Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
COMPANY INFORMATION
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QUALITEX SUPPLIES LIMITED
CONTENTS
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QUALITEX SUPPLIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The directors present their Strategic Report and Directors Report for the year ended 31 December 2020.
2019 had seen sales and profit levels continue to grow, and the Directors were very confident that our forecast for a further 20% growth in 2020 were achievable. 2020 started well in Q1, but then the COVID-19 pandemic hit, and it became necessary to quickly review our monthly sales forecasts and reduce overheads where possible as we braced ourselves for a very challenging year.
We negotiated a CBIL loan in April to ensure the business could respond to a worst-case scenario and we maintained good communications with our suppliers, customers, and staff. Sales levels were severely affected in April and May, but we provided a skeleton staff throughout the initial lockdown and furloughed vulnerable staff and employees that could not work safely or effectively during this period. Government guidelines enabled us to trade in some form throughout the year, with good cooperation from management and staff, which generated a lot of goodwill and enabled us to maintain a reasonable service in the circumstances to our business partners. As the country came out of the initial lockdown, we seemed to be better prepared and equipped than many of our competitors and therefore experienced a very strong second half to the year. Stock shortages and delayed deliveries became an industry challenge, but we did everything possible to offer the best achievable service in the circumstances. We were able to utilize the government support initiatives where appropriate and monitored our workforce numbers periodically depending on demand and social distancing requirements. Furlough income and other cost reductions significantly reduced the 2020 expenditure and contributed to a very much better profit than had been anticipated for the year. Our outlook for 2021 remains positive despite several challenges over spilling to the new year. The late arrival of stock is expected to continue into 2021, along with a shortage of container ships that is anticipated to increase shipping costs and lead to industry price increases. In the circumstances we have allocated an additional £500,000 to hold higher stock levels which should also accommodate anticipated sales growth in 2021 of 15.5% to £17,500,000. We have also prepared for the launch of some new products and new brochures for February 2021 as well as strengthening our team with the introduction of 4 additional staff, taking the total employed to 84. Finally, the Directors are very pleased to have completed our 30th year with all its challenges, returning a strong profit and maintaining a high optimism for future years.
The company recognises the risks it faces in connection with its business operation and monitors various key performance indicators as part of its monthly accounting and management reporting procedures. The Directors continue to review and monitor management controls put in place to mitigate the risks associated to credit and debtor controls, and foreign exchange risks - as above the company has introduced systems to manage these risks. Of equal significance are our stock control and cashflow management systems which allow management to control stock levels and forecast cash flow in order to meet the needs of our customers and the business.
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QUALITEX SUPPLIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
With profitability and cash flows having further improved during the year, the Company was able to improve forward stock purchases. Debtor days at the year end increased to 56 days at 31 December 2020 (2019 35 days), although this indicator was distorted by the impact of COVID-19 on sales in the early half of the year and strong monthly sales in the second half of the year..
This report was approved by the board on 13 May 2021
and signed on its behalf.
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QUALITEX SUPPLIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
The Directors present their report and the financial statements for the year ended 31 December 2020.
builder's merchants and bathrooms studios throughout the United Kingdom.
The profit for the year, after taxation, amounted to £
512,681
(2019 -
£
325,137
)
.
During the year the company paid a dividend of £50,000. No further dividend for the year has been recommended by the Directors.
The Directors who served during the year were:
The late arrival of stock is expected to continue into 2021, along with a shortage of container ships that is anticipated to increase shipping costs and lead to industry price increases. In the circumstances we have allocated an additional £500,000 to hold higher stock levels which should also accommodate anticipated sales growth in 2021 of 15.5% to £17,500,000.
We have also prepared for the launch of some new products and new brochures for February 2021 as well as strengthening our team with the introduction of 4 additional staff, taking the total employed to 84.
The company's Business Review, Principal Risks and Key Performance Indicators are included in the Strategic Report.
Each of the persons who are
Directors at the time when this Directors' Report is approved has confirmed that:
There have been no significant events affecting the Company since the year end.
This report was approved by the board on 13 May 2021 and signed on its behalf.
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QUALITEX SUPPLIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments 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;
∙
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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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QUALITEX SUPPLIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QUALITEX SUPPLIES LIMITED
We have audited the financial statements of Qualitex Supplies Limited (the 'Company') for the year ended 31 December 2020, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity
and the related notes, 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:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The 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 Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report 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.
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QUALITEX SUPPLIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QUALITEX SUPPLIES LIMITED (CONTINUED)
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
•the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations;
•we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our knowledge and experience of the company and its industry; •we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and, employment legislation; and •identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout.
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QUALITEX SUPPLIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF QUALITEX SUPPLIES LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements (Continued)
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: •making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and •considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations.
To address the risk of fraud through management bias and override of controls,
we: •tested journal entries to identify unusual transactions; •assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and •investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: •agreeing financial statement disclosures to underlying supporting documentation; •reviewing relevant ledger accounts for evidence of actions to rectify non-compliance; •enquiring of management as to actual and potential litigation and claims.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' 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 Auditors' 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
Statutory Auditors
10 Queen Street Place
EC4R 1AG
28 May 2021
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QUALITEX SUPPLIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
REGISTERED NUMBER:
02555629
BALANCE SHEET
AS AT
31 DECEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 13 May 2021
.
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QUALITEX SUPPLIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The company is a private limited company, incorporated in the United Kingdom, registered office Unit 3B, Deacon Trading estate, Aylesford, Kent, ME20 7SP with the registered number 02555629. The principal activity of Qualitex Supplies Limited is the distribution of shower and bathroom equipment which is sold via builder's merchants and bathrooms studios throughout the United Kingdom.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. The impact of the COVID-19 pandemic was significant. Sales levels were severely affected in April and May, but we provided a skeleton staff throughout the initial lockdown and furloughed vulnerable staff and employees that could not work safely or effectively during this period.We negotiated a CBIL loan in April to ensure the business could respond to a worst-case scenario and we maintained good communications with our suppliers, customers, and staff.
Government guidelines enabled us to trade in some form throughout the year, which generated a lot of goodwill and enabled us to maintain a reasonable service in the circumstances to our business partners. As the country came out of the initial lockdown, we seemed to be better prepared and equipped than many of our competitors and therefore experienced a very strong second half to the year. The company’s sales forecasts and projections, anticipate that the company will be able to operate within the level of its current working capital facilities. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Revenue relates to the sale of bathroom products. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, usually on delivery of prodcuts to the company's customers. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from the sale of products is recognised when all of the following conditions are satisfied: 1) The Company has transferred the significant risks and rewards of ownership to the buyer; 2) The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; 3) The amount of revenue can be measured reliably; 4) It is probable that the Company will receive the consideration due under the transaction; and 5) The costs incurred or to be incurred in respect of the transaction can be measured reliably.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
Cost includes direct costs of delivery to the company.
Short term debtors are measured at transaction price, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. The company does not currently hold cash equivalents.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Grants are accounted under the accruals model as permitted by FRS 102. The grants were received as part of the UK Government's Coronavirus Job Retention Scheme (CJRS) and are recognised as Other Income in the Statement of Comprehensive Income in the same period as the related salary expenditure.
During the year the company obtained a bank loan under the government's CBILS scheme. Under the terms of the scheme, the interest due in the first year of the loan is paid by the government. Accordingly the interest charged is included within interest payable and an equal amount recognised in grant income.
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
As part of the company’s property leasing arrangements there is an obligation to repair damages which incur during the life of the lease, such as wear and tear. The cost is charged to profit and loss as the obligation arises. The provision is expected to be utilised in 2024 as the leases terminate.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.
Accounting policies (continued)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
The preparation of the financial statements in conformity with generally accepted accounting principles requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results in the future could differ from those estimates. In this regard, the Directors believe that the critical accounting polices where judgements or estimations are necessarily applied are summarised below.
Depreciation and residual values Tangible fixed assets are depreciated over the course of their useful economic lives to their residual balances. The Directors have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual values of fixtures and fittings, and have concluded that asset lives and residual values are appropriate. Trade Debtors The Directors have reviewed trade receivables at the end of the year, to consider the risk that these debts may not be recoverable and hence could be impaired. This impairment review is used to calculate the level of provisioning against trade receivables. The impairment review is based on the Director's best estimates of the likelihood of debt recovery and considers factors such as the company's relationship with the customer, the age of the debt, credit rating data and experience of recent transactions with the customer. Stock Stock is valued at the lower of cost and net realisable value, which requires management to consider the carrying value of slow moving or damaged stock. In making this assessment and when calculating the value of any impairment provisions, the Directors must consider the likelihood that particular stock lines can be sold and must assess the future selling prices of stock lines. These assessments are based on the Directors judgements of future sales levels and prices which are both subject to uncertainty
Provisions
Provision is made for dilapidations. This requires the Directors to make a best estimate of the expenditure that will be incurred based on contractual requirements. In addition, the timing of the cash flows and any discount rates used to establish net present value of the obligations require management’s judgement.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
There were no factors that may affect future tax charges.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The group has exposures to three main areas of risk - liquidity risk, foreign exchange risk and customer credit exposure.
Customer credit exposure
The majority of the company's sales are made on credit and therefore there is a risk that the company may be at risk should customers be unable to repay debts. Management seek to mitigate this risk through a variety of proceedures and systems including the use of credit checks & references, a dedicated credit control team, regular monitoring and the use of credit insurance.
Foreign exchange risk
The company makes purchases from suppliers based overseas and therefore faces some degree of foreign exchange risk. Management mitigate this risk by reviewing exchange rates on a ongoing basis and have put in place systems and controls, such as the use of forward contracts to minimise the company's exposure to exchange rate fluctuations.
Liquidity risk
The company manages its working capital so as to meet all financial obligations as they fall due and optimise working capital flows. The company primarily funds its obligations through operating cash flows but uses finance lease facilities for capital expenditure. Management monitor cash flows against forecasts and carefully review expenditure to ensure that the company is able to meet obligations in a timely manner. Additional secured overdraft facilities are available to meet short term requirements.
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Profit and loss account
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QUALITEX SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £58,942 (2019 - £35,599).
The directors consider that D. E. Andrews is the ultimate controlling party by virtue of his shareholding.
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