Company Registration No. 06406273 (England and Wales)
ENABLELINK LIMITED
ANNUAL REPORT AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
ENABLELINK LIMITED
COMPANY INFORMATION
Directors
R C Millard
J Long
Secretary
R C Millard
Company number
06406273
Registered office
The Pitch
Budden Road
Coseley
West Midlands
WV14 8JN
Auditor
Bache Brown & Co Limited
Swinford House
Albion Street
Brierley Hill
West Midlands
DY5 3EE
Business address
The Pitch
Budden Road
Coseley
West Midlands
WV14 8JN
Bankers
National Westminster Bank
267 Castle Street,
Dudley,
West Midlands,
DY1 1YY
ENABLELINK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 23
ENABLELINK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the
shortened accounting
Year ended 31 December 2019.
Fair review of the business
The principal activity of the company continued to be that of recycling of scrap waste and metal. No fundamental changes have occurred in the business during the period.
Principal risks and uncertainties
The company has continued to perform well in the volatile scrap market. Turnover has continued to expand during the period.
Included in the company's turnover for the year are exports of £9.6M and the directors have considered the risks and uncertainties associated with Brexit. Currently, the directors are unaware of any issues which would severely impact upon the company being able to continue operations.
Covid-19 risks and uncertainties
Since the year end the impact of Covid-19 has seen a reduction in turnover for the six months to 30 June 2020 of 22% compared to the same period last year. However, due to a combination of increases in gross profit margins, together with cost reductions, the net profit for the period is showing an increase. At the date of signing the accounts the directors consider that the company is well placed to deal with the ongoing impact of Covid-19 and any effect it may have on the company's financial resources or ability to continue operations.
Development and performance
The company has continued to invest in new plant and equipment during the period and at the period end date, the company was committed to further capital expenditure of £396,000.
Key performance indicators
The company has increased it's turnover and at the same time kept gross profit margins at approximately the same level at 12%.
By increasing turnover and maintaining gross margins, the company has managed to maintain profits at a healthy level and has achieved a profit before tax and shareholder dividends of £1.07m (2018 - £1.70m)
The shareholders funds at the balance sheet date amounted to £6.20m an increase of 22% from 2018, continuing the company's policy for retaining profits to fund future growth.
R C Millard
Director
9 September 2020
ENABLELINK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors present their annual report and financial statements for the Year ended 31 December 2019.
Principal activities
The principal activity of the company continued to be that of recycling of waste metal and scrap.
Directors
The directors who held office during the Year and up to the date of signature of the financial statements were as follows:
R C Millard
J Long
S Skitt
(Appointed 1 July 2019 and resigned 25 February 2020)
Results and dividends
The results for the Year are set out on page 6.
Interim ordinary dividends have been paid amounting to £223,400.
Future developments
The directors consider that the company is well placed to continue on a profitable basis.
Auditor
In accordance with the company's articles, a resolution proposing that Bache Brown & Co Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
ENABLELINK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
On behalf of the board
R C Millard
Director
9 September 2020
ENABLELINK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ENABLELINK LIMITED
- 4 -
Opinion
We have audited the financial statements of Enablelink Limited (the 'company') for the Year ended 31 December 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 FRS 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:
-
give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the Year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
Auditor's
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.
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial Year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ENABLELINK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ENABLELINK LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 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 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.
Auditor's 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 an auditor’s 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: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company's member 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 member those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member for our audit work, for this report, or for the opinions we have formed.
Stephen Dunn (Senior Statutory Auditor)
for and on behalf of Bache Brown & Co Limited
9 September 2020
Chartered Certified Accountants
Statutory Auditors
Swinford House
Albion Street
Brierley Hill
West Midlands
DY5 3EE
ENABLELINK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
Year
Period
ended
ended
31 December
31 December
2019
2018
Notes
£
£
Turnover
3
50,001,361
36,780,892
Cost of sales
(43,971,258)
(32,204,253)
Gross profit
6,030,103
4,576,639
Administrative expenses
(4,735,221)
(2,718,104)
Other operating income
20,070
7,781
Operating profit
4
1,314,952
1,866,316
Interest payable and similar expenses
8
(246,616)
(166,105)
Profit before taxation
1,068,336
1,700,211
Tax on profit
9
275,199
(326,277)
Profit for the financial Year
1,343,535
1,373,934
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ENABLELINK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
8,135,852
6,891,913
Current assets
Stocks
12
1,425,000
1,201,750
Debtors
13
9,256,252
9,262,132
Cash at bank and in hand
1,340
88,584
10,682,592
10,552,466
Creditors: amounts falling due within one year
14
(10,907,622)
(11,302,584)
Net current liabilities
(225,030)
(750,118)
Total assets less current liabilities
7,910,822
6,141,795
Creditors: amounts falling due after more than one year
15
(1,246,562)
(670,056)
Provisions for liabilities
18
(455,943)
(383,557)
Net assets
6,208,317
5,088,182
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
6,208,315
5,088,180
Total equity
6,208,317
5,088,182
The financial statements were approved by the board of directors and authorised for issue on 9 September 2020 and are signed on its behalf by:
R C Millard
Director
Company Registration No. 06406273
ENABLELINK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2018
2
3,794,246
3,794,248
Period ended 31 December 2018:
Profit and total comprehensive income for the period
-
1,373,934
1,373,934
Dividends
10
-
(80,000)
(80,000)
Balance at 31 December 2018
2
5,088,180
5,088,182
Period ended 31 December 2019:
Profit and total comprehensive income for the period
-
1,343,535
1,343,535
Dividends
10
-
(223,400)
(223,400)
Balance at 31 December 2019
2
6,208,315
6,208,317
ENABLELINK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
3,685,013
1,060,963
Interest paid
(246,616)
(166,105)
Income taxes paid
(399,622)
-
Net cash inflow from operating activities
3,038,775
894,858
Investing activities
Purchase of tangible fixed assets
(3,158,263)
(715,496)
Proceeds on disposal of tangible fixed assets
829,667
98,277
Net cash used in investing activities
(2,328,596)
(617,219)
Financing activities
Proceeds / (repayment) other borrowings
(250,653)
160,225
Payment of finance leases obligations
(344,068)
(444,530)
Dividends paid
(223,400)
(80,000)
Net cash used in financing activities
(818,121)
(364,305)
Net decrease in cash and cash equivalents
(107,942)
(86,666)
Cash and cash equivalents at beginning of Year
87,795
174,461
Cash and cash equivalents at end of Year
(20,147)
87,795
Relating to:
Cash at bank and in hand
1,340
88,584
Bank overdrafts included in creditors payable within one year
(21,487)
(789)
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 10 -
1
Accounting policies
Company information
Enablelink Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Pitch, Budden Road, Coseley, West Midlands, WV14 8JN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The financial statements are presented for the year ended 31 December 2019, whilst the prior period is for the eight months ended 31 December 2018. As the accounting periods differ in length the comparative figures presented in the financial statement (including the related notes) are not entirely comparable.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold improvements
20.0% straight line basis.
Plant and machinery
12.5% reducing balance basis
Fixtures, fittings & equipment
10.0% reducing balance / 25.0% straight line basis.
Motor vehicles
25.0% reducing balance basis.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 11 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 12 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other 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. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Scrap metal
50,001,361
36,780,892
2019
2018
£
£
Turnover analysed by geographical market
UK
40,388,295
23,199,569
Overseas
9,613,066
13,581,323
50,001,361
36,780,892
4
Operating profit
2019
2018
Operating profit for the period is stated after charging:
£
£
Depreciation of owned tangible fixed assets
861,300
488,548
Depreciation of tangible fixed assets held under finance leases
355,764
234,340
Loss on disposal of tangible fixed assets
270,593
18,972
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
8,000
For other services
All other non-audit services
19,900
9,950
6
Employees
The average monthly number of persons (including directors) employed by the company during the Year was:
2019
2018
Number
Number
Directors
3
2
Admin
8
9
Production
32
30
Total
43
41
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
6
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
2,065,688
1,227,279
Social security costs
234,574
141,430
Pension costs
35,447
18,103
2,335,709
1,386,812
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
477,083
263,500
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
221,629
165,328
8
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
73
11
Interest on invoice finance arrangements
179,766
117,320
179,839
117,331
Other finance costs:
Interest on finance leases and hire purchase contracts
63,438
48,702
Other interest
3,339
72
246,616
166,105
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
-
323,285
Adjustments for prior periods research and development tax credits
(347,585)
-
Total current tax
(347,585)
323,285
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
9
Taxation
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
72,386
2,992
Total tax (credit)/charge
(275,199)
326,277
The actual (credit)/charge for the Year can be reconciled to the expected charge for the Year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,068,336
1,700,211
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
202,984
323,040
Tax effect of expenses that are not deductible in determining taxable profit
545
13
Depreciation on assets not qualifying for tax allowances
10,276
3,224
Research and development tax credit
(489,004)
-
Taxation (credit)/charge for the period
(275,199)
326,277
10
Dividends
2019
2018
£
£
Interim paid
223,400
80,000
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 18 -
11
Tangible fixed assets
Land and buildings Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2019
366,047
7,260,136
326,950
1,732,403
9,685,536
Additions
106,155
2,964,139
21,986
468,983
3,561,263
Disposals
-
(1,497,997)
(3,921)
(405,928)
(1,907,846)
At 31 December 2019
472,202
8,726,278
345,015
1,795,458
11,338,953
Depreciation and impairment
At 1 January 2019
156,490
1,925,936
219,491
491,707
2,793,624
Depreciation charged in the Year
59,829
802,736
36,493
318,005
1,217,063
Eliminated in respect of disposals
-
(648,974)
(2,068)
(156,544)
(807,586)
At 31 December 2019
216,319
2,079,698
253,916
653,168
3,203,101
Carrying amount
At 31 December 2019
255,883
6,646,580
91,099
1,142,290
8,135,852
At 31 December 2018
209,557
5,334,201
107,459
1,240,696
6,891,913
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
2,333,600
2,092,379
Motor vehicles
213,871
235,391
2,547,471
2,327,770
12
Stocks
2019
2018
£
£
Finished goods and goods for resale
1,425,000
1,201,750
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 19 -
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
8,338,135
8,258,698
Other debtors
730,357
822,154
Prepayments and accrued income
187,760
181,280
9,256,252
9,262,132
14
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Bank loans and overdrafts
16
21,487
789
Obligations under finance leases
17
444,575
512,149
Other borrowings
16
6,442,505
6,693,158
Trade creditors
3,754,040
3,034,899
Corporation tax
-
622,522
Other taxation and social security
52,692
58,182
Other creditors
26,458
317,685
Accruals and deferred income
165,865
63,200
10,907,622
11,302,584
15
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Obligations under finance leases
17
796,562
670,056
Trade creditors
450,000
-
1,246,562
670,056
16
Loans and overdrafts
2019
2018
£
£
Bank overdrafts
21,487
789
Other loans
6,442,505
6,693,158
6,463,992
6,693,947
Payable within one year
6,463,992
6,693,947
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
16
Loans and overdrafts
(Continued)
- 20 -
The other loans are secured on trade debtors.
The bank overdraft and bank loan are secured by a bank debenture over all assets of the company dated 7 December 2009.
17
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
444,575
512,149
In two to five years
796,562
670,056
1,241,137
1,182,205
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2.17 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Included in finance lease obligation is £532,433 which is secured by a debenture over the company's assets.
18
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
19
455,943
383,557
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Advances capital allowances
455,943
383,557
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
19
Deferred taxation
(Continued)
- 21 -
2019
Movements in the Year:
£
Liability at 1 January 2019
383,557
Charge to profit or loss
72,386
Liability at 31 December 2019
455,943
The deferred tax liability set out above is expected to reverse within twelve months is (£142,666) and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,447
18,103
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
22
Operating lease commitments
Lessor
The operating leases represent
a
lease
of
a vehicle t
o
a
third part
y
. The lease
is
negotiated over terms of
3.5
years
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2019
2018
£
£
Within one year
14,450
14,450
Between two and five years
21,117
35,567
35,567
50,017
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 22 -
23
Capital commitments
At the balance sheet date the company has entered in to an agreement to purchase plant for £396,000.
24
Related party transactions
Transactions with related parties
During the period the company traded on a commercial basis with the following business which the directors family have a material interest. Costs in the accounts for the period include £420,300 to J D Services for rent and plant hire and £26,564 to JML Haulage Limited for transport.
Included in debtors is £96,000 owed by J D Services in respect of a rent deposit and £350,000 owed by JD Services (Plant) Limited at the balance sheet date.
25
Directors' transactions
Dividends totalling £223,400 (2018 - £80,000) were paid in the Year in respect of shares held by the company's directors.
The overdrawn director loan balance of £226,713 as at 31 December 2018 has been fully repaid during the year.
26
Ultimate controlling party
The ultimate controlling party is R C Millard who is a director and owns 100% of the issued share capital.
27
Cash generated from operations
2019
2018
£
£
Profit for the Year after tax
1,343,535
1,373,934
Adjustments for:
Taxation (credited)/charged
(275,199)
326,277
Finance costs
246,616
166,105
Loss on disposal of tangible fixed assets
270,593
18,972
Depreciation and impairment of tangible fixed assets
1,217,064
722,888
Movements in working capital:
(Increase)/decrease in stocks
(223,250)
156,500
(Increase) in debtors
(89,204)
(198,385)
Increase/(decrease) in creditors
1,194,858
(1,505,328)
Cash generated from operations
3,685,013
1,060,963
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
28
Analysis of changes in net debt
1 January 2019
Cash flows
New finance leases
31 December 2019
£
£
£
£
Cash at bank and in hand
88,584
(87,244)
-
1,340
Bank overdrafts
(789)
(20,698)
-
(21,487)
87,795
(107,942)
-
(20,147)
Borrowings excluding overdrafts
(6,693,158)
250,653
-
(6,442,505)
Obligations under finance leases
(1,182,205)
344,068
(403,000)
(1,241,137)
(7,787,568)
486,779
(403,000)
(7,703,789)
2019-12-31
2019-01-01
false
CCH Software
CCH Accounts Production 2020.200
R C Millard
J Long
J Long
R C Millard
06406273
2019-01-01
2019-12-31
06406273
bus:CompanySecretaryDirector1
2019-01-01
2019-12-31
06406273
bus:Director3
2019-01-01
2019-12-31
06406273
bus:CompanySecretary1
2019-01-01
2019-12-31
06406273
bus:Director5
2019-01-01
2019-12-31
06406273
bus:Director1
2019-01-01
2019-12-31
06406273
bus:Director2
2019-01-01
2019-12-31
06406273
bus:RegisteredOffice
2019-01-01
2019-12-31
06406273
bus:Agent1
2019-01-01
2019-12-31
06406273
2019-12-31
06406273
2018-05-01
2018-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2018-05-01
2018-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2019-01-01
2019-12-31
06406273
2018-12-31
06406273
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2019-12-31
06406273
core:PlantMachinery
2019-12-31
06406273
core:FurnitureFittings
2019-12-31
06406273
core:MotorVehicles
2019-12-31
06406273
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2018-12-31
06406273
core:PlantMachinery
2018-12-31
06406273
core:FurnitureFittings
2018-12-31
06406273
core:MotorVehicles
2018-12-31
06406273
core:CurrentFinancialInstruments
core:WithinOneYear
2019-12-31
06406273
core:CurrentFinancialInstruments
core:WithinOneYear
2018-12-31
06406273
core:Non-currentFinancialInstruments
core:AfterOneYear
2019-12-31
06406273
core:Non-currentFinancialInstruments
core:AfterOneYear
2018-12-31
06406273
core:CurrentFinancialInstruments
2019-12-31
06406273
core:CurrentFinancialInstruments
2018-12-31
06406273
core:Non-currentFinancialInstruments
2019-12-31
06406273
core:Non-currentFinancialInstruments
2018-12-31
06406273
core:ShareCapital
2019-12-31
06406273
core:ShareCapital
2018-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2019-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2018-12-31
06406273
core:ShareCapital
2018-04-30
06406273
core:RetainedEarningsAccumulatedLosses
2018-04-30
06406273
2018-04-30
06406273
2018-12-31
06406273
core:WithinOneYear
2019-12-31
06406273
core:WithinOneYear
2018-12-31
06406273
core:LandBuildings
core:LongLeaseholdAssets
2019-01-01
2019-12-31
06406273
core:PlantMachinery
2019-01-01
2019-12-31
06406273
core:FurnitureFittings
2019-01-01
2019-12-31
06406273
core:MotorVehicles
2019-01-01
2019-12-31
06406273
core:OwnedAssets
2019-01-01
2019-12-31
06406273
core:OwnedAssets
2018-05-01
2018-12-31
06406273
core:LeasedAssets
2018-05-01
2018-12-31
06406273
core:UKTax
2018-05-01
2018-12-31
06406273
core:UKTax
2019-01-01
2019-12-31
06406273
1
2019-01-01
2019-12-31
06406273
1
2018-05-01
2018-12-31
06406273
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2018-12-31
06406273
core:PlantMachinery
2018-12-31
06406273
core:FurnitureFittings
2018-12-31
06406273
core:MotorVehicles
2018-12-31
06406273
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2019-01-01
2019-12-31
06406273
core:BetweenTwoFiveYears
2019-12-31
06406273
core:BetweenTwoFiveYears
2018-12-31
06406273
bus:PrivateLimitedCompanyLtd
2019-01-01
2019-12-31
06406273
bus:FRS102
2019-01-01
2019-12-31
06406273
bus:Audited
2019-01-01
2019-12-31
06406273
bus:FullAccounts
2019-01-01
2019-12-31
xbrli:pure
xbrli:shares
iso4217:GBP