REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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BLP (NORTHERN) LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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FOR |
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BLP (NORTHERN) LIMITED |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Statement of Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 15 |
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BLP (NORTHERN) LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditor |
Fernwood House |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
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SOLICITORS: |
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Norham House |
12 New Bridge Street West |
Newcastle upon Tyne |
Tyne and Wear |
NE1 8AS |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their strategic report for the year ended 31 December 2020. |
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REVIEW OF BUSINESS |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
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The trading performance of the company generated a headline profit before tax and after non-recurring property expenses of £476k, leading to an increase in after tax reserves of £262k. With sales revenue rising by 5% to £7.6m, compared to 2019 £7.2m, this represents a significant improvement on the previous year's performance. |
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Investment in unit 15 and the relocation of manufacturing assets has delivered a measurable improvement in the efficiency and flexibility of the workforce which is reflected in the improved performance for the year. |
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The ongoing strategic move to increase revenue generated from packaging related services has contributed to the improved performance. |
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As part of this process, during 2019, the company acquired BRC certification in Packaging Materials and Food Safety, opening up additional revenue streams in these areas. |
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The company continues to pursue its strategy of forming long term relationships with key account clients and, despite the ongoing challenges in the sector, the directors are confident of maintaining a growing business with sustainable profitability. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Covid-19 |
The impact of Covid-19 affected the company in mid-March 2020 when the government started a national lockdown and large sections of the economy were closed including hospitality and travel which made up a small part of the client portfolio. |
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The full impact on the wider economy was still unknown so the management team undertook short and medium-term actions to offset the impact of Covid-19. |
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The furlough scheme enhanced cash flow in the short term and as a longer-term precaution, the company secured a Coronavirus Business Interruption Loan which will be utilised if/when necessary. |
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Revenue concentration |
Where clients represent more than 10% of revenue, the business mitigates the risk of revenue concentration through engaging the customer in either 12 month rolling contracts or multi-year contracts. |
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Loss of adequate working capital |
The directors have assessed the risk of the company not being able to satisfy short-term supplier and finance obligations. The business is confident that it can operate with sufficient head room and with the additional comfort of the CIBLS loan it can navigate comfortably through the current pandemic, the uncertainty of Brexit and other unforeseen business impacts for at least the next 12 months. |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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FUTURE DEVELOPMENTS AND R&D |
Covid-19 and Brexit |
As a result of the continued lockdown in 2021 and Brexit on 1st January 2021, the directors have budgeted for a reduced turnover in 2021. To prevent adverse effects on company performance the company will continue to make fair use of the government furlough scheme and keep in place the CBILS loan to ensure sufficient cash is available to continue to trade through the pandemic and beyond. The full impact of Brexit is still unknown, and whilst the company has continued to trade since the 1st January on relatively unchanged terms, the longer impact on customers and suppliers who import is still unclear. We remain optimistic regarding our future trade with the EU and have yet to see any financial or other impact in this short time. |
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R&D |
As in previous years the company will continue to strive for product and process improvements both internally and alongside its customers. The company will continue to invest resources into developing innovative product designs to satisfy customer desires and strive for continuous improvements in operations. |
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ON BEHALF OF THE BOARD: |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of a manufacturing printer and provider of direct mail services. |
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DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2020 will be £
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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AUDITORS |
The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BLP (NORTHERN) LIMITED |
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Opinion |
We have audited the financial statements of BLP (Northern) Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2020 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BLP (NORTHERN) LIMITED |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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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: |
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The risk of material misstatement due to error or fraud is deemed to be low within the entity as the company operate strong internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. |
Manual journal entries are scrutinised by data analytics software used as part of the audit. |
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The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance. |
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The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BLP (NORTHERN) LIMITED |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Statutory Auditor |
Fernwood House |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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2,475,394 | 2,603,207 |
399,002 | 84,579 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income | 6 |
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558,957 | 95,679 |
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Interest payable and similar expenses | 7 |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 8 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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BALANCE SHEET |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
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Tangible assets | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS/(LIABILITIES) |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
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( |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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ACCRUALS AND DEFERRED INCOME | 20 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Capital redemption reserve | 22 |
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Retained earnings | 22 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2020 |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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( |
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Interest paid | ( |
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Interest element of hire purchase
payments paid |
( |
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( |
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Tax paid |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New loans in year |
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Loan repayments in year | ( |
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Capital repayments in year | ( |
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Amount introduced by directors | 60,419 | 8,101 |
Amount withdrawn by directors | (14,986 | ) | (10,229 | ) |
Equity dividends paid | ( |
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Factoring | ( |
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Net cash from financing activities | ( |
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Increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at
beginning of year |
2 |
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316,625 |
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Cash and cash equivalents at end of
year |
2 |
576,409 |
248,505 |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. |
RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2020 | 2019 |
£ | £ |
Profit/(loss) before taxation |
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Depreciation charges |
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Loss/(profit) on disposal of fixed assets |
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( |
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Government grants | ( |
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Finance costs | 82,054 | 107,647 |
Finance income | (103 | ) | (344 | ) |
744,840 | 291,358 |
(Increase)/decrease in stocks | ( |
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Decrease/(increase) in trade and other debtors |
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Increase/(decrease) in trade and other creditors |
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( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 576,409 | 248,505 |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 248,505 | 316,625 |
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BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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Other |
non-cash |
At 1.1.20 | Cash flow | changes | At 31.12.20 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 248,505 | 327,904 | 576,409 |
248,505 |
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576,409 |
Debt |
Finance leases | (828,910 | ) | 260,676 | - | (583,769 | ) |
Debts falling due |
within 1 year | (1,022,943 | ) | 863,856 | - | (159,087 | ) |
Debts falling due |
after 1 year | (888,456 | ) | (450,607 | ) | - | (1,339,063 | ) |
(2,740,309 | ) | 673,925 | - | (2,081,919 | ) |
Total | (2,491,804 | ) | 1,001,829 | - | (1,505,510 | ) |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | STATUTORY INFORMATION |
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BLP (Northern) Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements are presented in Sterling (£). Amounts are rounded to the nearest whole pound. |
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Significant estimates and judgements |
The preparation of the financial statements requires the directors to make judgements and estimates. The main areas where such judgements and estimates are made are in respect of depreciation policy and the estimated useful lives of the company's assets over which these assets are depreciated. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point the customer has taken delivery of the goods. |
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Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, is being amortised evenly over its estimated remaining useful life of ten years. This is calculated on a straight line basis based on the net book value carried forward at 1 January 2016 when the policy was revised in line with FRS 102. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. |
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Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
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Improvements to property | - 2% on cost |
Plant and machinery | -10% on cost |
Fixtures and fittings | -10% on cost |
Computer equipment | -varying rates of 10 to 33% on cost |
Motor vehicles | -25% on cost |
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Government grants |
During the current financial year the company received government grant funding through the Job Retention Scheme as a result of the Covid-19 pandemic.There are also other historic grants in the accounts. |
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This income has been accounted for in the period in which it relates on an accruals basis. |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items. |
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Raw materials cost is determined on a first-in first-out (FIFO) basis. Work in progress and finished goods consist of direct labour and materials plus attributable overheads based on a normal level of activity. |
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Net realisable value is the amount that can be realised from the sale of the stock in the normal course of business after allowing for the costs of realisation. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Impairment of assets |
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in profit and loss. |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
|
Short-term debtors and creditors |
Debtors and creditors with no interest rate which are receivable or payable within one year are recorded at transaction price. Any loss arising from impairment are recognised immediately in profit and loss. |
|
Cash and cash equivalents |
Cash and cash equivalents comprises cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value. |
|
3. | TURNOVER |
|
The turnover and profit (2019 - loss) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2020 | 2019 |
£ | £ |
Sales UK | 7,230,444 | 6,883,108 |
Sales Europe | 351,192 | 360,486 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Production | 84 | 95 |
Administration | 22 | 23 |
|
|
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss/(profit) on disposal of fixed assets |
|
( |
) |
Goodwill amortisation |
|
|
Auditors' remuneration |
|
|
Government support grants |
|
|
|
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Bank interest received (gross) |
|
|
|
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank loan interest |
|
|
Other interest payable |
|
|
Hire purchase |
|
|
|
|
|
8. | TAXATION |
|
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Adjustment in respect of |
earlier years | - | (30,658 | ) |
Total current tax |
|
( |
) |
|
Deferred tax |
|
( |
) |
Tax on profit/(loss) |
|
( |
) |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
8. | TAXATION - continued |
|
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of |
|
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Utilisation of tax losses | ( |
) |
|
Adjustments to tax charge in respect of previous periods |
|
( |
) |
R&D enhanced deduction | (20,777 | ) | (17,220 | ) |
Deferred tax | 19,992 | (4,082 | ) |
Total tax charge/(credit) | 80,097 | (34,739 | ) |
|
9. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary shares of £1 each |
Final |
|
|
|
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2020 |
and 31 December 2020 |
|
AMORTISATION |
At 1 January 2020 |
|
Amortisation for year |
|
At 31 December 2020 |
|
NET BOOK VALUE |
At 31 December 2020 |
|
At 31 December 2019 |
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
11. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and | Motor |
property | property | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
|
|
DEPRECIATION |
At 1 January 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2020 |
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
|
Improvements to property are in respect of short leasehold land and buildings. |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2020 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
DEPRECIATION |
At 1 January 2020 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
NET BOOK VALUE |
At 31 December 2020 |
|
|
|
At 31 December 2019 |
|
|
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
12. | STOCKS |
2020 | 2019 |
£ | £ |
Raw materials |
|
|
Finished goods & goods for resale | 180,598 | 193,276 |
Work-in-progress |
|
|
|
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Directors' current accounts | - | 419 |
Prepayments and accrued income |
|
|
|
|
|
The amount of factored debts included in the above figure is £1,644,553. |
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 16) |
|
|
Other loans (see note 16) |
|
|
Hire purchase contracts (see note 17) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
Sundry creditors | 23,499 | 48,858 |
Directors' current accounts | 54,161 | 9,147 |
Accrued expenses |
|
|
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2020 | 2019 |
£ | £ |
Bank loans (see note 16) |
|
|
Hire purchase contracts (see note 17) |
|
|
|
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
Other loans |
|
|
|
|
|
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans more 5 years | 649,233 | 678,750 |
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase | contracts |
2020 | 2019 |
£ | £ |
Gross obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Finance charges repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
17. | LEASING AGREEMENTS - continued |
|
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank loans |
|
|
Other loans |
|
|
Hire purchase contracts | 583,769 | 828,910 |
|
|
|
Other loans include a factoring loan secured by a mortgage debenture incorporating a fixed and floating charge over the company's assets. Hire purchase creditors are secured on the assets concerned. |
|
19. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 205,938 | 185,946 |
|
Deferred |
tax |
£ |
Balance at 1 January 2020 |
|
Charge to Statement of Comprehensive Income during year |
|
Balance at 31 December 2020 |
|
|
20. | ACCRUALS AND DEFERRED INCOME |
2020 | 2019 |
£ | £ |
Deferred government grants | 38,735 | 45,734 |
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
21. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 21,895 | 21,895 |
|
Preference | £1 | 260,000 | 260,000 |
281,895 | 281,895 |
|
22. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 January 2020 |
|
|
555,248 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 31 December 2020 |
|
|
817,054 |
|
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 31 December 2020 and 31 December 2019: |
|
2020 | 2019 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) |
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
24. | RELATED PARTY DISCLOSURES |
|
|
2020 | 2019 |
£ | £ |
Purchases |
|
|
|
|
2020 | 2019 |
£ | £ |
Purchases |
|
|
BLP (NORTHERN) LIMITED (REGISTERED NUMBER: 02605236) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
25. | POST BALANCE SHEET EVENTS |
|
Post year end the UK has continued to be under national lockdown enforced by the government in response to the Covid-19 pandemic. |
|
The company has taken advantage of government support available during the pandemic including Job Retention Scheme grants to fund furloughed staff costs and CBILS loans. The company has adapted its operations in light of the pandemic and the directors do not anticipate significant adverse impact to the company going forward. |