Registration number:
Viking Industrial Products Limited
for the Year Ended 31 October 2019
Viking Industrial Products Limited
Contents
Strategic Report |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Viking Industrial Products Limited
Strategic Report for the Year Ended 31 October 2019
The directors present their strategic report for the year ended 31 October 2019.
Principal activity
The principal activity of the company is Distribution of industrial tapes, adhesive abrasives and packaging materials
Fair review of the business
It has been another positive year with growth in both turnover and operating profit percentage. The turnover increase is predominantly due to the retention of key accounts, the addition of the new key accounts and the growth of our online sales. We have implemented a new accountancy system which in-hand with streamlining further internal efficiencies has reduced operating costs.
We have invested consistently on our digital offering and we have introduced various targeted digital marketing campaigns to existing and potential end users which we will continue with during 2020.
We have added expertise into our customer care team and we believe we have the team to support our Company Vision.
We have successfully implemented a unique growth project with our key partner – global player 3M which has increased our turnover substantially with them.
Our core values will continue to drive our business and enable us to cement our standing within our industry and our customers.
Our relationship with our key partners has been a focus during this period and we have successfully added to the stable of premier manufacturers we represent.
Future Plans
Future plans involve adding to our existing sales team, investing further in our online platforms, continuing with our digital marketing and entering into a joint venture with a key partner to develop our industrial consumable offering.
We are investing in a Wellbeing Within The Workplace programme which will cascade from top to bottom throughout the Company and for the first time we will have a designated Mental Health First Aider within the organisation.
We are still privileged, having been selected to participate in the Goldman Sachs 10KSB leadership programme, to benefit from their substantial leadership support and network. This programme is acknowledged as a leading growth incubator globally.
Apart from the normal commercial competition and the uncertainty surrounding Brexit the Directors do not foresee any undue risks to the Business.
Directors
The Directors shown below have held office during the whole of the period from 1989 to the date of this report
M L Bennett
C M Bennett
P L Bennett
Approved by the
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Page 1 |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Viking Industrial Products Limited
for the Year Ended 31 October 2019
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Viking Industrial Products Limited for the year ended 31 October 2019 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Viking Industrial Products Limited, as a body, in accordance with the terms of our engagement letter dated 21 November 2019. Our work has been undertaken solely to prepare for your approval the accounts of Viking Industrial Products Limited and state those matters that we have agreed to state to the Board of Directors of Viking Industrial Products Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Viking Industrial Products Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Viking Industrial Products Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Viking Industrial Products Limited. You consider that Viking Industrial Products Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Viking Industrial Products Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Chartered Accountants
Bradford
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Viking Industrial Products Limited
(Registration number: 02385727)
Balance Sheet as at 31 October 2019
Note |
2019 |
2018 |
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Fixed assets |
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Tangible assets |
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Other financial assets |
1,000 |
1,000 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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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 |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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Viking Industrial Products Limited
(Registration number: 02385727)
Balance Sheet as at 31 October 2019
For the financial year ending 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Page 4 |
Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
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' including the disclosure and presentation requirements of Section 1A and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company's functional and presentation currency is pound sterling.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Page 5 |
Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant, machinery and office equipment |
20% reducing balance basis and 25% straight line basis |
Motor vehicles |
25% straight line basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% Straight line basis |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Financial instruments
Financial assets
Basic financial assets, including trade and other receivables, 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 for a similar asset. 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 and any subsequent reversal is recognised in profit or loss.
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 and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Page 8 |
Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 November 2018 |
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At 31 October 2019 |
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Amortisation |
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At 1 November 2018 |
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At 31 October 2019 |
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Carrying amount |
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At 31 October 2019 |
- |
- |
Tangible assets |
Plant and machinery |
Furniture, fittings and equipment |
Office equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 November 2018 |
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Additions |
- |
- |
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- |
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At 31 October 2019 |
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Depreciation |
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At 1 November 2018 |
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Charge for the year |
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At 31 October 2019 |
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Carrying amount |
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At 31 October 2019 |
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At 31 October 2018 |
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Page 9 |
Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
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Non-current financial assets |
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Cost or valuation |
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At 1 November 2018 |
1,000 |
1,000 |
At 31 October 2019 |
1,000 |
1,000 |
Carrying amount |
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At 31 October 2019 |
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1,000 |
Stocks |
2019 |
2018 |
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Other stocks |
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Debtors |
2019 |
2018 |
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Trade debtors |
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Other debtors |
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Prepayments |
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Creditors |
Note |
2019 |
2018 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Page 10 |
Viking Industrial Products Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 October 2019
Note |
2019 |
2018 |
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Due after one year |
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Loans and borrowings |
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- |
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Other creditors |
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316,260 |
237,441 |
Loans and borrowings |
2019 |
2018 |
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Current loans and borrowings |
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Bank overdrafts |
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Hire purchase contracts |
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2019 |
2018 |
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Non-current loans and borrowings |
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Hire purchase contracts |
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- |
Share capital |
Allotted, called up and fully paid shares
2019 |
2018 |
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No. |
£ |
No. |
£ |
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5,000 |
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5,000 |
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Amounts disclosed in the balance sheet
Included in the balance sheet are financial commitments of £397,320 (2018 - £340,390). This is in relation to long term pension loans which are secured by fixed and floating charges over assets of the company.
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