REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements for the Year Ended 31 May 2020 |
|
for |
|
Overseas Trading Limited |
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Strategic Report, Report of the Directors and |
|
Financial Statements for the Year Ended 31 May 2020 |
|
for |
|
Overseas Trading Limited |
Overseas Trading Limited (Registered number: 04442532) |
|
|
|
|
|
|
Contents of the Financial Statements |
for the Year Ended 31 May 2020 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 3 |
|
Report of the Independent Auditors | 5 |
|
Income Statement | 8 |
|
Other Comprehensive Income | 9 |
|
Balance Sheet | 10 |
|
Statement of Changes in Equity | 11 |
|
Cash Flow Statement | 12 |
|
Notes to the Cash Flow Statement | 13 |
|
Notes to the Financial Statements | 15 |
|
Overseas Trading Limited |
|
|
Company Information |
for the Year Ended 31 May 2020 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
|
|
|
|
SECRETARY: |
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
Chartered Accountants & Statutory Auditors |
The Barn |
Hall Mews |
Boston Spa |
Wetherby |
West Yorkshire |
LS23 6DT |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Strategic Report |
for the Year Ended 31 May 2020 |
|
The directors present their strategic report for the year ended 31 May 2020. |
|
REVIEW OF BUSINESS |
|
During the year the business has focused its activities on growing revenues whilst protecting margins, this has resulted in turnover growth of 14.0% to £18.254m which delivered additional gross margin of £272k, a year-on-year increase of 9%. It is worth noting that this has been achieved against the backdrop of the COVID19 related lockdown in the final quarter of the year. |
|
The directors have continued to invest in organisational capability which has increased overheads by £218k. However, aided by significantly improved cashflow management and in spite of a provision for £111k against unrealised losses on forward exchange contracts, the business has delivered a net profit after tax of £263k which is an improvement on the previous year. |
|
The business continues to invest in IP and is actively focusing on current and new Trademarked disruptor brands where current consumer trends are favourable, such as our household brands Join The Cleaning Buzz and spunj, and our battery brand Excelltec which was recently listed as a top 10 UK Brand in a recent Grocer report. |
|
The company has looked to take the opportunity to seek positive advantage through the UK government's Research and Development Tax Credit Scheme. Results are looking positive and a submission has been made to maximise the benefit in the reported year. The business continues to invest in research and development activity and expects to benefit from such tax credits in future years. |
|
BUSINESS OUTLOOK |
|
At the time of writing the business faces into a number of headwinds in the shape of continued disruption and uncertainty as a result of COVID19, the end of the Brexit transition period and the well-publicised global container shipping situation which the business relies on heavily for the import of its stock. |
|
Despite all of the above, the business is on target to generate turnover growth in excess of 20% for the current financial year, whilst maintaining percentage margins and controlling the cost base. The Business is well placed to take advantage of the consumer need for value; over the course of the current financial year the leadership team completed a 3-year plan and there is a strong sense of confidence that the recent successes will continue in the mid-term following the identification of growth opportunities. |
|
The directors have highlighted a number of areas that require investment in order to facilitate their growth ambitions. Projects are currently underway which will lead to improvements in our physical infrastructure and capacity, our IT capability via a new ERP system, development of our human capital, reducing our waste packaging and embracing digital platforms and social media. |
|
In addition to a UK market that continues to present growth opportunities the directors also believe there are numerous opportunities to scale its export offer, with both administrative and supply chain capability long established in mainland Europe via our Polish operation. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Report of the Directors |
for the Year Ended 31 May 2020 |
|
The directors present their report with the financial statements of the company for the year ended 31 May 2020. |
|
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2020 was £192,454. |
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2019 to the date of this report. |
|
|
|
|
|
Other changes in directors holding office are as follows: |
|
|
|
|
|
|
|
|
|
FINANCIAL INSTRUMENTS |
The company uses a variety of financial instruments to ensure that liabilities are met on time and these include the judicious use of bank overdrafts and loans, finance lease options and invoice discounting alongside normal working capital cycle items as trade debtors and creditors. The company is comfortable that sufficient liquidity is available to allow the company to trade effectively within its current financing arrangements. The company continues to utilise forward rate contracts to purchase foreign currency in order to protect against adverse exchange rate movements. |
|
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
|
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
|
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Report of the Directors |
for the Year Ended 31 May 2020 |
|
|
AUDITORS |
The auditors, Queripel & Kettlewell Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
|
Report of the Independent Auditors to the Members of |
Overseas Trading Limited |
|
Qualified Opinion |
|
We have audited the financial statements of Overseas Trading Limited (the 'company') for the year ended 31 May 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
|
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the company's affairs as at 31 May 2020 and of its profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
|
Basis for qualified opinion |
The company was unable to undertake a physical stock take at 31 May 2020 due to lockdown restrictions caused by the Covid 19 pandemic and accordingly, we did not observe the counting of stock at the year end. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 May 2020 which are included in the balance sheet at £2,150,505, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. |
|
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. |
|
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the 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. |
|
Key audit matters |
Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report. |
|
Report of the Independent Auditors to the Members of |
Overseas Trading Limited |
|
|
Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
|
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. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £2,150,505 held at 31 May 2020. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal |
requirements. |
|
Matters on which we are required to report by exception |
Except for the possible effect of the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
|
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
The company did not undertake a physical stock take at the accounting reference date as a direct result of the Covid-19 pandemic . There were no other practical audit procedures we could undertake to satisfy ourselves that physical stocks were correctly stated at 31 May 2020. |
|
Other than for the above there are no matters upon which we are required to report. Our audit report is not qualified in this respect. |
|
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
|
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. |
|
Report of the Independent Auditors to the Members of |
Overseas Trading Limited |
|
|
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
|
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
|
|
|
|
|
for and on behalf of
|
Chartered Accountants & Statutory Auditors |
The Barn |
Hall Mews |
Boston Spa |
Wetherby |
West Yorkshire |
LS23 6DT |
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Income Statement |
for the Year Ended 31 May 2020 |
|
2020 | 2019 |
Notes | £ | £ |
|
TURNOVER | 3 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
366,147 | 339,552 |
|
Other operating income |
|
|
OPERATING PROFIT | 5 |
|
|
|
Exceptional items | 6 |
|
|
275,273 | 339,552 |
|
|
Interest payable and similar expenses | 7 |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 8 | ( |
) |
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Other Comprehensive Income |
for the Year Ended 31 May 2020 |
|
2020 | 2019 |
Notes | £ | £ |
|
PROFIT FOR THE YEAR |
|
|
|
|
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Balance Sheet |
31 May 2020 |
|
2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
|
|
|
CURRENT ASSETS |
Stocks | 11 |
|
|
Debtors | 12 |
|
|
Cash at bank and in hand |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 13 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
14 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 19 |
|
|
Retained earnings | 20 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the Board of Directors and authorised for issue on
|
|
|
|
|
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Statement of Changes in Equity |
for the Year Ended 31 May 2020 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 June 2018 |
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
|
|
Balance at 31 May 2019 |
|
|
|
|
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
|
|
Balance at 31 May 2020 |
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Cash Flow Statement |
for the Year Ended 31 May 2020 |
|
2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments
paid |
( |
) |
( |
) |
Government grants received |
|
|
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
( |
) |
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
|
|
Net cash from investing activities |
|
( |
) |
|
Cash flows from financing activities |
Loan repayments in year | ( |
) |
|
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
|
|
Increase in cash and cash equivalents | 523,937 | 91,221 |
Cash and cash equivalents at beginning of
year |
2 |
(161,343 |
) |
(287,899 |
) |
Effect of foreign exchange rate changes | 153 | 35,335 |
Cash and cash equivalents at end of year | 2 | 362,747 | ( |
) |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Cash Flow Statement |
for the Year Ended 31 May 2020 |
|
1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2020 | 2019 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Loss on disposal of fixed assets |
|
|
Government grants | ( |
) |
|
Finance costs | 24,054 | 51,611 |
300,126 | 380,332 |
Decrease/(increase) in stocks |
|
( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
|
|
Cash generated from operations |
|
( |
) |
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
|
Year ended 31 May 2020 |
31/5/20 | 1/6/19 |
£ | £ |
Cash and cash equivalents | 362,747 | 158,821 |
Bank overdrafts |
|
( |
) |
362,747 | (161,343 | ) |
Year ended 31 May 2019 |
31/5/19 | 1/6/18 |
£ | £ |
Cash and cash equivalents | 158,821 | 101,228 |
Bank overdrafts | ( |
) | ( |
) |
(161,343 | ) | (287,899 | ) |
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Cash Flow Statement |
for the Year Ended 31 May 2020 |
|
3. | ANALYSIS OF CHANGES IN NET DEBT |
|
Other |
non-cash |
At 1/6/19 | Cash flow | changes | At 31/5/20 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 158,821 | 203,926 | 362,747 |
Bank overdrafts | (320,164 | ) | 320,164 | - |
(161,343 | ) | 524,090 | 362,747 |
Debt |
Finance leases | (153,318 | ) | 56,652 | - | (130,463 | ) |
Debts falling due |
within 1 year | (1,811,092 | ) | 201,324 | - | (1,609,768 | ) |
(1,964,410 | ) | 257,976 | - | (1,740,231 | ) |
Total | (2,125,753 | ) | 782,066 | - | (1,377,484 | ) |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements |
for the Year Ended 31 May 2020 |
|
1. | STATUTORY INFORMATION |
|
Overseas Trading Limited is a
|
|
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
The accounts are presented in pounds sterling. |
|
Significant judgements and estimates |
The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. |
|
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year. |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
|
Tangible fixed assets |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
Office equipment | - |
|
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
|
Financial instruments |
The company uses a variety of financial instruments to ensure that liabilities are met on time and these include the judicious use of bank overdrafts and loans, finance lease options and invoice discounting alongside normal working capital cycle items as trade debtors and creditors. The company is comfortable that sufficient liquidity is available to allow the company to trade effectively within its current financing arrangements. |
|
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. |
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
|
3. | TURNOVER |
|
Turnover is wholly attributable to the principal activity of the company. The analysis of turnover by geographical market required by The large and Medium sized Companies and Groups (Accounts and Directors' Report) Regulations 2008 has not been provided as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the company. |
|
4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Directors | 5 | 4 |
Warehouse | 18 | 13 |
Office | 39 | 40 |
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
|
Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences |
|
( |
) |
|
6. | EXCEPTIONAL ITEMS |
|
During the year the company entered into forward foreign currency exchange contracts. The contracts were revalued at the financial year end resulting in an unrealised loss. Due to its size and incidence, the company considers the most appropriate treatment for the loss to be as an exceptional item. |
|
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank loan interest |
|
|
Corporation tax interest |
|
|
Hire purchase |
|
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
8. | TAXATION |
|
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Over provision prior year | (63,886 | ) | (28,292 | ) |
Total current tax | ( |
) |
|
|
Deferred tax | ( |
) |
|
Tax on profit | ( |
) |
|
|
UK corporation tax has been charged at 19% (2019 - 19%). |
|
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
|
Double taxation relief difference | 3,740 | 320 |
|
|
Total tax (credit)/charge | (12,230 | ) | 27,487 |
|
9. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary shares of 0.01 each |
Interim |
|
|
Ordinary A shares of 0.01 each |
Interim |
|
|
Ordinary B shares of 0.01 each |
Interim |
|
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
10. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Office |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2019 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
At 31 May 2020 |
|
|
|
|
DEPRECIATION |
At 1 June 2019 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) |
At 31 May 2020 |
|
|
|
|
NET BOOK VALUE |
At 31 May 2020 |
|
|
|
|
At 31 May 2019 |
|
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 June 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) | ( |
) |
Transfer to ownership | (41,571 | ) | - | (41,571 | ) |
At 31 May 2020 |
|
|
|
DEPRECIATION |
At 1 June 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) | ( |
) |
Transfer to ownership | (7,899 | ) | - | (7,899 | ) |
At 31 May 2020 |
|
|
|
NET BOOK VALUE |
At 31 May 2020 |
|
|
|
At 31 May 2019 |
|
|
|
|
11. | STOCKS |
2020 | 2019 |
£ | £ |
Finished goods |
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Corporation tax | 23,911 | - |
Prepayments and accrued income |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Invoice discounting loan | 2,177,334 | 2,254,780 |
Accruals and deferred income |
|
|
|
|
|
14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2020 | 2019 |
£ | £ |
Hire purchase contracts (see note 16) |
|
|
Directors' loans |
|
|
|
|
|
15. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Bank loans |
|
|
|
|
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank overdraft |
|
|
Bank loans |
|
|
Hire purchase contracts | 130,463 | 153,318 |
Invoice discounting loan | 2,177,334 | 2,238,667 |
|
|
|
The bank loan and overdraft are secured by a fixed and floating charge over all the assets of the company and a charge over contract monies. |
|
The invoice discounting creditor is secured by a charge over the company's trade debtors. |
|
The finance leases and hire purchase contracts are secured on the relevant assets. |
|
18. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax | 25,481 | 28,950 |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
18. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred |
tax |
£ |
Balance at 1 June 2019 |
|
Depreciation in excess of | (3,469 | ) |
capital allowances |
Balance at 31 May 2020 |
|
|
In the opinion of the directors, the Deferred tax provision is unlikely to be reversed in the next accounting period. |
|
19. | CALLED UP SHARE CAPITAL |
|
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | 0.01 | 32 | 32 |
|
Ordinary A | 0.01 | 35 | 35 |
|
Ordinary B | 0.01 | 33 | 33 |
100 | 100 |
|
All classes of shares confer the same voting rights and rank parri passu. |
|
20. | RESERVES |
Retained |
earnings |
£ |
|
At 1 June 2019 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 May 2020 |
|
|
21. | OTHER FINANCIAL COMMITMENTS |
|
At the year end, the company had ongoing foreign exchange forward contracts amounting to £6,489,510 (2019: £9.414,083) to purchase United States Dollars. |
|
22. | RELATED PARTY DISCLOSURES |
|
During the year, total dividends of £114,900 (2019 - £96,488) were paid to the directors . |
Overseas Trading Limited (Registered number: 04442532) |
|
|
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2020 |
|
22. | RELATED PARTY DISCLOSURES - continued |
|
The company has directors in common with Oceansaver Ltd and is under common control with OTL Europe (registered in Poland) and Spot On-Line Limited. |
|
At the year end, the company was due £Nil (2019: £108,038) from OTL Europe. |
|
At the year end, the company was due £92,205 (2019: £71,020) from Spot On-Line Limited. |
|
During the year the company received £137,252 (2019: £Nil) from Oceansaver Limited in respect of management charges. |
|
At the year end, the company was due £25,014 (2019: £129,621) from Oceansaver Limited. |
|
23. | ULTIMATE CONTROLLING PARTY |
|
The ultimate controlling party is
|