STONECROFT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Company Registration No. 04256565 (England and Wales)
STONECROFT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J C Seal
Mrs J S Woodthorpe
Mr A D Seal
Mr L Dammone
Company number
04256565
Registered office
Ladywell Mills
Hall Lane
Bradford
BD4 7DF
Auditor
Naylor Wintersgill Limited
Carlton House
Grammar School Street
Bradford
BD1 4NS
STONECROFT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
STONECROFT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The Directors present the strategic report for the year ended
31 December 2021.
Business Model
The Company heads a privately owned Group, funded primarily by externally provided debt finance in the form of asset-based lending. The Group trades through a range of heritage brands and specialises in high quality, luxury products. The Group benefits from a long-standing presence in its markets and a reputation for quality products, it generates repeat business through the provision of best in class customer service and response. Customers and suppliers are geographically diversified and have been built up over many years of trading in these varied markets.
Key performance indicators
The Directors use a number of key indicators as part of a much wider reporting framework that enables them to understand the development, performance and position of the business. These include, but are not limited to turnover, gross profit and net cash flow as found in the primary statements and these are measured on a monthly basis.
Risks and Uncertainties
The business is subject to the same world economic performance and political issues as in previous years. The key business risks and uncertainties affecting the Group are considered to relate to the following:-
-
Supply chain risks
- The Group has built up extensive supplier contacts over the years it has been trading and these allow a rapid response to changing market conditions. The Group continually monitors and evaluates its supply chain and market to ensure consistency, quality and best prices. In addition, new and alternative sources of supply are constantly sought to further protect the supply chain. As a key USP the Group holds stocks of product ready to meet customer's short-term needs.
-
Currency risks -
The Group uses asset-based lending as part of its financing, and this allows for an element of self-hedging with both customer balances and the associated borrowings being denominated in the same foreign currencies. Management regularly review the currency markets and use forward foreign exchange contracts to manage risks where they think it is appropriate.
During the financial year the impact of Covid - 19 declined in most parts of the world although the level of uncertainty remained above pre-pandemic levels. The Directors remain confident that the actions taken at the beginning of the pandemic have put the Group in a good position to trade through the remaining uncertainties and any other unrelated issues that may arise.
The Group continues to benefit from committed bank facilities, a prudent management approach and the underlying strength of a portfolio of high - quality brands as well as a broad and diversified supplier and customer base. The Directors will continue to manage the Group with its long - term success in mind.
Furture Plans
The Directors are satisfied with the Group's position at the year-end. The objectives for 2022 and beyond are to manage the remaining commercial impacts of the Covid - 19 pandemic and to ensure the Group is in the best position to take advantage of the profitable business opportunities that will emerge in the future.
STONECROFT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Mr J C Seal
Director
27 July 2022
STONECROFT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company and group continued to be that of a holding company and the group continued to be that of textile manufacturing and merchanting.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £100,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J C Seal
Mrs J S Woodthorpe
Mr A D Seal
Mr L Dammone
Financial instruments
The group uses credit insurance and has a robust credit management system. The group operates in multiple foreign currencies, however the directors note that the exchange rate is naturally hedged due to the asset backed nature of its funding, given that borrowings are drawn in the underlying currency of the assets held. Where appropriate the group also uses foreign exchange contracts and derivatives.
Auditor
In accordance with the company's articles, a resolution proposing that Naylor Wintersgill Limited be reappointed as auditor of the group will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr J C Seal
Director
27 July 2022
STONECROFT HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
STONECROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STONECROFT HOLDINGS LIMITED
- 5 -
Opinion
We have audited the
financial statements of
Stonecroft Holdings Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements,
including
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 group's and the parent company's affairs as at 31 December 2021 and of the group's 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.
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
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
group and
parent 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
STONECROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STONECROFT HOLDINGS LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
. 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:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
parent
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 parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor's 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 an
auditor's
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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
STONECROFT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STONECROFT HOLDINGS LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK law and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure or increase the capital position of the Company, and management bias in accounting estimates and judgmental areas of the financial statements such as the
valuation of work in progress contracts
. Audit procedures performed by the engagement team included:
-
Discussions with directors including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
Reviewing relevant meeting minutes;
-
Reviewing of correspondence in so far as they related to non-compliance with laws and regulations and fraud;
-
Procedures relating to the
valuation of work in progress contracts
;
-
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, posted on unusual days, posted by infrequent users, posted by senior management or posted with descriptions indicating a higher level of risk;
-
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing over immaterial liabilities and assets balances.
There are inherent limitations in the audit procedures described above and the further removed non-·compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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.
Alan Wintersgill (Senior Statutory Auditor)
For and on behalf of Naylor Wintersgill Limited
27 July 2022
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
STONECROFT HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£'000
£'000
Turnover
3
33,706
23,336
Cost of sales
(25,209)
(16,691)
Gross profit
8,497
6,645
Distribution costs
(4,612)
(4,411)
Administrative expenses
(2,547)
(3,569)
Other operating income
524
1,345
Operating profit
4
1,862
10
Share of results of joint ventures
6
(80)
Interest payable and similar expenses
8
(483)
(432)
Profit/(loss) before taxation
1,385
(502)
Tax on profit/(loss)
9
(275)
202
Profit/(loss) for the financial year
1,110
(300)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STONECROFT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
£'000
£'000
Profit/(loss) for the year
1,110
(300)
Other comprehensive income
Currency translation differences
12
34
Cash flow hedges gain/(loss) arising in the year
71
(33)
Other comprehensive income for the year
83
1
Total comprehensive income for the year
1,193
(299)
Total comprehensive income for the year is all attributable to the owners of the parent company.
STONECROFT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
11
326
378
Other intangible assets
11
28
35
Total intangible assets
354
413
Tangible assets
12
4,355
4,672
Investments
13
718
729
5,427
5,814
Current assets
Stocks
16
22,731
23,600
Debtors
17
8,642
6,104
Cash at bank and in hand
424
1,851
31,797
31,555
Creditors: amounts falling due within one year
18
(16,519)
(15,443)
Net current assets
15,278
16,112
Total assets less current liabilities
20,705
21,926
Creditors: amounts falling due after more than one year
19
(2,272)
(4,514)
Provisions for liabilities
Deferred tax liability
22
501
573
(501)
(573)
Net assets
17,932
16,839
Capital and reserves
Called up share capital
24
445
445
Revaluation reserve
341
363
Hedging reserve
38
(33)
Other reserves
112
112
Profit and loss reserves
16,996
15,952
Total equity
17,932
16,839
STONECROFT HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021
31 December 2021
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 27 July 2022 and are signed on its behalf by:
27 July 2022
Mr J C Seal
Mr A D Seal
Director
Director
STONECROFT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 12 -
2021
2020
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
13
445
445
Current assets
Debtors
17
12,350
12,447
Creditors: amounts falling due within one year
18
(433)
(432)
Net current assets
11,917
12,015
Net assets
12,362
12,460
Capital and reserves
Called up share capital
24
445
445
Profit and loss reserves
11,917
12,015
Total equity
12,362
12,460
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes.
The company's profit for the year was £2,202 (2020 - £79,446).
The financial statements were approved by the board of directors and authorised for issue on 27 July 2022 and are signed on its behalf by:
27 July 2022
Mr J C Seal
Mr A D Seal
Director
Director
Company Registration No. 04256565
STONECROFT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
Share capital
Revaluation reserve
Hedging reserve
Other reserves
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 January 2020
445
385
-
112
16,271
17,213
Year ended 31 December 2020:
Loss for the year
-
-
-
-
(300)
(300)
Other comprehensive income:
Currency translation differences
-
-
-
-
34
34
Cash flow hedges gains arising in the year
-
-
(33)
-
-
(33)
Total comprehensive income for the year
-
-
(33)
-
(266)
(299)
Dividends
10
-
-
-
-
(75)
(75)
Transfers
-
(22)
-
-
22
-
Balance at 31 December 2020
445
363
(33)
112
15,952
16,839
Year ended 31 December 2021:
Profit for the year
-
-
-
-
1,110
1,110
Other comprehensive income:
Currency translation differences
-
-
-
-
12
12
Cash flow hedges gains arising in the year
-
-
71
-
-
71
Total comprehensive income for the year
-
-
71
-
1,122
1,193
Dividends
10
-
-
-
-
(100)
(100)
Transfers
-
(22)
-
-
22
-
Balance at 31 December 2021
445
341
38
112
16,996
17,932
STONECROFT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 January 2020
445
12,011
12,456
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
79
79
Dividends
10
-
(75)
(75)
Balance at 31 December 2020
445
12,015
12,460
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
2
2
Dividends
10
-
(100)
(100)
Balance at 31 December 2021
445
11,917
12,362
STONECROFT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
2021
2020
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
557
(1,236)
Interest paid
(483)
(432)
Income taxes (paid)/refunded
(14)
105
Net cash inflow/(outflow) from operating activities
60
(1,563)
Investing activities
Purchase of intangible assets
(1)
(2)
Purchase of tangible fixed assets
(224)
(666)
Proceeds on disposal of tangible fixed assets
14
2
Receipts from joint ventures
17
(14)
Net cash used in investing activities
(194)
(680)
Financing activities
Repayment of borrowings
(2)
2
Proceeds of new bank loans
-
4,000
Repayment of bank loans
(1,000)
-
Payment of finance leases obligations
(271)
(153)
Dividends paid to equity shareholders
(100)
(75)
Net cash (used in)/generated from financing activities
(1,373)
3,774
Net (decrease)/increase in cash and cash equivalents
(1,507)
1,531
Cash and cash equivalents at beginning of year
1,849
317
Effect of foreign exchange rates
82
1
Cash and cash equivalents at end of year
424
1,849
Relating to:
Cash at bank and in hand
424
1,851
Bank overdrafts included in creditors payable within one year
-
(2)
STONECROFT HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
2021
2020
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
29
100
75
Financing activities
Dividends paid to equity shareholders
(100)
(75)
Net cash used in financing activities
(100)
(75)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
1
Accounting policies
Company information
Stonecroft Holdings Limited (“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
Ladywell Mills, Hall Lane, Bradford, BD4 7DF.
The group consists of Stonecroft Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The parent company is included in the consolidated financial statements, and is considered to be a qualifying entity under FRS102 paragraphs 1.8 to 1.12. The following exemptions available under FRS102 in respect of certain disclosures for the parent company financial statements have been applied:
-
Key Management Personnel Compensation has not been included a second time, and
-
The disclosures required by FRS102.11 Basic Financial Instruments and FRS102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.
1.2
Business combinations
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
Stonecroft Holdings Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 31 December 2021
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
The group and company meet their working capital needs using an asset-based lending facility. The directors have made reasonable enquiries, including a review of existing customer and supplier relationships and future financial forecast to enable them to form a reasonable expectation that the company has adequate reserves and financial facilities to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
1.5
Turnover
Turnover represents amounts receivable for textile manufacturing and merchanting net of VAT and trade discounts.
Turnover is recognised on date of despatch of products.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
over the term of the licence
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 19 -
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the life of the lease
Plant and equipment
5-10% per annum
Fixtures and fittings
10% per annum
Motor vehicles
25% per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.9
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany
financial statements,
investments in associates are accounted for at cost less impairment.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at
the
lower of
cost and replacement cost
, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 21 -
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 23 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 24 -
1.20
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.21
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2021
2020
£'000
£'000
Turnover analysed by class of business
Total group turnover
41,415
32,762
Less: Intercompany trading
(7,709)
(9,426)
33,706
23,336
2021
2020
£'000
£'000
Other revenue
Grants received
524
1,345
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
4
Operating profit
2021
2020
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(109)
227
Government grants
(524)
(1,345)
Depreciation of owned tangible fixed assets
530
510
Profit on disposal of tangible fixed assets
(3)
(1)
Amortisation of intangible assets
60
62
Operating lease charges
514
574
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
55
45
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
Directors
9
9
-
-
Production and warehousing
132
132
-
-
Selling, distribution and administration
76
77
-
-
Total
217
218
Their aggregate remuneration comprised:
Group
Company
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Wages and salaries
5,486
6,330
194
183
Social security costs
489
490
19
16
Pension costs
146
135
6,121
6,955
213
199
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
7
Directors' remuneration
2021
2020
£'000
£'000
Remuneration for qualifying services
194
183
8
Interest payable and similar expenses
2021
2020
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
90
95
Other finance costs:
Interest on finance leases and hire purchase contracts
36
31
Other interest
357
306
Total finance costs
483
432
9
Taxation
2021
2020
£'000
£'000
Current tax
UK corporation tax on profits for the current period
407
Adjustments in respect of prior periods
(68)
(89)
Total UK current tax
339
(89)
Share of tax on joint venture
17
(15)
Total current tax
356
(104)
Deferred tax
Origination and reversal of timing differences
42
64
Tax losses carried forward
(123)
(162)
Total deferred tax
(81)
(98)
Total tax charge/(credit)
275
(202)
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 27 -
The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£'000
£'000
Profit/(loss) before taxation
1,385
(502)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
263
(95)
Tax effect of expenses that are not deductible in determining taxable profit
8
31
Unutilised tax losses carried forward
112
132
Adjustments in respect of prior years
(68)
(90)
Research and development tax credit
(10)
Share of joint venture
17
(15)
Capital allowances
(78)
(154)
Depreciation addback
102
96
Deferred tax
(81)
(97)
Taxation charge/(credit)
275
(202)
10
Dividends
2021
2020
Recognised as distributions to equity holders:
£'000
£'000
Interim paid
100
75
11
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£'000
£'000
£'000
Cost
At 1 January 2021
1,111
98
1,209
Additions
1
1
At 31 December 2021
1,111
99
1,210
Amortisation and impairment
At 1 January 2021
733
63
796
Amortisation charged for the year
52
8
60
At 31 December 2021
785
71
856
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Intangible fixed assets
(Continued)
- 28 -
Carrying amount
At 31 December 2021
326
28
354
At 31 December 2020
378
35
413
The company had no intangible fixed assets at 31 December 2021 or 31 December 2020.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
Cost
At 1 January 2021
459
5,916
2,606
129
9,110
Additions
18
32
174
224
Disposals
(24)
(1)
(9)
(34)
At 31 December 2021
477
5,924
2,779
120
9,300
Depreciation and impairment
At 1 January 2021
311
2,666
1,345
117
4,438
Depreciation charged in the year
27
314
184
4
530
Eliminated in respect of disposals
(14)
(9)
(23)
At 31 December 2021
338
2,966
1,529
112
4,945
Carrying amount
At 31 December 2021
139
2,958
1,250
8
4,355
At 31 December 2020
148
3,250
1,261
12
4,672
The company had no tangible fixed assets at 31 December 2021 or 31 December 2020.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Plant and equipment
1,324
1,406
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 29 -
13
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
14
445
445
Investments in joint ventures
15
640
651
Other investments
78
78
718
729
445
445
Movements in fixed asset investments
Group
Shares in joint ventures
Other
Total
£'000
£'000
£'000
Cost or valuation
At 1 January 2021
651
78
729
Valuation changes
(11)
-
(11)
At 31 December 2021
640
78
718
Carrying amount
At 31 December 2021
640
78
718
At 31 December 2020
651
78
729
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 January 2021 and 31 December 2021
445
Carrying amount
At 31 December 2021
445
At 31 December 2020
445
14
Subsidiaries
Details of the company's subsidiaries at 31 December 2021, all of which are registered in England and Wales, are as follows:
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Alan Gee Transport Services Limited
Ordinary
0
100.00
Animal Fibres (Europe) Limited
Ordinary
0
100.00
Cape Mohair Topmakers Limited
Ordinary
0
100.00
Cape Wools International Limited
Ordinary
0
100.00
Cashmolane Limited
Ordinary
0
100.00
Charles Clayton Fabrics Limited
Ordinary
0
100.00
Eurotex Properties Limited
Ordinary
100.00
-
Fantasy Fibres Limited
Ordinary
0
100.00
Fibre Superiore Limited
Ordinary
0
100.00
George Ackroyd (2001) Limited
Ordinary
0
100.00
International Cashmere Fibres Limited
Ordinary
0
100.00
John Foster (1819) Limited
Ordinary
0
71.42
Joseph Dawson (Cashmere) Limited
Ordinary
0
100.00
Joseph Dawson (International) Limited
Ordinary
0
100.00
Joshua Ellis & Company Limited
Ordinary
0
100.00
Luxury Contract Furnishings Limited
Ordinary
0
100.00
Luxury Fabrics Limited
Ordinary
0
100.00
Luxury Fibres Limited
Ordinary
0
100.00
Luxury Yarns International Limited
Ordinary
0
100.00
MB Appleton Limited
Ordinary
0
100.00
Mr Mohair Limited
Ordinary
0
100.00
S Selka Limited
Ordinary
0
100.00
SC Yarns Limited
Ordinary
0
100.00
Seal International Limited
Ordinary
0
100.00
Seal South Africa Limited
Ordinary
0
100.00
SIL Holdings Limited
Ordinary
100.00
-
Stanley Mills Weavers Limited
Ordinary
0
100.00
Texmach (UK) Limited
Ordinary
100.00
-
William Halstead International Limited
Ordinary
0
100.00
William Halstead Limited
Ordinary
0
100.00
Yarns International Limited
Ordinary
0
100.00
Abbotsford Textiles Limited
Ordinary
0
100.00
Jerome Fabrics Limited
Ordinary
0
100.00
Windsor & York Limited
Ordinary
0
100.00
15
Joint ventures
Details of joint ventures at 31 December 2021 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Indirect
Robert Dyers & Finishers Limited
Royds Works, Royd Lane, Keighley, BD20 6DN
Ordinary
0
50.00
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 31 -
16
Stocks
Group
Company
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Finished goods and goods for resale
22,731
23,600
17
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
6,435
4,409
Corporation tax recoverable
68
Amounts owed by group undertakings
-
-
12,350
12,447
Other debtors
1,060
584
Prepayments and accrued income
466
556
8,029
5,549
12,350
12,447
Deferred tax asset (note 22)
441
430
8,470
5,979
12,350
12,447
Amounts falling due after more than one year:
Prepayments and accrued income
172
125
Total debtors
8,642
6,104
12,350
12,447
18
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£'000
£'000
£'000
£'000
Bank loans and overdrafts
2,000
1,002
Obligations under finance leases
20
273
277
Other borrowings
4
6
Trade creditors
2,215
2,038
Amounts owed to group undertakings
432
432
Corporation tax payable
411
1
Other taxation and social security
1,262
960
-
-
Deferred income
24
25
Other creditors
10,133
10,832
Accruals and deferred income
197
303
16,519
15,443
433
432
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 32 -
19
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£'000
£'000
£'000
£'000
Bank loans and overdrafts
1,000
3,000
Obligations under finance leases
20
207
474
Deferred income
272
277
Other creditors
793
763
2,272
4,514
-
-
20
Finance lease obligations
Group
Company
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Future minimum lease payments due under finance leases:
Within one year
273
277
In two to five years
207
474
480
751
-
-
21
Cash flow hedge
In the period ended 31 December 2020 the Group entered into contracts to supply goods to customers in Europe. The Group entered into forward foreign currency contracts to hedge the exchange risk arising from these anticipated future transactions, which are designated as cash flow hedges.
A surplus amounting to £71,094(2020 - Loss amounting to £32,661) was recognised in the hedging reserve during the year.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Group
£'000
£'000
£'000
£'000
Accelerated capital allowances
453
604
(130)
(42)
Tax losses
48
(31)
571
472
501
573
441
430
The company has no deferred tax assets or liabilities.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
22
Deferred taxation
(Continued)
- 33 -
Group
Company
2021
2021
Movements in the year:
£'000
£'000
Liability at 1 January 2021
143
-
Credit to profit or loss
(83)
-
Liability at 31 December 2021
60
-
23
Retirement benefit schemes
2021
2020
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
146
135
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2021
2020
2021
2020
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
444,900
444,900
445
445
25
Contingent liabilities
The borrowings of the group are secured by a mortgage debenture comprising a legal mortgage and fixed and floating charge over the assets of the group, including the company (a cross-guarantee). At 31 December 2021 £10,204,508 (2020 - £10,828,021) was outstanding under this debenture.
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 34 -
26
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2021
2020
2021
2020
£'000
£'000
£'000
£'000
Within one year
618
615
-
-
Between two and five years
239
-
-
-
857
615
-
-
27
Related party transactions
Transactions with related parties
Directors loans
At the year end AD Seal and JC Seal have loan accounts owing from SIL Holdings Limited. Amounts of £731,040 (2020 - £734,492 ) £62,335 (2020 - £28,561) respectively were owed to the directors.
28
Cash generated from/(absorbed by) group operations
2021
2020
£'000
£'000
Profit/(loss) for the year after tax
1,110
(300)
Adjustments for:
Share of results of associates and joint ventures
(6)
80
Taxation charged/(credited)
275
(202)
Finance costs
483
432
Gain on disposal of tangible fixed assets
(3)
(1)
Amortisation and impairment of intangible assets
60
62
Depreciation and impairment of tangible fixed assets
530
510
Movements in working capital:
Decrease/(increase) in stocks
869
(491)
(Increase)/decrease in debtors
(2,459)
574
Decrease in creditors
(296)
(1,872)
Decrease in deferred income
(6)
(28)
Cash generated from/(absorbed by) operations
557
(1,236)
STONECROFT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 35 -
29
Cash generated from operations - company
2021
2020
£'000
£'000
Profit for the year after tax
2
79
Adjustments for:
Taxation charged
1
Movements in working capital:
Decrease/(increase) in debtors
97
(4)
Cash generated from operations
100
75
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CCH Software
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