REGISTERED NUMBER: 00682856 (England and Wales) |
A.E. BECKETT & SONS LIMITED |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
REGISTERED NUMBER: 00682856 (England and Wales) |
A.E. BECKETT & SONS LIMITED |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Contents of the Consolidated Financial Statements |
for the year ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 | to | 6 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Statement of Financial Position | 8 |
Company Statement of Financial Position | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Statement of Cash Flows | 12 |
Notes to the Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Financial Statements | 14 | to | 24 |
A.E. BECKETT & SONS LIMITED |
Company Information |
for the year ended 31 December 2022 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Group Strategic Report |
for the year ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
Review of business |
The principal activities of the group during the year continued to be that of food retailing, operation of a restaurant, general farming, letting of egg production facilities and the provision of ancillary services. |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
As for many businesses of our size, the business environment in which we operate continues to be challenging. The retail market in the UK is highly competitive and margins continue to be challenged. We are of course also subject to consumer spending patterns and consumers' overall level of disposable income within our economy. |
Principal risks and uncertainties |
The risks facing the company are assessed on an ongoing basis. The directors evaluate the likelihood and potential impact of each risk and ensure appropriate action is taken to mitigate it. |
A number of key risks such as credit management, liquidity, health and safety and regulatory compliance come under the direct control of the directors. |
With the principal risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. |
Financial key performance indicators |
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin. The net contribution before allocation of central shared overheads of each activity is monitored on a regular basis. |
Development and performance |
The group's turnover increased 17% from £4.9m in 2021 to £5.7m in 2022. Direct costs decreased proportionally more than sales, meaning the group's gross profit margin increased to 38.0% (2021: 30.7%). |
Administrative expenditure has increased to £3,030,098 (2021: £2,126,589). The operating profit for the year decreased by 18.6% to £994,359 (2021: £1,222,236). |
Debt servicing costs reduced marginally on the prior year at £24,679 (2021: £27,910) due to a reducing loan balance. Profit before tax decreased to £969,680 (2021: £1,197,326), whilst profit after tax decreased to £604,503 (2021: £829,361). |
After payment of dividends totalling £90,764, £513,739 was added to reserves leaving shareholders funds at £9,088,598 (2021: £8,574,859). |
On behalf of the board: |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Report of the Directors |
for the year ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
Dividends |
The total distribution of dividends for the year ended 31 December 2021 will be £90,764. Particulars of dividends paid are detailed within the financial statements. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Auditors |
Haines Watts Birmingham LLP are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
A.E. Beckett & Sons Limited |
Qualified Opinion |
We have audited the financial statements of A.E. Beckett & Sons Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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). |
In our opinion, except for the effects of the matter described in the Basis for qualified opinion section, the financial statements: |
- | give a true and fair view of the state of the group’s affairs as at 31 December 2022 and of its profitfor 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. |
Basis for qualified opinion |
The group and company does not classify any of its freehold property as investment property. It continues to treat all property as "Property, Plant and Equipment" and to recognise in the Balance Sheet at depreciated historical cost. This policy is not in accordance with Financial Reporting Standard 102 ("FRS102") which defines Investment Property as property (land or a building, or part of a building, or both) held by the owner, or by the lessee under a finance lease, to earn rentals or for capital appreciation or both. FRS102 requires that investment property is carried at its fair value (being the properties' market value) at each Balance Sheet date, with any gains or losses being recognised in profit and loss for the year. |
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 group 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 qualified 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 the 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. |
Key audit matters |
Except for the matter described in the Basis for qualified opinion section, we have determined there are no other key audit matters be communicated in our report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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. |
Report of the Independent Auditors to the Members of |
A.E. Beckett & Sons Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group 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 |
- | the Group Strategic Report and the Report of the Directors 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 identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 Statement of Directors' Responsibilities set out on page three, 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. |
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. |
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. |
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to: |
- | making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; |
- | obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- | assessing the risk of management override including identifying and testing journal entries; |
- | challenging the assumptions and judgements made by management in its significant accounting estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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. |
Report of the Independent Auditors to the Members of |
A.E. Beckett & Sons Limited |
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. |
for and on behalf of |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Turnover | 4 | 5,702,417 | 4,865,868 |
Cost of sales | (3,533,443 | ) | (3,370,236 | ) |
Gross profit | 2,168,974 | 1,495,632 |
Administrative expenses | (3,030,098 | ) | (2,126,590 | ) |
(861,124 | ) | (630,958 | ) |
Other operating income | 5 | 1,855,483 | 1,853,193 |
Operating profit | 7 | 994,359 | 1,222,235 |
Interest payable and similar expenses | 8 | (24,679 | ) | (27,910 | ) |
Profit before taxation | 969,680 | 1,194,325 |
Tax on profit | 9 | (365,177 | ) | (364,965 | ) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 604,503 | 829,360 |
Profit attributable to: |
Owners of the parent | 604,503 | 829,360 |
Total comprehensive income attributable to: |
Owners of the parent | - | - |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Consolidated Statement of Financial Position |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 12 | 13,467,928 | 8,488,927 |
Investments | 13 | - | - |
13,467,928 | 8,488,927 |
Current assets |
Stocks | 14 | 322,215 | 232,265 |
Debtors | 15 | 198,517 | 126,349 |
Investments | 16 | 1,279 | 1,279 |
Cash at bank and in hand | 5,332 | 1,931,186 |
527,343 | 2,291,079 |
Creditors |
Amounts falling due within one year | 17 | 3,579,952 | 839,662 |
Net current (liabilities)/assets | (3,052,609 | ) | 1,451,417 |
Total assets less current liabilities | 10,415,319 | 9,940,344 |
Creditors |
Amounts falling due after more than one year |
18 |
(816,049 |
) |
(960,567 |
) |
Provisions for liabilities | 22 | (510,672 | ) | (404,919 | ) |
Net assets | 9,088,598 | 8,574,858 |
Capital and reserves |
Called up share capital | 23 | 15,407 | 15,407 |
Share premium | 24 | 626,884 | 626,884 |
Capital redemption reserve | 24 | 23,599 | 23,599 |
Retained earnings | 24 | 8,422,708 | 7,908,968 |
Shareholders' funds | 9,088,598 | 8,574,858 |
The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2023 and were signed on its behalf by: |
E V Kyte - Director |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Company Statement of Financial Position |
31 December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 12 |
Investments | 13 |
Current assets |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 17 |
Net current (liabilities)/assets | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
Provisions for liabilities | 22 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 23 |
Share premium | 24 |
Capital redemption reserve | 24 |
Retained earnings | 24 |
Shareholders' funds |
Company's profit for the financial year | 519,316 | 755,229 |
The financial statements were approved by the Board of Directors and authorised for issue on |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Consolidated Statement of Changes in Equity |
for the year ended 31 December 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 | 15,407 | 7,325,700 | 626,884 | 23,599 | 7,991,590 |
Changes in equity |
Dividends | - | (246,092 | ) | - | - | (246,092 | ) |
Total comprehensive income | - | 829,360 | - | - | 829,360 |
Balance at 31 December 2021 | 15,407 | 7,908,968 | 626,884 | 23,599 | 8,574,858 |
Changes in equity |
Dividends | - | (90,764 | ) | - | - | (90,764 | ) |
Total comprehensive income | - | 604,503 | - | - | 604,503 |
Balance at 31 December 2022 | 15,407 | 8,422,707 | 626,884 | 23,599 | 9,088,597 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Company Statement of Changes in Equity |
for the year ended 31 December 2022 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Consolidated Statement of Cash Flows |
for the year ended 31 December 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,381,931 | 1,323,164 |
Interest paid | (24,679 | ) | (27,910 | ) |
Tax paid | (206,454 | ) | (400,090 | ) |
Net cash from operating activities | 1,150,798 | 895,164 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (5,531,034 | ) | (835,227 | ) |
Sale of tangible fixed assets | 24,250 | 1,650,817 |
Net cash from investing activities | (5,506,784 | ) | 815,590 |
Cash flows from financing activities |
Loan repayments in year | (140,841 | ) | (137,611 | ) |
Capital repayments in year | (64,874 | ) | (152,214 | ) |
Amount introduced by directors | 3,270 | 35,000 |
Amount withdrawn by directors | - | (3,270 | ) |
Equity dividends paid | (90,764 | ) | (246,092 | ) |
Net cash from financing activities | (293,209 | ) | (504,187 | ) |
(Decrease)/increase in cash and cash equivalents | (4,649,195 | ) | 1,206,567 |
Cash and cash equivalents at beginning of year |
2 |
1,931,186 |
724,619 |
Cash and cash equivalents at end of year | 2 | (2,718,009 | ) | 1,931,186 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Statement of Cash Flows |
for the year ended 31 December 2022 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2022 | 2021 |
£ | £ |
Profit before taxation | 969,680 | 1,194,325 |
Depreciation charges | 541,769 | 468,684 |
Profit on disposal of fixed assets | (13,985 | ) | (366,072 | ) |
Finance costs | 24,679 | 27,910 |
1,522,143 | 1,324,847 |
Increase in stocks | (89,950 | ) | (106,438 | ) |
Increase in trade and other debtors | (75,438 | ) | (36,520 | ) |
Increase in trade and other creditors | 25,176 | 141,275 |
Cash generated from operations | 1,381,931 | 1,323,164 |
2. | Cash and cash equivalents |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 5,332 | 1,931,186 |
Bank overdrafts | (2,723,341 | ) | - |
(2,718,009 | ) | 1,931,186 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 1,931,186 | 724,619 |
3. | Analysis of changes in net funds/(debt) |
At 1/1/22 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,931,186 | (1,925,854 | ) | 5,332 |
Bank overdrafts | - | (2,723,341 | ) | (2,723,341 | ) |
1,931,186 | (4,649,195 | ) | (2,718,009 | ) |
Liquid resources |
Current asset investments | 1,279 | - | 1,279 |
1,279 | - | 1,279 |
Debt |
Finance leases | (64,874 | ) | 64,874 | - |
Debts falling due within 1 year | (140,842 | ) | (3,677 | ) | (144,519 | ) |
Debts falling due after 1 year | (960,567 | ) | 144,518 | (816,049 | ) |
(1,166,283 | ) | 205,715 | (960,568 | ) |
Total | 766,182 | (4,443,480 | ) | (3,677,298 | ) |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements |
for the year ended 31 December 2022 |
1. | Statutory information |
A.E. Beckett & Sons Limited is a |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated. |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account it published a separate profit and loss account for the parent company is omitted from the group consolidated financial statements by virtue of section 408 of the Companies Act 2006. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Other income |
Other income, comprising rents received and sundry receipts are measured at the fair value of the consideration received or receivable, excluding discounts, rebates,value added tax and other sales taxes. They are credited to the profit an loss account in the period for which the good or service was provided. |
Government grants |
Grants which are of a revenue nature are credited to the profit and loss account in the same period as the related expenditure. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant & equipment | - |
Motor vehicles | - |
All fixed assets are initially recorded at cost. |
Fixed asset investments |
Investments in subsidiary undertakings are recognised at cost less accumulated impairment. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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. |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
3. | Accounting policies - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Hire purchase and leasing commitments |
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis. |
Operating Lease Agreements |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
3. | Accounting policies - continued |
Critical accounting estimates |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Stock valuation |
Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends. |
Depreciation |
The depreciation of tangible fixed assets is calculated based on estimates of the useful lives of each category of asset. The directors review the period and method of depreciation when events and circumstances indicate that the useful economic life may have changed since the last reporting date. |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
5. | Other operating income |
2022 | 2021 |
£ | £ |
Rents received | 1,759,178 | 1,596,035 |
Sundry receipts | 96,305 | 156,392 |
Government grants | - | 100,766 |
1,855,483 | 1,853,193 |
6. | Employees and directors |
2022 | 2021 |
£ | £ |
Wages and salaries | 2,148,140 | 2,191,117 |
Social security costs | 180,229 | 177,906 |
Other pension costs | 78,347 | 127,146 |
2,406,716 | 2,496,169 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Production staff | 81 | 100 |
Administrative staff | 6 | 6 |
Directors | 5 | 5 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
6. | Employees and directors - continued |
2022 | 2021 |
£ | £ |
Directors' remuneration | 237,837 | 189,309 |
Directors' pension contributions to money purchase schemes | 43,575 | 60,400 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director for the year ended 31 December 2022 is as follows: |
2022 |
£ |
Emoluments etc | 61,271 |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 447,967 | 343,618 |
Depreciation - assets on hire purchase contracts | 93,802 | 125,066 |
Profit on disposal of fixed assets | (13,985 | ) | (366,072 | ) |
Auditors' remuneration | 19,000 | 17,400 |
8. | Interest payable and similar expenses |
2022 | 2021 |
£ | £ |
Interest payable on bank |
borrowings | 24,679 | 27,910 |
24,679 | 27,910 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 259,424 | 207,994 |
Under/(over) provision prior year | - | 222,913 |
Total current tax | 259,424 | 430,907 |
Deferred tax | 105,753 | (65,942 | ) |
Tax on profit | 365,177 | 364,965 |
UK corporation tax has been charged at 19 % (2021 - 19 %). |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
9. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 969,680 | 1,194,325 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
184,239 |
226,922 |
Effects of: |
Expenses not deductible for tax purposes | 7,104 | 6,784 |
Utilisation of tax losses | - | (74,779 | ) |
Adjustments to tax charge in respect of previous periods | - | 222,913 |
Consolidation adjustments | 6,339 | 5,609 |
Fixed asset timing differences | 155,547 | (33,514 | ) |
Indexation of capital gain | - | 11,030 |
Effects of future change in rate of tax | 11,948 | - |
Total tax charge | 365,177 | 364,965 |
Factors affecting future tax changes |
The Finance (No.2) Act 2015 reduced the main rate of UK corporation tax to 19%, effective from 1 April 2017. A further reduction in the UK corporation tax rate to 17% was expected to come into effect from 1 April 2020 (as enacted by Finance Act 2016 on 15 September 2016). However, legislation introduced in the Finance Act 2020 (enacted on 22 July 2020) repealed the reduction of the corporation tax, thereby maintaining the current rate of 19%. Deferred taxes on the balance sheet have been measured at 25% (2021 - 19%) which represents the future corporation tax rate that was enacted at the balance sheet date. |
10. | Individual statement of comprehensive income |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
The parent company's profit for the financial year was £519,507 (2021 - £755,229). |
11. | Dividends |
2022 | 2021 |
£ | £ |
Ordinary shares of £1.00 each |
Interim | 30,764 | 186,092 |
A Ordinary shares of £0.25 each |
Interim | 60,000 | 60,000 |
90,764 | 246,092 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
12. | Tangible fixed assets |
Group |
Freehold | Improvements | Plant & | Motor |
property | to property | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2022 | 9,711,896 | 1,227,296 | 2,963,376 | 1,538,913 | 15,441,481 |
Additions | 5,381,716 | - | 122,943 | 26,375 | 5,531,034 |
Disposals | - | - | (21,981 | ) | (14,000 | ) | (35,981 | ) |
At 31 December 2022 | 15,093,612 | 1,227,296 | 3,064,338 | 1,551,288 | 20,936,534 |
Depreciation |
At 1 January 2022 | 2,604,907 | 1,023,624 | 2,356,711 | 967,311 | 6,952,553 |
Charge for year | 270,764 | 13,081 | 108,775 | 149,149 | 541,769 |
Eliminated on disposal | - | - | (16,145 | ) | (9,571 | ) | (25,716 | ) |
At 31 December 2022 | 2,875,671 | 1,036,705 | 2,449,341 | 1,106,889 | 7,468,606 |
Net book value |
At 31 December 2022 | 12,217,941 | 190,591 | 614,997 | 444,399 | 13,467,928 |
At 31 December 2021 | 7,106,989 | 203,672 | 606,665 | 571,602 | 8,488,928 |
Included within the net book value of £13,467,928 is £281,394 (2021 - £375,196) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £93,802 (2021 - £125,066). |
Company |
Freehold | Plant & | Motor |
property | equipment | vehicles | Totals |
£ | £ | £ | £ |
Cost |
At 1 January 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
Depreciation |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
Included in cost of land and buildings is freehold land of £ 967,288 (2021 - £ 967,288 ) which is not depreciated. |
Included within the net book value of £13,136,199 is £281,394 (2021 - £375,196) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £93,802 (2021 - £125,066). |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
13. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 January 2022 |
and 31 December 2022 |
Net book value |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: Heath Farm, Alcester Road, Wythall, Birmingham, B47 6AJ |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
14. | Stocks |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Arable farm stock | 198,080 | 110,940 | 198,080 | 110,940 |
Shop and restaurant stock | 124,135 | 121,325 | 124,135 | 121,325 |
322,215 | 232,265 |
15. | Debtors: amounts falling due within one year |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 136,051 | 111,147 |
Other debtors | 59,138 | 8,828 |
Directors' loan accounts | - | 3,270 | - | 3,270 |
Called up share capital not paid | 15 | 15 |
Prepayments | 3,313 | 3,089 |
198,517 | 126,349 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
16. | Current asset investments |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Unlisted investments | 1,279 | 1,279 | 1,279 | 1,279 |
17. | Creditors: amounts falling due within one year |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 2,867,860 | 140,842 |
Hire purchase contracts (see note 20) | - | 64,874 |
Trade creditors | 335,789 | 332,550 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 160,612 | 107,642 |
Social security and other taxes | 50,908 | 35,466 |
VAT | 106,684 | 78,898 | 106,684 | 78,898 |
Other creditors | 31,689 | 31,689 |
Accruals and deferred income | 26,410 | 47,701 |
3,579,952 | 839,662 |
18. | Creditors: amounts falling due after more than one year |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans (see note 19) | 816,049 | 960,567 |
Amounts owed to group undertakings | - | - | 565,511 | 565,511 |
816,049 | 960,567 |
19. | Loans |
An analysis of the maturity of loans is given below: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 2,723,341 | - |
Bank loans | 144,519 | 140,842 |
2,867,860 | 140,842 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 147,646 | 144,232 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 668,403 | 816,335 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
20. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | - | 64,874 |
Company |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Company |
Non-cancellable |
operating leases |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
21. | Secured debts |
The following secured debts are included within creditors: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank overdraft | 2,723,341 | - |
Bank loans | 960,568 | 1,101,409 |
Hire purchase contracts | - | 64,874 | - | 64,874 |
3,683,909 | 1,166,283 |
The bank loan is secured by a legal charge over the freehold property and assets of the group and is supported by a cross guarantee between group companies. |
Liabilities under Hire Purchase agreements are secured on the individual assets concerned. |
22. | Provisions for liabilities |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred tax | 510,672 | 404,919 | 469,523 | 371,992 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
22. | Provisions for liabilities - continued |
Group |
Deferred tax |
£ |
Balance at 1 January 2022 | 404,919 |
Provided during year | 105,753 |
Balance at 31 December 2022 | 510,672 |
Company |
Deferred tax |
£ |
Balance at 1 January 2022 |
Provided during year |
Balance at 31 December 2022 |
23. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1.00 | 15,081 | 15,081 |
A Ordinary | £0.25 | 15 | 15 |
D Ordinary | £1.00 | 311 | 311 |
15,407 | 15,407 |
24. | Reserves |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 7,908,969 | 626,884 | 23,599 | 8,559,452 |
Profit for the year | 604,503 | - | - | 604,503 |
Dividends | (90,764 | ) | - | - | (90,764 | ) |
At 31 December 2022 | 8,422,708 | 626,884 | 23,599 | 9,073,191 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 7,376,165 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
At 31 December 2022 | 7,804,717 |
A.E. BECKETT & SONS LIMITED (REGISTERED NUMBER: 00682856) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 December 2022 |
24. | Reserves - continued |
Share premium account |
The share premium reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
Capital redemption reserve |
The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares out of distributable profits. |
Profit and loss account |
Profit and loss account includes all current and prior period retained profits and losses, less distributions to owners. |
25. | Capital commitments |
2022 | 2021 |
£ | £ |
Contracted but not provided for in the |
financial statements | 102,000 | - |
26. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
The company entered into the following transactions with related parties during the year: |
Mr A M Beckett (director) rents a property owned by the company at £500 per month. Ms D Beckett (Daughter of Mr A M Beckett) also rents a property owned by the company at £250 per month. There were no outstanding balances at the year end. |
In 2004 Ms D Beckett loaned the company £30,000, the full balance is still outstanding at the year end and is included within other creditors (2021 - £30,000). |
At the year end the loan account balance due from S Beckett was £Nil (2021 - £3,270) |
27. | Ultimate controlling party |
The controlling party is S Beckett by virtue of his majority shareholding. |