Registered number:
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
COMPANY INFORMATION
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ON A ROLL SANDWICH COMPANY LIMITED
CONTENTS
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ON A ROLL SANDWICH COMPANY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
The director presents his report and the financial statements for the year ended 31 January 2020.
The director is responsible for preparing the strategic report, the director's report and the
financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year
. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:
∙
select suitable accounting policies for the company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The director who served during the year was:
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ON A ROLL SANDWICH COMPANY LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
On a Roll Sandwich Company Limited ("OAR") are currently trying to build their business back up after the Covid-19 pandemic. However this will be a long process to get back to over £17m turnover we had hoped for the current financial year. Customers are cutting back and airlines are not flying anywhere near to what they were last year, it is proving quite difficult to just tick over at the moment.
Hopefully with news of the vaccine things will start to improve in the year ended 31 January 2022. Fortunately having a large reserve has enabled OAR to keep going throughout the pandemic and, although there have been losses, this has been covered by these reserves. Current discussions involve working with a national distribution source to enable OAR to tender for larger, national contracts. There are a few potential business opportunities, these are low end margin products – but should hopefully have volume to help with contributing to overheads. Like all manufacturers in this field, we have been hit by increases in low margin production and huge drops in the higher end, more profitable business.
Research and development projects continued to include:
Development of sandwich packaging with improved sealing for freshness and prevention of tampering and contamination. Development of heatproof inks and films which can then be used on sandwiches which are reheated by the wholesale and travel sectors. Development of a new easy-to-use sandwich packaging for elderly hospital patients. Improved automation to the production process.
The business review, principal risks and uncertainties and financial key performance indicators are included in the strategic report.
The
director at the time when this director's report is approved has confirmed that:
Since the year end the world has been hit by a global pandemic in the form of Covid-19. This has had an impact across our customers and also supply chain and is likely to have a negative impact on both supply and demand over the next 12 months as the country is in various stages of lockdown. The long term impact of this is not clear, but the director believes he has a resilient business which will be able to weather this storm.
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ON A ROLL SANDWICH COMPANY LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
The auditors, Waltons Clark Whitehill Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board on
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ON A ROLL SANDWICH COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
The year ending 31 January 2020 saw a substantial growth from the previous year, and it was felt that going into 2020/21 OAR would grow further to £20m turnover. OAR looked to strengthen their work in frozen products as well as hot handheld snacks.
We have invested heavily in the management structure within the manufacturing process employing a new layer of senior managers to take the company forward. This included a site manager to take overall control of the facility. The key target was to improve efficiencies and streamline processes. Although turnover increased – the net profit margin was eroded by 3 percent. OAR gave the new team realistic targets which were based on historical data, but after 6 months they weren’t being met. In the first quarter of the new year and at the start of the pandemic this had to be reviewed and costs were cut. OAR had a good year turnover wise, but profit had dropped – the current year will be challenging for everyone and turnover and profit will certainly be down due to the travel industry being reduced dramatically. With 2021 around the corner it is hoped that things will pick up and growth will start Q2 or Q3 of 2021. Year end 31 January 2020 felt significant for OAR’s future with an 18% growth in turnover, but, through no fault of its own it would appear that the forecast for year ending 31 January 2021 will see a 20% drop. The positive for year ending 31 January 2022 is that we expect to see a 25-30% increase in turnover as current projects start to materialise during the latter part of 2021. As expected it will be dependent on the pandemic and Brexit – but things are starting to look more positive.
Key areas within the business are being reviewed constantly as they are key requirements for customers. Packaging is one area that customers want to see changes in. As such OAR have introduced new packaging that is more environmentally friendly but work is still needed to get down to zero waste. The manufacturers of packaging are still innovating and trying to resolve the recyclability of plastic alternatives as well as card packs without plastic windows.
As last year, Brexit and food inflation are still the biggest concern for OAR but the KPI results show purchases at a similar percentage to that of last year which would indicate some settling in the markets. Labour is now the bigger problem as minimum wage is increasing faster than the prices that can be charged onto customers. Improving the management structure means that the overheads are going up but this should start to level off as OAR bring in new business. The food to go market remains very volatile and competitors can be aggressive in their sales approach. Pricing is still being reviewed on a regular basis together with market and competitor information. The effect of Covid-19 on the business also brings a level of uncertainty to the short term results of the business until we can return to pre Covid-19 levels of turnover.
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ON A ROLL SANDWICH COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
The board monitors company performance using a range of indicators, some of the most significant of which are as follows:
This report was approved by the board on 18 December 2020
and signed on its behalf.
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ON A ROLL SANDWICH COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ON A ROLL SANDWICH COMPANY LIMITED
We have audited the financial statements of On a Roll Sandwich Company Limited (the 'company') for the year ended 31 January 2020, which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the director
's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material
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ON A ROLL SANDWICH COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ON A ROLL SANDWICH COMPANY LIMITED (CONTINUED)
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.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the director's responsibilities statement on page 1, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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ON A ROLL SANDWICH COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ON A ROLL SANDWICH COMPANY LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our auditors' report.
This report is made solely to the company's shareholders
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 shareholders those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's shareholders for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
TS24 0UX
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ON A ROLL SANDWICH COMPANY LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
REGISTERED NUMBER:
05994921
BALANCE SHEET
AS AT
31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
REGISTERED NUMBER:
05994921
BALANCE SHEET
(CONTINUED)
AS AT
31 JANUARY 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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ON A ROLL SANDWICH COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
The company is a private company limited by share capital and registered in England and Wales. The registered office address is:
The Pantry Barton Road Middlesbrough TS2 1RY
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies.
The director, having made due and careful enquiry, is of the opinion that the company has, with the support of the bank and invoice discounting arrangement, adequate working capital to execute its operations over the next 12 months. The director, therefore, has made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the director has continued to adopt the going concern basis of accounting in preparing the annual financial statements.
In making this assessment the director is aware of the global impact of Covid-19 and the expected downturn in the economy. More detail is provided in note 3 (judgements in applying accounting estimates and key sources of estimation uncertainty).
Revenue comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax.
Revenue is recognised when the company has transferred ownership of goods to the buyer and revenue can be measured reliably.
The company obtains finance in respect of trade debtors under an invoice discounting arrangement. This is regarded as a financing arrangement only, and the gross amount of the trade debtor is included in debtors with any advances received against these debts being included in other creditors. Interest and charges in respect of these arrangements are charged to the profit and loss on an accruals basis.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
2.
ACCOUNTING POLICIES (CONTINUED)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks of goods are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported.
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. This will include judgements in applying the most appropriate accounting policies. GOING CONCERN In preparing these financial statements the director has used the going concern basis of accounting. This is based on the best information available at the date of signature. As explained in the Director's report the global economy has been negatively affected by the impact of Covid-19. At this stage it is impossible to state the final impact this will have however it is expected to have a negative impact over the next 12 months as sales and profits are reduced. However the director is taking action to reduce costs and to seek new work to minimise the impact on the results. The company is taking goverment assistance in the form of Job Retention Scheme Grants and a CBILS loan of £1.5m to assist with cash flow, and with the cash funds available and the continued support of the bank and invoice discounting facility, the company is not forecast to have any cashflow issues. At this stage this is not expected to change the status of the company from a going concern and the financial statements therefore continue to be prepared on the going concern basis.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
12.
TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
14.
TANGIBLE FIXED ASSETS (CONTINUED)
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
Profit & loss account
The profit and loss account represents accumulated profits less dividends paid.
Included within other creditors is an amount of £1,239 (
1 February 2019: £299
) in relation to outstanding pension contributions.
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