Company Registration No. 12374548 (England and Wales)
CAMBRIAN LONDON LIMITED
Annual report and financial statements
For the period ended 31 May 2021
CAMBRIAN LONDON LIMITED
COMPANY INFORMATION
Directors
Mr A Morris
Mr M Applebee
Secretary
WSM Services Limited
Company number
12374548
Registered office
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
Auditor
WSM Advisors Limited
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
CAMBRIAN LONDON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 28
CAMBRIAN LONDON LIMITED
STRATEGIC REPORT
For the period ended 31 May 2021
The directors present the
ir
strategic report for the period ended 31 May 2021.
As stated in the accounting policies note, group results are reported for the year in which this company acquired the shares in its subsidiary, with the previous year's results of the subsidiary shown as comparatives.
Fair review of the business
The directors are pleased to report that the group consolidated turnover is consistent with that achieved in the prior period.
The underlying gross profit margin is 24.6% (2020: 22%) driven by greater efficiency within the business.
During the next year the directors aim to consolidate their sales position by adding and developing new lines to the product mix and by continuing their investment in the business. They also continue to aim to increase the geographical area of distribution of the company.
Principal risks and uncertainties
The principal risks and uncertainties for the group are aligned with those of the underlying trading company.
Cash flow risk - The company's activities expose it primarily to the risk of customer bad debt. The company has customer credit record check procedures in place to minimise its exposure to potential bad debts and regular checks are carried out on balances to ensure action is taken at the earliest opportunity.
Liquidity risk - To maintain liquidity the company uses a mixture of long and short term debt finance. The company has benefited from low interest rates, which have allowed it to decrease long term debt reducing exposure to future changes to interest rates.
Price risk - The company is exposed to a very competitive marketplace and maintaining gross profit margins has been challenging. The company is continuing to identify new products to add to the product mix and is committed to increasing margins.
Mr M Applebee
Director
29 September 2021
- 1 -
CAMBRIAN LONDON LIMITED
DIRECTORS' REPORT
For the period ended 31 May 2021
The directors present their annual report and financial statements for the period from 19 December 2019, the date of incorporation, to 31 May 2021.
Principal activities
The principal activity of the company is as a holding company for Raven Roofing and Building Supplies Limited which buys and selling roofing materials to both trade customers and the general public.
Results and dividends
The results for the period are set out on page 7. As noted in the accounting policies the results presented are for the year in which this company acquired the shares of its subsidiary, with comparatives for the prior year, as required by merger accounting.
Ordinary dividends were paid amounting to £361,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr A Morris
Mr M Applebee
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 auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr M Applebee
Director
29 September 2021
- 2 -
CAMBRIAN LONDON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
For the period ended 31 May 2021
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 3 -
CAMBRIAN LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CAMBRIAN LONDON LIMITED
Opinion
We have audited the
financial statements of Cambrian London Limited
(the 'parent company') and its subsidiaries (the 'group') for the period ended 31 May 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements,
including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 May 2021 and of the group's profit for the period then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the
group's and
parent
company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial period for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
- 4 -
CAMBRIAN LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAMBRIAN LONDON LIMITED
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the
parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
- 5 -
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation where relevant, enquiries with management as to the risks of non-compliance and any instances thereof, challenging assumptions and judgments made by management, and identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. Our audit procedures also focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CAMBRIAN LONDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CAMBRIAN LONDON LIMITED
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
Sophie Holborn (Senior Statutory Auditor)
For and on behalf of WSM Advisors Limited
29 September 2021
Chartered Accountants
Statutory Auditor
Connect House
133-137 Alexandra Road
Wimbledon
London
SW19 7JY
- 6 -
CAMBRIAN LONDON LIMITED
GROUP PROFIT AND LOSS ACCOUNT
For the period ended 31 May 2021
Year
Year
ended
ended
31 May
31 May
2021
2020
Notes
£
£
Turnover
3
19,667,047
19,796,262
Cost of sales
(14,812,974)
(15,433,629)
Gross profit
4,854,073
4,362,633
Selling and distribution costs
(647,639)
(705,027)
Administrative expenses
(3,107,336)
(4,063,044)
Other operating income
107,083
241,120
Operating profit/(loss)
4
1,206,181
(164,318)
Interest receivable and similar income
8
134
518
Interest payable and similar expenses
9
(24,557)
(43,133)
Profit/(loss) before taxation
1,181,758
(206,933)
Tax on profit/(loss)
10
(233,113)
30,641
Profit/(loss) for the financial period
948,645
(176,292)
Profit/(loss) for the financial period is all attributable to the owners of the parent company.
- 7 -
CAMBRIAN LONDON LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
For the period ended 31 May 2021
Year
Year
ended
ended
31 May
31 May
2021
2020
£
£
Profit/(loss) for the period
948,645
(176,292)
Other comprehensive income
-
-
Total comprehensive income for the period
948,645
(176,292)
Total comprehensive income for the period is all attributable to the owners of the parent company.
- 8 -
CAMBRIAN LONDON LIMITED
GROUP BALANCE SHEET
As at 31 May 2021
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
12
81,037
131,608
Investments
13
1,300
1,300
82,337
132,908
Current assets
Stocks
15
1,202,650
1,401,631
Debtors
16
3,341,205
2,536,499
Cash at bank and in hand
717,603
136,942
5,261,458
4,075,072
Creditors: amounts falling due within one year
17
(3,993,647)
(3,439,826)
Net current assets
1,267,811
635,246
Total assets less current liabilities
1,350,148
768,154
Provisions for liabilities
Deferred tax liability
19
1,028
6,679
(1,028)
(6,679)
Net assets
1,349,120
761,475
Capital and reserves
Called up share capital
21
2,000
2,000
Profit and loss reserves
1,347,120
759,475
Total equity
1,349,120
761,475
The financial statements were approved by the board of directors and authorised for issue on 29 September 2021 and are signed on its behalf by:
29 September 2021
Mr A Morris
Director
- 9 -
CAMBRIAN LONDON LIMITED
COMPANY BALANCE SHEET
As at 31 May 2021
31 May 2021
2021
Notes
£
£
Fixed assets
Investments
13
1,000
Current assets
Cash at bank and in hand
192,753
192,753
Creditors: amounts falling due within one year
17
(162,846)
Net current assets
29,907
Total assets less current liabilities
30,907
Provisions for liabilities
Net assets excluding pension liability
30,907
Net assets
30,907
Capital and reserves
Called up share capital
21
2,000
Profit and loss reserves
28,907
Total equity
30,907
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the
period
was £389,907
.
The financial statements were approved by the board of directors and authorised for issue on 29 September 2021 and are signed on its behalf by:
29 September 2021
Mr A Morris
Director
Company Registration No. 12374548
- 10 -
CAMBRIAN LONDON LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
For the period ended 31 May 2021
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2019
2,000
935,767
937,767
Year ended 31 May 2020:
Loss and total comprehensive income for the year
-
(176,292)
(176,292)
Balance at 31 May 2020
2,000
759,475
761,475
Year ended 31 May 2021:
Profit and total comprehensive income for the period
-
948,645
948,645
Dividends
11
-
(361,000)
(361,000)
Balance at 31 May 2021
2,000
1,347,120
1,349,120
- 11 -
CAMBRIAN LONDON LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
For the period ended 31 May 2021
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Period ended 31 May 2021:
Profit and total comprehensive income for the period
-
389,907
389,907
Dividends
11
-
(361,000)
(361,000)
Balance at 31 May 2021
2,000
28,907
30,907
- 12 -
CAMBRIAN LONDON LIMITED
GROUP STATEMENT OF CASH FLOWS
For the period ended 31 May 2021
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,679,845
81,572
Interest paid
(24,557)
(43,133)
Income taxes paid
(99)
-
Net cash inflow from operating activities
1,655,189
38,439
Investing activities
Purchase of tangible fixed assets
(4,421)
(15,489)
Receipts arising from loans made
5,460
(4,460)
Interest received
134
518
Net cash generated from/(used in) investing activities
1,173
(20,431)
Financing activities
Payment of finance leases obligations
-
(2,820)
Dividends paid to equity shareholders
(361,000)
-
Net cash used in financing activities
(361,000)
(2,820)
Net increase in cash and cash equivalents
1,295,362
15,188
Cash and cash equivalents at beginning of period
(577,759)
(593,947)
Cash and cash equivalents at end of period
717,603
(577,759)
Relating to:
Cash at bank and in hand
717,603
136,942
Bank overdrafts included in creditors payable within one year
-
(714,701)
- 13 -
CAMBRIAN LONDON LIMITED
COMPANY STATEMENT OF CASH FLOWS
For the period ended 31 May 2021
2021
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
552,753
Net cash inflow/(outflow) from operating activities
552,753
Investing activities
Receipts arising from loans made
1,000
Net cash generated from/(used in) investing activities
1,000
Financing activities
Dividends paid to equity shareholders
(361,000)
Net cash used in financing activities
(361,000)
Net increase in cash and cash equivalents
192,753
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
192,753
Relating to:
Cash at bank and in hand
192,753
- 14 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
For the period ended 31 May 2021
1
Accounting policies
Company information
Cambrian London Limited (“the company”) is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
Connect House, 133-137 Alexandra Road, Wimbledon, London, SW19 7JY.
The group consists of Cambrian London Limited and its subsidiary Raven Roofing and Building Supplies Limited.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Business combinations
The Company acquired its holding in Raven Roofing and Building Supplies Limited via a share-for-share exchange on the 17 July 2020.
The m
erger accounting method
was used whereby
the carrying values of the assets and liabilities of the combination
have
not
been
adjusted to fair value
.
The results and cash flows of
the subsidiary has been
brought into the financial statements of the combined entity from the beginning of the financial year in which the combination occurred, The comparative information
has also been
restated by including the total comprehensive income for
the subsidiary
for the previous reporting period and the statement of financial position for the previous reporting date
.
It is for this reason that the consolidated financial statements show both the year ending 31st May 2021 results and the comparative figures for the year ending 31 May 2020. However, the Cambrian London Limited financial statements only report the period from incorporation on 19 December 2019 to the 31 May 2021.
There was no
difference
between
the nominal value of the shares
and
the nominal value of the shares received in exchange
. As a result there is no
movement on other reserves
presented
in the consolidated financial statements.
Merger expenses are not included as part of this adjustment, but
instead are
charged to the statement of comprehensive income as part of profit or loss of the combined entity at the effective date of the group reconstruction.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
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.
1.4
Revenue
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.
- 15 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
1
Accounting policies
(Continued)
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.5
Property, plant and equipment
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
10% on cost
Plant and equipment
10 - 15% on cost
Fixtures and fittings
15% on cost
Computers
15% on cost
Motor vehicles
20% on cost
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 recognised in the profit and loss account.
1.6
Inventories
- 16 -
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
the lower of cost and replacement cost
, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
1
Accounting policies
(Continued)
1.8
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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
m
ethod 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.
1.9
Equity instruments
Equity instruments issued by the group 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 group.
1.10
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
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date
.
- 17 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
1
Accounting policies
(Continued)
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
if, and only if, there is
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 a
uthority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
1.14
Government grants
Government 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.
A grant that specifies performance conditions is recognised in income when the 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 recogni
sed as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
- 18 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Roofing materials
19,667,048
19,796,262
2021
2020
£
£
Other significant revenue
Interest income
134
518
Grants received
107,083
241,120
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
19,667,048
19,796,262
4
Operating profit/(loss)
2021
2020
£
£
Operating profit/(loss) for the period is stated after charging/(crediting):
Government grants
(107,083)
(241,120)
Depreciation of owned tangible fixed assets
54,992
70,380
Operating lease charges
775,814
816,300
- 19 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,250
-
Audit of the financial statements of the company's subsidiaries
13,275
12,900
14,525
12,900
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
52
60
4
Their aggregate remuneration comprised:
Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
1,589,885
2,435,309
180,000
Social security costs
162,512
274,366
22,412
Pension costs
213,357
157,960
160,000
1,965,754
2,867,635
362,412
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
-
557,447
Company pension contributions to defined contribution schemes
80,000
34,119
80,000
591,566
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 0).
- 20 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
7
Directors' remuneration
(Continued)
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
n/a
278,724
Company pension contributions to defined contribution schemes
n/a
17,059
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period.
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
134
518
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
134
518
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
24,557
43,109
Other finance costs:
Interest on finance leases and hire purchase contracts
-
24
Total finance costs
24,557
43,133
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
209,579
-
Adjustments in respect of prior periods
3,063
-
Total current tax
212,642
-
- 21 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
10
Taxation
(Continued)
2021
2020
£
£
Deferred tax
Origination and reversal of timing differences
20,471
(4,518)
Tax losses carried forward
-
(26,123)
Total deferred tax
20,471
(30,641)
Total tax charge/(credit)
233,113
(30,641)
The actual charge/(credit) for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit/(loss) before taxation
1,181,758
(206,933)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
224,534
(39,317)
Tax effect of expenses that are not deductible in determining taxable profit
5,317
4,021
Tax effect of utilisation of tax losses not previously recognised
(28,933)
-
Adjustments in respect of financial assets
8,660
9,173
Under/(over) provided in prior years
3,064
-
20,471
(4,518)
Taxation charge/(credit)
233,113
(30,641)
11
Dividends
2021
2020
Recognised as distributions to equity holders:
£
£
Final paid
361,000
-
- 22 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2020
200,919
85,939
179,047
158,692
126,725
751,322
Additions
-
-
2,002
2,419
-
4,421
At 31 May 2021
200,919
85,939
181,049
161,111
126,725
755,743
Depreciation and impairment
At 1 June 2020
176,357
74,801
130,617
114,021
123,918
619,714
Depreciation charged in the period
20,092
2,565
14,651
15,201
2,483
54,992
At 31 May 2021
196,449
77,366
145,268
129,222
126,401
674,706
Carrying amount
At 31 May 2021
4,470
8,573
35,781
31,889
324
81,037
At 31 May 2020
24,562
11,138
48,430
44,671
2,807
131,608
The company had no tangible fixed assets at 31 May 2021 or 31 May 2020.
13
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Investments in subsidiaries
14
-
-
1,000
1,000
Unlisted investments
1,300
1,300
1,300
1,300
1,000
1,000
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 June 2020 and 31 May 2021
1,300
Carrying amount
At 31 May 2021
1,300
At 31 May 2020
1,300
- 23 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
13
Fixed asset investments
(Continued)
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2020 and 31 May 2021
1,000
Carrying amount
At 31 May 2021
1,000
At 31 May 2020
1,000
14
Subsidiaries
Details of the company's subsidiaries at 31 May 2021 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Raven Roofing and Building Supplies Limited
Applemor House Head Office, Campbell Road, Twickenham, TW2 5BY
Ordinary
100.00
15
Stocks
Group
Company
2021
2020
2021
2020
£
£
£
£
Raw materials and consumables
1,202,650
1,401,631
16
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,471,207
1,485,610
Corporation tax recoverable
2,963
Amounts owed by group undertakings
8,333
-
-
-
Other debtors
756,085
834,869
1,000
Prepayments and accrued income
105,580
186,934
3,341,205
2,510,376
-
1,000
Deferred tax asset (note 19)
-
26,123
3,341,205
2,536,499
1,000
- 24 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
17
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans and overdrafts
18
714,701
Trade creditors
3,164,798
1,712,506
Amounts owed to group undertakings
8,333
-
8,333
Corporation tax payable
209,579
-
91,459
Other taxation and social security
339,788
675,470
52,625
-
Other creditors
69,651
90,172
Accruals and deferred income
201,498
246,977
10,429
3,993,647
3,439,826
162,846
18
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Bank overdrafts
-
714,701
Payable within one year
714,701
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Group
£
£
£
£
Accelerated capital allowances
1,028
6,679
-
-
Tax losses
-
-
-
26,123
1,028
6,679
-
26,123
The company has no deferred tax assets or liabilities.
- 25 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
19
Deferred taxation
(Continued)
Group
Company
2021
2021
Movements in the period:
£
£
Asset at 1 June 2020
(19,444)
-
Charge to profit or loss
20,472
-
Liability at 31 May 2021
1,028
-
T
he deferred tax liability
set out above
is expected to reverse within 12 month
s
and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,357
157,960
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
22
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
369,171
635,783
-
-
Between two and five years
1,004,764
1,215,279
-
-
In over five years
72,125
167,416
-
-
1,446,060
2,018,478
-
-
- 26 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
23
Related party transactions
a. TAM Projects Limited
Two current directors of the parent (Cambrian London Limited) and the subsidiary (Raven Roofing and Building Supplies Limited are also directors and shareholders of TAM Projects Limited. During the year the subsidiary paid rents, excluding VAT, to TAM Projects Limited of £70,380 (2020: £70,380).
b. Administrative services
During the year £4,000 (2020: £37,031) was paid by the subsidiary to a company which is associated with a director of the subsidiary. This company also provided additional support in administrative and secretarial services.
c. Site rental
During the year £34,500 (2020 £55,200) was paid by the subsidiary to close family members of two of the directors (of both the parent and subsidiary) and as rent for use of one of the branch sites which they own.
During the year £20,700 (2020: £nil) was paid by the subsidiary to two of the directors (of both the parent and subsidiary) as rent for use of one of the branch sites which they own.
d. Related employees
During the year £nil (2020: £171,524) was paid to close family members of the directors as salaries for work they completed from the subsidiary. The corresponding figure in the parent company was £282,413 (2020: £nil).
24
Cash generated from group operations
2021
2020
£
£
Profit/(loss) for the period after tax
948,645
(176,292)
Adjustments for:
Taxation charged/(credited)
233,113
(30,641)
Finance costs
24,557
43,133
Investment income
(134)
(518)
Depreciation and impairment of tangible fixed assets
54,992
70,380
Movements in working capital:
Decrease/(increase) in stocks
198,981
(15,472)
(Increase)/decrease in debtors
(839,252)
2,807,180
Increase/(decrease) in creditors
1,058,943
(2,616,198)
Cash generated from operations
1,679,845
81,572
- 27 -
CAMBRIAN LONDON LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
For the period ended 31 May 2021
25
Cash generated from/(absorbed by) operations - company
2021
£
Profit for the period after tax
389,907
Adjustments for:
Taxation charged
91,459
Movements in working capital:
Increase in creditors
71,387
Cash generated from/(absorbed by) operations
552,753
26
Analysis of changes in net funds/(debt) - group
1 June 2020
Cash flows
31 May 2021
£
£
£
Cash at bank and in hand
136,942
580,661
717,603
Bank overdrafts
(714,701)
714,701
-
(577,759)
1,295,362
717,603
27
Analysis of changes in net funds - company
1 June 2020
Cash flows
31 May 2021
£
£
£
Cash at bank and in hand
-
192,753
192,753
- 28 -
2021-05-31
2020-06-01
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