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Financial Statements
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Contents
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Pages
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Officers and professional advisers
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1
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Strategic report
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2 to 4
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Directors' report
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5 to 7
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Independent auditor's report to the members
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8 to 11
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Consolidated profit and loss account
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12
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Company statement of income and retained earnings
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13
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Consolidated balance sheet
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14
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Balance sheet
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15
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Consolidated statement of cash flows
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16
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Notes to the financial statements
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17 to 31
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Officers and Professional Advisers
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The board of directors
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Registered office
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Auditor
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Chartered accountants & statutory auditor
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384 Linthorpe Road
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Middlesbrough
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TS5 6HA
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Bankers
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106 Linthorpe Road
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Middlesbrough
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TS1 2JX
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Solicitors
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Tobias House
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St Mark's Court
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Teesdale Business Park
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Stockton-on-Tees
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TS17 6QW
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Strategic Report
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2020 | 2019 | ||
Growth/(reduction) in sales (%) | (19) | 2 | |
Gross margin (%) | 10 | 8 | |
Return on invested capital (%) | (36) | (14) | |
Average number of temporary | |||
operatives | 1,284 | 1,325 | |
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Director
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Registered office:
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Directors' Report
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Director
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Registered office:
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Independent Auditor's Report to the Members of
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(Senior Statutory Auditor)
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For and on behalf of
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Chartered accountants & statutory auditor
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384 Linthorpe Road
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Middlesbrough
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TS5 6HA
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Consolidated Profit and Loss Account
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2020
|
2019
|
||
Note
|
£
|
£
|
|
Turnover
|
4
|
|
|
Cost of sales
|
(
|
(
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-------------
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-------------
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Gross profit
|
|
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Administrative expenses
|
(
|
(
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Other operating income
|
5
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|
–
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------------
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------------
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||
Operating profit
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6
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Loss on financial assets at fair value through profit or loss
|
(
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–
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Other interest receivable and similar income
|
10
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|
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Interest payable and similar expenses
|
11
|
(
|
(
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------------
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------------
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||
Loss before taxation
|
(
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(
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Tax on loss
|
12
|
(
|
(
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------------
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---------
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||
Loss for the financial year and total comprehensive income
|
(
|
(
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|
------------
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---------
|
||
Dividends paid and payable
|
13
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–
|
(
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Retained earnings at the start of the year
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------------
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------------
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Retained earnings at the end of the year
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------------
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------------
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Company Statement of Income and Retained Earnings
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2020
|
2019
|
||
Note
|
£
|
£
|
|
Loss for the financial year and total comprehensive income
|
(
|
(
|
|
Dividends paid and payable
|
13
|
–
|
(
|
Retained earnings at the start of the year
|
|
|
---------
|
------------
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Retained earnings at the end of the year
|
|
|
---------
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------------
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Consolidated Balance Sheet
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2020
|
2019
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||
Note
|
£
|
£
|
|
Intangible assets
|
14
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|
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Tangible assets
|
15
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|
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------------
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------------
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|||
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|||
Debtors
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17
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Cash at bank and in hand
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||
-------------
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-------------
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|||
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|||
Creditors: amounts falling due within one year
|
18
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-------------
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-------------
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|||
Net current assets
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||
------------
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------------
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|||
Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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19
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Taxation including deferred tax
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21
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------------
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------------
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|||
Net assets
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|
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||
------------
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------------
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|||
Called up share capital
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26
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Capital redemption reserve
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27
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Profit and loss account
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27
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------------
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------------
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|||
Shareholders funds
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||
------------
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------------
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|||
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Director
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Balance Sheet
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2020
|
2019
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Note
|
£
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£
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Tangible assets
|
15
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|
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Investments
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16
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------------
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------------
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|||
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Debtors
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17
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Cash at bank and in hand
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|
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------------
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-------------
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|||
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|||
Creditors: amounts falling due within one year
|
18
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-------------
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-------------
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|||
Net current liabilities
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||
------------
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------------
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|||
Total assets less current liabilities
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Creditors: amounts falling due after more than one year
|
19
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–
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Taxation including deferred tax
|
21
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|
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------------
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------------
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Net assets
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|
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||
------------
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------------
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|||
Called up share capital
|
26
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|
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Capital redemption reserve
|
27
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|
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Profit and loss account
|
27
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------------
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------------
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|||
Shareholders funds
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------------
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------------
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|||
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Director
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Consolidated Statement of Cash Flows
|
2020
|
2019
|
|
£
|
£
|
|
Loss for the financial year
|
(
|
(
|
Adjustments for:
|
||
Depreciation of tangible assets
|
|
|
Amortisation of intangible assets
|
|
|
Government grant income
|
(
|
–
|
Loss on financial assets at fair value through profit or loss
|
50
|
–
|
Other interest receivable and similar income
|
(
|
(
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Interest payable and similar expenses
|
|
|
Loss on disposal of tangible assets
|
|
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Tax on loss
|
|
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Accrued income
|
(
|
(
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Changes in:
|
||
Trade and other debtors
|
|
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Trade and other creditors
|
(
|
(
|
------------
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------------
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Cash generated from operations
|
|
(
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Interest paid
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(
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(
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Interest received
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Tax received/(paid)
|
|
(
|
------------
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------------
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Net cash from/(used in) operating activities
|
|
(
|
------------
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------------
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Purchase of tangible assets
|
(
|
(
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Proceeds from sale of tangible assets
|
|
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Proceeds from sale of interests in associates and joint ventures
|
(
|
–
|
Net liabilities on acquisition of subsidiary
|
(
|
–
|
Tangible fixed assets purchased on acquisition of subsidiary
|
(
|
–
|
Deferred taxation assumed upon aquisition of subsidiary
|
|
–
|
------------
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------------
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Net cash used in investing activities
|
(
|
(
|
------------
|
------------
|
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Proceeds from borrowings
|
|
|
Government grant income
|
|
–
|
Payments of finance lease liabilities
|
|
|
Dividends paid
|
–
|
(
|
------------
|
------------
|
|
Net cash from/(used in) financing activities
|
|
(
|
------------
|
------------
|
|
Net decrease in cash and cash equivalents
|
(
|
(
|
Cash and cash equivalents at beginning of year
|
2,281,218
|
4,459,197
|
------------
|
------------
|
|
Cash and cash equivalents at end of year
|
|
|
------------
|
------------
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|
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Notes to the Financial Statements
|
Goodwill
|
-
|
|
|
Freehold property
|
-
|
|
|
Leasehold property
|
-
|
|
|
Plant and machinery
|
-
|
|
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Fixtures and fittings
|
-
|
|
|
Motor Vehicles
|
-
|
|
|
Equipment
|
-
|
|
|
Office equipment
|
-
|
|
|
2020
|
2019
|
|
£
|
£
|
|
Rendering of services
|
|
|
-------------
|
-------------
|
|
2020
|
2019
|
|
£
|
£
|
|
Government grant income
|
|
–
|
Other operating income
|
|
–
|
---------
|
----
|
|
|
–
|
|
---------
|
----
|
|
2020
|
2019
|
|
£
|
£
|
|
Amortisation of intangible assets
|
|
|
Depreciation of tangible assets
|
|
|
Loss on disposal of tangible assets
|
|
|
Impairment of trade debtors
|
(274,788)
|
803,321
|
Foreign exchange differences
|
(
|
|
---------
|
---------
|
|
2020
|
2019
|
|
£
|
£
|
|
Fees payable for the audit of the financial statements
|
|
|
--------
|
--------
|
|
2020
|
2019
|
|
No.
|
No.
|
|
Production staff
|
|
|
Administrative staff
|
|
|
Management staff
|
6
|
4
|
----
|
----
|
|
|
|
|
----
|
----
|
|
2020
|
2019
|
|
£
|
£
|
|
Wages and salaries
|
|
|
Social security costs
|
|
|
Other pension costs
|
|
|
-------------
|
-------------
|
|
|
|
|
-------------
|
-------------
|
|
2020
|
2019
|
|
£
|
£
|
|
Remuneration
|
|
|
Company contributions to defined contribution pension plans
|
|
|
---------
|
---------
|
|
|
|
|
---------
|
---------
|
|
2020
|
2019
|
|
No.
|
No.
|
|
Defined contribution plans
|
|
|
----
|
----
|
|
2020
|
2019
|
|
£
|
£
|
|
Aggregate remuneration
|
|
|
---------
|
---------
|
|
2020
|
2019
|
|
£
|
£
|
|
Interest on cash and cash equivalents
|
|
|
-------
|
-------
|
|
2020
|
2019
|
|
£
|
£
|
|
Interest on banks loans and overdrafts
|
|
|
Interest on obligations under finance leases and hire purchase contracts
|
|
|
Interest on overdue taxation
|
|
–
|
Other interest payable and similar charges
|
|
|
------------
|
---------
|
|
|
|
|
------------
|
---------
|
|
2020
|
2019
|
|
£
|
£
|
|
UK current tax expense
|
–
|
|
Adjustments in respect of prior periods
|
|
–
|
---------
|
--------
|
|
Total current tax
|
|
|
---------
|
--------
|
|
Origination and reversal of timing differences
|
(
|
|
---------
|
--------
|
|
Tax on loss
|
|
|
---------
|
--------
|
|
2020
|
2019
|
|
£
|
£
|
|
Loss on ordinary activities before taxation
|
(
|
(
|
------------
|
---------
|
|
Loss on ordinary activities by rate of tax
|
(
|
(
|
Adjustment to tax charge in respect of prior periods
|
|
–
|
Effect of expenses not deductible for tax purposes
|
|
|
Effect of capital allowances and depreciation
|
|
(
|
Effect of revenue exempt from tax
|
(
|
–
|
Utilisation of tax losses
|
(
|
(
|
Unused tax losses
|
|
–
|
Deferred tax movement
|
(
|
|
------------
|
---------
|
|
Tax on loss
|
|
|
------------
|
---------
|
|
2020
|
2019
|
|
£
|
£
|
|
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
|
–
|
|
----
|
------------
|
|
Group
|
Goodwill
|
£
|
|
Cost
|
|
At 1 June 2019
|
|
Acquisitions through business combinations
|
|
------------
|
|
At 31 May 2020
|
|
------------
|
|
Amortisation
|
|
At 1 June 2019
|
|
Charge for the year
|
|
------------
|
|
At 31 May 2020
|
|
------------
|
|
Carrying amount
|
|
At 31 May 2020
|
|
------------
|
|
At 31 May 2019
|
|
------------
|
|
Company
|
Goodwill
|
£
|
|
Cost
|
|
At 1 June 2019 and 31 May 2020
|
|
------------
|
|
Amortisation
|
|
At 1 June 2019 and 31 May 2020
|
|
------------
|
|
Carrying amount
|
|
At 1 June 2019 and 31 May 2020
|
–
|
------------
|
|
At 31 May 2019
|
–
|
------------
|
|
Group
|
Land and buildings
|
Plant and machinery
|
Fixtures, fittings and equipment
|
Motor vehicles
|
Office equipment
|
Total
|
£
|
£
|
£
|
£
|
£
|
£
|
|
Cost
|
||||||
At 1 Jun 2019
|
|
|
|
|
|
|
Additions
|
–
|
|
|
|
–
|
|
Disposals
|
–
|
–
|
(
|
(
|
–
|
(
|
Acquisitions through business combinations
|
–
|
|
|
–
|
–
|
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
At 31 May 2020
|
|
|
|
|
|
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
Depreciation
|
||||||
At 1 Jun 2019
|
|
|
|
|
|
|
Charge for the year
|
|
|
|
|
|
|
Disposals
|
–
|
–
|
(
|
(
|
–
|
(
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
At 31 May 2020
|
|
|
|
|
|
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
Carrying amount
|
||||||
At 31 May 2020
|
|
|
|
|
|
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
At 31 May 2019
|
|
|
|
|
|
|
---------
|
---------
|
---------
|
---------
|
-------
|
------------
|
|
Company
|
Land and buildings
|
Fixtures and fittings
|
Total
|
£
|
£
|
£
|
|
Cost
|
|||
At 1 June 2019
|
|
|
|
Additions
|
–
|
|
|
Disposals
|
–
|
(
|
(
|
---------
|
---------
|
---------
|
|
At 31 May 2020
|
|
|
|
---------
|
---------
|
---------
|
|
Depreciation
|
|||
At 1 June 2019
|
|
|
|
Charge for the year
|
|
|
|
Disposals
|
–
|
(
|
(
|
---------
|
---------
|
---------
|
|
At 31 May 2020
|
|
|
|
---------
|
---------
|
---------
|
|
Carrying amount
|
|||
At 31 May 2020
|
|
|
|
---------
|
---------
|
---------
|
|
At 31 May 2019
|
|
|
|
---------
|
---------
|
---------
|
|
Group
|
Motor vehicles
|
£
|
|
At 31 May 2020
|
|
---------
|
|
At 31 May 2019
|
|
---------
|
|
Company
|
Shares in group undertakings
|
Shares in participating interests
|
Total
|
£
|
£
|
£
|
|
Cost
|
|||
At 1 June 2019
|
|
|
|
Additions
|
|
–
|
|
Disposals
|
–
|
(
|
(
|
------------
|
----
|
------------
|
|
At 31 May 2020
|
|
–
|
|
------------
|
----
|
------------
|
|
Impairment
|
|||
At 1 June 2019 and 31 May 2020
|
–
|
–
|
–
|
------------
|
----
|
------------
|
|
Carrying amount
|
|||
At 31 May 2020
|
|
–
|
|
------------
|
----
|
------------
|
|
At 31 May 2019
|
|
|
|
------------
|
----
|
------------
|
|
Class of share
|
Percentage of shares held
|
|
Subsidiary undertakings
|
||
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
|
Ordinary
|
100
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Trade debtors
|
|
|
|
|
Amounts owed by group undertakings
|
–
|
–
|
|
|
Prepayments and accrued income
|
|
|
|
|
Directors loan account
|
|
|
|
|
Other debtors
|
|
|
|
|
-------------
|
-------------
|
------------
|
-------------
|
|
|
|
|
|
|
-------------
|
-------------
|
------------
|
-------------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Bank loans and overdrafts
|
|
|
|
|
Factoring advance
|
|
|
|
|
Trade creditors
|
|
|
|
|
Amounts owed to group undertakings
|
–
|
–
|
|
|
Accruals and deferred income
|
|
|
|
|
Corporation tax
|
|
|
|
|
Social security and other taxes
|
|
|
|
|
Obligations under finance leases and hire purchase contracts
|
|
|
–
|
–
|
Other creditors
|
|
|
|
|
-------------
|
-------------
|
-------------
|
-------------
|
|
|
|
|
|
|
-------------
|
-------------
|
-------------
|
-------------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Bank loans and overdrafts
|
|
–
|
|
–
|
Obligations under finance leases and hire purchase contracts
|
|
|
–
|
–
|
---------
|
--------
|
---------
|
----
|
|
|
|
|
–
|
|
---------
|
--------
|
---------
|
----
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Not later than 1 year
|
|
|
–
|
–
|
Later than 1 year and not later than 5 years
|
|
|
–
|
–
|
--------
|
--------
|
----
|
----
|
|
|
|
–
|
–
|
|
--------
|
--------
|
----
|
----
|
|
Group
|
Deferred tax (note 22)
|
£
|
|
At 1 June 2019
|
|
Unused amounts reversed
|
(
|
Assumed through combinations
|
|
--------
|
|
At 31 May 2020
|
|
--------
|
|
Company
|
Deferred tax (note 22)
|
£
|
|
At 1 June 2019
|
|
Unused amounts reversed
|
(
|
-------
|
|
At 31 May 2020
|
|
-------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Included in provisions (note 21)
|
|
|
|
|
--------
|
--------
|
-------
|
-------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Accelerated capital allowances
|
|
|
|
|
--------
|
--------
|
-------
|
-------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Government grants recognised directly in income
|
|
–
|
–
|
–
|
---------
|
----
|
----
|
----
|
|
2020
|
2019
|
|||
No.
|
£
|
No.
|
£
|
|
|
1,000,000
|
1,000,000
|
1,000,000
|
1,000,000
|
------------
|
------------
|
------------
|
------------
|
|
2020
|
2019
|
|||
No.
|
£
|
No.
|
£
|
|
|
|
959,117
|
|
959,117
|
---------
|
---------
|
---------
|
---------
|
|
At 1 Jun 2019
|
Cash flows
|
At 31 May 2020
|
|
£
|
£
|
£
|
|
Cash at bank and in hand
|
|
(373,335)
|
|
Debt due within one year
|
(1,215,490)
|
253,657
|
(961,833)
|
Debt due after one year
|
(65,128)
|
(405,267)
|
(470,395)
|
------------
|
---------
|
------------
|
|
|
(
|
|
|
------------
|
---------
|
------------
|
|
Group
|
Company
|
|||
2020
|
2019
|
2020
|
2019
|
|
£
|
£
|
£
|
£
|
|
Not later than 1 year
|
|
|
|
|
Later than 1 year and not later than 5 years
|
|
|
|
|
Later than 5 years
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
|
|
|
|
|
------------
|
------------
|
------------
|
------------
|
|
|
Notes to the Financial Statements (continued)
|
2020
|
||||||
Balance brought forward
|
Advances/ (credits) to the directors
|
Amounts repaid
|
Amounts written off
|
Balance outstanding
|
||
£
|
£
|
£
|
£
|
£
|
||
|
|
|
–
|
–
|
|
|
|
|
–
|
–
|
–
|
|
|
|
|
–
|
–
|
–
|
|
|
---------
|
---------
|
----
|
----
|
------------
|
||
|
|
–
|
–
|
|
||
---------
|
---------
|
----
|
----
|
------------
|
||
2019
|
||||||
Balance brought forward
|
Advances/ (credits) to the directors
|
Amounts repaid
|
Amounts written off
|
Balance outstanding
|
||
£
|
£
|
£
|
£
|
£
|
||
|
|
|
(
|
(144,080)
|
|
|
|
–
|
|
–
|
–
|
|
|
|
–
|
|
–
|
–
|
|
|
------------
|
---------
|
------------
|
---------
|
---------
|
||
|
|
(
|
(144,080)
|
|
||
------------
|
---------
|
------------
|
---------
|
---------
|
||