Company Registration No. SC020934 (Scotland)
GRANT BROTHERS (MEAT CANNERS) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
PAGES FOR FILING WITH REGISTRAR
GRANT BROTHERS (MEAT CANNERS) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 12
GRANT BROTHERS (MEAT CANNERS) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
27,104
32,012
Tangible assets
4
1,138,649
1,156,628
1,165,753
1,188,640
Current assets
Stocks
789,575
570,603
Debtors
5
2,476,806
1,824,150
Cash at bank and in hand
178,935
150,796
3,445,316
2,545,549
Creditors: amounts falling due within one year
6
(1,936,824)
(1,964,995)
Net current assets
1,508,492
580,554
Total assets less current liabilities
2,674,245
1,769,194
Creditors: amounts falling due after more than one year
7
(596,904)
(113,455)
Provisions for liabilities
(79,656)
(75,928)
Net assets
1,997,685
1,579,811
Capital and reserves
Called up share capital
150,000
150,000
Share premium account
50,000
50,000
Revaluation reserve
10
31,827
32,366
Profit and loss reserves
11
1,765,858
1,347,445
Total equity
1,997,685
1,579,811
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
GRANT BROTHERS (MEAT CANNERS) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2020
31 March 2020
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 30 September 2020
Mr J Fallon
Director
Company Registration No. SC020934
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
1
Accounting policies
Company information
Grant Brothers (Meat Canners) Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Richmond House, Richmond Bridge, Galston, Ayrshire, KA4 8JU.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company pays special attention to the COVID-19 pandemic and the associated impact on the business. The risks to the business include:
true
The company is following Government guidance concerning all aspects of the pandemic to ensure best practice precautions are applied. It continues to monitor the risks and is in constant communication with customers, suppliers and staff as events transpire and Government advice develops.
To date, the company's operations have not been negatively affected by the COVID-19 pandemic. In fact, the company has seen a increase in revenue and consumer demand within UK supermarkets and the business continues to be profitable and cash generative since the start of the outbreak. However, the company acknowledges this could change depending on how the situation evolves and whether there are interruptions to business or supply as detailed above.
The current and future financial position of the company, its cash flows and liquidity position has been reviewed by the director.
Following this review, t
he director ha
s
a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
This includes ensuring the company has
sufficient headroom to meet any additional forecast cash requirements that would be contingent on an extended downturn in activity
in
relation to the COVID-19 pandemic.
As such, the director consider
s
that it is appropriate to prepare the financial statements on the going concern basis.
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 4 -
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
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
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.
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:
Development costs
25% Reducing balance
1.6
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:
Freehold land and buildings
1% on cost
Plant and equipment
15% on reducing balance
Fixtures and fittings
20% on cost
Motor vehicles
25% 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 credited or charged to profit or loss
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
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.
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 5 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
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.
1.10
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.
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.
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 6 -
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.
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.
1.11
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.
1.12
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.
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.
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 7 -
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
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
s
asset are consumed.
1.16
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
37
33
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
3
Intangible fixed assets
Development costs
£
Cost
At 1 April 2019
244,427
Additions
3,161
At 31 March 2020
247,588
Amortisation and impairment
At 1 April 2019
212,415
Amortisation charged for the year
8,069
At 31 March 2020
220,484
Carrying amount
At 31 March 2020
27,104
At 31 March 2019
32,012
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2019
1,020,381
998,020
163,854
37,010
2,219,265
Additions
16,709
-
7,825
34,000
58,534
Disposals
(12,500)
-
-
-
(12,500)
At 31 March 2020
1,024,590
998,020
171,679
71,010
2,265,299
Depreciation and impairment
At 1 April 2019
155,220
718,724
152,713
35,980
1,062,637
Depreciation charged in the year
11,693
41,894
3,219
8,757
65,563
Eliminated in respect of disposals
(1,550)
-
-
-
(1,550)
At 31 March 2020
165,363
760,618
155,932
44,737
1,126,650
Carrying amount
At 31 March 2020
859,227
237,402
15,747
26,273
1,138,649
At 31 March 2019
865,161
279,296
11,141
1,030
1,156,628
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 9 -
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,657,931
931,126
Amounts owed by group undertakings
741,908
812,879
Other debtors
72,759
55,641
Prepayments and accrued income
4,208
24,504
2,476,806
1,824,150
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
8
187,012
834,594
Obligations under finance leases
9
41,387
52,003
Invoice finance borrowings
8
359,583
-
Trade creditors
1,118,756
845,972
Corporation tax
145,885
153,652
Other taxation and social security
18,998
8,635
Government grants
1,291
1,998
Accruals and deferred income
63,912
68,141
1,936,824
1,964,995
7
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
8
538,137
20,356
Obligations under finance leases
9
50,137
83,793
Government grants
8,630
9,306
596,904
113,455
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 10 -
8
Loans and overdrafts
2020
2019
£
£
Bank loans
599,735
413,645
Bank overdrafts
125,414
441,305
Invoice finance borrowings
359,583
-
1,084,732
854,950
Payable within one year
546,595
834,594
Payable after one year
538,137
20,356
Bank loans and overdrafts are secured by a floating charge over the company's assets and by a standard security over the premises in favour of the Clydesdale Bank plc.
Hire purchase contracts are secured over the assets to which they relate.
The
invoice financing facility
is secured by a charge over the company's debtor books in favour of the Clydesdale Bank plc.
9
Finance lease obligations
2020
2019
Future minimum lease payments due under finance leases:
£
£
Within one year
41,387
52,003
In two to five years
50,137
83,793
91,524
135,796
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 3 to 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
10
Revaluation reserve
2020
2019
£
£
At the beginning of the year
32,366
32,905
Transfer to retained earnings
(539)
(539)
At the end of the year
31,827
32,366
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 11 -
11
Profit and loss reserves
2020
2019
£
£
At the beginning of the year
1,347,445
1,201,957
Profit for the year
567,874
144,949
Dividends declared and paid in the year
(150,000)
-
Transfer from revaluation reserve
539
539
At the end of the year
1,765,858
1,347,445
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Stephen Wilkie.
The auditor was Azets Audit Services.
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
39,212
8,793
GRANT BROTHERS (MEAT CANNERS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 12 -
14
Related party transactions
Transactions with related parties
During the year to 31st March 2020, Grant Brothers (Meat Canners) Limited paid Ardeer Research and Marketing Limited £100,000 (2019: £100,000) in respect of management charges and dividends of £150,000 (2019: £nil).
At the year end, Ardeer Research and Marketing Limited owed the company £728,841 (2019: £812,879) in respect of loans outstanding.
At the year end, Fallco Limited owed the company £13,067 (2019: £nil) in respect of loans outstanding. J Fallon is also a director of this company.
15
Parent company
The parent company of Grant Brothers (Meat Canners) Limited is Ardeer Research and Marketing Limited, and its registered office is 10 The Crescent, Busy, Glasgow, G76 8HT.
The ultimate controlling party is Mr J Fallon by virtue of his shareholding in Ardeer Research and Marketing Limited.
2020-03-31
2019-04-01
false
02 October 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
Mr J Fallon
Mrs J M Pepper
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