Registration number:
Yate Disposables Ltd
trading as
for the Year Ended 31 December 2021
Yate Disposables Ltd
trading as Yate Supplies
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
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Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Yate Disposables Ltd
trading as Yate Supplies
Company Information
Directors |
D T Aston C D Aston S J Shackleford |
Registered office |
|
Auditors |
|
Yate Disposables Ltd
trading as Yate Supplies
Strategic Report for the Year Ended 31 December 2021
The directors present their strategic report for the year ended 31 December 2021.
Principal activity
The principal activity of the company is that of the wholesale of industrial and catering disposable products.
Fair review of the business
The year under review has been an improvement on last year’s trading. Despite the first quarter of 2021 continuing to be adversely impacted by Covid-19 restrictions placed upon the hospitality sector, the company subsequently enjoyed a good trading year as its customers recovered from the pandemic. However, like many other businesses, the company has been affected by global supply chain challenges, which included raw material shortages, extended lead times, delivery delays which inevitably led to cost increases and staff shortages especially in transport and distribution.
Despite the continued challenges within the hospitality sector, the Directors are pleased to say that the company managed to generate a modest profit in 2021, while also investing in the infrastructure to service its customers as well as building stock levels to ensure continuity of products and service.
Key Performance Indicators (KPI's)
Management monitor progress of the company by reference to various financial and non-financial key performance indicators. The following are reviewed by the management team on a monthly basis:
• Sales performance (including returns)
• Gross profit margin
• Overheads
• Cashflow
• Customer service levels
• Staff retention
Financial instruments
The company uses various basic financial instruments to raise finance and provide flexibility for the company operations. The company is exposed to foreign exchange risk - this is mitigated by using a combination of forward foreign exchange contracts and other financial instruments, including cash on hand denominated in foreign currencies.
Yate Disposables Ltd
trading as Yate Supplies
Strategic Report for the Year Ended 31 December 2021
Financial review
The company has performed well against the challenging backdrop of Covid-19, with turnover for the year of £16.2m (£23.6m for the 18 months ended 31 December 2020) and a profit before tax of £357k (£527k for the 18 months ended 31 December 2020). The company maintained and slightly improved its margins with gross profit for the year being 23.7%, an increase of 1.5% compared to previous period.
During the year the company continued to utilise the support for businesses provided by the Government, including using just over £220k of the Coronavirus Job Retention Scheme (£1m for the 18 months ended 31 December 2020). The company actively monitors the overhead cost base to create efficiency savings where possible which has resulted in a satisfactory performance for the year and provided a solid and stable platform for the company to continue to support its customers as the economy emerges from the effects of Covid-19.
Principal risks and uncertainties
Risk management is addressed through our processes, procedures and internal controls. Key risks are reviewed regularly by the management team and wherever possible, actions to mitigate these risks are put into place. The principal risks affecting the company are detailed below.
Economic downturn
Whilst we have seen considerable bounce back following lockdowns and restrictions in the year, as restrictions continue to alleviate and be fully lifted we are expecting a level of continued uncertainty within the UK and global markets which could affect consumer confidence and therefore customer demand. The risks are managed through monitoring and reviewing economic conditions, diversifying our customer base across the sector and continuous investment.
Costs of the business
Costs are reviewed and tightly controlled against budget. The impact of outside factors, like commodity price changes, foreign exchange fluctuations and legislation changes on our costs are mitigated where possible through forecasting, forward contracts and having appropriate and adaptable pricing policies in place.
Credit risks
Prior to a customer being accepted and a sale made, appropriate credit checks are performed. The majority of sales are made to established, long standing customers of the company and therefore the credit risk on individual customers is limited.
Strategy and Future Developments
Our key focus over the coming financial year will be to maintain and service our current customer base whilst the global supply chain recovers as well as to re-build the company’s infrastructure and sales to pre-Covid levels. New plastic tax and packaging legislation reform will inevitably impact our company and our customers but we will continue to support our customers while delivering unparalleled service and competitive pricing.
Yate Disposables Ltd
trading as Yate Supplies
Strategic Report for the Year Ended 31 December 2021
Approved and authorised by the
......................................... |
Yate Disposables Ltd
trading as Yate Supplies
Directors' Report for the Year Ended 31 December 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
Director of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors, Milsted Langdon LLP are deemed to be reappointed under section 487(2) of The Companies Act 2006.
Approved by the
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Yate Disposables Ltd
trading as Yate Supplies
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Yate Disposables Ltd
trading as Yate Supplies
Independent Auditor's Report to the Members of Yate Disposables Ltd
Opinion
We have audited the financial statements of Yate Disposables Ltd (the 'company') for the year ended 31 December 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
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.
Yate Disposables Ltd
trading as Yate Supplies
Independent Auditor's Report to the Members of Yate Disposables Ltd
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 Statement of Directors' Responsibilities set out on page 6, 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.
Yate Disposables Ltd
trading as Yate Supplies
Independent Auditor's Report to the Members of Yate Disposables Ltd
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; and |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
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.
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 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.
......................................
For and on behalf of
Freshford House
Redcliffe Way
BS1 6NL
Yate Disposables Ltd
trading as Yate Supplies
Profit and Loss Account for the Year Ended 31 December 2021
Note |
2021 |
18m period ended |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Profit/(loss) on disposal of tangible fixed assets |
11,948 |
1,419,313 |
|
Other operating income |
|
|
|
Operating profit |
424,243 |
684,223 |
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar expenses |
( |
( |
|
(67,247) |
(157,701) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Yate Disposables Ltd
trading as Yate Supplies
Statement of Comprehensive Income for the Year Ended 31 December 2021
2021 |
18m period ended |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Yate Disposables Ltd
trading as Yate Supplies
(Registration number: 01934416)
Balance Sheet as at 31 December 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
- |
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
- |
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
|
Yate Disposables Ltd
trading as Yate Supplies
Statement of Changes in Equity for the Year Ended 31 December 2021
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 January 2021 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Realisation of gains in prior years |
- |
( |
|
- |
Total realisation of gains in prior years |
- |
( |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2021 |
|
- |
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 July 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Realisation of gains in prior years |
- |
( |
|
- |
Total realisation of gains in prior years |
- |
( |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2020 |
|
|
|
|
Yate Disposables Ltd
trading as Yate Supplies
Statement of Cash Flows for the Year Ended 31 December 2021
Note |
2021 |
18m period ended |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Profit from sales of investment properties |
( |
- |
|
Finance costs |
|
|
|
Finance income |
( |
- |
|
Corporation tax expense |
|
|
|
|
( |
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
( |
( |
|
Corporation tax (paid)/received |
( |
|
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Acquisition of intangible assets |
- |
( |
|
Proceeds from sale of investment properties |
|
- |
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Interest received |
|
- |
|
Repayment of bank borrowings |
( |
( |
|
Proceeds from bank borrowings |
- |
|
|
Payments to finance lease creditors |
( |
( |
|
New finance lease creditors |
|
- |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
Yate Disposables Ltd
trading as Yate Supplies
Statement of Cash Flows for the Year Ended 31 December 2021
Note |
2021 |
18m period ended |
|
Cash and cash equivalents at 1 January |
|
( |
|
Cash and cash equivalents at 31 December |
(122,698) |
1,312,378 |
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in pound sterling, which is the functional currency of the company, and are rounded to the nearest pound.
Going concern
Given the uncertainty and continued development of COVID-19, there is doubt as to when the company will be able to fully return to normal trading conditions and will monitor performance closely to identify whether any further action becomes necessary to protect the business. As at 31 December 2021 the company has £1.13m cash reserves (2020 - £2.02m) and £1.85m net assets (2020 - £1.68m). The directors have reviewed the company's supply chains, key customers and capital resources.
Based on the above and information available to the directors at the date of approval, the directors consider it appropriate to continue to adopt the going concern basis in preparing these financial statements and that the company has adequate resources to continue to trade for the foreseeable future being 12 months from approval of these financial statements.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods..
During the year management have made an estimate for provision of bad debts. This basis for this provision is made on management's best estimate for the proportion of debts that are unlikely to be receivable. This estimation is considered to have a significant risk of causing a material adjustment to the carrying amount of trade debtors valuation. The carrying amount is £41,754 (2020 - £35,077).
During the year management have made an estimate for provision of stock. This basis for this provision is made on management's best estimate for the proportion of stock that is unlikely to be sold. This estimation is considered to have a significant risk of causing a material adjustment to the carrying amount of stock valuation. The carrying amount is £154,094 (2020 - £184,083).
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns and discounts.
The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the company's activities.
Government grants
Government grants have been recognised on an accruals basis and have been recognised in the same period in which the related expense has been incurred.
Finance income and costs policy
Interest income and expenses are recognised using the effective interest rate method.
Foreign currency transactions and balances
Tax
The tax expense represents the sum of the tax currently payable and deferred tax. Tax is recognised in the profit or loss except that a charge attributable to an item of income or expense recognised as other comprehensive income is recognised in other comprehensive income.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax is provided at appropriate rates on all timing differences only to the extent that, in the opinion of the directors, there is a reasonable probability that a liability of asset will crystallise in the foreseeable future. Deferred tax is recovered using tax rates expected to apply at the reversal of the timing difference.
Deferred and current taxation assets or liabilities are not discounted.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, fittings and equipment |
4-8 years straight line |
Motor vehicles |
4-5 years straight line |
Investment property
Intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs |
3-5 years straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. It also includes the net invoice finance facility balance.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
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 costs and costs, adjusted where applicable for any loss of service potential.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Financial assets and liabilities are offset and 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.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Derivative financial instruments and hedging
Derivatives
Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
The fair value of the forward currency contracts are valued using mark to market rates at the balance sheet date supplied by the providers of the contracts.
Hedging
Revenue |
2021 |
18m period ended |
|
UK |
|
|
Europe |
|
|
Rest of world |
- |
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2021 |
18m period ended |
|
Government grants |
|
|
Rent receivable |
|
|
Vending machine income |
- |
|
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Operating profit |
Arrived at after charging/(crediting)
2021 |
18m period ended |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - vehicles |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Loss/(profit) on disposal of investment property |
(13,262) |
- |
Government grants |
The amount recognised in the financial statements was £235,238
Interest payable and similar expenses |
2021 |
18m period ended |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Foreign exchange gains |
|
|
Interest on invoice financing facility |
|
|
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
18m period ended |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
2021 |
18m period ended |
|
Administration |
|
|
Warehouse and drivers |
|
|
Directors |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
18m period ended |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
- |
|
142,810 |
568,865 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
2021 |
18m period ended |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditors' remuneration |
2021 |
18m period ended |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account:
2021 |
18m period ended |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
34,008 |
131,869 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Arising from changes in tax rates and laws |
- |
( |
Total deferred taxation |
|
( |
Tax expense in the profit and loss account |
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2020 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
18m period ended |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit/(loss) |
( |
( |
Decrease from effect of tax incentives |
( |
- |
Deferred tax expense from unrecognised temporary difference from a prior period |
- |
|
Tax increase from effect of indexation allowance on capital gains |
|
- |
Tax increase from effect of rollover relief on profit on disposal of fixed assets |
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
|
|
Decrease in UK current tax from adjustment for prior periods |
18,736 |
(21,412) |
Total tax charge |
|
|
Intangible assets |
Development costs |
Total |
|
Cost or valuation |
||
At 1 January 2021 |
|
|
At 31 December 2021 |
|
|
Amortisation |
||
At 1 January 2021 |
|
|
Amortisation charge |
|
|
At 31 December 2021 |
|
|
Carrying amount |
||
At 31 December 2021 |
|
|
At 31 December 2020 |
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||
At 1 January 2021 |
|
|
|
Additions |
|
|
|
Disposals |
( |
- |
( |
At 31 December 2021 |
|
|
|
Depreciation |
|||
At 1 January 2021 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
( |
- |
( |
At 31 December 2021 |
|
|
|
Carrying amount |
|||
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2021 |
2020 |
|
Motor vehicles |
262,426 |
155,465 |
Investment properties |
2021 |
|
At 1 January 2020 |
|
Disposals |
( |
At 31 December 2021 |
- |
Investment property comprised of a rental unit near Bristol. During the year to 31 December 2021 the property was sold for £145,000.
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Stocks |
2021 |
2020 |
|
Finished goods and goods for resale |
|
|
Stocks are stated after provision for impairment of £154,094 (2020 - £184,083).
The replacement cost of stock does not exceed the balance sheet values stated.
Debtors |
Note |
2021 |
2020 |
|
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
|
|
Trade debtors are stated after the provision for impairment of £41,754 (2020 - £35,077)
Cash and cash equivalents |
2021 |
2020 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
|
Invoice discounting facility |
( |
( |
Cash and cash equivalents in statement of cash flows |
(122,698) |
1,312,378 |
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Creditors |
Note |
2021 |
2020 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax |
50,625 |
131,959 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 January 2021 |
|
|
Decrease in existing provisions |
|
|
At 31 December 2021 |
|
|
The deferred tax provision relates to fixed asset timing differences and other short term timing differences.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling
£
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
|
|
2 |
|
2 |
|
|
|
|
Rights, preferences and restrictions
Ordinary 'A' shares have the following rights, preferences and restrictions: |
Ordinary 'B' shares have the following rights, preferences and restrictions: |
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Reserves |
Revaluation reserve
The revaluation reserve had historically arisen due to the company recognising changes in the value of land and buildings.
Profit and loss account
The profit and loss account represents cumulative profit and loss net of distributions to owners.
Loans and borrowings |
2021 |
2020 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
Hire purchase contracts |
|
|
|
|
2021 |
2020 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Invoice discounting |
|
|
Hire purchase contracts |
|
|
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Invoice financing facility
The invoice financing facility of £1,251,624 (2020 - £709,944) is secured by a fixed and floating charge over the assets of the company.
Bank borrowings
Included in bank borrowings are amounts of £232,762 (2020 - £450,000) of Coronavirus Business Interruption Loans ("CBILS") which are repayable in monthly installments and at a fixed rate of interest, starting from the end of their respective Business Interruption Payment window. These loans are guaranteed by the UK Government.
A further loan facility of £266,667 (2020 - £400,000) is unsecured.
Hire purchase contracts
Hire purchase contracts represent rentals payable by the company for certain items of plant and machinery and vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of assets. At inception, the average lease term is usually 3-4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under hire purchase contracts of £233,136 (2020 - £142,768) are secured on the assets to which they relate.
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
- |
|
Later than one year and not later than five years |
- |
|
- |
|
Dividends |
Interim dividends paid
2021 |
2020 |
|||
Interim dividend of £
|
|
|
||
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2020 - £Nil).
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Related party transactions |
Summary of transactions with other related parties
During the year, amounts totalling £Nil (2020 - £6,079) were paid to connected parties of the directors representing payments for administrative and maintenance work. No amounts were due to these connected parties in the current or preceding period end.
Included within amounts owed by related parties is an amount of £674 (2020 - £674) owing from Yate Disposables Group Limited. Yate Disposables Group Limited is a company in which D T Aston, C D Aston and S J Shackleford are all directors and D T Aston is a shareholder.
Also included within amounts owed to related parties is an amount of £79,104 owed to the directors of the company (2020 - £3,186).
During the year, short term loans were received from directors of the company totalling £Nil (2020 - £120,000). These amounts were fully repaid.
During the year, rebates of £48,269 (2020 - £51,957) were received from Maxima Trading Limited. Included within accrued income is an amount of £38,535 (2020 - £36,481) owing from Maxima Trading Limited.
Maxima Trading Limited is a bulk purchasing company in which D T Aston is a director and D T and C D Aston are both shareholders.
Financial instruments |
Categorisation of financial instruments
2021 |
2020 |
|
Financial assets measured at fair value through profit or loss |
- |
|
Financial assets that are debt instruments measured at amortised cost |
2,347,469 |
1,542,011 |
Financial liabilities measured at amortised cost |
(4,554,434) |
(4,191,781) |
Yate Disposables Ltd
trading as Yate Supplies
Notes to the Financial Statements for the Year Ended 31 December 2021
Derivative financial instruments - Forward contracts
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 December 2021, the outstanding contracts all mature within 12 months (2020 - 12 months) of the year end. The Company is committed to buy US$45,554 and EUR€36,896 and pay a fixed sterling amount (2020 - $200,000 and €150,000).
The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. The fair value of the forward-foreign exchange currency contracts in place are not material to the financial statements and therefore a financial asset or liability has not been recognised in respect of the open contracts at the year end.
Parent and ultimate parent undertaking |
The ultimate controlling party is