Company Registration No. 04037228 (England and Wales)
UK THERMOS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
UK THERMOS LIMITED
COMPANY INFORMATION
Directors
N J Kime
R J Dias
Y A Huang
Y Katoaka
T Koizumi
Secretary
M Snape
Company number
04037228
Registered office
1-2 Lockwood Park
Leeds
West Yorkshire
LS11 5UX
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
Solicitors
Gordons LLP
Riverside West
Whitehall Road
Leeds
LS1 4AW
UK THERMOS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
UK THERMOS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
UK Thermos Limited is the UK distributor for Thermos branded vacuum, hydration and cooler products. The company is a subsidiary of King Warm Investments (Hong Kong) and an affiliate of Thermos KK (Japan)
The channels of distribution include all major supermarkets, high street retailers, online, mail order, DIY, leisure, cash and carry, food service and independent traders. These channels continue to be developed and expanded.
Various lockdown measures caused by the COVID-19 pandemic continued to cause some supply chain disruption and distribution challenges in 2021; however retails sales saw some recovery from the previous year. All sales divisions including the 2020 launched B2C website displayed growth.
The income statement on page 8 shows overall turnover was up at £18m. Profit after tax was £2.4m.
The balance sheet on page 9 of the financial statements shows that the company’s financial position at the year end. Debtors of £6m are in line with expectations with higher stock levels at £7m to ensure continuous retail supply in 2022. Overall net assets are unchanged.
Principal risks and uncertainties
The end of coronavirus restrictions in February 2022 will hopefully, in time, lead to a normalising of trading conditions, although tensions and conflict in eastern Europe will inevitably cause global disruption. The company expects shipping costs to remain at unprecedented levels.
The company is well positioned to manage these risks and will continue to build on the strength of our market leading brands together with our outstanding service levels. UK Thermos will continue to maintain and build on our strong and effective relationships with all stakeholders including our investors, suppliers, customers and bank.
Currency Risk
The majority of goods purchased are in US$ with sales largely in sterling. Foreign exchange risk is managed through forward purchase of currency contracts during the year
;
however as at 31 December 2021 there are no purchases on currency contract in place.
Credit Risk
The company mainly trades with customers whom it has a long-standing relationship. Risk is further mitigated through credit risk insurance.
Liquidity risks
The company finances its operations through reserves and bank financing facilities. Cash flow is effectively managed through accurate purchasing forecasts and credit control.
Key performance indicators
Turnover for 2021 increased to £18m, (2020 £15m) with profit after tax of £2.4m.
Maintaining strong liquidity performance is a key aim of the board. Overall, the key indicators show a continuing strong position and improving performance.
The current ratio remains in strong positive territory at 1.7 (2020 1.9) and the inventory holding period has increased from 127 days to 186 to manage any supply disruption.
Future developments
As part of the Thermos group, we will continue to develop and enhance our relationship with our customers through excellent support and service as well as delivering market leading product innovation. In 2022 we look to add to our product portfolio complementing our existing distribution in the UK.
UK THERMOS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
N J Kime
Director
5 April 2022
UK THERMOS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of a distributor supplying leading branded home and leisure products through multiple channels to UK wide retail and wholesale customers.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,250,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N J Kime
R J Dias
Y A Huang
Y Katoaka
T Koizumi
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of the profit or loss of the company 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 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.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
UK THERMOS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7
which previously would have been contained in the directors' report including financial risk management and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
N J Kime
Director
5 April 2022
UK THERMOS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF UK THERMOS LIMITED
- 5 -
Opinion
We have audited the financial statements of UK Thermos Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 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.
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
Auditor's
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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
UK THERMOS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UK THERMOS LIMITED
- 6 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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 directors'
r
esponsibilities
s
tatement, 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 is 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 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.
Auditor's 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 an
auditor's
report 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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of client’s operation of controls within the year, review of provisions and review of legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
UK THERMOS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UK THERMOS LIMITED
- 7 -
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member for our audit work, for this report, or for the opinions we have formed.
Nigel Bullas (Senior Statutory Auditor)
For and on behalf of BHP LLP
5 April 2022
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
UK THERMOS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
18,046,613
15,513,890
Cost of sales
(13,325,817)
(11,986,969)
Gross profit
4,720,796
3,526,921
Distribution costs
(424,533)
(334,987)
Administrative expenses
(1,316,160)
(1,169,759)
Operating profit
4
2,980,103
2,022,175
Interest receivable and similar income
7
953
Interest payable and similar expenses
8
(11,042)
(961)
Profit before taxation
2,970,014
2,021,214
Tax on profit
9
(567,183)
(421,807)
Profit for the financial year
2,402,831
1,599,407
The profit and loss account has been prepared on the basis that all operations are continuing operations.
UK THERMOS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
11
50,370
57,278
Tangible assets
12
52,821
48,585
103,191
105,863
Current assets
Stocks
13
7,039,274
4,154,981
Debtors
14
6,124,517
5,715,399
Cash at bank and in hand
127,141
1,108,396
13,290,932
10,978,776
Creditors: amounts falling due within one year
15
(7,859,001)
(5,699,070)
Net current assets
5,431,931
5,279,706
Total assets less current liabilities
5,535,122
5,385,569
Provisions for liabilities
Deferred tax liability
16
6,120
9,398
(6,120)
(9,398)
Net assets
5,529,002
5,376,171
Capital and reserves
Called up share capital
18
159,575
159,575
Capital redemption reserve
127,930
127,930
Profit and loss reserves
5,241,497
5,088,666
Total equity
5,529,002
5,376,171
The financial statements were approved by the board of directors and authorised for issue on 5 April 2022 and are signed on its behalf by:
N J Kime
Director
Company Registration No. 04037228
UK THERMOS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
159,575
127,930
5,489,259
5,776,764
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
1,599,407
1,599,407
Dividends
10
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2020
159,575
127,930
5,088,666
5,376,171
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
2,402,831
2,402,831
Dividends
10
-
-
(2,250,000)
(2,250,000)
Balance at 31 December 2021
159,575
127,930
5,241,497
5,529,002
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information
UK Thermos Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
1-2 Lockwood Park, Leeds, West Yorkshire, LS11 5UX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
UK Thermos Holdings Limited
. These consolidated financial statements are available from its registered office
, 1-2 Lockwood Park, Leeds, West Yorkshire, LS11 5UX.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20% straight line
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% straight line
Fixtures, fittings and equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling
price.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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 profit or loss.
If there is a decrease in 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 profit or loss.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
2
Judgements and key sources of estimation uncertainty
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 provisioning
The company distributes branded home and leisure products to its customers. As a result it is necessary to consider the recoverability of the cost of stock and associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Distribution of branded home and leisure products
18,046,613
15,513,890
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
17,670,086
15,176,386
Rest of Europe
356,514
305,815
Rest of the World
20,013
31,689
18,046,613
15,513,890
2021
2020
£
£
Other significant revenue
Interest income
953
-
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(17,957)
(197,450)
Fees payable to the company's auditor for the audit of the company's financial statements
12,160
11,580
Depreciation of owned tangible fixed assets
18,536
15,841
Amortisation of intangible assets
15,522
14,888
Operating lease charges
233,391
235,367
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production
4
8
Sales & Distribution
12
10
Administrative
10
8
Total
26
26
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,329,387
1,138,215
Social security costs
160,969
140,628
Pension costs
49,230
47,495
1,539,586
1,326,338
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
229,404
194,492
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
229,404
194,492
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
953
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
953
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
7
Interest on invoice finance arrangements
10,359
954
10,359
961
Other finance costs:
Other interest
683
11,042
961
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
569,246
375,650
Adjustments in respect of prior periods
1,215
Total current tax
570,461
375,650
Deferred tax
Origination and reversal of timing differences
(3,278)
46,157
Total tax charge
567,183
421,807
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
2,970,014
2,021,214
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
564,303
384,031
Tax effect of expenses that are not deductible in determining taxable profit
806
540
Change in unrecognised deferred tax assets
859
37,428
Other permanent differences
(192)
Under/(over) provided in prior years
1,215
Taxation charge for the year
567,183
421,807
10
Dividends
2021
2020
£
£
Dividends paid
2,250,000
2,000,000
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 January 2021
420,550
Additions
8,614
At 31 December 2021
429,164
Amortisation and impairment
At 1 January 2021
363,272
Amortisation charged for the year
15,522
At 31 December 2021
378,794
Carrying amount
At 31 December 2021
50,370
At 31 December 2020
57,278
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 January 2021
92,979
203,295
296,274
Additions
22,772
22,772
At 31 December 2021
92,979
226,067
319,046
Depreciation and impairment
At 1 January 2021
92,979
154,710
247,689
Depreciation charged in the year
18,536
18,536
At 31 December 2021
92,979
173,246
266,225
Carrying amount
At 31 December 2021
52,821
52,821
At 31 December 2020
48,585
48,585
13
Stocks
2021
2020
£
£
Finished goods and goods for resale
7,039,274
4,154,981
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
14
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
5,430,763
5,048,149
Amounts owed by group undertakings
513,754
513,754
Other debtors
22
24
Prepayments and accrued income
179,978
153,472
6,124,517
5,715,399
15
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,888,924
3,543,375
Corporation tax
296,246
246,150
Other taxation and social security
408,714
104,626
Other creditors
3,631,052
368,586
Accruals and deferred income
1,634,065
1,436,333
7,859,001
5,699,070
The invoice discounting facility of £3,623,982 (2020: £361,425) included in other creditors is secured against the assets of the company and the cross guarantee and debenture outlined in note 18.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
22,740
17,281
Tax losses
(16,620)
(7,883)
6,120
9,398
2021
Movements in the year:
£
Liability at 1 January 2021
9,398
Credit to profit or loss
(3,278)
Liability at 31 December 2021
6,120
Of the deferred tax liability set out above, £3,100 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature in the same period.
17
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,230
47,495
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
159,575
159,575
159,575
159,575
The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
19
Financial commitments, guarantees and contingent liabilities
The banking facilities are secured under a cross guarantee and debenture between UK Thermos Limited and UK Thermos Holdings Limited dated 18 June 2010. The maximum exposure as at 31 December 2021 amounted to £3,623,982 (2020: £361,425).
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
229,962
236,712
Between two and five years
150,952
348,866
380,914
585,578
UK THERMOS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
21
Related party transactions
During the year, purchases amounting to £981 (2020: £50) were made from Alfi GmbH Isoliergefaesse, Metall - Und Haushaltswaren (Alfi GmbH), a company under common control. At the year end £
nil
(2020: £nil) was owed to Alfi GmbH and is included in creditors. The balances are unsecured, interest free and repayable on demand.
During the year, purchases amounting to £6,350,688 (2020: £3,892,684) were made from Thermos (China) Housewares Co Ltd, a company under common control. At the year end £598,346 (2020: £1,201,076) was owed to Thermos (China) Housewares Co Ltd and is included in creditors. The balances are on normal trading terms.
During the year, purchases amounting to £
1
80,514
(2020: £
192,309
) were made from Thermos LLC, a company under common control. At the year end £nil (2020: £71,292) was owed to Thermos LLC. The balances are on normal trading terms.
During the year, purchases amounting to £113,955 (2020: £
208,709
) were made from Vacuum Tech Manufacturing (Malaysia) Sdn,Bhd, a company under common control. At the year end £39,749
(2020: £nil) was owed to Vacuum Tech Manufacturing (Malaysia) Sdn,Bhd and is included in creditors. The balances are on normal trading terms.
During the year, purchases amounting to £394,278 (2020: £144,781) were made from Top Thermo Manufacturing (Malaysia) Sdn,Bhd, a company under common control. At the year end £106,448 (2020: £
59,279
) was owed to Top Thermo Manufacturing (Malaysia) Sdn,Bhd and is included in creditors. The balances are on normal trading terms.
During the year, purchases amounting to £nil (2020: £
165,944
) were made from Thermos (Huaian) Housewares Co.
L
td
, a company under common control. At the year end £
nil
(2020: £
nil
) was owed to Thermos (Huaian) Housewares Co.
L
td
. The balances are on normal trading terms.
During the year, purchases amounting to £1,214 (2020: £192) were made from Thermos (Jiansu) Housewares Co.
L
td
, a company under common control. At the year end £693 (2020: £
nil
) was owed to Thermos (Jiansu) Housewares Co.
L
td
. The balances are on normal trading terms.
King Warm Investments Limited,
a company incorporated in Hong Kong, has significant influence over UK Thermos Limited and over Thermos International Trading Limited. During the year, purchases amounting to £5,792,821 (2020: £
4,893,191
) were made from Thermos International Trading Limited. At the year end £737,316 (2020: £
722,376
) was owed to Thermos International Trading Limited and is included in creditors. The balances are on normal trading terms.
22
Ultimate controlling party
The immediate parent company is UK Thermos Holdings Limited and is the smallest company for which consolidated accounts including UK Thermos Limited are prepared.
King Warm Investments Limited, a company incorporated in Hong Kong, is the parent of UK Thermos Holdings Limited, and is the largest company for which consolidated accounts including UK Thermos Limited are prepared. It's office address is 8 On Ping Street, Unit 5, 7/F, Grantech Centre, Shek Mun Shatin, Hong Kong.
2021-12-31
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CCH Software
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