Registered number:
FOR THE YEAR ENDED 31 JANUARY 2018
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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 2018
The director presents his report and the financial statements for the year ended 31 January 2018.
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 judgments 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:
The director and management consider the company to be in a strong financial position, with ample reserves to support continued trade, and increased growth.
Expansion plans are continuing and options are being considered for increasing the storage in either an extension to the pantry or converting unit 3 to a warehouse facility. A decision will be made before the end of 2018. Either option will reduce the cost of ‘off site’ storage as well as reducing vehicle fuel bills and emissions into the environment from unnecessary transportation.
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ON A ROLL SANDWICH COMPANY LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
Research and development projects in the year included:
Development of sandwich packaging with improved sealing for freshness and prevention of tampering/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
director at the time when this director's report is approved has confirmed that:
Since the year end 2 customers have gone into administration and this is explained within the strategic report.
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 2018
On a Roll had an interesting year to 31 January 2018 where production volumes nearly doubled but unfortunately the year ended with 2 customers going into administration – one prior to 31 January and one during February 2018.
The year’s financial results appeared better than expected however although sales increased by 70% the after tax profit remained only slightly up on 31 January 2017. The new factory has coped really well with the increase in volume for the year ending 31 January 2018 as units produced nearly doubled from 8.8 million for the year ending 31 January 2017 to 16.6 million. The bulk of the new work was low margin product – a totally different type of work than OAR have been used to. The year was spent increasing and stabilising the management structure and overhead costs. Meeting schedules were set up and adhered to more thoroughly and managers became more involved in the day to day running of the business and controlling their teams with more empowerment and responsibility. This is planned to increase through 2018-2019 as the business expects to continue to grow even though there have been quite large setbacks.
Food to go is a massively evolving and changing business and as such OAR have invested heavily into new packaging, NPD personnel as well as considering more options for environmentally friendly packaging and factory procedures.
Brexit and food inflation have also still been the biggest concern for OAR to the end of this year and the KPI results for purchases as a percentage of sales is proof that costs are going up much faster than the prices that can be charged to customers. It has proved difficult to put customer prices up as the market is really volatile and competitors are aggressive in their sales approach. Pricing is still being reviewed on a regular basis together with market information.
The board monitors company performance using a range of indicators, some of the most significant of which are as follows:
Key Performance Indicators to y/ending 31 January 2018 2017 2016 Sales Growth 72.8% 26.2% 0.4% Target for purchases as % of Sales – 50% 52.6% 49.3% 49% Net profit target % - 10% 6.6% 6.5% 3.9% Direct employee costs as a % of sales, target – 20% 19.5% 21% 20%
This report was approved by the board on 29 October 2018
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 2018, 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:
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the director
's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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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
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ON A ROLL SANDWICH COMPANY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ON A ROLL SANDWICH COMPANY LIMITED (CONTINUED)
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.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
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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
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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, 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 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, 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
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 2018
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ON A ROLL SANDWICH COMPANY LIMITED
REGISTERED NUMBER:
05994921
BALANCE SHEET
AS AT
31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
REGISTERED NUMBER:
05994921
BALANCE SHEET
(CONTINUED)
AS AT
31 JANUARY 2018
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 2018
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ON A ROLL SANDWICH COMPANY LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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.
No material uncertainties that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the director.
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.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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 the profit or loss.
Investments in unlisted company shares, where market value cannot be reliably determined, are stated at historic cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the statement of income and retained earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of income and retained earnings in the same period as the related expenditure.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
2.
ACCOUNTING POLICIES (CONTINUED)
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid.
Rentals paid under operating leases are charged to the statement of income and retained earnings on a straight line basis over the lease term.
Defined contribution pension plan
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
2.
ACCOUNTING POLICIES (CONTINUED)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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 debtors 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 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
9.
TAXATION (CONTINUED)
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
10.
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 2018
13.
DEBTORS (CONTINUED)
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
The net obligation under finance leases and hire purchase contracts are secured upon the assets to which they relate.
As at 31 January 2018 £716,200 (1 February 2017: £468,122) was included in other creditors and relates to balances outstanding in respect of invoice discounting. This is secured on the trade debtors to which it relates. The bank loans are secured by a charge over Unit 2, Easter Park and Unit 3, Easter Park.
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
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ON A ROLL SANDWICH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2018
The total amount of commitments guarantees and contingencies is £640,000.
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