Company Registration No. 01879474 (England and Wales)
PAXTON ACCESS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAXTON ACCESS LIMITED
COMPANY INFORMATION
Directors
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
Company number
01879474
Registered office
Paxton House
Home Farm Road
Brighton
East Sussex
BN1 9HU
Auditor
Humphrey & Co Audit Services Ltd
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
Business address
Paxton House
Home Farm Road
Brighton
East Sussex
BN1 9HU
Bankers
HSBC Bank plc
153 North Street
Brighton
East Sussex
BN1 1SW
PAXTON ACCESS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 29
PAXTON ACCESS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2019.
S172 Statement
Duty to promote the success of the company
The directors consider the successful running of the company in terms of achieving its long-term strategy which centres on building a resilient company that is great to work for and known for the quality of our products. The ongoing success of the company centres around positive and effective dealings with all the stakeholders of the company and the directors were mindful of the long terms consequences of key commercial decisions made during the year, and determined that these were in the interests of the company’s owner, employees, agency staff, contractors, customers, installers, suppliers, local universities and other stakeholders, as they were all aligned with the company’s strategy.
The principal decisions made in the year were:
-
To make significant investment in the refurbishment of our headquarters, Paxton House
-
To implement initiatives identified by a cross section of our staff through their work in the Green Team to help reduce our environmental impact
-
To apply for the Sunday Times top 100 companies to work for the third year in a row
-
To prepare for the UK leaving the European Union from both a supplier and customer perspective
As set out in the directors’ report, the company takes employee involvement very seriously and we ensure we engage with our staff at all levels on a wide range of matters. The company also regularly engages with its distributors, installers, and suppliers to maintain these important relationships.
The directors confirm that throughout the year they have acted in the way they consider, in good faith, to be most likely to promote the continued success of the company for the benefit of its members as a whole
PAXTON ACCESS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
Fair review of the business
2019 was another successful year for the company. The company has been able to increase its market share in all markets to which it has significant exposure.
In brief, the company grew substantially during the year, increasing turnover by 13.8% (2018: 10.6%) and gross profit by 10.93% (2018: 8.9%). At the same time administrative expenses increased by 12.5% (2018: 11.6%) and net profit for the year before tax ended up at £1,085,476 (2018: £1,125,953). The company's net worth at the end of the year was £15,162,995 (2018: £13,657,519).
The company operates in a highly competitive market. In order to maintain and improve its position in this market, substantial investment has continued to be made by the company in research and development. This investment is made both for improving existing products and creating new innovative products for the market with a focus on providing returns over the longer term.
The company did not enter any new markets in the year, instead looking to cultivate the overseas markets already entered into, with particular focus on the US.
Going concern
The impact of Covid-19 on the economy in 2020 has raised uncertainties for all businesses, and Paxton is no different.
The company is fortunate to benefit from the strong support from its owners and financial resilience developed through working with the key managerial stakeholders.
Environmental matters
The company is committed to being environmentally responsible and has shown this in achieving the ISO 14001:2015 accreditation for its factory in Eastbourne in February 2018 and passing the audit for this in the past 2 years. The company continuously reviews its policies and capital to see where environmental improvements can be made and has installed charge-points for plug in hybrid cars to encourage the use of low emission vehicles. As well as this, the company has a cross company environmental group to track and report on environmental initiatives.
Social and Community Issues
The company take social and community issues seriously and has arranged multiple charity days through the year to generate donation income for selected charities. Also, the company continued its scholarship programme offering funding, on the job training and research opportunities to four students from Brighton University and the University of Sussex.
PAXTON ACCESS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
Principal risks and uncertainties
-
The company's business is partly speculative, in that it is not known which new products will succeed, even though sales trends for existing products are known. The directors cannot give any undertaking as to the success or otherwise of new products yielded by its research and development work. There is therefore a significant risk inherent with expenditure related to this.
-
The directors are not privy to new products currently in development by the company's competitors; there is therefore a risk that sales of its own products may suffer in the future as a result of unknown improvements in competitors' products.
-
The company is typical of many companies of its type in that it is heavily reliant on IT systems. Whilst the directors diligently review and improve measures for ensuring resilience of its systems and back up of its data, they cannot absolutely ensure that failures will not damage the company's business at some point. In order to mitigate this risk the company continues to invest heavily in its IT infrastructure.
-
Sales to the company's customers are made on a credit basis. Trade debtors amount to a substantial sum. Mindful of the current credit conditions affecting all companies, including our customers, there is an increased awareness regarding the importance of adherence to our credit terms. The board has satisfied itself that its customers are financially sound and will continue to be able to fund their debt for the foreseeable future. There is continued focus on strong credit management to ensure timely payment from customers and a healthy corporate liquidity position.
-
The current state of the global economy and the ability of installers to install our products. The current Covid-19 pandemic resulted in a complete lockdown in our largest markets in 2020 resulting in a loss of revenue in this period. During this period, the company has been able to support its staff through the governments Coronavirus job retention scheme and minimise the impact of this uncertainty. The management of the company will continue to act responsibly to manage any future uncertainty related to this.
A Stroud
Director
3 August 2020
PAXTON ACCESS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the company is the manufacture and distribution of electronic access control systems.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
P Walling
(Resigned 31 December 2019)
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Financial instruments
Treasury operations and financial instruments
The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.
The company’s principal financial instruments are cash balances. In addition, the company has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations.
Interest rate risk
Interest rate risk arises from cash balances, bank overdrafts and loans. The directors continually review the company's exposure to interest rates and take action to ensure that the risk is appropriate in relation to the financial results of the company.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Dollar and Euro bank accounts are maintained in order to try and mitigate foreign currency risk.
Research and development
The company is heavily committed to research and development activities. During the year the company concentrated its research and development activities on both continuous improvement on its current product portfolio as well as diversification into other market sectors.
PAXTON ACCESS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 5 -
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company is conscious of the need to keep employees informed regarding the progress and future plans of the company and the mutual benefit that can be engendered by good internal communications. This is achieved through regular meetings with managers and staff and an open forum in which a two-way flow of comment and ideas is encouraged. An example of this is the Paxton Exchange which offers senior management the opportunity to communicate the company goals and achievements to all members of staff. A significant amount of time and money is invested in employee training in the company and is available to all levels of staff. The Paxton Seagull, the staff newsletter, is a further commitment to the concept of improving communications within the company. The company is committed to providing a fantastic company culture for all its staff members.
Business relationships
The directors consider the fostering of good relationships with all stakeholders as essential for the ongoing success of the company. In that regard they have always considered the impact on the suppliers, customers, end users, staff and others of all decisions made. Key decisions, and their impact on specific groups, have been summarised in the s172 statement included on both our website and in the strategic report.
Future developments
The company is continuing to develop its overseas marketing and sales strategy and the directors expect that this will contribute to an increase in profitability.
Auditor
The auditor, Humphrey & Co Audit Services Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
A Stroud
Director
3 August 2020
PAXTON ACCESS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PAXTON ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PAXTON ACCESS LIMITED
- 7 -
Opinion
We have audited the financial statements of Paxton Access Limited (the 'company') for the year ended 31 December 2019 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PAXTON ACCESS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PAXTON ACCESS LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Michael Macefield (Senior Statutory Auditor)
for and on behalf of Humphrey & Co Audit Services Ltd
3 August 2020
Chartered Accountants
Statutory Auditor
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
PAXTON ACCESS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
Notes
£
£
Turnover
3
51,460,690
45,218,766
Cost of sales
(22,274,115)
(18,916,937)
Gross profit
29,186,575
26,301,829
Administrative expenses
(28,870,920)
(25,650,216)
Other operating income
820,388
513,228
Operating profit
4
1,136,043
1,164,841
Interest payable and similar expenses
8
(50,567)
(38,888)
Profit before taxation
1,085,476
1,125,953
Tax on profit
9
420,000
560,000
Profit for the financial year
1,505,476
1,685,953
The income statement has been prepared on the basis that all operations are continuing operations.
PAXTON ACCESS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
2019
2018
£
£
Profit for the year
1,505,476
1,685,953
Other comprehensive income
-
-
Total comprehensive income for the year
1,505,476
1,685,953
PAXTON ACCESS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2019
31 December 2019
- 11 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
10
305,071
342,255
Tangible assets
11
3,156,244
3,525,390
3,461,315
3,867,645
Current assets
Stocks
12
4,459,241
5,747,879
Debtors falling due after more than one year
13
2,323,000
1,903,000
Debtors falling due within one year
13
13,039,204
10,115,930
Cash at bank and in hand
1,824,337
2,232,607
21,645,782
19,999,416
Creditors: amounts falling due within one year
14
(9,032,623)
(9,080,488)
Net current assets
12,613,159
10,918,928
Total assets less current liabilities
16,074,474
14,786,573
Creditors: amounts falling due after more than one year
15
(668,479)
(886,054)
Provisions for liabilities
17
(243,000)
(243,000)
Net assets
15,162,995
13,657,519
Capital and reserves
Called up share capital
20
200,001
200,001
Profit and loss reserves
14,962,994
13,457,518
Total equity
15,162,995
13,657,519
The financial statements were approved by the board of directors and authorised for issue on 3 August 2020 and are signed on its behalf by:
A Brotherton-Ratcliffe
Director
Company Registration No. 01879474
PAXTON ACCESS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2018
200,001
11,771,565
11,971,566
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
1,685,953
1,685,953
Balance at 31 December 2018
200,001
13,457,518
13,657,519
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
1,505,476
1,505,476
Balance at 31 December 2019
200,001
14,962,994
15,162,995
PAXTON ACCESS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 13 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
740,198
(560,085)
Interest paid
(50,567)
(38,888)
Net cash inflow/(outflow) from operating activities
689,631
(598,973)
Investing activities
Purchase of intangible assets
(89,046)
(253,800)
Purchase of tangible fixed assets
(795,214)
(2,028,222)
Net cash used in investing activities
(884,260)
(2,282,022)
Financing activities
Repayment of bank loans
-
(277,907)
Payment of finance leases obligations
(213,641)
1,083,651
Net cash (used in)/generated from financing activities
(213,641)
805,744
Net decrease in cash and cash equivalents
(408,270)
(2,075,251)
Cash and cash equivalents at beginning of year
2,232,607
4,307,858
Cash and cash equivalents at end of year
1,824,337
2,232,607
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
1
Accounting policies
Company information
Paxton Access Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Paxton House, Home Farm Road, Brighton, East Sussex, BN1 9HU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Paxton access Group Limited
. These consolidated financial statements are available from its registered office,
Paxton House, Home Farm Road, Brighton, East Sussex BN1 9HU.
1.2
Going concern
The impact of Covid-19 on the economy in 2020 has raised uncertainties for all companies and Paxton is no different. The pandemic has resulted in a lockdown in the company's largest markets resulting in a loss of revenue. However, the company has been able to take advantage of the governments Coronavirus job retention scheme which has assisted the company's cashflow. Most of the company's employees that haven't been furloughed are working from home and the company is still continuing to trade. Although revenues fell in Q2 compared to previous years the directors are confident that sales will pick up in the latter half of the year and that the company will still trade at a profit in the current financial year.
true
The company benefits from the support of its bankers and from its principal shareholder and his family. A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Intangible assets comprise of product development costs. Such assets are considered to have a finite useful life and the costs are amortised on a reducing balance basis over their estimated useful life. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs
33% reducing balance and 33% straight line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold
No depreciation
Leasehold improvements
20% reducing balance and 20% straight line
Plant and machinery
20% reducing balance and 20%/33% straight line
Fixtures, fittings & equipment
20% reducing balance & 20%/25%/33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
The cost of stock is based on an average cost basis, where the actual cost of stock purchased to obtain the quantity held is identified and an average cost calculated.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade debtors
, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 19 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 20 -
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.17
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at a fixed rate that is used as an approximation for the actual rate. The fixed rates used are reviewed periodically. All differences are taken to profit and loss account.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The
critical
judgments
which
have the most significant
impact
on amounts recognised in the financial statements
are as follows:
Stock provisioning
Provision is made where necessary for obsolete, slow moving and defective stocks. The directors review the level of the provision based on the level and condition of stock items and their knowledge of the business.
Warranty provisioning
The company provides a 5 year warranty on its products. A provision for expected warranty claims is calculated based on prior experience of levels of warranty claims incurred and future expectations.
Useful life of fixed assets
The directors estimate the expected useful lives of the company's fixed assets which in turn impacts on the amount of depreciation charged in the year.
Key sources of estimation uncertainty
In the opinion of the directors there are no estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 21 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Electronic access control systems
51,460,690
45,218,766
2019
2018
£
£
Turnover analysed by geographical market
UK
32,576,560
28,248,758
Europe
9,246,387
8,706,335
Rest of world
9,637,743
8,263,673
51,460,690
45,218,766
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
101,761
(2,215)
Research and development costs
1,341,925
811,302
Depreciation of owned tangible fixed assets
1,032,451
1,100,597
Loss on disposal of tangible fixed assets
131,910
-
Amortisation of intangible assets
126,230
108,945
Operating lease charges
1,393,992
1,054,409
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
25,000
22,500
For other services
Taxation compliance services
1,500
1,500
All other non-audit services
3,500
3,500
5,000
5,000
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Administration
230
205
Production
60
58
Cleaning
2
2
Total
292
265
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
11,843,439
11,089,798
Social security costs
1,525,849
1,351,574
Pension costs
1,184,622
1,037,669
14,553,910
13,479,041
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
2,734,513
2,719,229
Company pension contributions to defined contribution schemes
202,073
150,983
2,936,586
2,870,212
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2018 - 8).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
973,257
971,392
Company pension contributions to defined contribution schemes
28,264
28,519
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
8
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
50,567
38,888
9
Taxation
2019
2018
£
£
Deferred tax
Origination and reversal of timing differences
(420,000)
(560,000)
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,085,476
1,125,953
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
206,240
213,931
Tax effect of expenses that are not deductible in determining taxable profit
87,287
14,783
Effect of change in corporation tax rate
49,411
63,435
Group relief
-
3,613
Depreciation on assets not qualifying for tax allowances
-
14,452
Research and development tax credit
(762,938)
(870,214)
Taxation credit for the year
(420,000)
(560,000)
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
10
Intangible fixed assets
Development Costs
£
Cost
At 1 January 2019
666,922
Additions - internally developed
89,046
At 31 December 2019
755,968
Amortisation and impairment
At 1 January 2019
324,667
Amortisation charged for the year
126,230
At 31 December 2019
450,897
Carrying amount
At 31 December 2019
305,071
At 31 December 2018
342,255
11
Tangible fixed assets
Freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost
At 1 January 2019
5,000
877,639
4,458,359
1,777,167
7,118,165
Additions
-
57,699
389,170
348,345
795,214
Disposals
-
(129,954)
(270,047)
-
(400,001)
At 31 December 2019
5,000
805,384
4,577,482
2,125,512
7,513,378
Depreciation and impairment
At 1 January 2019
-
479,639
2,041,912
1,071,224
3,592,775
Depreciation charged in the year
-
82,436
614,427
335,588
1,032,451
Eliminated in respect of disposals
-
(89,730)
(178,362)
-
(268,092)
At 31 December 2019
-
472,345
2,477,977
1,406,812
4,357,134
Carrying amount
At 31 December 2019
5,000
333,039
2,099,505
718,700
3,156,244
At 31 December 2018
5,000
398,000
2,416,447
705,943
3,525,390
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
11
Tangible fixed assets
(Continued)
- 25 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
721,783
937,384
12
Stocks
2019
2018
£
£
Raw materials and consumables
126,989
191,456
Finished goods and goods for resale
4,332,252
5,556,423
4,459,241
5,747,879
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
10,026,001
7,743,857
Amounts owed by group undertakings
2,601,156
1,976,744
Other debtors
8,276
10,741
Prepayments and accrued income
403,771
384,588
13,039,204
10,115,930
2019
2018
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
2,323,000
1,903,000
Total debtors
15,362,204
12,018,930
Trade debtors disclosed above are measured at amortised cost.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 26 -
14
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Obligations under finance leases
16
217,575
213,641
Trade creditors
5,454,016
6,387,330
Amounts owed to group undertakings
492,355
614,079
Taxation and social security
1,315,979
671,826
Accruals and deferred income
1,552,698
1,193,612
9,032,623
9,080,488
15
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Obligations under finance leases
16
668,479
886,054
16
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
217,575
213,641
In two to five years
668,479
886,054
886,054
1,099,695
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 12 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Provisions for liabilities
2019
2018
£
£
Warranty repairs
243,000
243,000
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
17
Provisions for liabilities
(Continued)
- 27 -
Movements on provisions:
Warranty repairs
£
At 1 January 2019
243,000
Additional provisions in the year
51,356
Utilisation of provision
(51,356)
At 31 December 2019
243,000
The provision for warranty claims is a provision for future product costs arising in the normal course of business from prior year sales. The company provides a 5 year warranty on its products.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2019
2018
Balances:
£
£
ACAs
84,246
26,000
Tax losses
2,219,925
1,860,000
Retirement benefit obligations
18,829
17,000
2,323,000
1,903,000
2019
Movements in the year:
£
Asset at 1 January 2019
(1,903,000)
Credit to profit or loss
(420,000)
Asset at 31 December 2019
(2,323,000)
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
Deferred tax balances have been measured at 17% (2018 - 17%).
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 28 -
19
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,184,622
1,037,669
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
200,001 Ordinary shares of £1 each
200,001
200,001
21
Operating lease commitments
Lessee
Operating lease payments consist of rentals payable by the company for motor vehicles and for payments to its parent company for its leasehold properties. The property leases are for a term of 10 years and motor vehicle leases are generally for a term of 3 years.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
692,344
713,277
Between two and five years
1,615,368
1,901,993
In over five years
211,065
414,333
2,518,777
3,029,603
22
Related party transactions
Guarantees
The company has entered into an unlimited cross guarantee with other group companies such that it will guarantee the lending of those other group companies should they be unable to meet their liabilities as and when they fall due. At 31 December 2018 the maximum potential exposure was £4,988,367 (2017 - £5,203,739). The company has also provided a guarantee of £300,000 to H M Revenue & Customs. No material liability is expected to arise as a result of these arrangements.
PAXTON ACCESS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 29 -
23
Ultimate controlling party
The parent company of Paxton Access Limited is Paxton Access Group Limited.
The ultimate controlling party is A Brotherton Ratcliffe, a director of the company.
Paxton Access Group Limited is the parent undertaking of the largest and smallest group to consolidate these financial statements. Copies of the accounts can be obtained from Companies House.
24
Cash generated from/(absorbed by) operations
2019
2018
£
£
Profit for the year after tax
1,505,476
1,685,953
Adjustments for:
Taxation credited
(420,000)
(560,000)
Finance costs
50,567
38,888
Loss on disposal of tangible fixed assets
131,910
-
Amortisation and impairment of intangible assets
126,230
108,945
Depreciation and impairment of tangible fixed assets
1,032,451
1,100,596
Movements in working capital:
Decrease/(increase) in stocks
1,288,636
(2,226,291)
Increase in debtors
(2,923,274)
(2,448,579)
(Decrease)/increase in creditors
(51,798)
1,740,403
Cash generated from/(absorbed by) operations
740,198
(560,085)
25
Analysis of changes in net funds
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
2,232,607
(408,270)
1,824,337
Obligations under finance leases
(1,099,695)
213,641
(886,054)
1,132,912
(194,629)
938,283
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.200
A Brotherton-Ratcliffe
A Stroud
P Bannister
G O'Hara
V Parekh
P Rawlinson
N O'Donnell
S Brotherton-Ratcliffe
N O'Donnell
01879474
2019-01-01
2019-12-31
01879474
bus:Director1
2019-01-01
2019-12-31
01879474
bus:Director2
2019-01-01
2019-12-31
01879474
bus:Director3
2019-01-01
2019-12-31
01879474
bus:Director4
2019-01-01
2019-12-31
01879474
bus:Director5
2019-01-01
2019-12-31
01879474
bus:Director6
2019-01-01
2019-12-31
01879474
bus:Director9
2019-01-01
2019-12-31
01879474
bus:Director10
2019-01-01
2019-12-31
01879474
bus:Director11
2019-01-01
2019-12-31
01879474
bus:Director7
2019-01-01
2019-12-31
01879474
bus:Director8
2019-01-01
2019-12-31
01879474
bus:RegisteredOffice
2019-01-01
2019-12-31
01879474
bus:Agent1
2019-01-01
2019-12-31
01879474
2019-12-31
01879474
2018-01-01
2018-12-31
01879474
dpl:Item1
2019-01-01
2019-12-31
01879474
dpl:Item1
2018-01-01
2018-12-31
01879474
dpl:Item2
2019-01-01
2019-12-31
01879474
dpl:Item2
2018-01-01
2018-12-31
01879474
dpl:Item3
2019-01-01
2019-12-31
01879474
dpl:Item3
2018-01-01
2018-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2018-01-01
2018-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2019-01-01
2019-12-31
01879474
core:OtherResidualIntangibleAssets
2019-12-31
01879474
core:OtherResidualIntangibleAssets
2018-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2019-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2018-12-31
01879474
2018-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-12-31
01879474
core:LeaseholdImprovements
2019-12-31
01879474
core:PlantMachinery
2019-12-31
01879474
core:FurnitureFittings
2019-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-12-31
01879474
core:LeaseholdImprovements
2018-12-31
01879474
core:PlantMachinery
2018-12-31
01879474
core:FurnitureFittings
2018-12-31
01879474
core:Non-currentFinancialInstruments
core:AfterOneYear
2019-12-31
01879474
core:Non-currentFinancialInstruments
core:AfterOneYear
2018-12-31
01879474
core:CurrentFinancialInstruments
core:WithinOneYear
2019-12-31
01879474
core:CurrentFinancialInstruments
core:WithinOneYear
2018-12-31
01879474
core:CurrentFinancialInstruments
2019-12-31
01879474
core:CurrentFinancialInstruments
2018-12-31
01879474
core:Non-currentFinancialInstruments
2019-12-31
01879474
core:Non-currentFinancialInstruments
2018-12-31
01879474
core:ShareCapital
2019-12-31
01879474
core:ShareCapital
2018-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2019-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2018-12-31
01879474
core:ShareCapital
2017-12-31
01879474
core:RetainedEarningsAccumulatedLosses
2017-12-31
01879474
2017-12-31
01879474
1
2018-01-01
2018-12-31
01879474
2018-12-31
01879474
core:IntangibleAssetsOtherThanGoodwill
2019-01-01
2019-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-01-01
2019-12-31
01879474
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2019-01-01
2019-12-31
01879474
core:PlantMachinery
2019-01-01
2019-12-31
01879474
core:FurnitureFittings
2019-01-01
2019-12-31
01879474
dpl:Item1
dpl:AdministrativeExpenses
2019-01-01
2019-12-31
01879474
dpl:Item1
dpl:AdministrativeExpenses
2018-01-01
2018-12-31
01879474
dpl:AdministrativeExpenses
2019-01-01
2019-12-31
01879474
dpl:Item2
dpl:AdministrativeExpenses
2019-01-01
2019-12-31
01879474
dpl:Item2
dpl:AdministrativeExpenses
2018-01-01
2018-12-31
01879474
dpl:Item1
dpl:CostSales
2019-01-01
2019-12-31
01879474
dpl:Item1
dpl:CostSales
2018-01-01
2018-12-31
01879474
core:UKTax
2019-01-01
2019-12-31
01879474
core:UKTax
2018-01-01
2018-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2018-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
core:InternallyGeneratedIntangibleAssets
2019-01-01
2019-12-31
01879474
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2019-01-01
2019-12-31
01879474
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-12-31
01879474
core:LeaseholdImprovements
2018-12-31
01879474
core:PlantMachinery
2018-12-31
01879474
core:FurnitureFittings
2018-12-31
01879474
core:LeaseholdImprovements
2019-01-01
2019-12-31
01879474
core:WithinOneYear
2019-12-31
01879474
core:WithinOneYear
2018-12-31
01879474
core:BetweenTwoFiveYears
2019-12-31
01879474
core:BetweenTwoFiveYears
2018-12-31
01879474
core:MoreThanFiveYears
2019-12-31
01879474
core:MoreThanFiveYears
2018-12-31
01879474
dpl:Item1
dpl:CostSales
2018-12-31
01879474
dpl:Item1
dpl:CostSales
2017-12-31
01879474
dpl:Item2
dpl:CostSales
2019-12-31
01879474
dpl:Item2
dpl:CostSales
2018-12-31
01879474
bus:PrivateLimitedCompanyLtd
2019-01-01
2019-12-31
01879474
bus:FRS102
2019-01-01
2019-12-31
01879474
bus:Audited
2019-01-01
2019-12-31
01879474
bus:FullAccounts
2019-01-01
2019-12-31
xbrli:pure
xbrli:shares
iso4217:GBP