregate losses / (gains) recognised in the year | 584,219 | 64,862 |
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Bank loans and overdrafts (see note
12) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
12. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2018 | 2017 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
13. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
14. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2018 | 2017 |
£ | £ |
Bank overdrafts |
|
|
|
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 10. |
|
15. | PROVISIONS FOR LIABILITIES |
2018 | 2017 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1st January 2018 |
|
Accelerated capital allowances | (18,240 | ) |
Balance at 31st December 2018 |
|
|
16. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
|
Ordinary 1p | 1p | 1 | 1 |
|
Ordinary £1 | £1 | 8,684,414 | 8,684,414 |
8,684,415 | 8,684,415 |
|
All shares rank equally and carry equal rights with regard to voting and distributions, whether |
dividend or capital. |
RICHARDSON MILLING (UK) LIMITED (REGISTERED NUMBER: 01789282) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2018 |
|
|
17. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1st January 2018 |
|
|
|
7,698,264 |
Profit for the year |
|
- | - |
|
At 31st December 2018 |
|
|
|
9,482,693 |
|
18. | 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 4. The amount of contributions |
outstanding at the year end was £32,249 (2017: £30,375). |
|
19. | CAPITAL COMMITMENTS |
2018 | 2017 |
£ | £ |
Contracted but not provided for in the |
financial statements |
|
|
|
20. | RELATED PARTY DISCLOSURES |
|
During the year the company entered into transactions, in the ordinary course of business, with |
entities which have significant influence over the company. Transactions entered into and balances |
outstanding at the year end are as follows: |
|
2018 | 2017 |
£ | £ |
Management and consultancy fees | - | 37,000 |
Rent | - | 218,750 |
Purchase of computer equipment | - | 15,298 |
Purchase of freehold property | - | 7,540,000 |
|
Amounts owed to related parties | - | 15,928 |
|
The company has taken advantage of the exemption for disclosing related party transactions |
between group members as it is a wholly owned subsidiary. |
|
Key management personnel include all directors and a number of senior managers who together |
have authority and responsibility for planning, directing and controlling the activities of the |
company. The total compensation paid to key management personnel for services provided to the |
company was £1,140,108 (2017: £1,919,440). |
|
21. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is Richardson International Limited. The company's registered address is |
2800-1 Lombard Place, Winnipeg, Manitoba, R3B 0X8, Canada. |
|
The ultimate controlling party is James Richardson & Sons Limited, a company incorporated in |
Canada. |
|
Neither the immediate parent not ultimate holding companies' financial statements are publicly |
available. |