Company Registration No. 06406273 (England and Wales)
ENABLELINK LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
ENABLELINK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present the strategic report for the
shortened accounting
Year ended 31 December 2020.
Section 172 Statement
Long term results
The directors have reviewed the company's strategy during the year and concluded that it remains appropriate to support the long term success of the company.
Interest of company's employees
Our employees are critical to the success of the Company and the directors are aware of their responsibility for ensuring that their decisions consider the interest of employees. This has been particularly apparent during the current period in respect of our response to the COVID pandemic
Our business relationships
The directors acknowledge the importance of developing the Company's business relationships with suppliers, customers and others. The COVID pandemic has meant that these relationships have had to be managed closely by the directors.
The community and the enviroment
The directors are aware of the impact the Company's operations on the community and the environment. As a result of which the directors are constantly seeking professional advice and assistance in this area
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 fallen slightly compared to the previous year.
Included in the company's turnover for the year are exports of £6.5m 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 Company has seen an expansion of growth and sales, together with improved profitability.
Development and performance
The company has managed to see only a slight reduction in turnover for the period and the directors are looking to develop the company by moving to new premises during the subsequent financial year.
Key performance indicators
The company's turnover has fallen by £1.4m however due to an increase in the gross profit margin and reduction in overheads the net profit before tax is £2.7m (2019 £1.07m)
The shareholders funds at the balance sheet date amounted to £8.5m an increase of 37% from 2019, continuing the company's policy for retaining profits to fund future growth.
R C Millard
Director
24 September 2021
ENABLELINK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
The directors present their annual report and financial statements for the Year ended 31 December 2020.
Principal activities
The principal activity of the company continued to be that of recycling of waste metal and scrap.
Results and dividends
The results for the Year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
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
(Resigned 25 February 2020)
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.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
ENABLELINK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
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.
On behalf of the board
R C Millard
Director
24 September 2021
ENABLELINK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ENABLELINK LIMITED
- 4 -
Opinion
We have audited the financial statements of Enablelink Limited (the 'company') for the Year ended 31 December 2020 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 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 2020 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 MEMBERS 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Approach to assessing the risks of misstatement due to irregularities, including fraud
We assessed the risk of material misstatement in respect of fraud by meeting with management to understand where it considered there was susceptibility to fraud.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant reporting frameworks which are likely to affect the company include FRS102 , the Companies Act 2006 and the relevant tax laws. In addition we determined that there were no significant laws and regulations which have a direct effect on the amounts and disclosures in the financial statements.
Audit response to risks identified
We considered the risk of fraud through management override of controls. We also considered how management bias may impact upon performance targets.
In response we performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness,evaluating the business rationale of any significant transactions outside the normal course of business,reviewing accounting estimates for management bias.
ENABLELINK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ENABLELINK LIMITED
- 6 -
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquires with management around actual and potential claims. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Stephen Dunn (Senior Statutory Auditor)
For and on behalf of Bache Brown & Co Limited
24 September 2021
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 2020
- 7 -
Year
Year
ended
ended
31 December
31 December
2020
2019
Notes
£
£
Turnover
3
48,525,004
50,001,361
Cost of sales
(41,541,196)
(43,971,258)
Gross profit
6,983,808
6,030,103
Administrative expenses
(4,280,324)
(4,735,221)
Other operating income
168,332
20,070
Operating profit
4
2,871,816
1,314,952
Interest payable and similar expenses
8
(203,309)
(246,616)
Profit before taxation
2,668,507
1,068,336
Tax on profit
9
(381,306)
275,199
Profit for the financial Year
2,287,201
1,343,535
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 2020
31 December 2020
- 8 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,398,124
8,135,852
Current assets
Stocks
12
1,513,500
1,425,000
Debtors
13
13,097,190
9,256,252
Cash at bank and in hand
1,410
1,340
14,612,100
10,682,592
Creditors: amounts falling due within one year
14
(12,260,246)
(10,907,622)
Net current assets/(liabilities)
2,351,854
(225,030)
Total assets less current liabilities
9,749,978
7,910,822
Creditors: amounts falling due after more than one year
15
(696,954)
(1,246,562)
Provisions for liabilities
Deferred tax liability
18
557,506
455,943
(557,506)
(455,943)
Net assets
8,495,518
6,208,317
Capital and reserves
Called up share capital
20
2
2
Profit and loss reserves
8,495,516
6,208,315
Total equity
8,495,518
6,208,317
The financial statements were approved by the board of directors and authorised for issue on 24 September 2021 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 2020
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2019
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
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
2,287,201
2,287,201
Balance at 31 December 2020
2
8,495,516
8,495,518
ENABLELINK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,053,875
3,685,013
Interest paid
(203,309)
(246,616)
Income taxes refunded/(paid)
124,685
(399,622)
Net cash inflow from operating activities
975,251
3,038,775
Investing activities
Purchase of tangible fixed assets
(723,569)
(3,158,263)
Proceeds on disposal of tangible fixed assets
660,725
829,667
Receipts arising from loans made
(135,680)
Net cash used in investing activities
(198,524)
(2,328,596)
Financing activities
Repayment of borrowings
(549,629)
(250,653)
Proceeds of new bank loans
400,000
Repayment of bank loans
(66,666)
Payment of finance leases obligations
(812,865)
(344,068)
Dividends paid
(223,400)
Net cash used in financing activities
(1,029,160)
(818,121)
Net decrease in cash and cash equivalents
(252,433)
(107,942)
Cash and cash equivalents at beginning of Year
(20,147)
87,795
Cash and cash equivalents at end of Year
(272,580)
(20,147)
Relating to:
Cash at bank and in hand
1,410
1,340
Bank overdrafts included in creditors payable within one year
(273,990)
(21,487)
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 11 -
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
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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is 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 2020
1
Accounting policies
(Continued)
- 12 -
1.5
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement 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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 2020
1
Accounting policies
(Continued)
- 13 -
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 2020
1
Accounting policies
(Continued)
- 14 -
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.
1.9
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.
1.10
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 2020
1
Accounting policies
(Continued)
- 15 -
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 16 -
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Scrap metal
48,525,004
50,001,361
2020
2019
£
£
Other significant revenue
Grants received
161,292
2020
2019
£
£
Turnover analysed by geographical market
UK
41,978,695
40,388,295
Overseas
6,546,309
9,613,066
48,525,004
50,001,361
4
Operating profit
2020
2019
Operating profit for the period is stated after charging/(crediting):
£
£
Research and development costs
502,614
572,547
Government grants
(161,292)
Depreciation of owned tangible fixed assets
894,179
861,300
Depreciation of tangible fixed assets held under finance leases
269,490
355,763
Loss on disposal of tangible fixed assets
192,248
270,593
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
5
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,750
8,000
For other services
All other non-audit services
33,050
19,900
6
Employees
The average monthly number of persons (including directors) employed by the company during the Year was:
2020
2019
Number
Number
Directors
2
3
Admin
6
8
Production
26
32
Total
34
43
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
1,795,561
2,065,688
Social security costs
212,422
234,574
Pension costs
28,700
35,447
2,036,683
2,335,709
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
616,082
477,083
Remuneration disclosed above include the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
530,170
321,629
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 18 -
8
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,348
73
Interest on invoice finance arrangements
141,114
179,766
143,462
179,839
Other finance costs:
Interest on finance leases and hire purchase contracts
58,962
63,438
Other interest
885
3,339
203,309
246,616
9
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
279,743
Adjustments for prior periods research and development tax credits
(347,585)
Total current tax
279,743
(347,585)
Deferred tax
Origination and reversal of timing differences
101,563
72,386
Total tax charge/(credit)
381,306
(275,199)
The actual charge/(credit) 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:
2020
2019
£
£
Profit before taxation
2,668,507
1,068,336
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
507,016
202,984
Tax effect of expenses that are not deductible in determining taxable profit
1,353
545
Tax effect of utilisation of tax losses not previously recognised
(19,103)
Depreciation on assets not qualifying for tax allowances
16,186
10,276
Research and development tax credit
(124,146)
(489,004)
Taxation charge/(credit) for the period
381,306
(275,199)
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 19 -
10
Dividends
2020
2019
£
£
Interim paid
223,400
11
Tangible fixed assets
Land and buildings Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2020
472,202
8,726,278
345,015
1,795,458
11,338,953
Additions
802,945
124
475,845
1,278,914
Disposals
(586,324)
(737,203)
(1,323,527)
At 31 December 2020
472,202
8,942,899
345,139
1,534,100
11,294,340
Depreciation and impairment
At 1 January 2020
216,319
2,079,698
253,916
653,168
3,203,101
Depreciation charged in the Year
67,488
855,057
25,164
215,960
1,163,669
Eliminated in respect of disposals
(220,608)
(249,946)
(470,554)
At 31 December 2020
283,807
2,714,147
279,080
619,182
3,896,216
Carrying amount
At 31 December 2020
188,395
6,228,752
66,059
914,918
7,398,124
At 31 December 2019
255,883
6,646,580
91,099
1,142,290
8,135,852
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2020
2019
£
£
Plant and machinery
1,985,431
2,333,600
Motor vehicles
213,871
1,985,431
2,547,471
12
Stocks
2020
2019
£
£
Finished goods and goods for resale
1,513,500
1,425,000
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 20 -
13
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
11,584,335
8,338,135
Corporation tax recoverable
124,685
Other debtors
1,255,264
605,672
Prepayments and accrued income
257,591
187,760
13,097,190
9,256,252
14
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Bank loans and overdrafts
16
540,657
21,487
Obligations under finance leases
17
353,330
444,575
Other borrowings
16
6,535,513
6,442,505
Trade creditors
3,942,671
3,754,040
Corporation tax
279,743
Other taxation and social security
212,073
52,692
Other creditors
297,559
26,458
Accruals and deferred income
98,700
165,865
12,260,246
10,907,622
15
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
16
66,667
Obligations under finance leases
17
630,287
796,562
Trade creditors
450,000
696,954
1,246,562
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 21 -
16
Loans and overdrafts
2020
2019
£
£
Bank loans
333,334
Bank overdrafts
273,990
21,487
Other loans
6,535,513
6,442,505
7,142,837
6,463,992
Payable within one year
7,076,170
6,463,992
Payable after one year
66,667
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
2020
2019
Future minimum lease payments due under finance leases:
£
£
Within one year
353,330
444,575
In two to five years
630,287
796,562
983,617
1,241,137
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 2.86 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 £383,440 which is secured by a debenture over the company's assets.
18
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
2020
2019
Balances:
£
£
Advances capital allowances
557,506
455,943
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
18
Deferred taxation
(Continued)
- 22 -
2020
Movements in the Year:
£
Liability at 1 January 2020
455,943
Charge to profit or loss
101,563
Liability at 31 December 2020
557,506
The amount of deferred tax liability set out above is expected to reverse within twelve months is £nil and relates to accelerated capital allowances that are expected to mature within the same period.
19
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,700
35,447
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.
20
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
21
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:
2020
2019
£
£
Within one year
14,450
Between two and five years
21,117
35,567
22
Related party transactions
Transactions with related parties
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
22
Related party transactions
(Continued)
- 23 -
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 £184,000 to J D Services for rent, £276,480 to JD Services (Plant) Limited for plant hire, £351,702 to JML Haulage Limited for transport, and £2,404,718 to MT Transport Limited for transport.
23
Directors' transactions
Dividends totalling £0 (2019 - £223,400) were paid in the Year in respect of shares held by the company's directors.
As at 31 December 2020, there is an overdrawn director loan balance of £778,317.
24
Ultimate controlling party
The ultimate controlling party is R C Millard who is a director and owns 100% of the issued share capital.
25
Cash generated from operations
2020
2019
£
£
Profit for the Year after tax
2,287,201
1,343,535
Adjustments for:
Taxation charged/(credited)
381,306
(275,199)
Finance costs
203,309
246,616
Loss on disposal of tangible fixed assets
192,248
270,593
Depreciation and impairment of tangible fixed assets
1,163,669
1,217,064
Movements in working capital:
Increase in stocks
(88,500)
(223,250)
(Increase)/decrease in debtors
(3,187,306)
130,565
Increase in creditors
101,948
975,089
Cash generated from operations
1,053,875
3,685,013
ENABLELINK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 24 -
26
Analysis of changes in net debt
1 January 2020
Cash flows
New finance leases
31 December 2020
£
£
£
£
Cash at bank and in hand
1,340
70
-
1,410
Bank overdrafts
(21,487)
(252,503)
-
(273,990)
(20,147)
(252,433)
(272,580)
Borrowings excluding overdrafts
(6,442,505)
(426,342)
-
(6,868,847)
Obligations under finance leases
(1,241,137)
812,865
(555,345)
(983,617)
(7,703,789)
134,090
(555,345)
(8,125,044)
2020-12-31
2020-01-01
false
CCH Software
CCH Accounts Production 2021.111
R C Millard
J Long
J Long
R C Millard
06406273
2020-01-01
2020-12-31
06406273
bus:CompanySecretaryDirector1
2020-01-01
2020-12-31
06406273
bus:Director3
2020-01-01
2020-12-31
06406273
bus:CompanySecretary1
2020-01-01
2020-12-31
06406273
bus:Director5
2020-01-01
2020-12-31
06406273
bus:Director1
2020-01-01
2020-12-31
06406273
bus:Director2
2020-01-01
2020-12-31
06406273
bus:RegisteredOffice
2020-01-01
2020-12-31
06406273
bus:Agent1
2020-01-01
2020-12-31
06406273
2020-12-31
06406273
2019-01-01
2019-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2019-01-01
2019-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2020-01-01
2020-12-31
06406273
2019-12-31
06406273
core:LandBuildings
core:LeasedAssetsHeldAsLessee
2020-12-31
06406273
core:PlantMachinery
2020-12-31
06406273
core:FurnitureFittings
2020-12-31
06406273
core:MotorVehicles
2020-12-31
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:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
06406273
core:CurrentFinancialInstruments
core:WithinOneYear
2019-12-31
06406273
core:Non-currentFinancialInstruments
core:AfterOneYear
2020-12-31
06406273
core:Non-currentFinancialInstruments
core:AfterOneYear
2019-12-31
06406273
core:CurrentFinancialInstruments
2020-12-31
06406273
core:CurrentFinancialInstruments
2019-12-31
06406273
core:Non-currentFinancialInstruments
2020-12-31
06406273
core:Non-currentFinancialInstruments
2019-12-31
06406273
core:ShareCapital
2020-12-31
06406273
core:ShareCapital
2019-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2020-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2019-12-31
06406273
core:ShareCapital
2018-12-31
06406273
core:RetainedEarningsAccumulatedLosses
2018-12-31
06406273
2018-12-31
06406273
1
2020-01-01
2020-12-31
06406273
1
2019-01-01
2019-12-31
06406273
2
2020-01-01
2020-12-31
06406273
2
2019-01-01
2019-12-31
06406273
2019-12-31
06406273
core:WithinOneYear
2020-12-31
06406273
core:WithinOneYear
2019-12-31
06406273
core:LandBuildings
core:LongLeaseholdAssets
2020-01-01
2020-12-31
06406273
core:PlantMachinery
2020-01-01
2020-12-31
06406273
core:FurnitureFittings
2020-01-01
2020-12-31
06406273
core:MotorVehicles
2020-01-01
2020-12-31
06406273
core:UKTax
2020-01-01
2020-12-31
06406273
core:UKTax
2019-01-01
2019-12-31
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
2020-01-01
2020-12-31
06406273
core:BetweenTwoFiveYears
2020-12-31
06406273
core:BetweenTwoFiveYears
2019-12-31
06406273
bus:OrdinaryShareClass1
2019-01-01
2019-12-31
06406273
bus:PrivateLimitedCompanyLtd
2020-01-01
2020-12-31
06406273
bus:FRS102
2020-01-01
2020-12-31
06406273
bus:Audited
2020-01-01
2020-12-31
06406273
bus:FullAccounts
2020-01-01
2020-12-31
xbrli:pure
xbrli:shares
iso4217:GBP