Registered number:
For the year ended
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Bancroft Wines Limited
Company Information
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Bancroft Wines Limited
Contents
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Bancroft Wines Limited
Directors' Report
For the Year Ended 30 September 2020
The directors present their report and the financial statements for the year ended 30 September 2020.
The financial year ending September 2020 was a difficult period for all businesses, especially those supplying the hospitality sector, due to the COVID-19 pandemic and Brexit. However, despite this frustrating background, overall it has been a strong and profitable year for the business; the first half of the year we continued the revenue growth shown in previous financial years along with continued customer acquisition, both geographically and by sector, and during the second half of the year the business pivoted quickly to adapt to pandemic situation and increased sales in those sectors that remained open whilst using the Government schemes that were available.
In August 2020, Bancroft announced a partnership agreement with Berry Bros & Rudd as they restructured their wholesale arm, Field, Morris & Verdin (FMV). As part of the agreement Bancroft Wines has added thirty eight high profile producers previously with FMV to the portfolio as well as creating ten new roles across all sectors of the business. This agreement fits into the business’s long term strategy and has given our sales team access to an additional eight hundred customers as well as strengthening relationships with our existing customer base. The core strategy for the business however remains unchanged; 1. Focus on the quality and diversity of our producers whilst recruiting complimentary agencies that complete the portfolio. 2. Focus on our current customer base, Bancroft is well known for great customer service and we need to remain core suppliers to those loyal customers. 3. Focus on customer recruitment whilst diversifying geographically and by sector. 4. Focus on growth of our fine wine and private client sales Bancroft recently relaunched it’s website with the ability for the public to purchase directly from the business, we see significant growth in this area for 2021. The company continues to make progress on the operational side with focus on the cost base and organisational design as well opportunities within the sector, the Berry Bros & Rudd partnership is one of several in discussion and the business hopes that more announcements will be made in 2021. Whilst there is certainly going to be continued pressure on the trade due to the pandemic and political situation within the UK, we have taken significant steps with the new producers, staff and customers to significantly grow in the new financial year. In this financial year we have achieved our return to profitable growth and continue on this path despite the impact of the pandemic. This is underlined by the continued support by the Shareholder, Peter De Haan.
The directors who served during the year were:
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Bancroft Wines Limited
Directors' Report (continued)
For the Year Ended 30 September 2020
Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
Substantive information about the COVID-19 disease only came to light in early 2020, with the World Health Organisation declaring a pandemic on 11 March 2020. Since the year end the UK Government announced that the UK would enter a second lockdown from 5 November 2020 which ended on 2 December 2020, following which tier restrictions were imposed.
The directors have carefully considered the impact and effect on the economic climate of the second UK lockdown and the further tier restrictions imposed by the UK Government. The directors have concluded that as at the approval date of these financial statements, there has been no material impact on the company. The company continues to maintain a net asset position and has the support of its shareholder for the foreseeable future. The directors will continue to closely monitor the company's operational activity.
The auditors, Kreston Reeves LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board on
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Bancroft Wines Limited
Directors' Responsibilities Statement
For the year ended 30 September 2020
The directors are responsible for preparing the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the company's financial statements and then apply them consistently;
∙
make 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements
and other information included in Directors' Reports may differ from legislation in other jurisdictions.
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Bancroft Wines Limited
Independent Auditors' Report to the Members of Bancroft Wines Limited
We have audited the financial statements of Bancroft Wines Limited (the 'company') for the year ended 30 September 2020, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 directors
' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the directors have 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.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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Bancroft Wines Limited
Independent Auditors' Report to the Members of Bancroft Wines Limited (continued)
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Directors' Report has been prepared in accordance with applicable legal requirements.
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 Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' Responsibilities Statement on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
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Bancroft Wines Limited
Independent Auditors' Report to the Members of Bancroft Wines Limited (continued)
This report is made solely to the company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Chartered Accountants
Canterbury
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Bancroft Wines Limited
Statement of Comprehensive Income
For the Year Ended 30 September 2020
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Bancroft Wines Limited
Registered number:
03829460
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 10 to 22 form part of these financial statements.
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Bancroft Wines Limited
Statement of Changes in Equity
For the Year Ended
30 September 2020
Statement of Changes in Equity
For the Year Ended
30 September 2019
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
Bancroft Wines Limited is a limited liability company incorporated in England and Wales.
The company's registered office is Unit 328/9 Metalbox Factory, Great Guildford Street, London, SE1 0HS. The company's registered number is 03829460.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006.
The company's functional and presentational currency is Pound Sterling. The company's financial statements are presented to the nearest pound .
The following principal accounting policies have been applied:
Revenue is recognised from the normal activities of the business to the extent that the company obtains a right to consideration in exchange for the performance of those activities, exclusive of value added tax.
Sales of goods
Revenue from the sale of goods is recognised once the sales have been made and the goods dispatched.
En primeur
Revenue in respect of sales made "en primeur" is recognised when the title passes to the customer upon delivery. The amounts received on account of En Primeur sales where delivery has not been made are shown in trade creditors and the amounts paid on account of related purchases are shown in trade debtors.
Private reserve transaction
Revenue in respect of purchases or sales on behalf of private clients for reserve accounts is recognised on a commission basis at rates agreed with clients.
Where the company has any commercial interest in private reserves which are sold to third parties, revenue is recognised on the full value of the sale and the cost to the company is recognised in cost of sales.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. While the impact of the Covid-19 virus has been assessed by the directors, so far as reasonably possible, due to its unprecedented impact on the wider economy, it is difficult to evaluate with any certainty the potential outcomes on the company's trade, its customers and suppliers. However, taking into consideration the UK Government's response, the company's planning and confirmation from the shareholder of the company that he will continue to support the company's growth plans, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
The
company
, and the
Group
headed by it, qualify as small as set out in
section 383 of the Companies Act 2006
and the parent and
Group
are considered eligible for the exemption to prepare consolidated accounts.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life, which is five years.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the lease term.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
The company does not recognised the purchase price of stocks held on consignment as the ownership of this stock is held by the supplier until the point of sale.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings except when deferred in other comprehensive income as qualifying cash flow hedges.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Comprehensive Income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Balance Sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to Statement of Comprehensive Income over the remaining vesting period. Where equity instruments are granted to persons other than employees, the Statement of Comprehensive Income is charged with fair value of goods and services received. The company has taken advantage of the exemption available in FRS102 from recognising any share based payments issued prior to 1 April 2015.
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
2.
Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following are the company's key sources of estimation uncertainty: Going concern In the judgement of the directors it is appropriate to prepare the financial statements in accordance with the going concern basis of accounting. See note 2.3 for further details. Goodwill The company has recognised goodwill arising from business combinations with a carrying value of £34,764 at the reporting date (see note 5). On acquisition the company determines a reliable estimate of the useful life of goodwill based upon factors such as the expected use of the acquired business, forecasts of expected future results and cash flows, and any legal, regulatory or contractual provisions that can limit useful life. At each subsequent reporting date the directors consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the useful life of goodwill. Fair value measurement of financial instruments When the fair value of financial assets and liabilities cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques. The inputs to these techniques are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. The judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions relating to these factors could affect the reported fair value of financial instruments. See note 10 for further details. Taxation Provision has been made in the financial statements for a deferred tax asset amounting to £286,000 (2019 - £286,000) at the reporting date (see note 11). This provision is based upon estimates of the availability of future taxable profits, the timing of the reversal of timing differences upon which the provision is based and the tax rates that will be in force at that time together with an assessment of the impact of future tax planning strategies.
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
During the year, P C De Haan (director) loaned the company a total of £180,000 (2019: £650,000). No repayments made during the year (2019: Repayments made totalling £80,000) and the director waived £100,000 (2019: £80,000) of the amounts loaned. No interest has been charged on the loan. The balance due to the director at 30 September 2020 is £450,000 (2019: £370,000).
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Bancroft Wines Limited
Notes to the Financial Statements
For the Year Ended 30 September 2020
The directors have carefully considered the impact and effect on the economic climate of the second UK lockdown and the further tier restrictions imposed by the UK Government. The directors have concluded that as at the approval date of these financial statements, there has been no material impact on the company. The company continues to maintain a net asset position and has the support of its shareholder for the foreseeable future. The directors will continue to closely monitor the company's operational activity.
The ultimate controlling party is P C De Haan, the chairman of the company.
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