Company Registration No. 09389871 (England and Wales)
KENDAL NUTRICARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
KENDAL NUTRICARE LIMITED
COMPANY INFORMATION
Director
Mr R McMahon
Company number
09389871
Registered office
Mint Bridge Road
Kendal
LA9 6NL
Auditor
MHA Moore and Smalley
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
KENDAL NUTRICARE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 29
KENDAL NUTRICARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 1 -
The director presents the strategic report for the year ended 31 March 2020.
Fair review of the business
Kendal Nutricare Limited is a manufacturer of family nutrition products across the entire lifecycle from infants to the elderly.
We promote the use of natural milk fats in our products without the use of palm oil, no GMO’s, and avoiding allergens like nuts, fish and eggs.
Our nutrition range is divided into:
- Infant formulas and infant cereals (branded KENDAMIL)
- Childhood nutrition (branded KENDAKIDS)
- Pregnancy supplements (branded KENDAMUM)
- Adult nutrition powders (branded KENDALIFE and KENDALIFE MEDI+)
- Specialist powdered formulas: Anti-colic, Anti-Reflux, Lactose Free, SuperKosher & Halal
The year ending 31 March 2020 saw the business complete a transition away from contract packing, driven by the continued growth of Kendamil around the world. Growth in Kendamil sales was driven by strong organic performance in existing territories alongside continued expansion into new markets. The Kendamil brand has gained significant traction in UK and European markets, both online and offline.
This year also marked important milestones in R&D and product development. 2019/20 saw the launch of new product ranges including KENDAM
U
M, KENDAKIDS and KENDALIFE MEDI+, designed to provide superior, quality nutrition through each stage of life while extending our customers’ journey with our brand.
The business responded decisively to the onset of COVID-19, implementing strict staff hygiene, segregation and safety measures, securing raw materials in advance and ensuring our online business was equipped to meet increased demand. In the months following year end, we note minimal disruption within our existing markets, albeit lockdown conditions have slowed certain new market launches planned for 2020. Going forward, we expect COVID-19 will have minimal future impact on our business.
Principal risks and uncertainties
The director has identified the following principle risks and uncertainties affecting the company:
Market Risk: The company is affected by the availability and prices for whole milk, skim milk, demineralized whey, lactose and fruit powders, as well as Organic whole milk, organic lactose and Organic whey. To mitigate the risk we keep in close contact with suppliers to keep them updated on our volume forecasts.
Legislation and Regulatory risk: The company keeps up to date on global infant regulation changes through local offices, our international expert network and our partners on-the-ground. In the UK the company liaises directly with DEFRA, Campden Research and Public Health England to keep informed of changing regulations. The company does not currently foresee any material adverse impact on product sales entering Europe following Brexit. As a Commonwealth Export Champion we see market opportunities opening up in Commonwealth countries.
Actions of Competitors: We see the switch by competitors towards the Organic category as validation of our product ethos and direction. We expect to benefit from this wave as larger players grow awareness of and evangelise the product category, within which KENDAMIL forms the highest quality, most natural product. We are encouraged by continued academic research supporting the benefits of whole-milk formulations for infants, which we expect will continue to drive market share gains from competitors.
One of the initial Coronavirus control measures implemented in the UK was a complete ban on visitors to company premises. This meant that the Auditors were unable to attend the year-end stock take. While this has resulted in a qualified audit report, the Directors are confident that the stock take was performed with appropriate diligence and the stock figures stated in the accounts are accurate.
KENDAL NUTRICARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
Key performance indicators
The company monitors its performance using a number of measures. These include:
Sales - £23.2m (2019: £20.9m)
Gross Profit - £3.9m (2019: £3.1m)
Days in Inventory - 61 days (2019: 47 days)
Stock Turnover (Days) - 6 days (2019: 8 days)
The Director is happy with the current level of performance indicators.
Future developments
Kendal Nutricare Ltd has grown rapidly through successfully developing and launching new recipes to suit the regulatory requirements in foreign markets.
We will continue to invest in market research, new product development and innovative packaging concepts throughout 2020/2021 in order to strengthen and broaden the reach of our product offering internationally. This will be complemented by continued internationalisation, for which we are in advanced discussions with several new strategic territories to launch the the KENDAMIL and KENDALIFE brands.
Finally, in light of continued uncertainty in relation to COVID-19, we will continue to maintain the highest health and safety site, both onsite and across our supply chain, safeguarding the health and wellbeing of our customers, our employees and our partners.
Mr R McMahon
Director
13 October 2020
KENDAL NUTRICARE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
The director presents his annual report and financial statements for the year ended 31 March 2020.
Principal activities
The principal activity of the company is that of manufacturing and supply of nutrition and healthcare products.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr R McMahon
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that MHA Moore and Smalley be reappointed as auditor of the company will be put at a General Meeting.
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 to be contained in the directors' report. It has done so in respect of
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 director
ha
s
taken all the necessary steps that they ought to have taken as
a
director in order to make themsel
f
aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr R McMahon
Director
13 October 2020
KENDAL NUTRICARE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
KENDAL NUTRICARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KENDAL NUTRICARE LIMITED
- 5 -
Qualified opinion on financial statements
We have audited the financial statements of Kendal Nutricare Limited (the 'company') for the year ended 31 March 2020 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 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.
Basis for qualified opinion
On 23 March 2020, the UK Government announced lockdown measures to stem the coronavirus pandemic. As a result of the lockdown measures and following the government guidelines at the time, we were not able to attend the year end stock take. This decision was taken to give due consideration to the safety of both the company’s staff and the audit staff. As a result, we did not observe the counting of physical stock at the year end.
We were unable to use alternative procedures to provide assurance over the stock quantities held on the balance sheet at 31 March 2020. The directors informed us it was not practical to verify the stock quantities at the year end once the lockdown had been eased, as by this date the stock had moved considerably, meaning it would not have been practical to perform an accurate rollback to the quantities held at the year end. Consequently we were unable to determine whether any adjustment to the stock balance of £3,212,707 was necessary.
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 qualified opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
KENDAL NUTRICARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KENDAL NUTRICARE LIMITED
- 6 -
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities held at 31 March 2020. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, they may be materially misstated for the same reason.
Opinions on other matters prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
-
the information given in the strategic report and the director's 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 director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock, described above:
-
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
-
we were unable to determine whether adequate accounting records had been maintained.
Except for the matter described in the basis for qualified opinion section of our report, i
n 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 director's
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:
-
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 director's remuneration specified by law are not made.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is 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 director 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 director is 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 director either intend to liquidate the company or to cease operations, or ha
s
no realistic alternative but to do so.
KENDAL NUTRICARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KENDAL NUTRICARE LIMITED
- 7 -
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
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
him
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.
Damian Walmsley (Senior Statutory Auditor)
for and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
14 October 2020
KENDAL NUTRICARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
2020
2019
Notes
£
£
Turnover
3
23,200,650
20,857,955
Cost of sales
(19,324,600)
(17,760,180)
Gross profit
3,876,050
3,097,775
Distribution costs
(300,250)
(165,987)
Administrative expenses
(2,652,446)
(2,629,934)
Other operating income
30,932
7,454
Operating profit
4
954,286
309,308
Interest payable and similar expenses
7
(172,505)
(162,134)
Profit before taxation
781,781
147,174
Tax on profit
8
(172,847)
250,810
Profit for the financial year
608,934
397,984
Other comprehensive income
Tax relating to other comprehensive income
(61,621)
40,126
Total comprehensive income for the year
547,313
438,110
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
KENDAL NUTRICARE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 9 -
2020
2019
Notes
£
£
£
£
Fixed assets
Negative goodwill
9
(8,436,797)
(8,909,240)
Tangible assets
10
17,269,863
17,931,087
Investments
12
1
1
8,833,067
9,021,848
Current assets
Stocks
13
3,212,707
2,301,018
Debtors
14
1,373,165
2,080,389
Cash at bank and in hand
102,624
87,898
4,688,496
4,469,305
Creditors: amounts falling due within one year
15
(5,621,859)
(6,283,230)
Net current liabilities
(933,363)
(1,813,925)
Total assets less current liabilities
7,899,704
7,207,923
Creditors: amounts falling due after more than one year
16
(100,000)
(290,000)
Provisions for liabilities
18
(3,273,529)
(2,939,061)
Net assets
4,526,175
3,978,862
Capital and reserves
Called up share capital
20
1
1
Revaluation reserve
4,044,749
4,331,954
Profit and loss reserves
481,425
(353,093)
Total equity
4,526,175
3,978,862
The financial statements were approved and signed by the director and authorised for issue on 13 October 2020
Mr R McMahon
Director
Company Registration No. 09389871
KENDAL NUTRICARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2018
1
4,527,476
(986,725)
3,540,752
Year ended 31 March 2019:
Profit for the year
-
-
397,984
397,984
Other comprehensive income:
Tax relating to other comprehensive income
-
40,126
-
40,126
Total comprehensive income for the year
-
40,126
397,984
438,110
Transfers
-
(235,648)
235,648
-
Balance at 31 March 2019
1
4,331,954
(353,093)
3,978,862
Year ended 31 March 2020:
Profit for the year
-
-
608,934
608,934
Other comprehensive income:
Tax relating to other comprehensive income
-
(61,621)
-
(61,621)
Total comprehensive income for the year
-
(61,621)
608,934
547,313
Transfers
-
(225,584)
225,584
-
Balance at 31 March 2020
1
4,044,749
481,425
4,526,175
KENDAL NUTRICARE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020
- 11 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,136,332
(1,205)
Interest paid
(172,505)
(162,134)
Income taxes refunded
156,778
302,312
Net cash inflow from operating activities
1,120,605
138,973
Investing activities
Purchase of tangible fixed assets
(123,270)
(178,535)
Proceeds from other investments and loans
8,355
(8,355)
Net cash used in investing activities
(114,915)
(186,890)
Net increase/(decrease) in cash and cash equivalents
1,005,690
(47,917)
Cash and cash equivalents at beginning of year
(1,535,708)
(1,487,791)
Cash and cash equivalents at end of year
(530,018)
(1,535,708)
Relating to:
Cash at bank and in hand
102,624
87,898
Bank overdrafts included in creditors payable within one year
(632,642)
(1,623,606)
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 12 -
1
Accounting policies
Company information
Kendal Nutricare Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Mint Bridge Road, Kendal, LA9 6NL.
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 on the historical cost convention, modified to include the revaluation of certain tangible fixed assets. The principal accounting policies adopted are set out below.
The company is exempt from the requirement to prepare group accounts by virtue of section 405 of the Companies Act 2006 as its subsidiary can be excluded from consolidation in Companies Act group accounts as it is immaterial. The financial statements therefore present information about the company as an individual undertaking and not about its group.
1.2
Business combinations
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
Goodwill represents the difference between the cost of acquisition of businesses and the fair value of the net assets acquired. Negative goodwill arises when the fair value of the net assets acquired exceed the cost of acquisition. Negative goodwill
is initially recognised as a
negative
asset at cost and is subsequently measured at cost less accumulated
amortisation. Negative goodwill is considered to have a finite useful life and is amortised to the profit and loss account over the period in which the associated non-monetary assets are recovered.
1.3
Going concern
The financial statements are prepared on a going concern basis. The company's director is pleased to report that the company made a profit before tax of £781,781 for the year, a 531% increase on last year and which has led to a positive profit and loss reserve as at 31 March 2020 of £481,425. Furthermore, the business has proactively strengthened the balance sheet to fund the future growth of the business by securing a new borrowing facility of up to GBP £4,500,000 from Metro Bank providing a significant increase in the financing facilities made available to the company. With total capital and reserves of £4,526,175 in place, the director considers the company to have a strong balance sheet. In addition, projections prepared by the company for the future show that it will generate profits and will have sufficient resources to meet all liabilities as they fall due for the foreseeable future. The director therefore considers the going concern basis is the appropriate basis to prepare the accounts.
true
The company has prepared profit and cash flow information with appropriate sensitivity analyses around operational performance. On the basis of these projections together with support from the company's director, bankers, suppliers, strong customer order book and various other funding raising options it has available to it, at the time of approving the financial statements the director is confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 13 -
1.4
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.
The company recognises sales income when goods are despatched.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.6
Intangible fixed assets - goodwill
Goodwill represents the difference between the cost of acquisition of businesses and the fair value of the net assets acquired. Negative goodwill arises when the fair value of the net assets acquired exceed the cost of acquisition. Negative goodwill
is initially recognised as a
negative
asset at cost and is subsequently measured at cost less accumulated
amortisation. Negative goodwill is considered to have a finite useful life and is amortised to the profit and loss account over the period in which the associated non-monetary assets are recovered.
1.7
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:
Freehold land and buildings
Land - nil, Buildings - 10 to 30 years SL
Plant and equipment
5% reducing balance or 5 to 20 years SL
Computers
5 years SL
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
.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being
the current cost of replacing of an asset with its modern equivalent asset less deductions for physical deterioration and all relevant forms of obsolescence and optimisation.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity
;
such
gains and loss
es
are recognised in profit or loss.
1.8
Fixed asset investments
Interests are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investment
is
assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 14 -
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its
tangible
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
1.11
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
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
All of the company's financial assets fall to be classified as basic financial assets and the company has no other financial assets.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets
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.
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 and bank loans
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 though 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.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.13
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.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 17 -
1.17
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease in which economic benefits from the lease asset are consumed.
1.18
Government grants
Grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Revenue g
rants are recognised as income over the periods when the related costs are incurred
. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
Capital grants are
recognised
as
income
as and
when the
related
performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
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 are included in the profit and loss account for the period.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgement (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Classification of leases
At the inception of each lease, management undertake an assessment of the terms of the lease including the payments to be made over the life of the lease, the fair value of the asset subject to the lease, the length of the lease and whether the terms of the lease transfer substantially all of the risks and rewards of ownership.
Based on this assessment, management will determine whether the lease should be classified as a finance or operating lease.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
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.
Depreciation of tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Valuation of stock
Stocks are held at costs less any provision for impairment. The calculation of any provision for impairment requires judgement. Such provisions are calculated using management's best estimate of likely future estimated selling price less costs to complete.
Amounts due to and from H.J. Heinz Manufacturing UK Limited
On the 15 May 2017, the company agreed with H.J. Heinz Manufacturing Limited to make amendments to the initial asset sale & purchase and third party manufacturing and supply agreements agreed in May 2015.
Under the terms of the initial asset sale & purchase agreement, a figure for the purchase of opening stock was agreed which under the terms of the revised agreement has been subsequently revised.
In addition, under the terms of the initial third party manufacturing and supply agreement, the company agreed to invoice H.J. Heinz Manufacturing Limited on delivery of products using a standard cost set out in the agreement. Then subsequently, the company agreed to carry out a “true up” exercise whereby they compared the actual costs of delivering the products to the standard prices charged and agreed to raise a further invoice or credit note to Heinz for the difference.
The calculation of such amounts requires judgement. Such amounts are calculated using management's best estimate of the amounts due to and from H.J. Heinz Manufacturing UK Limited.
Impairment of trade debtors
The impairment of trade debtors is calculated by initially determining the year end debts on a customer by customer basis that are over three months old and still unpaid at the date of approval of the financial statements. The director then estimates the impairment provision required to be made in the financial statements based upon the knowledge he has accumulated over the trading relationship with each individual customer and any other external information that comes to his attention.
Valuation of land and buildings and plant and equipment (excluding computers)
As detailed in note 10 to the financial statements, l
and and buildings
and plant and equipment are stated at fair value based on valuations carried out by Sanderson Weatherall and Tallon & Associates respectively, who are firms of external
independent valuers not connected with the company
using their extensive market experience of the categories of assets valued
. The valuation
s
conform to International Valuation Standards and
due to the specialised nature of the assets and the fact that the assets are rarely sold, except as part of a business combination, the most suitable valuation methodology was considered to be depreciated replacement cost. When calculating their valuations the external valuers have made various assumptions and estimates.
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 19 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Sales of goods
23,200,650
20,857,955
2020
2019
£
£
Other significant revenue
Grants received
30,042
7,243
2020
2019
£
£
Turnover analysed by geographical market
UK
5,426,577
3,046,967
Europe
7,394,453
8,581,160
Asia
10,011,020
8,907,431
Africa and Middle East
368,600
322,397
23,200,650
20,857,955
The turnover is attributable to the one principal activity of the company.
4
Operating profit
2020
2019
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
77,974
(13,740)
Research and development costs
71,310
58,153
Government grants
(30,042)
(7,243)
Fees payable to the company's auditor for the audit of the company's financial statements
9,845
9,375
Depreciation of owned tangible fixed assets
784,494
805,496
Amortisation of intangible assets
(472,443)
(487,528)
Operating lease charges
122,411
72,941
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 20 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Management
2
2
Staff
134
133
136
135
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
3,656,300
3,855,887
Social security costs
334,663
364,441
Pension costs
163,875
147,679
4,154,838
4,368,007
6
Director's remuneration
2020
2019
£
£
Remuneration for qualifying services
36,000
12,000
Company pension contributions to defined contribution schemes
1,440
240
37,440
12,240
7
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
97,838
104,134
Other interest on financial liabilities
74,667
58,000
172,505
162,134
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
(100,000)
(167,930)
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
8
Taxation
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
272,847
(82,880)
Total tax charge/(credit)
172,847
(250,810)
In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2020
2019
£
£
Deferred tax arising on:
Revaluation of property
61,621
(40,126)
The rate at which deferred tax is charged in the accounts has changed from 17% to 19% to reflect the current future rate of corporation tax.
The R&D credit included in the financial statements for the current year, in the absence of the current year R&D claim yet being finalised, is a prudent estimate of previous year's claims.
The actual charge/(credit) 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:
2020
2019
£
£
Profit before taxation
781,781
147,174
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
148,538
27,963
Tax effect of expenses that are not deductible in determining taxable profit
-
83
Tax effect of income not taxable in determining taxable profit
(89,768)
(92,630)
Tax effect of utilisation of tax losses not previously recognised
(46,500)
-
Unutilised tax losses carried forward
-
(17,408)
Effect of change in corporation tax rate
235,925
7,703
Depreciation on assets not qualifying for tax allowances
43,333
45,425
Research and development tax credit
(118,681)
(221,946)
Taxation charge/(credit) for the year
172,847
(250,810)
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 22 -
9
Intangible fixed assets
Negative goodwill
£
Cost
At 1 April 2019 and 31 March 2020
(12,642,399)
Amortisation and impairment
At 1 April 2019
(3,733,159)
Amortisation charged for the year
(472,443)
At 31 March 2020
(4,205,602)
Carrying amount
At 31 March 2020
(8,436,797)
At 31 March 2019
(8,909,240)
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Computers
Total
£
£
£
£
Cost or valuation
At 1 April 2019
7,600,000
10,992,035
262,712
18,854,747
Additions
17,945
105,325
-
123,270
At 31 March 2020
7,617,945
11,097,360
262,712
18,978,017
Depreciation and impairment
At 1 April 2019
204,166
548,788
170,706
923,660
Depreciation charged in the year
204,616
527,336
52,542
784,494
At 31 March 2020
408,782
1,076,124
223,248
1,708,154
Carrying amount
At 31 March 2020
7,209,163
10,021,236
39,464
17,269,863
At 31 March 2019
7,395,834
10,443,247
92,006
17,931,087
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
10
Tangible fixed assets
(Continued)
- 23 -
Land and buildings with a carrying amount of
£7,209,163
were revalued at
a value of £7,600,000 at 31 March 2018
by
Nick Heap BSc (Hons) MRICS on behalf of Sanderson Weatherall
, independent valuers not connected with the company on the basis of
fair value
. The valuation conforms to International Valuation Standards and
due to the specialised nature of the assets and the fact that they are rarely sold, except as part of a business combination, the most suitable valuation methodology was considered to be depreciated replacement cost. The director considers this valuation to be a fair indication of the value of the land and buildings at 31 March 2020.
Plant and equipment (excluding computers)
with a carrying amount
of £10,021,236 were revalued at a value of £10,813,500
at
31 March 2018
by
John P Tallon MRICS on behalf of Tallon & Associates
, independent valuers not connected with the company on the basis of
fair value
. The valuation conforms to International Valuation Standards and
due to the specialised nature of the assets and the fact that they are rarely sold, except as part of a business combination, the most suitable valuation methodology was considered to be depreciated replacement cost. The director considers this valuation to be a fair indication of the value of the plant and equipment (excluding computers and subsequent additions at cost) at 31 March 2020.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2020
2019
£
£
Cost
16,536,833
16,413,563
Accumulated depreciation
(4,299,991)
(3,793,624)
Carrying value
12,236,842
12,619,939
The carrying value of land and buildings includes land of £1,475,000 which is not depreciated.
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2020 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Kendamil Limited
England
Dormant
Ordinary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Kendamil Limited
1
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 24 -
12
Fixed asset investments
2020
2019
Notes
£
£
Investments in subsidiaries
11
1
1
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 April 2019 & 31 March 2020
1
Carrying amount
At 31 March 2020
1
At 31 March 2019
1
13
Stocks
2020
2019
£
£
Raw materials and consumables
1,164,575
1,297,541
Work in progress
360,240
352,353
Finished goods and goods for resale
1,687,892
651,124
3,212,707
2,301,018
14
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
789,598
1,382,779
Corporation tax recoverable
100,000
139,680
Other debtors
316,835
378,608
Prepayments and accrued income
166,732
179,322
1,373,165
2,080,389
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 25 -
15
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Bank loans and overdrafts
17
632,642
1,623,606
Trade creditors
1,917,525
1,481,896
Corporation tax
17,098
-
Other taxation and social security
77,448
98,419
Other creditors
262,448
1,075,000
Accruals and deferred income
2,714,698
2,004,309
5,621,859
6,283,230
16
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
100,000
290,000
17
Loans and overdrafts
2020
2019
£
£
Bank overdrafts
632,642
1,623,606
Payable within one year
632,642
1,623,606
The bank overdraft is secured by a debenture dated 25 August 2015 and a charge over the freehold property on Mint Bridge Road, Kendal, Cumbria, LA9 6NL dated 22 October 2015.
18
Provisions for liabilities
2020
2019
Notes
£
£
Deferred tax liabilities
19
3,273,529
2,939,061
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 26 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
ACAs
121,214
104,191
Tax losses
-
(104,191)
Revaluations
948,809
887,188
Corporation tax on capital gain
2,203,506
2,051,873
3,273,529
2,939,061
2020
Movements in the year:
£
Liability at 1 April 2019
2,939,061
Charge to profit or loss
272,847
Charge to other comprehensive income
61,621
Liability at 31 March 2020
3,273,529
The net deferred tax liability includes the potential corporation tax on capital gains that would fall due on the company if they ever sold the factory, of which a portion is expected to reverse within 12 months in respect of depreciation charged on fair value of assets acquired in the business combination.
In addition the net deferred tax liability also includes the potential corporation tax on revaluation surplus that would fall due on the company if they ever sold the factory, of which a portion is expected to reverse within 12 months in respect of depreciation charged on fair value of assets held at revaluation.
20
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary of £1 each
1
1
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 27 -
21
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,875
147,679
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.
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2020
2019
£
£
Acquisition of tangible fixed assets
-
89,500
23
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:
2020
2019
£
£
Within one year
92,774
99,029
Between two and five years
165,096
257,870
257,870
356,899
24
Ultimate controlling party
The company is under the control of Mr R McMahon by virtue of his majority shareholding throughout the current and previous year.
25
Related party transactions
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due to related parties
£
£
Key management personnel
121,135
-
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
25
Related party transactions
(Continued)
- 28 -
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due from related parties
£
£
Key management personnel
-
8,355
26
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Ross McMahon
-
8,355
9,000
(138,490)
(121,135)
8,355
9,000
(138,490)
(121,135)
27
Cash generated from operations
2020
2019
£
£
Profit for the year after tax
608,934
397,984
Adjustments for:
Taxation charged/(credited)
172,847
(250,810)
Finance costs
172,505
162,134
Amortisation and impairment of intangible assets
(472,443)
(487,528)
Depreciation and impairment of tangible fixed assets
784,494
805,496
Movements in working capital:
(Increase) in stocks
(911,689)
(5,512)
Decrease in debtors
659,189
181,073
Increase/(decrease) in creditors
122,495
(804,042)
Cash generated from/(absorbed by) operations
1,136,332
(1,205)
KENDAL NUTRICARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 29 -
28
Analysis of changes in net debt
1 April 2019
Cash flows
31 March 2020
£
£
£
Cash at bank and in hand
87,898
14,726
102,624
Bank overdrafts
(1,623,606)
990,964
(632,642)
(1,535,708)
1,005,690
(530,018)
2020-03-31
2019-04-01
false
CCH Software
CCH Accounts Production 2020.200
Mr R McMahon
09389871
2019-04-01
2020-03-31
09389871
bus:Director1
2019-04-01
2020-03-31
09389871
bus:RegisteredOffice
2019-04-01
2020-03-31
09389871
2020-03-31
09389871
2018-04-01
2019-03-31
09389871
core:RetainedEarningsAccumulatedLosses
2018-04-01
2019-03-31
09389871
core:RetainedEarningsAccumulatedLosses
2019-04-01
2020-03-31
09389871
core:RevaluationReserve
2018-04-01
2019-03-31
09389871
core:RevaluationReserve
2019-04-01
2020-03-31
09389871
core:NegativeGoodwill
2020-03-31
09389871
core:NegativeGoodwill
2019-03-31
09389871
2019-03-31
09389871
core:LandBuildings
core:OwnedOrFreeholdAssets
2020-03-31
09389871
core:PlantMachinery
2020-03-31
09389871
core:ComputerEquipment
2020-03-31
09389871
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-03-31
09389871
core:PlantMachinery
2019-03-31
09389871
core:ComputerEquipment
2019-03-31
09389871
core:CurrentFinancialInstruments
core:WithinOneYear
2020-03-31
09389871
core:CurrentFinancialInstruments
core:WithinOneYear
2019-03-31
09389871
core:CurrentFinancialInstruments
2020-03-31
09389871
core:CurrentFinancialInstruments
2019-03-31
09389871
core:Non-currentFinancialInstruments
2020-03-31
09389871
core:Non-currentFinancialInstruments
2019-03-31
09389871
core:ShareCapital
2020-03-31
09389871
core:ShareCapital
2019-03-31
09389871
core:RevaluationReserve
2020-03-31
09389871
core:RevaluationReserve
2019-03-31
09389871
core:RetainedEarningsAccumulatedLosses
2020-03-31
09389871
core:RetainedEarningsAccumulatedLosses
2019-03-31
09389871
core:ShareCapital
2018-03-31
09389871
core:RevaluationReserve
2018-03-31
09389871
core:RetainedEarningsAccumulatedLosses
2018-03-31
09389871
2018-03-31
09389871
1
2019-04-01
2020-03-31
09389871
1
2018-04-01
2019-03-31
09389871
2019-03-31
09389871
core:WithinOneYear
2020-03-31
09389871
core:WithinOneYear
2019-03-31
09389871
core:Goodwill
2019-04-01
2020-03-31
09389871
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-04-01
2020-03-31
09389871
core:PlantMachinery
2019-04-01
2020-03-31
09389871
core:ComputerEquipment
2019-04-01
2020-03-31
09389871
core:UKTax
2019-04-01
2020-03-31
09389871
core:UKTax
2018-04-01
2019-03-31
09389871
core:NegativeGoodwill
2019-03-31
09389871
core:NegativeGoodwill
2019-04-01
2020-03-31
09389871
core:LandBuildings
core:OwnedOrFreeholdAssets
2019-03-31
09389871
core:PlantMachinery
2019-03-31
09389871
core:ComputerEquipment
2019-03-31
09389871
core:Subsidiary1
2019-04-01
2020-03-31
09389871
core:Subsidiary1
1
2019-04-01
2020-03-31
09389871
core:Non-currentFinancialInstruments
1
2020-03-31
09389871
core:Non-currentFinancialInstruments
1
2019-03-31
09389871
core:BetweenTwoFiveYears
2020-03-31
09389871
core:BetweenTwoFiveYears
2019-03-31
09389871
bus:PrivateLimitedCompanyLtd
2019-04-01
2020-03-31
09389871
bus:FRS102
2019-04-01
2020-03-31
09389871
bus:Audited
2019-04-01
2020-03-31
09389871
bus:FullAccounts
2019-04-01
2020-03-31
xbrli:pure
xbrli:shares
iso4217:GBP