Company Registration No. 10404128 (England and Wales)
R&G FLUID POWER GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
R&G FLUID POWER GROUP LIMITED
COMPANY INFORMATION
Directors
Mr C F Ford
Mr G Dallimore
Mr R J Davies
Mr B K Scowcroft
Company number
10404128
Registered office
71A Roman Way
Longridge Road
Ribbleton
Preston
PR2 5BE
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
R&G FLUID POWER GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 44
R&G FLUID POWER GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present the strategic report for the year ended 31 December 2020.
Fair review of the business
Group turnover in the period reached £38,392,353 (2019: £35,787,596). Under the qualified leadership of the directors and the Board, the group has continued its impressive record of sales order growth throughout the period.
A gross profit of £17,993,054 (2019: £17,071,589), at a gross margin of 46.87% (2019: 47.70%) was achieved. The slight reduction in gross margin being expected a result of investing in acquisitions with lower historical average gross margins.
EBITDA decreased by 3.59% to £4,332,316 (2019: £4,493,410). EBITDA is expected to rise significantly in 2021 as the group continues its recovery from the effects of the Covid-19 pandemic.
Profit for the year after taxation amounted to £1,326,423 compared with £2,183,095 for the previous year. The reduction being largely due to losses in the group’s joint venture, Merseyflex Limited. Trading in this company had been significantly affected by the Covid-19 pandemic however, since the year end, Merseyflex has returned to profit and is now trading at pre-Covid levels. The group also increased its amortisation of intangible assets to £972,802 (2019: £698,560) in the year.
At the balance sheet date, net assets showed an increase of 6.82% compared with the previous year end.
Contributions from business acquisitions during the year is shown in note 28.
The directors consider the state of the group’s affairs to be satisfactory given the current economic climate and are in line with their plans.
R&G FLUID POWER GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
Principal risks and uncertainties
The board has overall responsibility for the group’s approach to assessing risk and systems of internal control and for monitoring their effectiveness in providing its shareholders with a return that is consistent with a responsible assessment and mitigation of risks. We have set out several risk factors below, that we believe could cause our actual future results to differ materially from expected results.
Business conditions and the general economy
The group’s profitability could be adversely affected by a worsening of general economic conditions in the United Kingdom. Factors such as the economy’s ability to fully recover after the worldwide Covid-19 pandemic and the resultant problems with availability of base raw materials, causing onwards supply chain difficulties and fuelling inflationary price rises. However, since the year end, trading has been buoyant and significantly ahead of pre-covid levels.
Liquidity and financing
Funding requirements are managed for both the short and long term cash flow needs of the group’s businesses, ensuring sufficient funds are available for operations and other projects. The trading patterns and business plans, together with budgets, are agreed with the board and banking relationship partners.
Interest rate risk
The group’s exposure to market risk for changes in interest rates relates primarily to the company’s bank borrowings. The group’s policy is to manage interest cost using a mixture of fixed and variable rate debt; fixed rate debt accounting for over 75% of total debt in the group. The group’s exposure to interest rate fluctuations on its borrowings is manged by the use of commercial rates related to the Bank of England base rate.
Credit risk
The company trades with only recognised, creditworthy third parties. It is the company’s policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the company’s exposure to bad debts are mitigated.
Regulatory compliance risk
The company is subject to regulatory compliance risk which can arise from a failure to comply fully with the laws, regulations or codes applicable, for example health and safety, licensing and fire regulations. Non-compliance can lead to for example, fines.
Competition
The group competes with numerous other organisations, in a market that is extremely fragmented.
Failure of information systems
The group’s business is dependant on the efficient and uninterrupted operation of our information technology and computer systems, which are vulnerable to damage or interruption from power loss, telecommunications failure, sabotage, vandalism or similar misconduct. Contingency and recovery plans are in place to mitigate the impact of such failures. The group continues to take reasonable steps to ensure improvement in the robustness of its systems.
Covid-19 pandemic
The directors are mindful of the global challenge presented by Covid-19 and the expected long term issues that this event may bring to the group and our stakeholders. The group is committed to protecting all affected by our business operations and abiding by all Government guidelines.
Future developments
The Directors look to the continued growth, development and sustainability of the group.
R&G FLUID POWER GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
Key performance indicators
Measure 2020 2019
Sales £38.39m £35.79m
Gross profit £17.99m £17.07m
Operating profit £2.48m £2.48m
Profit after tax £1.33m £2.18m
Section 172 statement
Each director is required to act in the way he considers, in good faith, would most likely promote the success of the group and company for the benefit of its members as a whole, but having regard to a range of factors set out in Section 172 (1) of the Companies Act 2006.
The Board monitors and reviews the strategic objectives against forward plans. Regular reviews are held across key business areas, including customer services, health, safety & the environment, operational and financial performance, risks and opportunities. The group’s performance is reviewed on a monthly basis.
The long term consequences
All decisions are geared towards the maintenance of a relevant, forward thinking business, operating in a highly competitive market place. Such strategy informs capital expenditure plans, long term funding, operational efficiency and staff development.
The interest of all employees
The Directors believe the group and company are a responsible employer and attempt to provide all the tools and information required for each employee to use their knowledge and talents to fully engage in their role, to the best of their abilities, within a safe and welcoming environment.
Stakeholder business relationships
The Directors behave responsibly towards all suppliers, customers and other stakeholders. Each party is allocated sufficient attention from the board and company colleagues. Capital allocation is designed to equitably meet their requirements, therefore seeking to ensure they all benefit from the long term success of the group and company.
Impact on the environment
The Directors factor environmental matters into consideration as part of their decision-making progress, in order to minimise the group’s impact on the environment wherever possible. By communicating our aims to the employees and our suppliers, we strive to ensure that all parties are aware of their environmental responsibilities. The Directors are also mindful of the impact business can have with local communities. The group engages with their local communities in various locations and also aims to raise funds for charity each year.
Maintaining a reputation for high standards of business conduct
The original business was founded in 2000 by Mr Ford and has been under his stewardship ever since. Various businesses have since been introduced into the group since then. Throughout this time, the Directors have held integrity and trust at the forefront of all decisions and endeavoured to build a culture which is both reflective of this and evident to all with whom the company interacts.
Mr C F Ford
Director
29 June 2021
R&G FLUID POWER GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
Principal activities
The principal activity of the entity is that of a holding company. The principal activities of the group lie within the import, sale and distribution of industrial hoses, couplings along with complementary products and services in the industrial liquid transfer and pneumatic sectors.
The company changed its name from R&G Acquisitions Ltd to R&G Fluid Power Group Limited on 8 January 2020.
Results and dividends
The results for the year are set out on page 10.
During the year dividends on ordinary share capital were paid to company shareholders and group non-controlling interests amounting to £913,629.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C F Ford
Mr G Dallimore
Mr R J Davies
Mr B K Scowcroft
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
Auditor
The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 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 auditor
of the
company 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 auditor
of the
company
is
aware of that information.
Strategic report
The
group
has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the
group
's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
the principal risks and uncertainties and financial risk management.
R&G FLUID POWER GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 5 -
On behalf of the board
Mr C F Ford
Director
29 June 2021
R&G FLUID POWER GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
R&G FLUID POWER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R&G FLUID POWER GROUP LIMITED
- 7 -
Opinion
We have audited the
financial statements of R&G Fluid Power Group Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 31 December 2020 and of the group's 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
group's and
parent
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.
R&G FLUID POWER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&G FLUID POWER GROUP LIMITED
- 8 -
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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' Responsibilities Statement, 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
group's and the parent
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
group or the parent
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
specific procedures for this engagement and the
extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
:
-
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
-
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to stock provisions; and
-
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Because of the field in which the group operates, we identified the following areas as those most likely to have a material impact on the financial statements: health and safety, employment law and compliance with the UK Companies Act.
R&G FLUID POWER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&G FLUID POWER GROUP LIMITED
- 9 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Joe Sullivan (Senior Statutory Auditor)
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
30 June 2021
R&G FLUID POWER GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
2020
2019
Notes
£
£
Turnover
3
38,392,353
35,787,596
Cost of sales
(20,399,299)
(18,716,007)
Gross profit
17,993,054
17,071,589
Administrative expenses
(16,747,005)
(14,467,569)
Other operating income
1,313,911
51,415
Group reorganisation costs
4
(75,517)
(179,287)
Operating profit
5
2,484,443
2,476,148
Share of results of associates and joint ventures
(308,988)
321,363
Interest receivable and similar income
9
294,331
276,517
Interest payable and similar expenses
10
(541,864)
(429,093)
Profit before taxation
1,927,922
2,644,935
Tax on profit
11
(601,499)
(461,840)
Profit for the financial year
27
1,326,423
2,183,095
Profit for the financial year is attributable to:
- Owners of the parent company
898,858
1,778,026
- Non-controlling interests
427,565
405,069
1,326,423
2,183,095
Total comprehensive income for the year is attributable to:
- Owners of the parent company
898,858
1,778,026
- Non-controlling interests
427,565
405,069
1,326,423
2,183,095
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
R&G FLUID POWER GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2020
31 December 2020
- 11 -
2020
2019
Notes
£
£
£
£
Fixed assets
Goodwill
13
7,457,475
6,901,689
Other intangible assets
13
223,903
182,773
Total intangible assets
7,681,378
7,084,462
Tangible assets
14
6,050,956
6,091,191
Investments
15
1,375,221
1,684,209
15,107,555
14,859,862
Current assets
Stocks
18
8,865,149
8,286,806
Debtors
19
7,477,389
9,301,632
Cash at bank and in hand
2,632,254
2,135,270
18,974,792
19,723,708
Creditors: amounts falling due within one year
20
(11,407,968)
(14,937,756)
Net current assets
7,566,824
4,785,952
Total assets less current liabilities
22,674,379
19,645,814
Creditors: amounts falling due after more than one year
21
(15,585,657)
(13,124,320)
Provisions for liabilities
Deferred tax liability
24
483,554
337,920
(483,554)
(337,920)
Net assets
6,605,168
6,183,574
Capital and reserves
Called up share capital
26
1,100
1,100
Other reserves
27
1,610,000
1,610,000
Profit and loss reserves
27
3,088,840
2,749,615
Equity attributable to owners of the parent company
4,699,940
4,360,715
Non-controlling interests
1,905,228
1,822,859
6,605,168
6,183,574
R&G FLUID POWER GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2020
31 December 2020
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 29 June 2021 and are signed on its behalf by:
29 June 2021
Mr C F Ford
Director
R&G FLUID POWER GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2020
31 December 2020
- 13 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
13
211,120
165,039
Tangible assets
14
113,435
63,227
Investments
15
12,726,689
10,641,663
13,051,244
10,869,929
Current assets
Debtors
19
6,637,615
6,374,707
Cash at bank and in hand
985
6,638,600
6,374,707
Creditors: amounts falling due within one year
20
(5,741,303)
(7,353,050)
Net current assets/(liabilities)
897,297
(978,343)
Total assets less current liabilities
13,948,541
9,891,586
Creditors: amounts falling due after more than one year
21
(12,357,912)
(9,326,208)
Provisions for liabilities
Deferred tax liability
24
40,073
18,736
(40,073)
(18,736)
Net assets
1,550,556
546,642
Capital and reserves
Called up share capital
26
1,100
1,100
Profit and loss reserves
27
1,549,456
545,542
Total equity
1,550,556
546,642
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the
period
was £1,563,547 (2019 - £671,472 profit).
The financial statements were approved by the board of directors and authorised for issue on 29 June 2021 and are signed on its behalf by:
29 June 2021
Mr C F Ford
Director
Company Registration No. 10404128
R&G FLUID POWER GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 14 -
Share capital
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2019
1,100
1,610,000
1,474,589
3,085,689
873,859
3,959,548
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
-
1,778,026
1,778,026
405,069
2,183,095
Dividends
12
-
-
(503,000)
(503,000)
(128,000)
(631,000)
Acquisition of subsidiary
-
-
-
-
671,931
671,931
Balance at 31 December 2019
1,100
1,610,000
2,749,615
4,360,715
1,822,859
6,183,574
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
898,858
898,858
427,565
1,326,423
Dividends
12
-
-
(559,633)
(559,633)
(353,996)
(913,629)
Other movements
-
-
-
-
8,800
8,800
Balance at 31 December 2020
1,100
1,610,000
3,088,840
4,699,940
1,905,228
6,605,168
R&G FLUID POWER GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2019
1,100
377,070
378,170
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
671,472
671,472
Dividends
12
-
(503,000)
(503,000)
Balance at 31 December 2019
1,100
545,542
546,642
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
1,563,547
1,563,547
Dividends
12
-
(559,633)
(559,633)
Balance at 31 December 2020
1,100
1,549,456
1,550,556
R&G FLUID POWER GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 16 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
5,151,153
615,945
Interest paid
(541,864)
(429,093)
Income taxes paid
(669,500)
(272,574)
Net cash inflow/(outflow) from operating activities
3,939,789
(85,722)
Investing activities
Purchase of business
(1,342,972)
(692,799)
Purchase of intangible assets
(99,983)
(6,990)
Purchase of tangible fixed assets
(542,249)
(1,755,561)
Proceeds on disposal of tangible fixed assets
379,984
279,121
Proceeds from other investments and loans
23,975
17,874
Interest received
-
1,517
Dividends received
-
275,000
Net cash used in investing activities
(1,581,245)
(1,881,838)
Financing activities
Issue of preference shares
3,000,000
750,000
Repayment of borrowings
(2,221,397)
(182,331)
Proceeds of new bank loans
3,000,000
1,342,500
Repayment of bank loans
(142,791)
(304,899)
Payment of finance lease obligations
(323,016)
(412,137)
Dividends paid to equity shareholders
(559,633)
(503,000)
Dividends paid to non-controlling interests
(353,996)
(128,000)
Net cash generated from financing activities
2,399,167
562,133
Net increase/(decrease) in cash and cash equivalents
4,757,711
(1,405,427)
Cash and cash equivalents at beginning of year
(3,260,001)
(1,854,574)
Cash and cash equivalents at end of year
1,497,710
(3,260,001)
Relating to:
Cash at bank and in hand
2,632,254
2,135,270
Bank overdrafts included in creditors payable within one year
(1,134,544)
(5,395,271)
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
1
Accounting policies
Company information
R&G Fluid Power Group Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
71A Roman Way, Longridge Road, Ribbleton, Preston, PR2 5BE.
The company changed its name from R&G Acquisitions Ltd to R&G Fluid Power Group Limited on 8 January 2020.
The group consists of R&G Fluid Power Group Limited and all of its subsidiaries.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
In order to better align group component reporting, expenditure totalling £353,750 has been transferred out of Cost of sales and in to Administrative expenses within the comparative Group Statement of Comprehensive Income. There has been no impact on profit for the comparative period.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 18 -
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated financial statements incorporate those of R&G Fluid Power Group Limited and all of its subsidiaries (ie entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the
period
are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2020
.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern
The majority of the year under report took place amidst a challenging operational background due to the impact of the Covid-19 pandemic. Although some customers temporarily closed, all of the group’s trading locations remained open with a reduced level of staff. The group supplied products to certain industries deemed ‘essential’ by the government and adapted to the new circumstances caused by the pandemic and specifically the facilitation of appropriate social distancing and hygiene procedures throughout all sites. In spite of these challenges the group still reports significant profits, the majority delivered through like for like sales rather than from in year acquisitions, demonstrating a robust underlying demand for its products and services across the industries which it serves.
The group made use of available government financial support for which it was eligible, such as the CJR scheme. The group’s banking partner also provided support in the form of a £3m CBIL scheme loan, additional short-term facilities from asset-backed lending and deferred capital repayments.
Management information shows that trading since the balance sheet date has been profitable and ahead of 2020 on a cumulative like for like basis. The directors have also produced and referred to prudent group cash flow forecasts and at the time of signing the financial statements, the group has headroom in its various facilities in excess of £5.5m. Confirmation has also been provided by key creditors that they will not seek repayment for at least twelve months from the date of the financial statements being approved. Taken together, these points indicate that the group will be able to meet all its liabilities as they are projected to fall due for payment over the next twelve months, leading the directors to conclude that there are no material uncertainties over adopting the going concern basis at the time of signing the financial statements and furthermore look to the future with an optimistic outlook.
1.5
Turnover
Turnover is
measured
at the fair value of the consideration received or receivable
and represents amounts receivable
for goods
and hire of goods
provided in the normal course of business,
net of discounts and VAT.
Turnover is recognised when the significant risks and rewards of ownership have passed to the customer. This is normally upon dispatch of the goods to the customer.
Turnover from the hire of equipment is recognised equally over the period of hire.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 20 -
Amortisation 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:
Computer software
20% per annum on cost
Patents & licences
20% per annum on cost
Website costs
20% per annum on cost
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% per annum on cost
Leasehold property and improvements
2-10% per annum on cost
Plant and machinery
10-25% per annum on reducing balance
Fixtures, fittings and equipment
15% per annum on reducing balance
Computers
15-25% per annum on reducing balance
Motor vehicles
25% per annum on reducing balance
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 recognised in the profit and loss account.
1.9
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company financial statements, investments in subsidiaries
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Refer to note 1.2 to the financial statements for greater detail over the initial measurement of cost.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as
joint ventures.
In the
parent c
ompany financial statements, investments in associates
and joint ventures
are accounted for at cost less impairment.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 21 -
1.10
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.11
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 are measured using the first in first out method of accounting.
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.
1.12
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
All of the group's financial assets are basic financial instruments.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 22 -
Impairment of financial assets
Financial assets 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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price.
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. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.
Other financial liabilities
All of the group's financial liabilities are basic financial instruments.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group 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 group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 23 -
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
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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
if, and only if, there is
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.
1.16
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
group
is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 24 -
1.19
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.
1.20
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Fixed asset investments and goodwill
The company has acquired subsidiary entities, a joint venture and previously an associate, with each acquisition recognised at cost. The investments are reviewed annually for impairment via a review of the investment's projected trading and cash flow. No impairment is recognised as future trading and cash flow forecasts demonstrate the investments generate sufficient profits to underpin the carrying value in the accounts.
The same considerations and principles abound when considering the goodwill recognised on consolidation in respect of the group's relevant business combination transactions.
Stock
The group carries a large range of stock lines and has a broad customer base. Stock is reviewed annually for obsolescence and physical cycle counts are carried out regularly, with a further full physical count completed at the balance sheet date. The group is satisfied that its stock management procedures are appropriate and further stock impairment provisions are not necessary.
Trade debtors
The group has a broad customer base, robust credit control procedures and historically very low levels of bad debt. The group is satisfied that a bad debt provision is not required.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 25 -
3
Turnover and other revenue
2020
2019
£
£
Turnover analysed by class of business
Attributable to the group's principal activities
38,392,353
35,787,596
2020
2019
£
£
Other significant revenue
Interest income
294,331
1,517
Dividends received
-
275,000
Grants received
1,271,235
-
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
38,392,353
35,787,596
4
Exceptional item
2020
2019
£
£
Expenditure
Reorganisation costs
75,517
179,287
75,517
179,287
New group companies incurred one off costs related to the change in ownership and through the subsequent restructuring of staffing, professional and other associated costs.
5
Operating profit
2020
2019
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(26,455)
15,121
Government grants
(1,271,235)
-
Depreciation of owned tangible fixed assets
492,321
431,415
Depreciation of tangible fixed assets held under finance leases
310,461
277,049
(Profit)/loss on disposal of tangible fixed assets
(3,228)
13,875
Amortisation of intangible assets
972,802
698,560
Operating lease charges
744,331
647,752
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 26 -
6
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
22,000
22,000
Audit of the financial statements of the company's subsidiaries
84,553
79,268
106,553
101,268
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2020
2019
2020
2019
Number
Number
Number
Number
Administration and warehouse
308
273
15
10
Management
4
4
4
4
Total
312
277
19
14
Their aggregate remuneration comprised:
Group
Company
2020
2019
2020
2019
£
£
£
£
Wages and salaries
9,521,731
8,016,331
1,039,850
827,620
Social security costs
870,583
783,571
100,706
77,970
Pension costs
674,433
467,781
18,252
3,143
11,066,747
9,267,683
1,158,808
908,733
8
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
312,700
305,532
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2020
2019
£
£
Remuneration for qualifying services
225,200
223,199
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 27 -
9
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
-
1,517
Other income from investments
Dividends received
-
275,000
Gains on financial instruments measured at fair value through profit or loss
294,331
-
Total income
294,331
276,517
Investment income includes the following:
Interest on financial assets measured at fair value through profit or loss
294,331
-
10
Interest payable and similar expenses
2020
2019
£
£
Interest on bank facilities
70,086
95,320
Dividends on redeemable preference shares not classified as equity
298,500
125,254
Interest on finance leases and hire purchase contracts
65,511
49,679
Other interest
107,767
158,840
Total finance costs
541,864
429,093
11
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
515,175
362,859
Adjustments in respect of prior periods
(57,533)
(55,328)
Total current tax
457,642
307,531
Deferred tax
Origination and reversal of timing differences
115,518
187,412
Changes in tax rates
38,304
(27,628)
Adjustment in respect of prior periods
(9,965)
(5,475)
Total deferred tax
143,857
154,309
Total tax charge
601,499
461,840
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
11
Taxation
(Continued)
- 28 -
The actual 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:
2020
2019
£
£
Profit before taxation
1,927,922
2,644,935
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
366,305
502,538
Tax effect of expenses that are not deductible in determining taxable profit
127,449
31,332
Tax effect of income not taxable in determining taxable profit
-
(61,059)
Change in unrecognised deferred tax assets
(51,771)
(8,379)
Effect of change in corporation tax rate
38,304
(27,628)
Depreciation on assets not qualifying for tax allowances
9,726
7,340
Amortisation on assets not qualifying for tax allowances
178,984
130,749
Under/(over) provided in prior years
(57,533)
(55,328)
Deferred tax adjustments in respect of prior years
(9,965)
(5,475)
Dividend income
-
(52,250)
Taxation charge
601,499
461,840
The Finance Act 2016 announced a reduction in the rate of the UK corporation tax to 17% from 1 April 2020. The Chancellor subsequently stated his intention to maintain the main rate of corporation tax at 19%. This change to previously announced policy was substantively enacted on 17 March 2020 and therefore deferred tax has been provided for at 19%.
12
Dividends
2020
2019
Recognised as distributions to equity holders:
£
£
Final paid
559,633
503,000
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 29 -
13
Intangible fixed assets
Group
Goodwill
Computer software
Patents & licences
Website costs
Total
£
£
£
£
£
Cost
At 1 January 2020
8,215,558
172,346
15,151
8,008
8,411,063
Additions - separately acquired
28,910
68,723
-
2,350
99,983
Additions - business combinations
1,534,735
-
-
-
1,534,735
Disposals
(65,000)
-
-
-
(65,000)
At 31 December 2020
9,714,203
241,069
15,151
10,358
9,980,781
Amortisation and impairment
At 1 January 2020
1,313,869
6,128
5,836
768
1,326,601
Amortisation charged for the year
942,859
23,821
5,003
1,119
972,802
At 31 December 2020
2,256,728
29,949
10,839
1,887
2,299,403
Carrying amount
At 31 December 2020
7,457,475
211,120
4,312
8,471
7,681,378
At 31 December 2019
6,901,689
166,218
9,315
7,240
7,084,462
Company
Computer software
£
Cost
At 1 January 2020
171,167
Additions
68,723
At 31 December 2020
239,890
Amortisation and impairment
At 1 January 2020
6,128
Amortisation charged for the year
22,642
At 31 December 2020
28,770
Carrying amount
At 31 December 2020
211,120
At 31 December 2019
165,039
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 30 -
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold property and improvements
Plant and machinery
Fixtures, fittings and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2020
1,782,045
989,072
2,125,234
440,967
42,090
1,524,578
6,903,986
Additions
6,378
143,387
307,925
142,869
12,298
526,446
1,139,303
Disposals
-
-
(31,166)
(8,800)
-
(377,307)
(417,273)
Transfers
-
-
(284,029)
-
-
-
(284,029)
At 31 December 2020
1,788,423
1,132,459
2,117,964
575,036
54,388
1,673,717
7,341,987
Depreciation and impairment
At 1 January 2020
22,443
142,079
369,805
45,926
18,650
213,892
812,795
Depreciation charged in the year
40,497
25,938
241,612
88,944
8,712
397,079
802,782
Eliminated in respect of disposals
-
-
(6,257)
(6,374)
-
(311,915)
(324,546)
At 31 December 2020
62,940
168,017
605,160
128,496
27,362
299,056
1,291,031
Carrying amount
At 31 December 2020
1,725,483
964,442
1,512,804
446,540
27,026
1,374,661
6,050,956
At 31 December 2019
1,759,602
846,993
1,755,429
395,041
23,440
1,310,686
6,091,191
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 31 -
Company
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2020
62,759
34,070
96,829
Additions
20,421
48,440
68,861
At 31 December 2020
83,180
82,510
165,690
Depreciation and impairment
At 1 January 2020
25,794
7,808
33,602
Depreciation charged in the year
11,078
7,575
18,653
At 31 December 2020
36,872
15,383
52,255
Carrying amount
At 31 December 2020
46,308
67,127
113,435
At 31 December 2019
36,965
26,262
63,227
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2020
2019
2020
2019
£
£
£
£
Plant and machinery
467,565
448,031
Fixtures, fittings and equipment
16,458
19,362
16,458
19,362
Motor vehicles
827,049
892,130
19,697
26,263
1,311,072
1,359,523
36,155
45,625
During the year, group assets totalling £284,029 were transferred to stock as they became available for external sale.
15
Fixed asset investments
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Investments in subsidiaries
16
-
-
11,228,950
9,143,924
Investments in joint ventures
17
1,375,221
1,684,209
1,497,739
1,497,739
1,375,221
1,684,209
12,726,689
10,641,663
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
15
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 January 2020
1,684,209
Share of losses in year
(308,988)
At 31 December 2020
1,375,221
Carrying amount
At 31 December 2020
1,375,221
At 31 December 2019
1,684,209
Movements in fixed asset investments
Company
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 January 2020
10,641,663
Additions
1,969,026
Valuation changes
116,000
At 31 December 2020
12,726,689
Carrying amount
At 31 December 2020
12,726,689
At 31 December 2019
10,641,663
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2020 are as follows:
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
16
Subsidiaries
(Continued)
- 33 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Century Hose Limited
1
Import, sale and distribution of industrial and hydraulic hose
Ordinary
0
70.00
Flexicon Industrial Supplies Limited
1
Manufacture, sale and distribution of industrial hose assemblies and fittings
Ordinary
0
100.00
Industrial Hose & Pipe Fittings Limited
1
Manufacture and supply of hose fittings and turned parts
Ordinary
0
100.00
Integraflex (Yorkshire) Ltd
1
Trade had ceased prior to balance sheet date
Ordinary
0
100.00
Integraflex Ltd
1
Manufacture, sale and distribution of industrial hose asssemblies and fittings
Ordinary
0
100.00
Millennium Coupling Company Ltd
1
Import, sale and distribution of hose couplings
Ordinary
100.00
-
Millennium Engineering (2012) Ltd
1
Bespoke manufacture, design and supply of industrial and hydraulic hose couplings
Ordinary
0
100.00
One Stop Sealing Limited
1
Manufacture, sale and distribution of sealants and hose assemblies
Ordianry
100.00
-
Northern Hose & Hydraulics Limited
1
Dormant
Ordinary
100.00
-
Fluid Power Products Limited
1
Dormant
Ordinary
100.00
-
R&G Investments Limited
1
Property holding company
Ordinary
100.00
-
Pneumatic Services Limited
1
Holding company
Ordinary
67.50
-
Pennine Pneumatic Services Limited
1
Supply of specialist compressed air equipment and services
Ordinary
0
67.50
Hyphose Limited
1
Manufacture and distributino of hose assemblies and related products
Ordinary
100.00
-
Pearson Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
100.00
-
Hose & Hydraulics Group Limited
1
Holding company
Ordinary
100.00
-
Pressurelines Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
0
100.00
Exeter Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
0
100.00
North Devon Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
0
100.00
Somerset Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
0
100.00
West Cornwall Hose & Hydraulics Limited
1
Supply of flexible hose products
Ordinary
0
100.00
Henry Gallacher Limited
1
Provision of fast emergency gasket cutting services
Ordinary
100.00
-
Intrico Products Limited
1
Supply of flexible hose products
Ordinary
0
100.00
Pearson Hydraulics Limited
2
Design and distribution of hydraulic components
Ordinary
77.61
-
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
16
Subsidiaries
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
(Continued)
- 34 -
Rubberfast Limited
1
Merchants of rubber and associated products
Ordinary
100.00
-
Grimsby Hydraulic Services Limited
1
Supply of flexible hose products
Ordinary
100.00
-
Global Hydraulic Services Limited
1
Dormant
Ordinary
0
100.00
GHS Limited
1
Dormant
Ordinary
0
100.00
Fluidair Power Limited
1
Supply of flexible hose products
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
71A Roman Way, Longridge Road, Ribbleton, Preston, PR2 5BE
2
11 Cardinal Close, Lincoln, LN2 4SY
17
Joint ventures
Details of joint ventures at 31 December 2020 are as follows:
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Merseyflex Limited
1
Import, sale and distribution of industrial hose and fittings
Ordinary
50.00
Registered office key:
1 71A Roman Way, Longridge Road, Ribbleton, Preston, PR2 5BE
18
Stocks
Group
Company
2020
2019
2020
2019
£
£
£
£
Work in progress
92,782
58,676
-
-
Finished goods and goods for resale
8,772,367
8,228,130
8,865,149
8,286,806
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 35 -
19
Debtors
Group
Company
2020
2019
2020
2019
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,377,865
7,828,403
327,377
129,668
Amounts owed by group undertakings
-
-
5,814,652
5,859,141
Amounts owed by undertakings in which the company has a participating interest
-
215,000
-
215,000
Other debtors
176,886
432,956
70,986
130,654
Prepayments and accrued income
922,638
825,273
90,690
40,244
7,477,389
9,301,632
6,303,705
6,374,707
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
333,910
-
Total debtors
7,477,389
9,301,632
6,637,615
6,374,707
20
Creditors: amounts falling due within one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
22
1,975,855
5,625,803
1,037,714
1,085,586
Obligations under finance leases
23
392,954
400,285
28,677
31,066
Other borrowings
22
311,500
318,150
181,500
188,150
Trade creditors
4,982,003
4,395,477
68,792
27,073
Amounts owed to group undertakings
-
-
3,702,470
5,313,837
Corporation tax payable
568,028
653,576
Other taxation and social security
1,172,991
822,886
130,385
32,342
Other creditors
1,274,448
2,166,624
561,802
649,298
Accruals and deferred income
730,189
554,955
29,963
25,698
11,407,968
14,937,756
5,741,303
7,353,050
Finance lease obligations are secured over the assets to which they relate.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 36 -
21
Creditors: amounts falling due after more than one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
22
4,221,110
2,269,011
2,655,669
642,908
Obligations under finance leases
23
896,361
688,895
27,057
40,136
Other borrowings
22
8,850,822
8,065,569
8,428,322
7,513,069
Other creditors
1,617,364
2,100,845
1,246,864
1,130,095
15,585,657
13,124,320
12,357,912
9,326,208
Finance lease obligations are secured over the assets to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
32,500
-
-
22
Loans and overdrafts
Group
Company
2020
2019
2020
2019
£
£
£
£
Bank loans
5,062,421
2,499,543
3,380,669
750,000
Bank overdrafts
1,134,544
5,395,271
312,714
978,494
Preference shares
5,750,000
2,750,000
5,750,000
2,750,000
Other loans
3,412,322
5,633,719
2,859,822
4,951,219
15,359,287
16,278,533
12,303,205
9,429,713
Payable within one year
2,287,355
5,943,953
1,219,214
1,273,736
Payable after one year
13,071,932
10,334,580
11,083,991
8,155,977
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
22
Loans and overdrafts
(Continued)
- 37 -
Bank loan and overdraft balances are secured by a debenture, incorporating a fixed and floating charge over the current and future assets of all group companies, along with a first charge over the group’s freehold land and buildings. Bank loans attract interest charged at 3% and 4% over base rate respectively.
Invoice finance facilities, stated within bank overdrafts, are secured over the trade debtor books of the relevant group companies.
Preference shares with a nominal value of £555,555 are redeemable in certain circumstances, after due notice is serviced and observed. The remaining preference shares, with a nominal value of £5,194,445, are non-redeemable. The holders of all preference shares are entitled to receive fixed dividends equating to 6% of par value. Accordingly all preference shares are classified as debt within the financial statements. The preference share do not carry any voting rights and upon wind up or capital distribution, rights are limited to par plus dividend arrears.
Other loans are repayable in two tranches. Firstly, in quarterly instalments of £32,500 with interest charged at 3% above base rate. Secondly, in quarterly instalments of £45,375, commencing in November 2019, with no interest levied.
23
Finance lease obligations
Group
Company
2020
2019
2020
2019
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
450,453
445,429
32,117
36,815
In two to five years
982,079
757,463
27,871
42,476
1,432,532
1,202,892
59,988
79,291
Less: future finance charges
(143,217)
(113,712)
(4,254)
(8,089)
1,289,315
1,089,180
55,734
71,202
Finance lease payments represent rentals payable by the company or group 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 up to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 38 -
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2020
2019
Group
£
£
Accelerated capital allowances
606,740
424,590
Tax losses
(162,175)
(120,245)
Revaluations
41,811
37,410
Short term timing differences
(2,822)
(3,835)
483,554
337,920
Liabilities
Liabilities
2020
2019
Company
£
£
Accelerated capital allowances
54,192
31,369
Tax losses
(14,119)
(12,633)
40,073
18,736
Group
Company
2020
2020
Movements in the year:
£
£
Liability at 1 January 2020
337,920
18,736
Charge to profit or loss
115,518
18,973
Effect of change in tax rate - profit or loss
38,304
2,221
Other
(8,188)
143
Liability at 31 December 2020
483,554
40,073
It is not possible to quantify the amounts expected to reverse over the upcoming twelve months owing to uncertainties over the group's expected profit and its capital expenditure programme for the next financial year.
25
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
674,433
467,781
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
25
Retirement benefit schemes
(Continued)
- 39 -
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
500
500
500
500
Ordinary B shares of £1 each
250
250
250
250
Ordinary C shares of £1 each
250
250
250
250
Ordinary D shares of £1 each
5
5
5
5
Ordinary E shares of £1 each
5
5
5
5
Ordinary F shares of £1 each
45
45
45
45
Ordinary G shares of £1 each
23
23
23
23
Ordinary H shares of £1 each
22
22
22
22
1,100
1,100
1,100
1,100
Ordinary B shares entitle the holder to veto any of the following:
-
the company arranging finance or borrowings in excess of £100,000;
-
the dilution of shareholdings, or alteration of rights attached to any of the existing classes of shares in the company;
-
the employment of key individuals involved in the management of the company or its subsidiaries.
Upon wind-up or in the event of a full or partial share disposal, any fair value shall be attributed as follows:
-
the first tranche exclusively to the holders of the £1 Ordinary B and C holders;
-
the next tranche equally to the holders of the £1 Ordinary A, B and C holders;
-
any value over and above the combined amounts covered by the above, shall be attributed to the holders of the £1 Ordinary D, E, F, G and H pro rata to the number of shares held by each party.
Other than as noted above, each class of shares ranks pari passu.
27
Reserves
Other reserves
Other reserves consist solely of a merger reserve. This was recognised to reflect the fair value of the net assets acquired within a business combination transaction during a previous accounting period.
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 40 -
28
Acquisition of a business
On 9 March 2020 the group acquired 100% of the issued capital of Grimsby Hydraulic Services Limited, and its wholly owned subsidiaries GHS Limited and Global Hydraulic Services Limited.
On 1 October 2020 the group acquired 100% of the issued capital of Fluidair Power Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
95,226
-
95,226
Inventories
302,938
-
302,938
Trade and other receivables
576,014
-
576,014
Cash and cash equivalents
319,654
-
319,654
Obligations under finance leases
(21,323)
-
(21,323)
Trade and other payables
(393,131)
-
(393,131)
Tax liabilities
(122,632)
-
(122,632)
Deferred tax
(5,455)
-
(5,455)
Total identifiable net assets
751,291
-
751,291
Goodwill
1,469,735
Total consideration
2,221,026
The consideration was satisfied by:
£
Cash
1,662,626
Deferred consideration
558,400
2,221,026
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
2,163,742
Profit after tax
459,514
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 41 -
29
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2020
2019
2020
2019
£
£
£
£
Within one year
490,846
365,040
-
-
Between two and five years
766,376
307,028
-
-
In over five years
58,500
58,500
-
-
1,315,722
730,568
-
-
30
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2020
2019
£
£
Aggregate compensation
351,609
344,434
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2020
2019
2020
2019
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
861,173
1,441,269
645,955
914,361
Company
Entities over which the company has control, joint control or significant influence
443,522
246,500
89,416
68,276
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
30
Related party transactions
(Continued)
- 42 -
Services provided
Interest charged
2020
2019
2020
2019
£
£
£
£
Group
Key management personnel
393,164
26,470
79,324
129,461
Other related parties
-
-
298,500
125,254
Company
Key management personnel
210,964
26,470
79,324
129,461
Other related parties
-
-
298,500
125,254
The group was paid dividends totalling £Nil (2019: £275,000) and the company was paid dividends totalling £636,250 (2019: £647,000) by entities over the which the entity has control, joint control or significant influence.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2020
2019
£
£
Group
Entities over which the group has control, joint control or significant influence
124,532
1,026,434
Key management personnel
2,509,851
4,368,563
Other related parties
5,759,845
2,860,782
Company
Entities over which the company has control, joint control or significant influence
763,654
1,154,281
Key management personnel
2,509,851
4,368,563
Other related parties
5,750,000
2,750,000
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2020
2019
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
150,809
368,433
Key management personnel
751
3,955
Other related parties
-
108,533
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
30
Related party transactions
(Continued)
- 43 -
Company
Entities over which the company has control, joint control or significant influence
2,549,836
2,351,039
Key management personnel
-
3,204
31
Directors' transactions
Dividends totalling £559,633 (2019 - £503,000) were paid in the year in respect of shares held by the company's directors and their close family.
32
Controlling party
In the opinion of the directors, Mr C F Ford is considered to be the ultimate controlling party.
33
Cash generated from group operations
2020
2019
£
£
Profit for the year after tax
1,326,423
2,183,095
Adjustments for:
Share of results of associates and joint ventures
308,988
(321,363)
Taxation charged
601,499
461,840
Finance costs
541,864
429,093
Investment income
(294,331)
(276,517)
(Gain)/loss on disposal of tangible fixed assets
(3,228)
13,875
Amortisation and impairment of intangible assets
972,802
698,560
Depreciation and impairment of tangible fixed assets
802,782
708,464
Movements in working capital:
Increase in stocks
(275,405)
(70,560)
Decrease/(increase) in debtors
2,376,282
(1,567,988)
Decrease in creditors
(1,206,523)
(1,642,554)
Cash generated from operations
5,151,153
615,945
R&G FLUID POWER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 44 -
34
Analysis of changes in net debt - group
1 January 2020
Cash flows
New finance leases
31 December 2020
£
£
£
£
Cash at bank and in hand
2,135,270
496,984
-
2,632,254
Bank overdrafts
(5,395,271)
4,260,727
-
(1,134,544)
(3,260,001)
4,757,711
-
1,497,710
Borrowings excluding overdrafts
(10,883,262)
(3,341,481)
-
(14,224,743)
Obligations under finance leases
(1,089,180)
301,693
(501,828)
(1,289,315)
(15,232,443)
1,717,923
(501,828)
(14,016,348)
2020-12-31
2020-01-01
false
CCH Software
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Mr C F Ford
Mr G Dallimore
Mr R J Davies
Mr B K Scowcroft
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2020-01-01
2020-12-31
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2020-01-01
2020-12-31
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2020-12-31
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2020-01-01
2020-12-31
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2020-12-31
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2020-12-31
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2020-12-31
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2019-12-31
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2020-12-31
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