REGISTERED NUMBER:
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BRODERICK GROUP LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2019 |
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REGISTERED NUMBER:
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BRODERICK GROUP LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2019 |
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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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 | 10 |
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Other Comprehensive Income | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Cash Flow Statement | 14 |
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Notes to the Cash Flow Statement | 15 |
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Notes to the Financial Statements | 16 |
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BRODERICK GROUP LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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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 Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
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SOLICITORS: |
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5 St Paul's Square |
Old Hall Street |
Liverpool |
L3 9AE |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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The directors present their strategic report for the year ended 31 December 2019. |
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REVIEW OF BUSINESS |
In this highly competitive market, the company has managed to sustain growth in revenue by 3.4% (2018: 9.4%) from 2018, which shows the continued demand for the company's products. The operating profit margin for the year is 3.65% (2018: 4.04%) which demonstrates a steady profit in a year when the company has seen increases in wages costs and motor expenses. |
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The company's net assets have increased by 7.1% (2018: 17.8%) to £2.97m (2018: £2.77m) showing the increased strength and performance of the business. |
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Building the Broderick brand has seen a move across social media, increasing awareness through competitions, meal deals and advertising of recent events and awards. The Broderick Coffee Bean has also been developed, Fairtrade Rainforest Alliance, and will be implemented across our estate in the forthcoming years. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties of the company relate to competition. The company manages competitive trading risk by continually investing in research and development to provide industry leading products and services to customers. The company has actively diversified its customer base throughout the United Kingdom, in order to further reduce this risk. |
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FINANCIAL RISK MANAGEMENT |
Information on financial risk management is scheduled in note 25 to the financial statements. |
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THE ENVIRONMENT AND A SUSTAINABLE FUTURE |
This is how we are working towards a more sustainable future. |
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Environmentally friendly product range - Environmentally friendly product range - we have worked extensively with suppliers to provide our customers with machines that deliver exceptional service but also serve our commitment to a cleaner and safer environment. Where possible, equipment is manufactured within the United Kingdom, reducing th e amount of carbon emissions used in delivery. Our touch screen range of machines is made using a reso urce conserving process and recycled materials where possible. They use advanced energy management sy stems and L.E.D lighting that greatly reduce their power consumption which has less impact on t he environment and beneficial for our customers' energy bills. We now offer a refrigerant free machine p roviding customers with the opportunity to operate a machine at ambient temperature further reducing e nergy consumption and eliminating hydrofluorocarbons (HFCs) that are produced from refrigeration units. We are consistently investing our time and resources into the researching and development of new mor e environmentally friendly product ranges. |
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Recycle and re-use - we have in house technical facilities that enable us to refurbish pre owned vending equipment. With th e support of our suppliers and manufacturers, older machines can receive a new lease of life; after a comp rehensive rebuild replacing all wear and tear components the machines go through a rigorous inspectio n procedure and are then made ready for resale. Not only does this reduce carbon emissions, it redu ces the precious resources required to manufacture from new and keeps the old machines out of the waste c hain. |
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Sustainable Supply Chain Management - we have committed to reducing the delivery miles of our products by sourcing supply partner s who are closer to our customers, or work with us to agree options of delivery that reduce our carbon foo tprint whilst maintaining the efficiency of our service. |
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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Route planning - The Broderick Group use a vehicle tracking system allowing us to collect and analyse a vast array of information. We have real time GPS tracking control over every vehicle asset and operator / engineer. Such control allows us to analyse which is the best or most fuel-efficient route to a site. If a site requires techn ical support, we can find the closest engineer to hand to enable a rapid response. |
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Reduction of waste to landfill - cardboard and plastics are baled at Head Office and sent for recycling. |
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We have been working closely with Simply Cups to set up a joint venture programme to offer customers the opportunity to recycle vending machine cups and further reduce waste to landfill. We are the first vending company in the North West to offer this service. |
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100% Recyclable Paper Cup - we are currently trialling a material to be able to offer a paper cup which can be recycled with cardboard and paper without any special treatment or process. |
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Reducing paper in our operations - we use innovative computer and communication systems for efficient operational control reducing the amount of paper we use whilst recording accurate information. We have introduced electronic generation of invoices and last year we saved 1.5 tonnes of paper that we could have generated by printing. |
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Training - employees receive training in environmental awareness so that they become aware of their responsi bilities and help implement the simple practices that would reduce our carbon emissions. |
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Fleet management - the company has now completed its programme to replace the van fleet with more fuel efficient E uro 6 Ford Transit Custom vans, and have also commenced the introduction of Hybrid vehicles. |
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Living wage - We continually look to improve the lives of our best assets, our people. We are working towards pay ing our employees at least the living wage and are in the process of applying for the accreditati on to show this. |
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Health and Wellbeing - Broderick Group Ltd believes in offering our customers healthy choices, as more and more customers a re making informed decisions about what they consume. We offer hot beverages made with real dairy skimmed milk, healthy fruit juices and flavoured mineral waters. We were the pioneers of healthy hot bever ages by encouraging existing clients and new customers to make the switch to healthy skimmed milk. Previo usly most vended hot beverages contained whiteners made from Hydrogenated Vegetable Oils and c ontained unhealthy Tran's fats. Tran's fats increase levels of LDL cholesterol which can increase the risk of coronary heart disease. |
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Ethical Trading - Broderick Group Ltd have long established ethical trading principles and were one of the first vending c ompanies in the United Kingdom to offer ethically endorsed products back in the 1990's. We are a supplier of fair trade and fair-trade certified products. Our ethically traded product range covers coffee, tea, chocolate drinks, fruit juices and confectionery. The Rainforest Alliance Certified™ seal on Broderick's Coffee Beans pr omotes environmental responsibility, social equity and economic viability for farm communities. |
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Support for our local community and beyond - Broderick Group Ltd have continued to donate and provide charitable support in our local community throughout the year. |
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Broderick Group Ltd have reacted to recent critical situations in the local area by providing free stock to the staff and emergency services responding the floods in Yorkshire, the MEN bombing and the efforts to support the homeless in Manchester. Other support has been provided in the form of charitable donations from our Beanstalk foundation to Ronald McDonald House and the UK Sepsis trust. |
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Brexit - Broderick Group Limited have completed an internal risk assessment regarding the potential implic ations of Brexit and taken steps to restructure our organisation in order to reduce these risks so they have a minimal impact on our future trading ability. |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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Cashless Payment Technology - Broderick Group Limited have invested heavily in contactless payment and payment applications te chnology that can be used across our range of machines. This technology allows the business to resp ond to the payment demand of our customers, improve our cash cycles and improve the overall custome r experience. |
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ON BEHALF OF THE BOARD: |
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the purchase and sale of vending machines, ingredients and supply of professionally operated vending services. |
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DIVIDENDS |
An interim dividend of £477,392 (2018: £290,000) was paid in the year. The directors recommend that no (2018: no) final dividend be paid. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report. |
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DONATIONS |
During the year the company donated £12,858 (2018: £9,000) to various charities. |
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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; |
- | 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. |
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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. |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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AUDITORS |
The auditors, Clarke Nicklin LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRODERICK GROUP LIMITED |
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Opinion |
We have audited the financial statements of Broderick Group Limited (the 'company') for the year ended 31 December 2019 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | 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: |
- | 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 |
- | 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 |
BRODERICK GROUP 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: |
- | 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRODERICK GROUP LIMITED |
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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 Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2019 | 2018 |
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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7,500,548 | 7,010,347 |
697,254 | 741,448 |
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Other operating income |
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OPERATING PROFIT | 5 |
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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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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2019 | 2018 |
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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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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BALANCE SHEET |
31 DECEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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Investments | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 13 |
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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 |
14 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Capital redemption reserve | 19 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 January 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2019 |
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BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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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 | 380,816 | 253,271 |
Amount withdrawn by directors | (380,816 | ) | (253,271 | ) |
Equity dividends paid | ( |
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Net cash from financing activities | ( |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at
beginning of year |
2 |
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846,068 |
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Cash and cash equivalents at end of
year |
2 |
397,954 |
453,205 |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Finance costs | 52,711 | 32,070 |
1,591,321 | 1,681,966 |
Increase in stocks | ( |
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(Increase)/decrease in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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( |
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Cash generated from operations |
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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 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 397,954 | 453,205 |
Year ended 31 December 2018 |
31.12.18 | 1.1.18 |
£ | £ |
Cash and cash equivalents | 453,205 | 846,068 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
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Other |
non-cash |
At 1.1.19 | Cash flow | changes | At 31.12.19 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 453,205 | (55,251 | ) | 397,954 |
453,205 | ( |
) | 397,954 |
Debt |
Hire purchase and |
finance leases | (402,351 | ) | 29,039 | - | (552,690 | ) |
(402,351 | ) | 29,039 | - | (552,690 | ) |
Total | 50,854 | (26,212 | ) | - | (154,736 | ) |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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1. | COMPANY INFORMATION |
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Broderick Group Limited ("the Company") is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is 1 Alpha Point, Bradnor Road, Sharston, Manchester, M22 4TE. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard Applicable in the UK and Republic of Ireland" ("FRS 102") and applicable legislation as set out in the Companies Act 2006 and Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. These financial statements have been prepared under the historical costs convention. |
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The financial statements are presented in Sterling (£). |
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Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the company, any potential risk that might impact the company's ability to meet its required solvency levels, and the position with regard to bank borrowing. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further detail on post balance sheet events and Coronavirus can be found in the Strategic Report and the Post Balance Sheet Event note. |
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Preparation of consolidated financial statements |
The financial statements contain information about Broderick Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 405 of the Companies Act 2006 not to prepare consolidated financial statements, as its subsidiary undertakings taken together are not material for the purposes of giving a true and fair view. |
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Significant judgements and 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 if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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The following judgements have had the most significant effect on amounts recognised in the financial statements: |
Depreciation - The useful life of a vending machine can vary significantly. Estimates are based on historic experience and current expectations of useful life. The size of prior year gains and losses on disposal are also factored into estimates. |
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Turnover |
Turnover represents net invoiced sales of machines, ingredients, snacks and cans and maintenance and rental of machines, excluding value added tax. |
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Sales of snacks, ingredients and drinks are recognised at point of sale. |
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Machine sales are recognised when the risks and rewards of ownership are transferred to the customer. |
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Machines rentals are recognised as and when the rents fall, usually per lease agreement in place with each customer. |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
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Office equipment | - | 15% on reducing balance |
Security system | - | 25% on reducing balance |
Vending machines | - | 5 years straight line and 20% on reducing balance |
Fixtures and fittings | - | 15% on reducing balance |
Motor vehicles | - | 25% on reducing balance |
Computer equipment | - | 3-5 years straight line |
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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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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
|
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 paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
|
Machine rentals |
The company holds a number of vending machines that are rented out under operating leases. |
|
Rental Income from operating leases is recognised on a straight-line basis over the period of the lease. |
|
Financial assets |
Basic financial assets, including trade debtors, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, 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. |
|
Such assets are subsequently carried at amortised cost using the effective interest method. |
|
At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
|
If there is a decrease in the the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the income statement. |
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
|
Financial Liabilities |
Basic financial liabilities, including trade creditors and amounts owed to group undertakings, 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 or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
|
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
2019 | 2018 |
£ | £ |
|
|
|
|
|
|
|
|
|
An analysis of turnover by geographical market is given below: |
|
2019 | 2018 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Office staff | 35 | 31 |
Operations | 73 | 67 |
Engineering | 20 | 20 |
Sales | 10 | 14 |
Warehouse | 8 | 5 |
|
|
|
2019 | 2018 |
£ | £ |
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 |
|
|
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts and finance leases |
|
|
Loss on disposal of fixed assets |
|
|
Auditors' remuneration: Audit services |
|
|
Auditors' remuneration: Non-audit services |
|
|
Foreign exchange differences | ( |
) | ( |
) |
Income from operating leases | ( |
) | ( |
) |
Motor vehicle leases |
|
|
Bad debt provision |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Other interest |
|
|
|
7. | TAXATION |
|
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Adjustment in respect of prior year | (162,067 | ) | - |
Total current tax | ( |
) |
|
|
Deferred tax |
|
( |
) |
Tax on profit | ( |
) |
|
|
UK corporation tax has been charged at 19% (2018 - 19%). |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
7. | TAXATION - continued |
|
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: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Total tax (credit)/charge | (29,944 | ) | 147,181 |
|
8. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Ordinary shares of £1 each |
Interim |
|
|
|
9. | TANGIBLE FIXED ASSETS |
Office | Security | Vending |
equipment | system | machines |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
|
( |
) |
At 31 December 2019 |
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
|
( |
) |
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
|
|
( |
) |
At 31 December 2019 |
|
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) |
At 31 December 2019 |
|
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
|
At 31 December 2018 |
|
|
|
|
|
Vending machines includes assets owned by the company that are leased out under operating leases: |
|
2019 | 2018 |
£ | £ |
Cost | 688,999 | 650,035 |
Accumulated depreciation | 428,405 | 394,448 |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
9. | TANGIBLE FIXED ASSETS - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows: |
Vending | Motor |
machines | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) |
|
( |
) |
At 31 December 2019 |
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) |
|
( |
) |
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
|
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2019 |
and 31 December 2019 |
|
NET BOOK VALUE |
At 31 December 2019 |
|
At 31 December 2018 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: 1 Alpha Point, Bradnor Road, Sharston, Manchester, M22 4TE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2019 | 2018 |
£ | £ |
Aggregate capital and reserves |
|
|
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
10. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: 1 Alpha Point, Bradnor Road, Sharston, Manchester, M22 4TE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2019 | 2018 |
£ | £ |
Aggregate capital and reserves |
|
|
|
|
Registered office: 1 Alpha Point, Bradnor Road, Sharston, Manchester, M22 4TE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2019 | 2018 |
£ | £ |
Aggregate capital and reserves |
|
|
|
11. | STOCKS |
|
2019 | 2018 |
£ | £ |
Ingredients, snacks, cans & bottles | 708,189 | 600,914 |
Machines & parts | 683,357 | 747,241 |
1,391,546 | 1,348,155 |
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Tax recoverable |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
|
Trade debtors are stated after impairment provisions of £266,202 (2018: £174,196). |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts and finance leases (see note 15) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
Other creditors includes unpaid pension contributions of £19,701 (2018: £11,418). |
|
14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts and finance leases (see note 15) |
|
|
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts | Finance leases |
2019 | 2018 | 2019 | 2018 |
£ | £ | £ | £ |
Net obligations repayable: |
Within one year |
|
|
|
|
Between one and five years |
|
|
|
|
|
|
|
|
|
Non-cancellable | operating leases |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2019 | 2018 |
£ | £ |
Hire purchase contracts and finance leases | 552,690 | 402,351 |
Pension scheme loan | - | 91,667 |
|
|
|
Finance lease liabilities and hire purchase contracts are secured on the assets to which they relate. The pension fund loan is secured by a fixed and floating charge on the company's assets. |
|
17. | DEFERRED TAX |
£ |
Balance at 1 January 2019 | ( |
) |
Charge to Income Statement during year |
|
Balance at 31 December 2019 | ( |
) |
|
The provision for deferred taxation is made up as follows |
2019 | 2018 |
£ | £ |
Decelerated capital allowances | (2,083 | ) | (85,540 | ) |
Other timing differences | (2,170 | ) | (2,170 | ) |
|
18. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 15,574 | 15,574 |
|
19. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1 January 2019 |
|
|
2,755,593 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 31 December 2019 |
|
|
2,952,688 |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
20. | CONTINGENT LIABILITIES |
|
Intercompany cross guarantees are in place with National Westminster Bank Plc in respect of all borrowings. The guarantee is made between Brodericks Love Coffee LLP and Broderick Group Limited. |
|
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to directors subsisted during the years ended 31 December 2019 and 31 December 2018: |
|
2019 | 2018 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
Advances to directors include cash payments and personal expenses paid by the company. |
|
Amounts repaid consist of dividends, expenses and cash amounts repaid by the directors. |
|
Directors' loans are interest free and repayable on demand. |
|
22. | RELATED PARTY DISCLOSURES |
|
Dividends |
The following dividends were payable to directors: |
2019 | 2018 |
£ | £ |
J M Broderick | 169,727 | 103,103 |
P A Broderick | 169,727 | 103,103 |
BRODERICK GROUP LIMITED (REGISTERED NUMBER: 01459430) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
|
|
22. | RELATED PARTY DISCLOSURES - continued |
|
|
2019 | 2018 |
£ | £ |
Sales |
|
|
Purchases |
|
|
Rent paid | 124,994 | 139,778 |
Interest paid | 14,232 | 15,417 |
Amount due from related party |
|
|
Amount due to related party |
|
|
|
23. | POST BALANCE SHEET EVENTS |
|
The coronavirus pandemic has significantly impacted business activities in the period following the year end, most notably reducing turnover. Post year end, the business has received funding via the Coronavirus Jobs Retention Scheme and the Coronavirus Business Interruption Loan Scheme. |
|
The directors have taken appropriate mitigating actions, and are confident that the business will return to generating profit and positive cashflows in 2021 and beyond. |
|
24. | ULTIMATE CONTROLLING PARTY |
|
The company is controlled by J M Broderick, P A Broderick and B A Broderick by virtue of their 100% holding of the issued ordinary share capital. |
|
25. | FINANCIAL RISK MANAGEMENT |
|
The main risks that the company is exposed to are: |
|
Credit Risk |
The company's credit risk is mainly attributable to its trade debtors, this is managed by having a broad range of customers and their exposure to the company is based on their credit score. |
|
Financial Risk |
The company reduces its exposure to funding and liquidity risks by relying on the cash position of the business. The company does not currently hold any loans, and so interest rate risk is reduced. |
|
Price Risks |
We made the conscious decision to leave the buying group, to great success. Our own position in the market allowed us to not only receive the same prices, but allowed us to build a cohesive relationship with the brands, and increased rebate recognition in product placement. |
|
Fraud |
The risk of dealing with cash is always at the forefront of our system processes. With the increased introduction of cashless systems, credit card payments, and the new Apple Pay we are continually reducing this risk. |