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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Audited Financial Statements |
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For The Year Ended 31 December 2018 |
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for |
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Gardiner Bros. and Company (Leathers) |
Limited |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Audited Financial Statements |
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For The Year Ended 31 December 2018 |
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for |
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Gardiner Bros. and Company (Leathers) |
Limited |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Contents of the Financial Statements |
For The Year Ended 31 December 2018 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Income Statement | 9 |
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Other Comprehensive Income | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Cash Flow Statement | 13 |
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Notes to the Cash Flow Statement | 14 |
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Notes to the Financial Statements | 15 |
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Gardiner Bros. and Company (Leathers) |
Limited |
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Company Information |
For The Year Ended 31 December 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Strategic Report |
For The Year Ended 31 December 2018 |
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The directors present their strategic report for the year ended 31 December 2018. |
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The Board are satisfied with the performance of the business in the year ending 31st December 2018. |
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Principal Activities: |
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The business continues to distribute footwear and accessories to the UK retail market. |
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The business sells footwear and accessories to the UK retail market and also provides management and |
distribution services to Footsure Western Ltd. |
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Principal Objectives: |
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The principal objective of the business is to maintain and grow its market share in the footwear retail market in |
the United Kingdom. |
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The business is achieving this objective through its main strategies of: |
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- Developing its omni-channel market service offering to both retailers and footwear brands; and |
- Developing its stable of international brands and brands that it owns and develops itself. |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Strategic Report |
For The Year Ended 31 December 2018 |
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REVIEW OF BUSINESS |
Performance in 2018: |
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The business grew by 6% in 2018. The business is growing more rapidly in 2019. |
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Profit on Ordinary Activities before taxation is considered satisfactory. |
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The company imports a significant amount of its products from suppliers who invoice in Euros or US Dollars. |
Volatility in currency movements related to Brexit uncertainty continued to impact on gross margin during 2018. |
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The company continues to grow its omni-channel service to customers and continues to add new brands to its |
portfolio. |
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2019 Performance: |
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2019 has seen a faster increase in sales driven by like for like growth and, in particular, additional virtual |
distribution retail customers. |
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The value of gross profit remains stable. |
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Accordingly the directors expect the operating profit and profit on ordinary activities before taxation to continue to |
grow significantly in 2019. |
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The business continues to invest in software and people to further enhance and improve the service it offers to |
the retailers and brands that it partners with. |
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The Board take a long term view of the potential for the business and retain profits within the business to allow for |
ongoing investment in the service package it offers retailers. |
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During 2019 the Company has introduced new warehouse management systems that are greatly enhancing the |
efficiency of its operations and allow for rapid growth without associated increase in its costs. |
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MAIN KPIs: |
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The principal KPIs that the company uses to manage its performance are: |
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FINANCIAL: |
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SALES: Sales grew in 2018 and continue to grow in 2019. |
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GP%: The gross profit margin fell in 2018 and is stable in 2019. |
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NON FINANCIAL: |
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AVAILABILITY: Availability of stock required when required remains at targeted levels between 90% and 95% in |
2018 and 2019. |
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RETURNS: Returns of goods for poor quality continued to decline and is now consistently around 1%. |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Strategic Report |
For The Year Ended 31 December 2018 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Change in Market: The principal risk and uncertainty facing the business is the rapid change in the way that the |
retail market in the UK is structured. The business is overcoming that risk and uncertainty by developing new |
omni channel services and processes to lead the way in servicing the ever changing retail market in the UK. |
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Currency Exchange Risk: The company continues to hedge currency to provide stability. |
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Brexit Planning: The company's main business is within the UK and the company imports the majority of its stock. |
The company has carried out full no deal Brexit planning and is confident it has the systems and strategies in |
place to manage any outcome. |
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The board maintain a risk register that is reviewed at monthly board meetings. |
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ON BEHALF OF THE BOARD: |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Report of the Directors |
For The Year Ended 31 December 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2018. |
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PRINCIPAL ACTIVITY |
The business continues to distribute footwear and accessories to the UK retail market. |
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The business sells footwear and accessories to the UK retail market and also provides management and |
distribution services to Footsure Western Ltd. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2018. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this |
report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law |
the directors must not approve the financial statements unless they are satisfied that they give a true and fair view |
of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these |
financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company |
and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also |
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention |
and detection of fraud and other irregularities. |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Report of the Directors |
For The Year Ended 31 December 2018 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps |
that he ought to have taken as a director in order to make himself aware of any relevant audit information and to |
establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Gardiner Bros. and Company (Leathers) |
Limited |
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Opinion |
We have audited the financial statements of Gardiner Bros. and Company (Leathers) Limited (the 'company') for |
the year ended 31 December 2018 which comprise the Income Statement, Other Comprehensive Income, |
Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, |
Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting |
framework that has been applied in their preparation is applicable law and United Kingdom Accounting |
Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK |
and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the
year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable |
law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit |
of the financial statements section of our report. We are independent of the company in accordance with the |
ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's |
Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. |
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our |
opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of |
the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in |
doing so, consider whether the other information is materially inconsistent with the financial statements or our |
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material |
inconsistencies or apparent material misstatements, we are required to determine whether there is a material |
misstatement in the financial statements or a material misstatement of the other information. If, based on the |
work we have performed, we conclude that there is a material misstatement of this other information, we are |
required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
Report of the Independent Auditors to the Members of |
Gardiner Bros. and Company (Leathers) |
Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report |
to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair |
view, and for such internal control as the directors determine necessary to enable the preparation of financial |
statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue |
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis |
of accounting unless the directors either intend to liquidate the company or to cease operations, or have no |
realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our |
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in |
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise |
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be |
expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report |
of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members |
those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest |
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the |
company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants |
and Statutory Auditor |
Goodridge Court |
Goodridge Avenue |
Gloucester |
Gloucestershire |
GL2 5EN |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Income Statement |
For The Year Ended 31 December 2018 |
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31.12.18 | 31.12.17 |
Notes | £ | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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7,098,122 | 6,424,482 |
(4,464,897 | ) | (3,750,296 | ) |
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Other operating income |
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OPERATING PROFIT | 5 |
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Gain/loss on revaluation of investment
property |
42,000 |
25,000 |
329,338 | 333,479 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Other Comprehensive Income |
For The Year Ended 31 December 2018 |
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31.12.18 | 31.12.17 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Balance Sheet |
31 December 2018 |
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31.12.18 | 31.12.17 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
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Tangible assets | 9 |
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Investments | 10 |
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Investment property | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash in hand |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 20 |
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Investment Property |
Revaluation reserve | 21 |
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Retained earnings | 21 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
behalf by: |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Statement of Changes in Equity |
For The Year Ended 31 December 2018 |
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Investment |
Called up | Property |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 January 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2017 |
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Changes in equity |
Total comprehensive income | - |
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( |
) |
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Balance at 31 December 2018 |
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Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Cash Flow Statement |
For The Year Ended 31 December 2018 |
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31.12.18 | 31.12.17 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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( |
) |
Interest paid | ( |
) | ( |
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Interest element of hire purchase
payments paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) | ( |
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Cash flows from investing activities |
Purchase of intangible fixed assets |
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( |
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Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Sale of fixed asset investments |
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Sale of investment property |
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Net cash from investing activities | ( |
) | ( |
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Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
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Amount introduced by directors | 116,627 | 184,125 |
Amount withdrawn by directors | (72,302 | ) | (202,572 | ) |
Net cash from financing activities | ( |
) | ( |
) |
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Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at
beginning of year |
2 |
(3,759,238 |
) |
(2,493,692 |
) |
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Cash and cash equivalents at end of
year |
2 |
( |
) |
( |
) |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Notes to the Cash Flow Statement |
For The Year Ended 31 December 2018 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.18 | 31.12.17 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Gain on revaluation of fixed assets | (42,000 | ) | (25,000 | ) |
Finance costs | 114,291 | 84,676 |
497,305 | 511,306 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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( |
) |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
respect of these Balance Sheet amounts: |
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Year ended 31 December 2018 |
31.12.18 | 1.1.18 |
£ | £ |
Cash and cash equivalents | 6,027 | 5,014 |
Bank overdrafts | ( |
) | ( |
) |
(4,007,990 | ) | (3,759,238 | ) |
Year ended 31 December 2017 |
31.12.17 | 1.1.17 |
£ | £ |
Cash and cash equivalents | 5,014 | 833 |
Bank overdrafts | ( |
) | ( |
) |
(3,759,238 | ) | (2,493,692 | ) |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
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Notes to the Financial Statements |
For The Year Ended 31 December 2018 |
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1. | STATUTORY INFORMATION |
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Gardiner Bros. and Company (Leathers) Limited is a
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England and Wales. The company's registered number and registered office address can be found on the |
Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Preparation of consolidated financial statements |
The financial statements contain information about Gardiner Bros. and Company (Leathers) Limited as an |
individual company and do not contain consolidated financial information as the parent of a group. The |
company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare |
consolidated financial statements. |
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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. |
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Revenue from the sale of goods is recognised when goods are dispatched. |
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Management Charges |
Revenue from management charges to associated undertakings is recognised on a straight-line |
accruals basis and represent the recharge of costs incurred in respect of the transaction. |
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Rental Income |
Turnover represents rental income from the Company's portfolio of investment properties. The company |
recognises such revenue on a straight line accruals basis. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at |
cost less any accumulated amortisation and any accumulated impairment losses. |
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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. |
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Depreciation is provided at the following annual rates in order to write off each asset over it's estimated |
useful life, or if held under a finance lease, over the lease term, whichever is shorter. |
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Short leasehold | - 12.5% on reducing balance |
Machinery and equipment | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Computer equipment | - 20% on cost |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Investments in subsidiaries and associates |
Investments in subsidiary and associate undertakings are recognised at cost less any provision for |
impairment. |
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Investment property |
Investment property is shown at the its open market valuation. Any surplus arising from changes in market |
value are transferred to a revaluation reserve. |
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Deficits arising from changes in market value, are transferred to the profit and loss account, unless they |
are of a temporary nature or that they reverse previous gains, then they are taken to the revaluation |
reserve. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete |
and slow moving items. |
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Costs represent the delivered cost of the stock item and includes carriage, etc. |
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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. |
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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. |
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Basic financial assets |
Basic financial assets, which include trade and other 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. |
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Cash and cash equivalents |
Cash and cash equivalents 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. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit and loss, are assessed for |
indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a result of one or more |
events that occurred after the initial recognition of the financial asset, the estimated future cash |
flows have been affected. The impairment loss is recognised in profit or loss. |
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Derecognition of financial assets |
Financial assets are derecognised only when the contractual rights to the cash flows from the |
asset expire, or when it transfers the financial asset and substantially all the risks and rewards of |
ownership to another entity. |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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Basic financial liabilities |
Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest. |
|
Trade creditors are obligations to pay for goods or services that have been acquired in the |
ordinary course of business from suppliers. Trade creditors are classified as current liabilities if |
payment is due within one year. If not, they are presented as creditors falling due after more than |
one year. Trade creditors are recognised initially at transaction price and subsequently measured at |
amortised cost using the effective interest method. |
|
Derecognition of financial liabilities |
Financial liabilities are derecognised when, and only when, the company's obligations are |
discharged, cancelled, or they expire. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, |
except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured using |
tax rates and laws that have been enacted or substantively enacted by the year end and that are expected |
to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
2. | ACCOUNTING POLICIES - continued |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange |
ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating |
result. |
|
From time to time the company enters into forward contracts in an attempt to hedge the risks in relation to |
foreign exchange. These forward contracts are accounted for by recognising a derivative asset or liability |
at the date of inception of the contract, with any changes in its fair value taken to the profit and loss |
account. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. |
Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held |
under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the |
shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital |
element of the future payments is treated as a liability. |
|
Rentals on leased assets where the risks and rewards remain with the lessor, are accounted for on a |
payable basis and are charged to the profit and loss account in the period to which they relate. |
|
Pension costs and other post-retirement benefits |
The company operates a small self administered money purchase pension scheme and contributes to |
personal pensions of employees outside of the self administered scheme. Contributions payable for the |
year are charged in the profit and loss account. |
|
Debt factoring |
Those debtors which are subject to debt factoring remain the responsibility of the Company and as a result |
are shown as Trade debtors in the financial statements, the amount advanced by the debt factoring |
company being recognised as a creditor. |
|
Factoring charges are recognised on a payable basis in the period to which they relate. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
31.12.18 | 31.12.17 |
£ | £ |
United Kingdom | 11,086,794 | 10,471,999 |
Remainder of Europe | 139,269 | 177,603 |
Rest of World | 30,268 | 14,150 |
|
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
4. | EMPLOYEES AND DIRECTORS |
31.12.18 | 31.12.17 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
31.12.18 | 31.12.17 |
|
Directors | 5 | 5 |
Admin and sales | 41 | 40 |
Warehouse, support and operations | 71 | 57 |
|
|
|
31.12.18 | 31.12.17 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
31.12.18 | 31.12.17 |
£ | £ |
Emoluments etc |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
31.12.18 | 31.12.17 |
£ | £ |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Loss on disposal of fixed assets |
|
|
Patents and licences amortisation |
|
|
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences |
|
|
Operating leases - land and buildings |
|
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.18 | 31.12.17 |
£ | £ |
Bank interest |
|
|
Other interest payments |
|
|
Hire purchase |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
31.12.18 | 31.12.17 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax | ( |
) |
|
Tax on profit | ( |
) |
|
|
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference |
is explained below: |
|
31.12.18 | 31.12.17 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Utilisation of tax losses |
|
( |
) |
Gain on revaluation of investment property | (7,980 | ) | (4,750 | ) |
Research and development | (39,678 | ) | (34,961 | ) |
Deferred tax | (2,769 | ) | 8,149 |
Total tax (credit)/charge | (1,588 | ) | 3,476 |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
8. | INTANGIBLE FIXED ASSETS |
Patents |
and |
licences |
£ |
COST |
At 1 January 2018 |
and 31 December 2018 |
|
AMORTISATION |
At 1 January 2018 |
|
Amortisation for year |
|
At 31 December 2018 |
|
NET BOOK VALUE |
At 31 December 2018 |
|
At 31 December 2017 |
|
|
9. | TANGIBLE FIXED ASSETS |
Machinery |
Short | and | Motor | Computer |
leasehold | equipment | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals | ( |
) |
|
( |
) |
|
( |
) |
At 31 December 2018 |
|
|
|
|
|
DEPRECIATION |
At 1 January 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal | ( |
) |
|
( |
) |
|
( |
) |
At 31 December 2018 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2018 |
|
|
|
|
|
At 31 December 2017 |
|
|
|
|
|
|
The net book value above includes amounts attributable to assets subject to hire purchase and finance |
lease agreements at 31 December 2018 of £74,477 (2017 : £117,134). |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
10. | FIXED ASSET INVESTMENTS |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 January 2018 |
and 31 December 2018 |
|
|
316,370 |
PROVISIONS |
At 1 January 2018 |
and 31 December 2018 | 53,600 | - | 53,600 |
NET BOOK VALUE |
At 31 December 2018 |
|
|
262,770 |
At 31 December 2017 |
|
|
262,770 |
|
The company's investments at the Balance Sheet date in the share capital of companies include the |
following: |
|
|
Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
31.12.18 | 31.12.17 |
£ | £ |
Aggregate capital and reserves |
|
|
|
|
Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
31.12.18 | 31.12.17 |
£ | £ |
Aggregate capital and reserves |
|
|
Profit for the year |
|
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
10. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
31.12.18 | 31.12.17 |
£ | £ |
Aggregate capital and reserves |
|
|
|
11. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2018 |
|
Disposals | ( |
) |
Revaluations | 42,000 |
At 31 December 2018 |
|
NET BOOK VALUE |
At 31 December 2018 |
|
At 31 December 2017 |
|
|
Fair value at 31 December 2018 is represented by: |
|
£ |
Valuation in 2011 | (43,450 | ) |
Valuation in 2018 | 42,000 |
Cost | 143,450 |
142,000 |
|
If the investment properties had not been revalued they would have been included at the following |
historical cost: |
|
31.12.18 | 31.12.17 |
£ | £ |
Cost | 143,450 | 235,411 |
Aggregate depreciation | (46,350 | ) | (62,000 | ) |
|
Investment properties were valued on an open market basis on 31 December 2018 by the directors . |
|
The company's investment in Welshpool was sold in 2018. |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
12. | STOCKS |
31.12.18 | 31.12.17 |
£ | £ |
Goods for resale |
|
|
|
Included in stock are stock provisions totalling £165,305 (2017: £62,915). |
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Due from related party | 70,135 | 79,684 |
Due from associated companies | - | 119,531 |
Corporation tax recoverable |
|
|
Prepayments and accrued income |
|
|
|
|
|
Trade debtors of £2,086,952 (2017: £2,252,611) are subject to a debt factoring agreement. The debts |
remain the responsibility of the Company. At 31 December 2018 £1,266,696 (2017: £944,865) had been |
advanced by the debt factoring company and is included within bank loans and overdrafts. |
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Bank loans and overdrafts (see note 16) |
|
|
Hire purchase contracts (see note 17) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
Due to associated companies | 2,008,219 | - |
Due to related party | 1,510 | 1,510 |
Directors' current accounts | 217,521 | 173,196 |
Accruals and deferred income |
|
|
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Other loans (see note 16) |
|
|
Hire purchase contracts (see note 17) |
|
|
|
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
31.12.18 | 31.12.17 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
|
Amounts falling due in more than five years: |
Repayable otherwise than by instalments |
5% Cumulative Preference |
Shares | 12,881 | 12,881 |
12,881 | 12,881 |
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
31.12.18 | 31.12.17 |
£ | £ |
Gross obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Finance charges repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable |
operating leases |
31.12.18 | 31.12.17 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
31.12.18 | 31.12.17 |
£ | £ |
Bank overdrafts |
|
|
Hire purchase contracts | 4,520 | 60,323 |
|
|
|
The bank borrowings are secured by fixed and floating charges on the assets of the company together |
with a composite guarantee with certain associated companies. |
|
19. | PROVISIONS FOR LIABILITIES |
31.12.18 | 31.12.17 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
Tax losses carried forward |
|
( |
) |
Revaluation | 2,874 | - |
94,171 | 96,940 |
|
Deferred |
tax |
£ |
Balance at 1 January 2018 |
|
Accelerated capital allowances | (5,643 | ) |
Revaluation gain | 2,874 |
Balance at 31 December 2018 |
|
|
20. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.18 | 31.12.17 |
value: | £ | £ |
|
Ordinary | £1 | 6,784 | 6,784 |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
21. | RESERVES |
Investment |
Property |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 January 2018 |
|
|
3,800,196 |
Profit for the year |
|
|
Revaluation gain | (42,000 | ) | 42,000 | - |
Deferred Tax | 2,874 | (2,874 | ) | - |
Transfer to profit and loss |
reserves | 98,690 | (98,690 | ) | - |
At 31 December 2018 |
|
|
4,016,831 |
|
22. | PENSION COMMITMENTS |
|
The company is a member of the Gardiner Brothers Pension Fund which is a small self administered |
scheme.The contributions are based on the recommendations of the scheme investment advisers, the |
fund operating on a "money purchase" basis. Contributions payable for the year are charged in the profit |
and loss account. The company also contributes on a defined contributions basis to the personal pensions |
of employees outside the self administered scheme.The charge against profits for the year ended 31st |
December 2018 is £26,733 (2017: £31) of which £nil (2017 £nil) was unpaid at the year end. |
|
23. | CONTINGENT LIABILITIES |
|
The company has given a composite cross guarantee in respect of loans and overdrafts for associated |
companies as follows: |
|
31.12.18 | 31.12.17 |
£ | £ |
|
Footsure Western Limited | 7,106,662 | 4,865,848 |
Gardiner Bros. and Company (Leathers) |
Limited (Registered number: 00534801) |
|
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2018 |
|
24. | RELATED PARTY DISCLOSURES |
|
During the year there were transactions and balances due with related companies as follows:- |
|
31.12.18 | 31.12.17 |
Name of company | £ | £ |
|
i) Associates |
|
Footsure Western Limited | Balance due from/(to) associate | (2,008,219 | ) | 119,531 |
|
Net transfers of footwear out | 812,197 | 1,267,533 |
Management charges receivable | (4,745,711 | ) | (4,032,278 | ) |
|
ii) Related parties |
|
Uniquemix Limited | Balance due from related party | 70,135 | 79,684 |
|
Net transfer of footwear out | 210,766 | 219,112 |
|
Gardiner Bros. and Company (Leathers) Limited and it's associate, Footsure Western Limited share |
warehouse facilities. |
|
Each company retains it's own customer base and stock lines. Where as associate receives orders for |
lines stocked by another, these goods are transferred at cost |
|
Central costs are incurred in running warehouse and distribution operations which are recharged by way of |
management charges. |
|
The intercompany balance due between Gardiner Bros. Limited and Footsure Western Limited arises on |
the transfer of stock, management charges raised and accounting for foreign exchange gains or losses. |
|
Uniquemix Limited, whose activities encompass the operation of retail shops is owned by J E Hooper |
Limited; a company with common control. All transactions are at an arms length basis on normal |
commercial terms. |
|
25. | ULTIMATE CONTROLLING PARTY |
|
The company is not under the control of any one director. |