REGISTERED NUMBER:
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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 2020 |
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for |
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ADMIRAL HARDING LIMITED |
REGISTERED NUMBER:
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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 2020 |
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for |
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ADMIRAL HARDING LIMITED |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Contents of the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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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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Statement of 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 | 17 |
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ADMIRAL HARDING LIMITED |
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Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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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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Bath House |
6-8 Bath Street |
Bristol |
BS1 6HL |
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SOLICITORS: |
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11-12 Queen Square |
Bristol |
BS1 4NT |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors' strategic report is presented for the year ended 31 December 2020. |
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Review of the business and development and performance |
The principal activity of the company during the year under review was that of international shipping contractors. |
This report aims to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and complex nature of our business and is written in the context of the risks and uncertainties we face in these challenging times. |
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Despite the effect of the global Covid -19 pandemic experienced during the year and into 2021, the company has endeavoured to maintain its high class service to its customers. It also continues to deliver its total commitment to quality, as demonstrated by the quality standard accreditations held. |
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Turnover for the year to 31 December 2020 was in line with the directors' expectations at £12.499 million |
(2019: £13.104 million). The effect of Covid-19 saw a reduction in the company's cruise line activities which the company replaced by contracts in other business sectors enabling the company to maintain turnover and profitability. |
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The company's gross profit margin increased from 30.5% in 2019 to 35.1% in 2020, resulting in a gross profit of |
£4.390 million (2019: £3.998 million). |
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The company's distribution costs and administrative expenses decreased from £3.903 million in 2019 to £3.781 |
million in 2020. |
The overall operating profit for the year was £730,665 (2019: £127,401) and the profit before tax was £722,748 (2019: £121,978). |
The net profit for the year of £582,172 has been added to brought forward reserves. We consider these |
results to be satisfactory and ahead of expectations given the market pressures on margins and turnover in recent years coupled with the Covid-19 pandemic. The company maintained its operations throughout the year. |
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Net cash generated from operating activities was in the sum of positive £1.448 million for the year to 31 December 2020 (2019: negative £78,542). |
After accounting for net disposals of fixed assets of £22,430 (2019: net additions to fixed assets £151,924), the receipt of interest of £386 (2019: £219) and net cash outflows from financing activities of £79,858 (2019: net inflows £44,085), the overall net cash inflow for the company for the year was in the sum of £1.391 million (2019: net outflow of £186,162). |
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As at 31 December 2020 cash and cash equivalents amounted to positive £716,712 (2019: negative £674,438). |
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The directors believe that the company has sufficient working capital to meet its normal trading requirements. |
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With the continued lockdown in the UK in the first part of the 2021 financial year, the company experienced a reduction in turnover in its general business. As the UK has gradually returned to a level of normality, the company has continued to see a growth in all sectors of its business with its cruise line activities recommencing in June and July this year. Despite competition, the company has maintained its operating margins and the directors consider the company to be performing well. |
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Business environment |
The international shipping contracting industry within the United Kingdom continues to be highly competitive and the company continues to manage its position through its pricing policy, range of goods supplied and level of customer service offered. |
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The directors are confident that the company will continue to offer a high quality service to its customers with the expectation that it will grow its turnover and remain profitable in the short to medium term. |
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No major changes are expected or other risks anticipated. The directors aim to maintain their current management policies. |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Results and dividends |
The profit for the period, after taxation, amounted to £582,172 (2019: £92,943). |
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The directors do not recommend the payment of a dividend for the year. |
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Political and charitable donations |
During the year the company made various charitable donations totalling £1,000 (2019: £1,775). |
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Principal risks and uncertainties |
We consider that the principal risks and uncertainties faced by the company are the same as those faced by any |
company operating in the international shipping contracting industry. These are as follows: |
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Competition - the company operates in a very competitive environment. Products are kept under constant review to ensure that they meet market demands. |
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Fluctuations in exchange rates - the company holds foreign currency cash balances in order to mitigate the risks posed by fluctuations in exchange rates in respect of sales and liabilities not denominated in pounds sterling. |
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Cash flows - the company actively manages cash flows in order to ensure that sufficient funding is available to meet its cash requirements. |
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Changes in the macroeconomic environment - the directors actively monitor changes in the national and international economic environment and seek to mitigate the effects of risks posed by any such changes. |
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Brexit - the company continues to hold stocks of certain overseas products, but has not been materially affected by Brexit. The directors continue to closely monitor supply chains both in the UK and from overseas. |
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Covid-19 - the whole world has been severely affected by both the financial and health impacts associated with Covid -19 but this has in general not affected the overall performance of the company to date. |
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Key performance indicators |
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, being: |
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Sales targets and margins |
Turnover achieved and the increased margins for the year were in line with the directors' expectations. |
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Cash collected and debtor book |
Cash collected during the year net of VAT amounted to approximately £13.375 million (2019: £12,756 million). Trade debtor days have decreased from an average of 67 days for the year to 31 December 2019 to 44 days for the year to 31 December 2020. |
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Health and safety |
The company operates a strict health and safety regime in order to ensure the health, safety, welfare and protection of all persons. |
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Environmental |
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Customer satisfaction |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors consider that the company has performed well and in line with their expectations for these key performance indicators. |
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ON BEHALF OF THE BOARD: |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Report of the Directors |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of international shipping contractors. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
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GOING CONCERN |
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. In particular, in response to the COVID-19 pandemic, the directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
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DISCLOSURE IN THE STRATEGIC REPORT |
The Companies Act 2006 (Strategic Report and Directors' Report) regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance these have been included within the Strategic Report rather than the Directors' Report in accordance with s.414C (11) Companies Act 2006. |
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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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Report of the Directors |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
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AUDITORS |
The auditors, Haines Watts Partnership (Bristol) Limited, is deemed to have been reappointed in accordance with Section 487 of the Companies Act 2006. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Admiral Harding Limited |
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Opinion |
We have audited the financial statements of Admiral Harding Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of 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 2020 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 |
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. |
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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. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern. The Covid-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of Covid-19 is disclosed on page 5. |
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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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Admiral Harding Limited |
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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. |
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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 pages five and six, 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. |
Report of the Independent Auditors to the Members of |
Admiral Harding Limited |
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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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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: |
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The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud and error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly |
planned and performed in accordance with the ISAs (UK). |
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In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
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- We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the sector in which it operates. We determined that the following laws and regulations were most significant: The Companies Act 2006, UK GAAP, the UK Corporate Governance Code, UK corporate tax laws, Occupational Health and Safety regulations, the Data protection Act and export controls. |
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- We obtained an understanding of how the Company are complying with those legal and regulatory frameworks and made enquiries to the management of known or suspected instances of fraud and non-compliance with laws and regulations. We corroborated our enquiries through our review of board minutes, other relevant meeting minutes and review of correspondence with regulatory bodies. |
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-We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the audit team included: |
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- Identifying and assessing the controls management has in place to prevent and detect fraud; |
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- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
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- Challenging assumptions and judgments made by management in its significant accounting estimates and judgments; |
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- Identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and |
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- Assessing the extent of compliance with the relevant laws and regulations. |
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There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, 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 collusions. |
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Report of the Independent Auditors to the Members of |
Admiral Harding Limited |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Bath House |
6-8 Bath Street |
Bristol |
BS1 6HL |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Statement of Comprehensive Income |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 4 |
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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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609,308 | 95,565 |
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Other operating income | 5 |
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OPERATING PROFIT | 7 |
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Interest receivable and similar income | 8 |
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731,051 | 127,620 |
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Interest payable and similar expenses | 9 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 10 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Balance Sheet |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
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Tangible assets | 14 |
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CURRENT ASSETS |
Stocks | 15 |
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Debtors | 16 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 17 | ( |
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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 |
18 |
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( |
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PROVISIONS FOR LIABILITIES | 22 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 23 |
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Retained earnings | 24 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Profit for the year | - | 92,943 | 92,943 |
Total comprehensive income | - |
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Balance at 31 December 2019 |
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Changes in equity |
Profit for the year | - | 582,172 | 582,172 |
Total comprehensive income | - |
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Balance at 31 December 2020 |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Cash Flow Statement |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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( |
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Interest paid | ( |
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Interest element of hire purchase payments
paid |
( |
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( |
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Tax paid | ( |
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Net cash from operating activities |
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( |
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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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Interest received |
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Net cash from investing activities |
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( |
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Cash flows from financing activities |
Capital advances/(repayments) in year | ( |
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Net cash from financing activities | ( |
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Increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at beginning of
year |
2 |
(674,438 |
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(488,276 |
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Cash and cash equivalents at end of year | 2 |
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( |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2020 | 2019 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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(Profit)/loss on disposal of fixed assets | ( |
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Government grants | ( |
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Finance costs | 8,303 | 5,642 |
Finance income | (386 | ) | (219 | ) |
700,265 | 211,864 |
Increase in stocks | ( |
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Decrease/(increase) in trade and other debtors |
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( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations |
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( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 1,143,628 | 453,922 |
Bank overdrafts | ( |
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716,712 | (674,438 | ) |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 453,922 | 334,939 |
Bank overdrafts | ( |
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(674,438 | ) | (488,276 | ) |
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ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Notes to the Cash Flow Statement |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
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At 1.1.20 | Cash flow | At 31.12.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 453,922 | 689,706 | 1,143,628 |
Bank overdrafts | (1,128,360 | ) | 701,444 | (426,916 | ) |
(674,438 | ) |
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716,712 |
Debt |
Finance leases | (152,479 | ) | 79,858 | (72,621 | ) |
Debts falling due within 1 year | - | (250,000 | ) | (250,000 | ) |
(152,479 | ) | (170,142 | ) | (322,621 | ) |
Total | (826,917 | ) | 1,221,008 | 394,091 |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
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Notes to the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | COMPANY INFORMATION |
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Admiral Harding Limited is a
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The company's principal activities and nature of its operations are disclosed in the Directors' Report. |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £1. |
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Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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The directors have reviewed and considered relevant information, including the annual budget and future cash flows, in making their assessment. In particular, in response to the COVID-19 pandemic, the directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
|
Significant judgements and estimates |
It is considered that there are no significant judgements or estimates within the accounts requiring further disclosure. |
|
Turnover |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and Value Added Tax. |
|
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
|
Tangible fixed assets |
|
Office equipment | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
Plant and machinery | - |
|
|
Tangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated depreciation and accumulated impairment losses. |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
3. | ACCOUNTING POLICIES - continued |
|
Government grants |
Government grants received relate to the money received from the Job Retention Scheme set up in response to the Covid-19 pandemic and also the interest on the CBILS loan that is to be covered by the government for the first 12 months of the loan, |
|
Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. |
|
Cash and cash equivalents |
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. |
|
Other financial instruments, which include derivatives, are initially recognised at fair value, i.e. the transaction price. Subsequent measurement at the end of each reporting period shall also be at fair value, with any changes in fair value being recognised in the profit and loss account. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
3. | ACCOUNTING POLICIES - continued |
|
Hire purchase and leasing commitments |
Assets held under finance leases are recognised in the balance sheet as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
|
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest rate method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
|
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. |
|
Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
|
4. | 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: |
|
2020 | 2019 |
£ | £ |
|
|
|
|
|
|
The whole of the company's turnover is attributable to its principal activity which has been undertaken solely in the United Kingdom. |
|
5. | OTHER OPERATING INCOME |
2020 | 2019 |
£ | £ |
Rents received |
|
|
Sundry receipts | 322 | 2,047 |
Management fees receivable |
|
|
Government grants |
|
|
121,357 | 31,836 |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
6. | EMPLOYEES AND DIRECTORS |
|
2020 | 2019 |
£ | £ |
Wages and salaries | 1,755,253 | 1,730,832 |
Social security costs | 179,472 | 169,855 |
Other pension costs | 36,037 | 33,410 |
1,970,762 | 1,934,097 |
|
The average monthly number of employees during the year was as follows: |
|
2020 | 2019 |
Sales and distribution staff | 21 | 22 |
Administrative staff | 38 | 39 |
59 | 61 |
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
|
|
|
7. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
( |
) |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Deposit account interest |
|
|
|
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Other interest payable |
|
|
Loan interest |
|
|
Hire purchase |
|
|
|
|
|
10. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax | ( |
) |
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% . |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Effect of deferred taxation | (14,924 | ) | 24,824 |
Total tax charge | 140,576 | 29,035 |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
11. | EMPLOYEE BENEFITS |
|
The amount recognised in profit or loss in relation to defined contribution pension plans was £34,081 (2019 - £33,410). |
|
12. | FOREIGN CURRENCY TRANSLATION |
|
Foreign currency exchange differences debited to the profit and loss account during the year were in the sum of £23,413 (2019 - (£14,157)). |
|
13. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2020 |
and 31 December 2020 |
|
AMORTISATION |
At 1 January 2020 |
and 31 December 2020 |
|
NET BOOK VALUE |
At 31 December 2020 |
|
At 31 December 2019 |
|
|
14. | TANGIBLE FIXED ASSETS |
Fixtures |
Office | and | Motor | Plant and |
equipment | fittings | vehicles | machinery | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
|
|
DEPRECIATION |
At 1 January 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
|
( |
) |
At 31 December 2020 |
|
|
|
|
|
NET BOOK VALUE |
At 31 December 2020 |
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
14. | TANGIBLE FIXED ASSETS - continued |
|
Obligations under finance leases |
|
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements: |
|
Motor |
vehicles |
£ |
At 31 December 2020 | 155,324 |
|
At 31 December 2019 | 207,100 |
|
15. | STOCKS |
2020 | 2019 |
£ | £ |
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
Stocks recognised in cost of sales during the year as an expense were in the sum of £8,109,297 (2019 - £9,105,488). |
|
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Trade debtors - factored | 1,348,258 | 2,127,216 |
Discounts reserve | (15,446 | ) | (15,446 | ) |
Bad debt provision | (259,652 | ) | (10,514 | ) |
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 19) |
|
|
Other loans (see note 19) |
|
|
Hire purchase contracts (see note 20) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Class 1A NIC | - | 10,542 |
Other creditors |
|
|
Pension contributions | 7,625 | 6,423 |
Directors' current accounts | 416 | 416 |
Accruals and deferred income |
|
|
|
|
|
Included in bank loans and overdrafts is the sum of £426,916 (2019 - £1,128,360) due under the terms of a factoring facility. This amount is secured by a charge over the company's assets. |
|
18. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2020 | 2019 |
£ | £ |
Hire purchase contracts (see note 20) |
|
|
|
19. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Other loans |
|
|
|
|
|
Included in bank loans and overdrafts is the sum of £426,916 (2019 - £1,128,360) due under the terms of a factoring facility. This amount is secured by a charge over the company's assets. |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
20. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable | operating leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Total operating lease payments recognised as an expense during the year were in the sum of £201,804. |
|
21. | FINANCIAL INSTRUMENTS |
|
The carrying amount for each category of financial instrument is as follows: |
|
2020 | 2019 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 1,240,380 | 2,365,120 |
Cash at bank and in hand | 893,628 | 453,922 |
2,134,008 | 2,819,042 |
|
Financial liabilities measured at amortised cost |
Trade creditors | 963,857 | 1,398,491 |
Other creditors | 7,995 | 6,523 |
Director loan accounts | 416 | 416 |
Obligations under finance leases | 72,621 | 152,479 |
Bank overdrafts | 426,916 | 1,128,360 |
1,471,805 | 2,686,269 |
|
Total factoring charges recognised in the profit and loss account in respect of bank overdrafts were in the sum of £31,214 for the year to 31 December 2020 (2019 - £41,870). |
|
Total hire purchase interest recognised in the profit and loss account in respect of obligations under finance leases for the year to 31 December 2020 was in the sum of £6,220 (2019 - £5,634). |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
22. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
|
|
|
Deferred |
tax |
£ |
Balance at 1 January 2020 |
|
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 December 2020 |
|
|
23. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | 1.00 | 1,000 | 1,000 |
|
24. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2020 |
|
Profit for the year |
|
At 31 December 2020 |
|
|
The profit and loss account represents cumulative profits and losses stated net of dividends and other adjustments. |
ADMIRAL HARDING LIMITED (REGISTERED NUMBER: 05578326) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
|
25. | RELATED PARTY DISCLOSURES |
|
R T Blake is also a director of Admiral Marine Continental Services BV, a wholly owned subsidiary of Admiral Marine Supplies Limited. During the year the company sold goods to Admiral Marine Continental Services BV totalling £2,912 (2019 - £3,597). The price charged was the normal market price in the case of each individual sale. The company also received management fees of £2,200 (2019 - £2,400) from Admiral Marine Continental Services BV in the normal course of business. At the balance sheet date the company was owed £NIL (2019 - £200) by Admiral Marine Continental Services BV. |
|
N G Harding is also a director of Harding Brothers Retail Limited. During the year the company purchased goods in the normal course of business from Harding Brothers Retail Limited totalling £1,275 (2019 - £2,534). The company also sold goods to Harding Brothers Retail Limited totalling £7,111 (2019 - £13,440). The price charged was the normal market price in the case of each individual purchase and sale. At the balance sheet date the company owed £692 to Harding Brothers Retail Limited (2019 - £523 was owed by Harding Brothers Retail Limited). |
|
D J Harding, N G Harding, S H Rees and J M Lawrence are also directors of Harding Marine Services Limited. During the year the company purchased goods in the normal course of business from Harding Marine Services Limited totalling £14,094 (2019 - £29,269). The company sold goods to Harding Marine Services Limited totalling £5,936 (2019 - £6,202). The price charged was the normal market price in the case of each individual purchase and sale. The company also received management fees of £1,600 (2019 - £2,750) from Harding Marine Services Limited in the normal course of business. At the balance sheet date the company owed £NIL (2019 - £1,834) to Harding Marine Services Limited. |
|
D J Harding, S H Rees and J M Lawrence are also directors of Harding Marine Services (Rotterdam) BV. During the year the company purchased goods in the normal course of business from Harding Marine Services (Rotterdam) BV totalling £2,401,392 (2019 - £1,022,032). The company sold goods to Harding Marine Services (Rotterdam) BV totalling £12,706 (2019 - £12,447). The price charged was the normal market price in the case of each individual purchase and sale. The company also received management fees of £2,400 (2019 - £3,200) from Harding Marine Services (Rotterdam) BV in the normal course of business. At the balance sheet date the company owed £266,766 to Harding Marine Services (Rotterdam) BV (2019 - £242,946). |
|
No compensation was paid to key management personnel during the year. However during the year ended
31 December 2019 a total of key management personnel compensation of £
|
|
26. | SUBSEQUENT EVENTS |
|
Since the year end date the company and its trading activities have continued to be directly affected by the COVID-19 pandemic. As a result of the pandemic, the company has been subject to a prolonged period of business interruption as well as various supply, logistical and staffing issues. |
|
As at the date these financial statements were approved by the directors, it was considered that a reliable estimate of the financial effect of the above event could still not be made. |
|
27. | ULTIMATE CONTROLLING PARTY |
|
The company has no controlling party. |