AGA Print Limited (trading as Solopress)
Annual report and financial statements
Registered number 04717223
Year ended 31 December 2018
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Contents
1
2
3
5
6
8
9
10
11
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Company information
Directors
MFries
D Muller S Cooper
Company number Registered office
04717223
9 Stock Road Southend-on-Sea Essex
Auditor
SS2 5QF
KPMGLLP
Botanic House 100 Hills Road Cambridge CB2 IAR
Business address
9 Stock Road Southend-on-Sea Essex
SS2 5QF
Bankers
National Westminster Bank Plc Corporate Banking & Financial Markets PO Box 138
4th Floor, High Street Southend-on-Sea Essex
SSI lBS
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Strategic report
The directors present the strategic report for the period ended 31 December 2018.
Fair review of the business
The principal activity of the company continued to be that of printing and design, trading under the name of Solopress.
During the period, the company has seen a significant increase in turnover which has largely been achieved through its marketing strategy. The Directors believe that overall market prospects are good and the company will be able to continue to grow in the coming year.
Significant risks faced by the business
The key business risks and uncertainties affecting the company are considered to relate to competition from other design and print businesses and general price erosion in the market.
The directors effectively manage these risks by monitoring our competitors' -actions and the prices charged within the market and respond accordingly.
The Impact of Brexit on the business
Other than the national economic risks which are uncertain, the directors expect there to be no significant risk to the
business related to Britain exiting the European Union.
The company's revenue is generated wholly within the United Kingdom, therefore it is anticipated that there will be a minimal risk to sales caused by Brexit.
The company sources a number of its main consumables from the EU, mainly paper. To mitigate the risk of any disruption caused to the supply of these consumables the company has stockpiled surplus stock to see it through any period of disruption.
As paper is not subject to additional tariffs, even under WTO rules, there is likely to be a limited impact to cost even under a worst case scenario.
Key performance indicators
The key performance indicators used to review and monitor the company are shown below: -
Year ended 31 Dec 2018
Period ended 31 Dec 2017
£28,585,668
Sales
£17,823,440
£10,100,869
Gross profit
£6,775,841
35.3%
Gross profit margin
38.0%
By order of the board
S Cooper Director
21 June 2019
2
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Directors' report
The directors present their annual report and financial statements for the period ended 31 December 2018.
Directors
The directors who held office during the year were as follows:
A Priest A Smith M Fries D Muller
Resigned 8 January 2019
Resigned 8 January 2019
Appointed 14 December 2018
Appointed 14 December 2018
The directors who have been appointed since the year ended are as follows:
S Cooper
Appointed 5 February 2019
Results and dividends
The results for the year are set out on page 8.
In the prior period the company changed its year end to 31 December and as such the prior year comparisons presented has a short period of 8 months to 31 December 2017.
Ordinary dividends were paid amounting to £550,000 (2017: £800,000). The directors do not recommend payment of a final dividend.
Financial instruments
Treasury operations and financial instruments
The company operates a treasury function which is responsible for managing the liquidity and interest risk associated with the company's activities.
The company manages its cash and borrowing requirements in order to minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.
The company is exposed to interest rate risk on bank overdrafts and loans.
In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations. In accordance with the company's treasury policy, derivatives are not entered into for speculative purposes.
Liquidity risk
The company manages its cash and borrowing requirements in order to meet its day to day business and operating needs.
Interest rate risk
The company is exposed to fair value interest rates risk on its borrowing and continually manages this risk to reduce the company's exposure in this area.
Credit risk
Customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision for doubtful debts made where necessary.
Disclosure of information to auditor
The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Other information
An indication of likely future developments in the business and particulars of significant events which have occurred since the end of the fmancial year have been included in the Strategic Report on page 2.
3
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Directors' report (continued)
Auditor
KPMG LLP were appointed as auditor on 29th January 2018.
Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and KPMG LLP will therefore continue in office.
By order of the board
S Cooper Director
9 Stock Road Southend-on-Sea
21st June 2019
21 June 2019
Essex
SS2 5QF
4
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Statement of directors' responsibilities in respect of the annual report and the financial statements
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS I02 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
•
select suitable accounting policies and then apply them consistently;
•
make judgements and 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 financial statements;
•
assess the company's ability to continue as a going concern, disclosing, as applicable, matters related to going
concern; and
•
use the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of fmancial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and other irregularities.
5
Independent auditor's report to the members of AGA Print Limited (trading as Solopress)
Opinion
We have audited the financial statements of AGA Limited ("the company") for the year ended 31 December, 2018 which comprise the Profit and Loss Account and other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and related notes, including the accounting policies in note I.
In our opinion the financial statements:
•
give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year then ended;
•
have been properly prepared in accordance with UK accounting standards, including FRS I02 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and
•
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the company in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.
The impact of uncertainties due to Britain exiting the European Union on our audit
Uncertainties related to the effects of Brexit are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as recoverability of debtors, valuation and availability of stock and related disclosures and the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance.
Brexit is one of the most significant economic events for the UK, and at the date of this report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
Going concern
The directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the company or to cease its operations, and as they have concluded that the company's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period").
We are required to report to you if we have concluded that the use of the going concern basis of accounting is inappropriate or there is an undisclosed material uncertainty that may cast significant doubt over the use of that basis for a period of at least a year from the date of approval of the financial statements. In our evaluation of the directors' conclusions, we considered the inherent risks to the company's business model, including the impact ofBrexit, and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period. We have nothing to report in these respects.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the company will continue in operation.
Strategic report and directors' report
The directors are responsible for the strategic report and the directors' report. Our opinion on the financial statements does not cover those reports and we do not express an audit opinion thereon.
Our responsibility is to read the strategic report and the directors' report and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. Based solely on that work:
6
•
we have not identified material misstatement in the Strategic report and the directors' report;
•
in our opinion the information given in those reports for the financial year is consistent with the financial
statements; and
•
in our opinion those reports have been prepared in accordance with the Companies Act 2006.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required 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.
We have nothing report to these respects.
Directors' responsibilities
As explained more fully in their statement set out on page 5, the directors are responsible for: the preparation of the financial statements end for being satisfied that they give a true and fair view; such as internal control as they determine Is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the companies ability to continue as a going concern. disclosing, as applicable matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the company or to cease operations, or have no realistic alterative but 10 do so.
Auditor's responsibilities
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement wbether due to fraud or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance. but does not guarantee that an audit conducted in accordance with lSAs (UK) will always de1eet a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if; individually or in aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
A fuller description of our responsibilities is provided on the FRC's website at
www.fre.org.uklaudiotrsrcsponsibilitles.
The purpose of our audit work and to whom we owe our responsibilities
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 notaccep1or assume responsibility to anyone other than the company and the company's member, as a bod, y for our audit work. for this report, or for the opinions we have formed.
- .6.. (... r:i. 1."'-J
Stephanie Beavis (Senior Statutory Auditor)
for and on behalf KPMG LLP, Statutory Auditor
Chartered ICAEW>l
KPMG LLP
Botanic House I00 Hills Rood CB2U R
7
26 June 2019
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Profit and Loss Account and Other Comprehensive Income
for the period ended 31 December 2018
Note
Year ended 31 Dec2018
Period ended 31 Dec2017
£
£
3
28,585,668
17,823,440
Turnover
Cost of sales
(18,484,799)
(11,047,642)
Gross profit
10,100,869
6,775,798
(9,080,809)
(5,842,554)
Administrative expenses
1,020,060
Operating profit
4
933,244
7
4
23
Interest receivable and similar income
Interest payable and similar expenses
8
(1,858)
(2,399)
Profit before taxation
1,018,206
930,868
9
19,606
(163,677)
Taxation
Profit after tax
1,037,812
767,201
Other comprehensive income
Total comprehensive income for the financial year
1,037,812
767,201
The profit and loss account has been prepared on the basis that all operations are continuing operations.
8
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Balance Sheet
at 31 December 2018
Note
31 Dec2018
31 Dec 2017
£
£
£
£
Fixed assets
JO
338,256
299,171
Tangible assets
Current assets
11
547,242
427,982
Stocks
12
Debtors
5,814,586
5,273,198
Cash at bank and in hand
1,354,969
269,891
7,716,797
5,971,071
13
Creditors: amounts falling due within one year
(5,229,246)
(3,920,048)
Net current assets
2,487,551
2,051,023
Total assets less current liabilities
2,825,807
2,350,194
Creditors: Amounts falling due after more than one year
14
(5,643)
17
5,200
(1,356)
Provisions for liabilities
Net Assets
2,831,007
2,343,195
Capital and reserves
18
6
6
Called up share capital
Profit and Loss account
2,831,001
2,343,189
Shareholders' funds
2,831,007
2,343,195
These fmancial statements, along with the notes which make up the financial statements, were approved by the board of directors on 21st June 2019 and were signed on its behalf by:
S Cooper Director
21 June 2019
Company registered number: 4717223
9
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Statement of Changes in Equity
Called up share capital
Profit and loss account
Total equity
£
£
£
Balance at 1 May 2017
6
2,375,988
2,375,994
Total comprehensive income for the year
Profit or loss
767,201
767,201
Total comprehensive income for the year
767,201
767,201
Transactions with owners, recorded directly
in equity
(800,000
)
(800,000)
Dividends
Total contributions by and distributions to owners
(800,000
)
(800,000)
Balance at 31 December 2017
2,343,189
2,343,195
Balance at 1 January 2018
2,343,195
6
2,343,189
Total comprehensive income for the year
Profit or loss
1,037,812
1,037,816
6
3,381,001
3,381,007
Total comprehensive income for the year
Transactions with owners, recorded directly
in equity
Dividends
(550,000
)
(550,000)
(550,000
)
(550,000)
Total contributions by and distributions to owners
6
2,831,001
2,831,007
Balance at 31 December 2018
10
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes
(forming part of the.financial statements)
1
Accounting Policies
AGA Print Limited (the "Company") is a private company incorporated, domiciled and registered in England in the UK. The registered number is 4717223 and the registered address is 9 Stock Road, Southend-on-Sea, Essex SS2 5QF.
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 amounts in these financial statements are rounded to the nearest £.
In the prior period the company changed its year end to 31 December 2018 and as such the prior year comparisons presented has a short period of 8 months to 31 December 2017.
This company is a qualifying entity for the purposes of FRS I02, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
•
Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares;
•
Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures;
•
Section 33 'Related Party Disclosures' -Disclosure of related party transactions;
•
Section 33.6 'Key Management Personnel' -Key management personnel compensation.
These financial statements present information about the Company as an individual undertaking and not about its group. The company's ultimate parent undertaking, Online Printers Holdings GmbH, a company incorporated in Germany, includes the company in its consolidated financial statements. Copies of its group financial statements are available from Online Printers Holdings GmbH, Rudolf-Diesel-Str. 10, 91413 Neustadt a. d.
1.1
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount ofrevenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
11
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
1
Accounting policies (continued)
1.3
Expenses
Operating lease
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.
Finance lease
Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.
Interest receivable and Interest payable
Interest payable and similar expenses include interest payable, finance expenses on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account.
Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains.
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.
1.4
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 charged to the profit and loss account and 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:
Plant and machinery
-
10% straight line
Fixtures, fittings and equipment
-
25% to 33% straight line
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.
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.
12
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
1
Accounting policies (continued)
1.5
Impairment of ftxed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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 ofan 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.
1.6
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 replacement cost and 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.
I.7
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.
13
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
1
Accounting policies (continued)
1.8
Financial instruments
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' ofFRS 102 to all of its financial instruments.
Financial instruments are recognised in the company'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 method unless the arrangement constitutes a fmancing 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 fmancial 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 fmancial 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.
14
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
1
Accounting policies (continued)
1.10
Financial
instruments
(continued) 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.
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 payments 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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 company'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.
15
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
1
Accounting policies (continued)
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision in measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company'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.
16
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
Year ended
Period ended 31 Dec2017
31 Dec2018
£
£
28,585,668
17,823,440
Sale of goods
All revenue is generated in the United ingdom.
4
Expenses and auditor's remuneration
Included in profit/loss are the following:
Year ended
Period ended
31 Dec2018
31 Dec2017
£
£
136,066
65,842
Depreciation of owned tangible fixed assets
Cost of stocks recognised as an expense
7,683,060
4,945,339
Auditor's remuneration:
40,000
32,000
Audit of these financial statements
All other non-audit services
20,000
17
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
5
Staff numbers and costs
The average monthly number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
Year ended 31 Dec2018
Period ended 31 Dec2017
Production Sales Administration
No of employees
No of employees
206
207
22
24
27
62
256
292
The aggregate payroll costs of these persons were as follows:
Wages and salaries Social security costs Pension costs
£
£
6,549,887
3,580,646
582,626
308,082
Other benefits
75,081
31,985
1,968
470
7,209,562
3,921,183
6
Directors' remuneration
Year ended 31 Dec2018
Period ended 31 Dec 2017
£
£
Directors' remuneration
221,735
156,214
The Directors are remunerated and paid by the ultimate UK parent company, OP UK Bidco Limited. Their Remuneration has been allocated on a percentage basis, based on the level of services provided to each group company.
7
Interest receivable and similar income
Year ended 31 Dec 2018
Period ended 31 Dec 2017
£
Other interest
£ 4
23
8
Interest payable and similar expenses
Year ended
Period ended 31 Dec2018
31 Dec2017
Interest on financial liabilities measured at amortised cost:
£
£
On bank overdrafts and loans
On finance leases and hire purchase contracts
746
1,492
746
1,492
Other finance costs:
18
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Other interest
1,112
907
Total finance costs
1,858
2,399
19
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
9
Taxation
Total tax expense recognised in the profit and loss account, other comprehensive income and equity
Year ended
Period ended
31 Dec 2018
31 Dec 2017
£
£
£
£
Current tax
167,311
Current tax on income for the period
Prior period adjustments
(13,050)
(13,050)
167,311
Total current tax
Deferred tax (see note 19)
(6,556)
(3,644)
Origination and reversal of timing differences
Adjustments in respect of prior periods
(6,556)
163,667
Total deferred tax
(19,606)
163,667
Total tax
Reconciliation of effective tax rate
Year ended
Period ended
31 Dec 2018
31 Dec 2017
£
£
767,201
1,037,812
Profit for the year
Total tax expense
(19,606)
163,667
930,868
1,018,206
Profit excluding taxation
176,865
Tax using the UK corporation tax rate of 19% (2018: 19%)
193,459
4,907
Depreciation in excess of capital allowances
25,840
Disallowable expenses
2,161
157,412
Other allowances
(95)
(1,276)
Reversal of time differences on deferred tax
(6,556)
(3,644)
Prior period withholding tax adjustment
(13,050)
Capital items expensed
(17,966)
541
(203,399)
(171,128)
Surrendered losses from group
163,677
Total tax expense included in profit or loss
(19,606)
20
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
10
Tangible fixed assets
Fixtures & Fittings and equipment
Plant and Machinery
Total
£
£
£
Cost
293,939
961,030
At beginning of year
667,091
Additions Disposals
9,372
175,150
165,778
At end of year
303,311
832,869
1,136,180
Depreciation and impairment
147,017
661,859
At beginning of year
514,842
Depreciation charge for the year
30,240
136,066
105,826
Eliminated in respect of disposals
At end of year
177,257
797,925
620,668
Net book value
126,054
338,256
At31 December2018
212,201
At 31 December 2017
146,922
152,249
299,171
11
Stocks
31 Dec2018
31 Dec 2017
£
£
Raw materials in stock
547,242
427,982
12
Debtors
31 Dec 2018
31 Dec2017
£
£
393,640
489,730
Trade debtors
Amounts due from group undertakings
5,173,387
4,346,300
Other debtors
5,076
257,126
Corporation Tax
86,082
Prepayments and accrued income
156,400
180,042
5,814,585
5,273,198
21
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
13
Creditors: amounts falling due within one year
31 Dec2018
31 Dec2017
£
£
Bank loans and overdrafts
2,565
1,469
Obligations under finance leases
Trade creditors
3,082,655
2,114,978
Amounts owed to group undertakings
1,714,465
952,910
Corporation tax payable
82,311
Taxation and social security
201,562
463,870
Other creditors
57,543
29,953
Accruals and deferred income
170,455
276,557
5,229,246
3,922,048
Hire purchase and finance leases are secured on the assets to which they relate.
14
Creditors: amounts falling after more than one year
31 Dec2018
31 Dec 2017
£
£
Bank loans and overdrafts
5,643
Obligations under finance leases
5,643
15
Finance lease obligations
31 Dec2018
31 Dec2017
£
£
Future minimum lease payments due under finance leases:
2,565
1,469
Within one year
5,643
In two to five years
7,112
2,565
22
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
16
Provision for liabilities
31 Dec2018
31 Dec2017
£
£
Other provisions Deferred tax liabilities
1,356
5,000
1,356
5,000
17
Deferred tax assets and liabilities
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
31 Dec2018
£
Accelerated capital allowances
5,200
Movement in the year:
£
Asset at beginning of year Credit to profit and loss
(1,356)
6,556
Asset at end of year
5,200
The deferred tax liability set out above is expected to reverse within and relates to accelerated capital allowances that are expected to mature within the same period.
23
AGA Print Limited (trading as Solopress) Annual report and financial statements Year ended 31 December 2018
Notes (continued)
18
Capital and reserves Share capital
31 Dec2018
31 Dec2017
£
£
Issued and fully paid
3
3
3 ordinary A shares of £1 each
3 ordinary B shares of£ 1 each
3
3
6
6
The company has Class A ordinary shares in issue which carry one vote and no right to fixed income. The company has Class B ordinary shares in issue which carry one vote and no right to fixed income.
19
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the Group.
20
Controlling party
The immediate parent company is ASAP Print Limited which is owned by OP UK Bidco Ltd, both of which are companies registered in England and Wales. OP UK Bidco Limited is owned and controlled by Online Printers Holdings GmbH. Copies of the consolidated financial statements of Online Printers Holdings GmbH are available from Onlineprinters GmbH Rudolf-Diesel-Str. 10, 91413 Neustadt a. d. Aisch, Germany.
24
false
CCH Software
iXBRL Review & Tag 2019.1
2018-12-31
2018-01-01
04717223
2018-01-01
2018-12-31
04717223
2018-12-31
04717223
bus:Director2
2018-01-01
2018-12-31
04717223
bus:Director3
2018-01-01
2018-12-31
04717223
bus:Director5
2018-01-01
2018-12-31
04717223
bus:Director4
2018-01-01
2018-12-31
04717223
bus:Director1
2018-01-01
2018-12-31
04717223
2017-05-01
2017-12-31
04717223
2017-12-31
04717223
core:CurrentFinancialInstruments
2018-12-31
04717223
core:CurrentFinancialInstruments
2017-12-31
04717223
core:Non-currentFinancialInstruments
2017-12-31
04717223
core:PlantMachinery
2017-12-31
04717223
2017-12-31
04717223
core:FurnitureFittingsToolsEquipment
2017-12-31
04717223
core:PlantMachinery
2018-12-31
04717223
core:FurnitureFittingsToolsEquipment
2018-12-31
04717223
core:PlantMachinery
2018-01-01
2018-12-31
04717223
core:FurnitureFittingsToolsEquipment
2018-01-01
2018-12-31
04717223
core:PlantMachinery
2017-12-31
04717223
core:FurnitureFittingsToolsEquipment
2017-12-31
04717223
bus:PrivateLimitedCompanyLtd
2018-01-01
2018-12-31
04717223
bus:Audited
2018-01-01
2018-12-31
04717223
bus:FullAccounts
2018-01-01
2018-12-31
04717223
bus:FRS102
2018-01-01
2018-12-31
xbrli:pure
xbrli:shares
iso4217:GBP