REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Audited Financial Statements |
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for the Year Ended 31 July 2020 |
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for |
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CRYSTAL CLEAR GROUP LIMITED |
REGISTERED NUMBER:
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Strategic Report, |
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Report of the Directors and |
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Audited Financial Statements |
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for the Year Ended 31 July 2020 |
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for |
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CRYSTAL CLEAR GROUP LIMITED |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Contents of the Financial Statements |
for the Year Ended 31 July 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Cash Flow Statement | 13 |
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Notes to the Financial Statements | 14 |
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CRYSTAL CLEAR GROUP LIMITED |
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Company Information |
for the Year Ended 31 July 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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42 Lytton Road |
Barnet |
Hertfordshire |
EN5 5BY |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Strategic Report |
for the Year Ended 31 July 2020 |
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The directors present their strategic report for the year ended 31 July 2020. |
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REVIEW OF BUSINESS |
The results and the financial position for the year end were considered to be satisfactory by the directors and expect the present level of activity to be sustained for the foreseeable future. |
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FINANCIAL REVIEW |
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Turnover |
For the period compared to the previous year is down 26% on a year by year comparative. The Coronavirus pandemic declared in March 2020 and subsequent lockdown and closure of businesses adversely affected sales in the company's last trading quarter of 2020. |
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The decrease reflects the company's full year's trading results and the company's directors' continuous efforts to mitigate the ongoing effects of the Coronavirus Pandemic. |
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Profit after taxation |
The loss for the year ended before taxation was £540,228 ( Year 2019 profit: £203,624) |
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Shareholders' Funds |
As at 31 July 2020 these stood at -£58,562 (31 July 2019: £1,022,461) |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Strategic Report |
for the Year Ended 31 July 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Like any other business in the client's industry, the company is exposed to a variety of risks. These could range from the wider effects of the general economy and external competition to those more specific to the company, such as its own financial strength and size. The company's directors regularly review these risks and their potential impact on the company. |
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The company's directors monitor the company's performance carefully through the use of regular financial information and management reports. |
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Key risks and company's response to these risks are shown below. |
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1- Financial Risk Management |
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The company's financial instruments comprise of cash at bank, loan and Invoice Discounting facility at the company's disposal. The main purpose of these financial instruments is to raise adequate finance for the company's operations, together with management of working capital. |
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The main risk arising from the company's financial instruments is liquidity risk.It alleviates this risk by agreeing credit terms with its customers and suppliers. |
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3- Customer concentration risk |
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Fortunately for a business of its size, the company does not rely on a small number of customers for a large percentage of its turnover. The loss of a key customer will not have a detrimental impact on earnings. The business has a large number of active regular customers. |
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The company is focused on customer retention by supplying top rate products and service as well as obtaining new customers thus broadening the number of key customers. |
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4- Competitive pressure risk |
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The company operates in a highly competitive market environment and performance may suffer if there is a loss of competitiveness vis-a- vis its customers. |
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The company reviews the competitiveness of its services with its clients and customers in the market. |
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5-Credit risk |
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Default by customers on receivables could negatively affect the earnings. |
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Credit is assessed and monitored by the company and where risk is judged to be high, more stringent credit terms are implemented. |
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6- Loss of supply of critical products. |
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Loss of supply of critical products from key suppliers could affect the company's ability to provide the products to its customers. |
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Where possible, the company attempts to dual source all key products from multiple suppliers. The company also endeavours to maintain supply contracts with all key suppliers. |
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ON BEHALF OF THE BOARD: |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Report of the Directors |
for the Year Ended 31 July 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 July 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of manufacture and supply of windows, doors and conservatories. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 July 2020. |
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RESEARCH AND DEVELOPMENT |
During the year the directors have invested in to the development of technology software and build a platform for it's trade customers to use at point of sale for retail customers. The investment will enable customers to purchase windows and doors that once ordered will be sent directly to the factory for manufacture and production. |
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FUTURE DEVELOPMENTS |
The directors intend to maintain and invest in the management policies, quality system and technology that have supported business growth to date and which will allow the company to be increasingly efficient. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2019 to the date of this report. |
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Other changes in directors holding office are as follows: |
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DONATIONS AND EXPENDITURE |
During the year donations totalling £5,900 were made to Variety Children's Charity. |
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DISCLOSURE IN THE STRATEGIC REPORT |
The directors have taken advantage of the reporting requirements and have disclosed the principal risks and uncertainties and their mitigation within the strategic report rather then the directors report. |
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DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 '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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Report of the Directors |
for the Year Ended 31 July 2020 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Crystal Clear Group Limited |
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Opinion |
We have audited the financial statements of Crystal Clear Group Limited (the 'company') for the year ended 31 July 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 July 2020 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Report of the Independent Auditors to the Members of |
Crystal Clear Group Limited |
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Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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42 Lytton Road |
Barnet |
Hertfordshire |
EN5 5BY |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Income Statement |
for the Year Ended 31 July 2020 |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING (LOSS)/PROFIT | 5 | ( |
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Interest payable and similar expenses | 6 |
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(LOSS)/PROFIT BEFORE TAXATION | ( |
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Tax on (loss)/profit | 7 | ( |
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(LOSS)/PROFIT FOR THE FINANCIAL
YEAR |
( |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Other Comprehensive Income |
for the Year Ended 31 July 2020 |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
Notes | £ | £ |
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(LOSS)/PROFIT FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
( |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Balance Sheet |
31 July 2020 |
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31.7.20 | 31.7.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS/(LIABILITIES) |
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TOTAL ASSETS LESS CURRENT
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CREDITORS |
Amounts falling due after more than one
year |
14 |
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PROVISIONS FOR LIABILITIES | 18 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Revaluation reserve | 20 |
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Retained earnings | 20 | ( |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Statement of Changes in Equity |
for the Year Ended 31 July 2020 |
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Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 May 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 July 2019 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 July 2020 |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Cash Flow Statement |
for the Year Ended 31 July 2020 |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Interest element of hire purchase payments
paid |
( |
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( |
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Tax paid | ( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
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Purchase of tangible fixed assets |
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( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
New bank loans in year |
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Bank loan repayments in year | ( |
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Capital repayments in year | ( |
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Amount introduced by directors | 107,858 | 1,334,794 |
Equity dividends paid |
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Net cash from financing activities |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning
of year |
2 |
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(66,078 |
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Cash and cash equivalents at end of
year |
2 |
571,508 |
100,284 |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Cash Flow Statement |
for the Year Ended 31 July 2020 |
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1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
(Loss)/profit before taxation | ( |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Pension provision | - | (350,000 | ) |
Other provisions | (140,000 | ) | (210,000 | ) |
Finance costs | 139,412 | 72,244 |
41,806 | 420,642 |
Increase in stocks | ( |
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Increase in trade and other debtors | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 July 2020 |
31.7.20 | 1.8.19 |
£ | £ |
Cash and cash equivalents | 571,508 | 100,284 |
Period ended 31 July 2019 |
31.7.19 | 1.5.18 |
£ | £ |
Cash and cash equivalents | 100,284 | 9,196 |
Bank overdrafts |
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( |
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100,284 | (66,078 | ) |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.8.19 | Cash flow | At 31.7.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 100,284 | 471,224 | 571,508 |
100,284 |
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571,508 |
Debt |
Finance leases | (111,767 | ) | 85,946 | (25,821 | ) |
Debts falling due within 1 year | (1,321,746 | ) | 654,541 | (667,205 | ) |
Debts falling due after 1 year | (2,813,838 | ) | (1,427,655 | ) | (4,241,493 | ) |
(4,247,351 | ) | (687,168 | ) | (4,934,519 | ) |
Total | (4,147,067 | ) | (215,944 | ) | (4,363,011 | ) |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements |
for the Year Ended 31 July 2020 |
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1. | STATUTORY INFORMATION |
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Crystal Clear Group Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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Accounts are presented to the nearest whole pound. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The accounts have been prepared on a going concern basis, on the understanding that the directors and shareholders will continue to financially support the company as there are sufficient external funds available. |
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Significant judgements and estimates |
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. |
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Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
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a) Useful economic lives of tangible assets |
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The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
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b) Impairment of intangible assets and goodwill |
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Annually, the company considers whether intangible assets and/or goodwill are impaired. |
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c) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
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Turnover |
Turnover, stated net of value added tax, represents amounts invoiced to third parties. The company's turnover is derived from its principal activity carried out in the UK. |
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Income is recognised as stock is delivered to or collected by customers. |
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Goodwill |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Freehold property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Stocks |
These are valued on a first in first out basis at the lower of cost and net realisable value. In respect of work in progress and finished goods, cost include overheads, transportation and labour costs, where appropriate. Loose tools have been included in stock, where in the opinion of the directors, it is reasonable to do so. |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
1. Financial assets |
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Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
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If there is 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. |
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Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
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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. |
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Financial assets are derecognised when; |
(a) the contractual rights to the cash flows from the asset expire or are settled, or |
(b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or |
(c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
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2. Financial liabilities |
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
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Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.. |
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Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Provisions |
Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation taking into account the risks and uncertainties surrounding the obligation. |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Covid-19 going concern |
The balance sheet shows a net current liabilities position as at 31 July 2020. |
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The closure of the factory, in April 2020 resulted in the majority of the staff being furloughed, during this time review of the production process was undertaken, with debts collected has resulted in a reduction in short term finance. |
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Since the year end the directors have been working hard to improve the business performance and following receipt of the necessary bank financial support in June 2020, has enabled the business to meet the working capital requirements necessary to fulfil new contract orders and associated sales and profitability. |
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Since the restart of production in June 2020 has seen an increase in orders with the factory now fully operational to meet the demand. |
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Based on the continued business development and based on current production levels as at April 2021, there are no 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 these financial statements are authorised for issue. Accordingly, the going concern basis of accounting in the preparation of these financial statements is appropriate. |
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Significant judgement was not required to reach this conclusion. |
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3. | TURNOVER |
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Turnover has not been analysed by geographical market or class of business amounts arising outside the United Kingdom are not significant and the company relates entirely to windows and doors in relation to home improvement products. |
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4. | EMPLOYEES AND DIRECTORS |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
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Production | 41 | 41 |
Distribution | 24 | 24 |
Administration | 20 | 20 |
Directors | 4 | 4 |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Directors' remuneration |
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5. | OPERATING (LOSS)/PROFIT |
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The operating loss (2019 - operating profit) is stated after charging/(crediting): |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Hire of plant and machinery |
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Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts |
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Profit on disposal of fixed assets | ( |
) |
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Goodwill amortisation |
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Development costs amortisation |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Bank loan interest |
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Hire purchase |
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7. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
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Deferred tax |
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Tax on (loss)/profit | ( |
) |
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UK corporation tax has been charged at 19% . |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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7. | TAXATION - continued |
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Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
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Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
(Loss)/profit before tax | ( |
) |
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(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
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( |
) |
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Effects of: |
Depreciation in excess of capital allowances |
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Utilisation of tax losses | ( |
) |
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Adjustments to tax charge in respect of previous periods |
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Deferred tax | - | 52,787 |
Total tax (credit)/charge | (48,063 | ) | 110,493 |
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8. | DIVIDENDS |
Period |
1.5.18 |
Year Ended | to |
31.7.20 | 31.7.19 |
£ | £ |
A Class Ordinary shares of £1 each |
Interim |
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B Class Ordinary shares of £1 each |
Interim |
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9. | INTANGIBLE FIXED ASSETS |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2019 |
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Additions |
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At 31 July 2020 |
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AMORTISATION |
At 1 August 2019 |
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Amortisation for year |
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At 31 July 2020 |
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NET BOOK VALUE |
At 31 July 2020 |
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At 31 July 2019 |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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9. | INTANGIBLE FIXED ASSETS - continued |
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Cost or valuation at 31 July 2020 is represented by: |
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Development |
Goodwill | costs | Totals |
£ | £ | £ |
Valuation in 2015 | 975,000 | - | 975,000 |
Valuation in 2016 | - | 310,862 | 310,862 |
Valuation in 2017 | 1,787,333 | 536,622 | 2,323,955 |
Valuation in 2018 | (500,000 | ) | 609,371 | 109,371 |
Valuation in 2019 | - | 605,242 | 605,242 |
Valuation in 2020 | - | 230,000 | 230,000 |
2,262,333 | 2,292,097 | 4,554,430 |
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10. | TANGIBLE FIXED ASSETS |
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Included in cost or valuation of land and buildings is freehold land of £2,007,993 (2019 - £2,007,993) |
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Cost or valuation at 31 July 2020 is represented by: |
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Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2016 | 2,007,993 | 586,030 | 101,367 | 343,755 | 3,039,145 |
Valuation in 2017 | - | 157,553 | 12,015 | 34,456 | 204,024 |
Valuation in 2018 | - | 164,817 | 17,052 | 114,755 | 296,624 |
Valuation in 2019 | - | 33,865 | 18,161 | - | 52,026 |
Valuation in 2020 | - | - | - | (135,294 | ) | (135,294 | ) |
2,007,993 | 942,265 | 148,595 | 357,672 | 3,456,525 |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 August 2019 |
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Disposals |
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( |
) | ( |
) |
At 31 July 2020 |
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DEPRECIATION |
At 1 August 2019 |
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Charge for year |
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Eliminated on disposal |
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( |
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) |
At 31 July 2020 |
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NET BOOK VALUE |
At 31 July 2020 |
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At 31 July 2019 |
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11. | STOCKS |
31.7.20 | 31.7.19 |
£ | £ |
Stocks |
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CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.20 | 31.7.19 |
£ | £ |
Trade debtors |
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Prepayments and accrued income |
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13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.20 | 31.7.19 |
£ | £ |
Bank loans and overdrafts (see note 15) |
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Other loans (see note 15) |
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Hire purchase contracts (see note 16) |
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Trade creditors |
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Tax | ( |
) |
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Social security and other taxes |
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VAT | 338,275 | 303,999 |
Other creditors |
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Directors' current accounts | 113,638 | 5,780 |
Accruals and deferred income |
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14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.7.20 | 31.7.19 |
£ | £ |
Bank loans (see note 15) |
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Other loans (see note 15) |
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Hire purchase contracts (see note 16) |
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15. | LOANS |
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An analysis of the maturity of loans is given below: |
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31.7.20 | 31.7.19 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
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Other loans |
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Amounts falling due between one and two years: |
Bank loans - 1-2 years |
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Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
Other loans more 5yrs non-inst | 3,479,683 | 2,000,000 |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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15. | LOANS - continued |
31.7.20 | 31.7.19 |
£ | £ |
Repayable by instalments |
Bank loans more 5 yr by instal | 471,702 | 504,014 |
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16. | LEASING AGREEMENTS |
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Minimum lease payments under hire purchase fall due as follows: |
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31.7.20 | 31.7.19 |
£ | £ |
Gross obligations repayable: |
Within one year |
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Between one and five years |
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Finance charges repayable: |
Within one year |
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Between one and five years |
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Net obligations repayable: |
Within one year |
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Between one and five years |
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17. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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31.7.20 | 31.7.19 |
£ | £ |
Bank loans |
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The Mortgage loan amount outstanding of £794,417 is secured by a first legal charge of the company's freehold land and buildings. |
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The loan is repayable monthly at an annual interest rate of 2.85% and the term remaining from the initial loan is 10 years. |
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18. | PROVISIONS FOR LIABILITIES |
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The exceptional pension provision is in relation to the an agreed provision for employee reward. |
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19. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.7.20 | 31.7.19 |
value: | £ | £ |
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A Class Ordinary | £1 | 430,000 | 430,000 |
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B Class Ordinary | £1 | 20,000 | 20,000 |
450,000 | 450,000 |
CRYSTAL CLEAR GROUP LIMITED (REGISTERED NUMBER: 06034544) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2020 |
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20. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
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At 1 August 2019 |
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572,461 |
Deficit for the year | ( |
) | ( |
) |
At 31 July 2020 | ( |
) |
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80,295 |
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21. | RELATED PARTY DISCLOSURES |
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22. | AUDITOR LIABILITY LIMITATION AGREEMENT |
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The directors have agreed to a limited liability arrangement with the auditors, the principle terms being that the liability is restricted to five times the annual audit fee. |
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23. | POST BALANCE SHEET EVENTS |
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In March 2020, during the year, the UK government declared COVID-19 as a pandemic. During the year and after the year end the pandemic has not had a substantial effect on the company's operations. The Directors further considerations of the impact of the pandemic are detailed in the Report of the Directors. |
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24. | ULTIMATE CONTROLLING PARTY |
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The controlling party is Mr M J Randall. |