|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
FOR |
|
BENFLEET SCRAP CO LIMITED |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
FOR |
|
BENFLEET SCRAP CO LIMITED |
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
|
|
|
|
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Director | 3 |
|
Report of the Independent Auditors | 4 |
|
Statement of Comprehensive Income | 6 |
|
Statement of Financial Position | 7 |
|
Statement of Changes in Equity | 8 |
|
Statement of Cash Flows | 9 |
|
Notes to the Statement of Cash Flows | 10 |
|
Notes to the Financial Statements | 11 |
|
BENFLEET SCRAP CO LIMITED |
|
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
|
|
|
|
|
DIRECTOR: |
|
|
|
|
SECRETARY: |
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
AUDITORS: |
|
Statutory Auditor |
St James's House |
8 Overcliffe |
Gravesend |
Kent |
DA11 0HJ |
|
|
|
BANKERS: |
|
34 High Street |
Grays |
Essex |
RM17 6LZ |
|
|
|
SOLICITORS: |
|
Wallside House |
12 Mount Ephraim Road |
Tunbridge Wells |
Kent |
TN1 1EG |
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
The director presents his strategic report for the year ended 28 February 2019. |
|
REVIEW OF BUSINESS |
The company operates mainly from Caxton House , Basildon, Essex. The company also has a small site located at |
Laindon, Basildon, Essex and another site at Benfleet, Essex. |
|
The company has continued to perform well during the financial year and has maintained profitability, driven largely by |
the continued improvement in the scrap metal market as a whole. The Director has continued to explore opportunities to |
invest and expand the operations of the company throughout the year. The company has maintained a strong financial |
position, with large reserves held of liquid funds as at the balance sheet date. |
|
Fair review of business and key performance indicators |
|
The directors consider that the key financial performance indicators (KPIs) are those factors by reference to which the |
performance, development and strength of the company's business can be measured by its members. These KPIs |
comprise turnover, gross profit percentage, operating profit and net assets. |
|
- Turnover for the year increased by 18.22% to £32.01 million (2018: increased by 29.19% to £27.13 million). |
- Gross profit percentage decreased to 12.16% (2018: decreased to 17.34%). |
- Operating profit for the year was £869,222 (2018: Operating profit £1,357,984). |
- Net current assets decreased to £6.62 million (2018: increased to £6.78 million). |
|
Principal risks and uncertainties |
|
The operations and management of the business are subject to a number of risks. These risks are reviewed by the |
director on an ongoing basis. The main risks identified by the director are as follows:- |
|
- Scrap prices are fixed by the end users and reflect supply and demand worldwide: as a result prices can be |
volatile and may fluctuate on a daily basis. |
- Scrap demand depends on both domestic and overseas levels of steel production and currency |
which in turn is closely linked to economic conditions. |
- Possible scrap shortage. |
- Continuing regulation of the industry will significantly increase the cost of compliance. |
- High transport costs. |
- Fluctuation in exchange rates, which affect exports and scrap prices. |
|
The company maintains a high level of liquid funds to mitigate some of the uncertainties in the business environment in |
which it operates. |
|
Financial risk, management objective and policies |
|
The company's principal financial instruments comprise cash balances. The company has no bank loans. |
The company has taken action to mitigate its liquidity risk by making sure all liabilities are paid on time and the |
company's cash has been spread over different financial institutions. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
The director presents his report with the financial statements of the company for the year ended 28 February 2019. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of scrap metal merchants. |
|
DIVIDENDS |
Particulars of recommended dividends are detailed in note 9 to the financial statements. |
|
DIRECTOR |
|
|
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in |
accordance with applicable law and regulations. |
|
Company law requires the director to prepare financial statements for each financial year. Under that law the director |
has 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 director must not approve |
the financial statements unless he is 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 director is required |
to: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business. |
|
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he has taken all the steps that he ought to have taken as a |
director in order to make himself aware of any relevant audit information and to establish that the company's auditors |
are aware of that information. |
|
AUDITORS |
The auditors, The Carley Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BENFLEET SCRAP CO LIMITED |
|
|
Opinion |
We have audited the financial statements of Benfleet Scrap Co Limited (the 'company') for the year ended |
28 February 2019 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement |
of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 28 February 2019 and of its profit for the year then
ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
|
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. |
|
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
- |
the director's use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
- |
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant
doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
|
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic |
Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors |
thereon. |
|
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
|
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or |
apparent material misstatements, we are required to determine whether there is a material misstatement in the financial |
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude |
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to |
report in this regard. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- |
the information given in the Strategic Report and the Report of the Director 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 Director have been prepared in accordance with applicable legal
requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BENFLEET SCRAP CO LIMITED |
|
|
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 Director. |
|
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
|
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic |
alternative but to do so. |
|
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. |
|
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. |
|
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. |
|
|
|
|
|
for and on behalf of
|
Statutory Auditor |
St James's House |
8 Overcliffe |
Gravesend |
Kent |
DA11 0HJ |
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
2019 | 2018 |
Notes | £ | £ |
|
TURNOVER | 3 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
OPERATING PROFIT | 5 |
|
|
|
Interest receivable and similar income | 6 |
|
|
905,087 | 1,388,075 |
|
Interest payable and similar expenses | 7 |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 8 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
STATEMENT OF FINANCIAL POSITION |
28 FEBRUARY 2019 |
|
2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
|
|
Tangible assets | 11 |
|
|
|
|
|
CURRENT ASSETS |
Stocks | 12 |
|
|
Debtors | 13 |
|
|
Cash at bank and in hand |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 14 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
15 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 18 |
|
|
Retained earnings | 19 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the director on
|
|
|
|
|
|
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 March 2017 |
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
|
|
Balance at 28 February 2018 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 28 February 2019 |
|
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
|
Interest element of hire purchase payments
paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
|
|
Interest received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
Capital repayments in year |
|
( |
) |
Loans introduced | 170,016 | 195,227 |
Loans withdrawn | ( |
) | ( |
) |
Equity dividends paid |
|
( |
) |
Net cash from financing activities |
|
( |
) |
|
(Decrease)/increase in cash and cash equivalents | ( |
) |
|
Cash and cash equivalents at beginning
of year |
2 |
5,689,329 |
4,206,769 |
|
Cash and cash equivalents at end of
year |
2 |
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs |
|
|
Finance income | ( |
) | ( |
) |
1,556,602 | 2,011,301 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
|
(Decrease)/increase in trade and other creditors | ( |
) |
|
Cash generated from operations |
|
|
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of |
these Statement of Financial Position amounts: |
|
Year ended 28 February 2019 |
28.2.19 | 1.3.18 |
£ | £ |
Cash and cash equivalents | 4,101,837 | 5,689,329 |
Year ended 28 February 2018 |
28.2.18 | 1.3.17 |
£ | £ |
Cash and cash equivalents | 5,689,329 | 4,206,769 |
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
1. | STATUTORY INFORMATION |
|
Benfleet Scrap Co Limited is a private company, limited by shares, registered in England and Wales. The |
Company's registered number and registered address can be found on the Company Information page. |
|
2. | ACCOUNTING POLICIES |
|
Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland'. |
|
Basis of preparing financial statements |
|
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain |
financial assets and liabilities and investment properties measured at fair value through the statement of |
comprehensive income. |
|
The financial statements are presented in Sterling, which is the functional currency of the entity. |
|
Significant judgements and estimates |
There are no significant estimates or assumptions made that have significant risk of causing a material |
adjustment to the carrying amounts of assets and liabilities within the next financial year. |
|
Revenue recognition |
Revenue refers to the amounts earned from the Company's principal activity: that was mainly on selling of scrap |
metal. |
|
The revenue shown in the income statement represents amounts invoiced during the year, exclusive of Value |
Added Tax. |
|
Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation |
and impairment losses. Any tangible assets carried at revalued amounts are recorded at fair value at the date of |
revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
|
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive |
income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset |
previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is |
recognised in other comprehensive income to the extent of any previously recognised revaluation increase |
accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated |
revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
|
Depreciation |
|
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. |
|
Plant & machinery - 20% on reducing balance and 15% on cost |
Motor vehicles - 25% on reducing balance |
|
Short Leasehold - Amortised over period of lease or amortised at 20% on a straight line basis. |
|
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance |
for obsolete and slow moving items. |
|
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual |
arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any |
contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
2. | ACCOUNTING POLICIES - continued |
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. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
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 statement of financial position date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
statement of financial position date. |
|
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. |
|
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. |
|
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the |
period of the lease. |
|
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and |
depreciated over the shorter of the lease term and their useful lives. 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 the profit and loss account so as to produce a constant periodic rate of charge on the net |
obligation outstanding in each period. |
|
Defined contribution plans |
Contributions to defined contribution plans are recognised as an expense in the period in which the related |
service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead |
to a reduction in future payments or a cash refund. |
|
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured |
initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the |
effective interest method, less any impairment. |
|
Creditors |
Short term trade 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. |
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Provisions for liabilities |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past |
event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be |
made of the amount of the obligation. |
|
The amount recognised as a provision is the best estimate of the consideration required to settle the present |
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the |
obligation. |
|
Where the effect of the time value of money is material, the amount expected to be required to settle the |
obligation is recognised at present value using a pre-tax discount rate. The amount of discount is recognised as |
finance cost in profit or loss in the period it arises. |
|
The company recognises a provision for annual leave accrued by employees as a result of services rendered in |
the current period, and which employees are entitled to carry forward and use within the next 12 months. The |
provision is measured at the salary cost payable for the period of absence. |
|
3. | TURNOVER |
|
The company does not disclose its turnover by geographic location as it considers that it would be detrimental to |
its business. |
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
|
11 | 8 |
Operatives | 81 | 71 |
92 | 79 |
|
2019 | 2018 |
£ | £ |
Director's remuneration |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
|
|
|
Operating profit or loss is the profit or loss from business operations before deduction of interest and taxes. |
|
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2019 | 2018 |
£ | £ |
Deposit account interest |
|
|
Other interest received |
|
|
|
|
|
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Hire purchase |
|
|
|
8. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
( |
) |
Tax on profit |
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
8. | TAXATION - continued |
|
Reconciliation of total tax charge 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: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods |
|
|
|
Permanently disallowed depreciation |
|
|
Change in deferred tax rate | ( |
) | ( |
) |
Total tax charge | 165,354 | 244,804 |
|
9. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Ordinary B shares of £1 each |
Interim |
|
|
|
An interim dividend of £83 per Ordinary 'B' share was paid on 29 March 2017. |
|
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 March 2018 |
and 28 February 2019 |
|
AMORTISATION |
At 1 March 2018 |
and 28 February 2019 |
|
NET BOOK VALUE |
At 28 February 2019 |
|
At 28 February 2018 |
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
11. | TANGIBLE FIXED ASSETS |
Plant and | Motor |
Leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2018 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) | ( |
) | ( |
) |
At 28 February 2019 |
|
|
|
|
DEPRECIATION |
At 1 March 2018 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) | ( |
) | ( |
) |
At 28 February 2019 |
|
|
|
|
NET BOOK VALUE |
At 28 February 2019 |
|
|
|
|
At 28 February 2018 |
|
|
|
|
|
Included above are assets held under finance leases or hire purchase contracts as follows: |
|
|
Plant &
Machinery |
£ |
Net book values |
At 28 February 2019 | 1,834,581 |
At 29 February 2018 | 1,192,300 |
|
Depreciation charge for the year |
At 28 February 2019 | 379,013 |
At 29 February 2018 | 284,628 |
|
12. | STOCKS |
2019 | 2018 |
£ | £ |
Stock |
|
|
|
13. | DEBTORS |
2019 | 2018 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Bad debt provision | (2,258 | ) | (2,008 | ) |
Other debtors |
|
|
Directors' current accounts |
|
|
Prepayments and accrued income |
|
|
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
13. | DEBTORS - continued |
2019 | 2018 |
£ | £ |
Amounts falling due after more than one year: |
Other debtors |
|
|
|
Aggregate amounts |
|
|
|
Please see note 22 for related party disclosures. |
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 16) |
|
|
|
Obligations under hire purchase agreements are secured on the associated assets. |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating |
leases |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
17. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax |
|
|
|
Deferred |
tax |
£ |
Balance at 1 March 2018 |
|
Charge to Statement of Comprehensive Income during year |
|
movement |
Balance at 28 February 2019 |
|
|
2019 | 2018 |
£ | £ |
Accelerated capital allowances | 52,551 | 36,085 |
Tax losses | - | - |
52,551 | 36,085 |
|
18. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary A | £1 |
|
|
|
Ordinary B | £1 |
|
|
|
|
|
Both classes of share rank equally in all respects with the exception of voting of dividends that may be declared |
on a class of share to the exclusion of the other or may be declared at varying rates. |
|
19. | RESERVES |
Retained |
earnings |
£ |
|
At 1 March 2018 |
|
Profit for the year |
|
At 28 February 2019 |
|
|
20. | PENSION COMMITMENTS |
|
The pension cost charge represents defined contributions payable by the company to an independently |
administered fund. There was £nil provided within creditors at 28th February 2019 (2018: £nil). |
|
21. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
|
During the year, the company made a loan to a director amounting to £177,199 and received repayments |
amounting to £132,650. The balance outstanding at the balance sheet date was £129,557 (2018: £85,008). |
Interest is being charged on this loan at 2.5% per annum. The loan was repaid after the year end. |
BENFLEET SCRAP CO LIMITED (REGISTERED NUMBER: 03031502) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2019 |
|
|
22. | RELATED PARTY DISCLOSURES |
|
One of the director/shareholders has significant control of another company. The company has an agreement in |
place whereby it would make available a maximum of £3,000,000 for the other company to draw down from 23 |
August 2010. This loan is secured by a legal mortgage over that company's freehold property. |
|
The loan balance owed to the company as at 28th February 2019 was £1,680,669 (2018: £1,780,669). Interest |
is charged on this loan at 1% above the Bank of England Base Rate. Interest owed to the company as at the |
balance sheet date was £7,359 (2018: £7,586) which is included in debtors due within one year. Capital |
repayments of £25,000 per quarter commenced as at 21 September 2016 as per the agreement. |
|
The company also paid rent for properties and paid hire charge for plant and machinery to the other company |
during the year. |