Company Registration No. SC198334 (Scotland)
BIP CANDY & TOYS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
BIP CANDY & TOYS UK LIMITED
COMPANY INFORMATION
Director
R C Korsmit
Company number
SC198334
Registered office
Summit House
4-5 Mitchell Street
Edinburgh
Scotland
EH6 7BD
Senior statutory auditor
Cathryn McDowell FCCA
Auditor
Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
Business address
1st Floor, Unit E
Orbital 24
Oldham Street
Denton
Manchester
M34 3SU
Bankers
National Westminster Bank plc
36 The Rock
Bury
Lancashire
BL9 0NU
BIP CANDY & TOYS UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
BIP CANDY & TOYS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 1 -
The director presents the strategic report for the year ended 31 March 2021.
Fair review of the business
This year has been extremely challenging due to the Covid-19 pandemic which resulted in the compete closure of some of the company’s trading channels (High Street retail, plus a proportion of the discounter and wholesale sectors) for up to four months.
However, due to the breadth and diversity of the company’s customers across multiple trading channels, the impact was able to be minimised with a large proportion of the early year lost sales being recovered during the later parts of the financial year.
Sales remained solid in the grocery, convenience and discount sectors, where the business trades strongly and where we see a more secure and predictable future. This was despite the removal of grocery sector multibuys and reduced footfall as a result of the social distancing measures in place.
Turnover for the year, after discounts allowed, decreased by 28.9% to £13,124,207 (2020 - £18,451,915). The gross profit margin increased slightly to 22.6% (2020 - 22.5%).
Principal risks and uncertainties
The company continues to import goods from all over the world and covers currency where possible at the time orders are received to minimise margin fluctuation caused by the volatility in exchange rates.
Interest rate risk
The company's borrowings are principally a bank overdraft which attracts interest at a variable rate negotiated with the company's bankers and invoice discounting. The bank overdraft is only required at peak times during the year and at this time financial liabilities, interest charges and cash flows are affected by movements in interest rates. Interest charged on invoice discounting is negotiated in advance and based on the level of turnover during the year.
Liquidity risk
The company manages its cash and borrowing requirements in order to minimise interest expenses, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business by way of a bank overdraft to cover seasonal variances, letters of credit and invoice discounting.
Foreign currency risk
The company's principal foreign currency risk arises from sourcing product lines from the Far East and Europe, which exposes the company to fluctuating currency markets, in particular US Dollars and the Euro. To minimise this exposure the company policy continues to enter into foreign exchange forward contracts.
Credit risk
All customers who wish to trade on credit terms are subject to stringent credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Development and performance
The company is sufficiently funded and continues to return profits in uncertain economic times. As a consequence the directors remain confident the company is strongly placed to exploit trading opportunities as they arise.
The company is continually striving to target growth sector companies.
BIP CANDY & TOYS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 2 -
Key performance indicators
During continued difficult trading conditions as a result of factors outside the company's control the key performance indicators remain consistent.
At the year end, the company had shareholders' funds of £2,227,486 (2020 - £2,829,590) including distributable reserves amounting to £2,187,486 (2020 - £2,789,590). Given that net current assets exceeded current liabilities by £2,205,338 (2020 - £2,792,387) the director believes the company's position to be satisfactory.
Future developments
During the year the business invested in further company-wide IT solutions to support the required and frequent remote management of activities. This along with an excellent in-house H&S approach for the creation of a Covid-19 Secure workplace ensured remote business operations were uninterrupted and the business operated safely when colleagues were on-site.
Customer and supplier activities during the year continued to be buoyant, with a successful pipeline of future supplier partnerships and new customer business secured.
Forecasts have been prepared to include the impact of the pandemic and the team are confident they can withstand the economic challenges that are appearing.
Today we can confirm that the realised gross sales in the first quarter of the new financial year 21/22 are well in line with the budget and are more than 200% of the gross sales in the first quarter of the financial year 20/21.
R C Korsmit
Director
22 June 2021
BIP CANDY & TOYS UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
The director presents his annual report and financial statements for the year ended 31 March 2021.
Principal activities
The principal activity of the company was that of confectionery distributors specialising in children's novelty products and adult gift confectionery.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £710,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
I Gavin
(Resigned 31 July 2020)
R C Korsmit
Auditor
Chadwick & Company (Manchester) Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
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;
-
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.
BIP CANDY & TOYS UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Strategic Report
Details of the company's future developments and risk exposure are included in the Strategic Report.
Impact of Covid-19
Safety provisions have been put in place by the directors, including additional hygiene procedures, temperate checks and the use of video-conferencing with the work force. Employees continue to work from home to reduce the contact with other members of their team and social distancing measures have been implemented in the company workplace. The company has responded quickly where both national and local restrictions have come into force, and any easing of restrictions has been reviewed to ensure that staff wellbeing is prioritised.
On behalf of the board
R C Korsmit
Director
22 June 2021
BIP CANDY & TOYS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BIP CANDY & TOYS UK LIMITED
- 5 -
Opinion
We have audited the financial statements of BIP Candy & Toys UK Limited (the 'company') for the year ended 31 March 2021 which comprise the statement of income and retained earnings, the balance sheet, the 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 company's affairs as at 31 March 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report.
We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is 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.
BIP CANDY & TOYS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BIP CANDY & TOYS UK LIMITED
- 6 -
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 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 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:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of 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 determines 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
intends
to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
We considered and updated our knowledge of the company's specific industry and its regulatory environment, and reviewed the company's documentation surrounding the policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. Based on this understanding, we identified and assessed the risks of material misstatement in the financial statements and designed and performed audit procedures in response to those risks.
BIP CANDY & TOYS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BIP CANDY & TOYS UK LIMITED
- 7 -
We identified the key laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, the most significant of these is the UK Companies Act 2006. We also gained knowledge of the legal and regulatory frameworks which do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.
Audit response to risks identified
The audit engagement team were made aware of the potential opportunities and incentives that may exist within the company for fraudulent activity and how and where fraud might occur or be concealed within the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other manual adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, we designed procedures which included:
- enquiring of management and those charged with governance concerning actual and potential litigation and claims and any known instances of non-compliance with laws and regulations;
- enquiries were made of the company's legal advisors, requesting details of any litigation or claims made against the company in the past financial year;
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- performing detailed audit work on areas identified as being susceptible to management bias and override of controls, such as provisions, estimates and journal entries;
- performing analytical procedures to identify any unusual relationships that may indicate a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.
Cathryn McDowell FCCA (Senior Statutory Auditor)
For and on behalf of Chadwick & Company (Manchester) Limited
Chartered Accountants
Statutory Auditors
Capital House
272 Manchester Road
Droylsden
Manchester
M43 6PW
23 June 2021
BIP CANDY & TOYS UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
13,124,207
18,451,915
Cost of sales
(10,200,149)
(14,298,216)
Gross profit
2,924,058
4,153,699
Distribution costs
(1,032,133)
(1,090,770)
Administrative expenses
(1,753,985)
(2,289,721)
Other operating income
3
43,942
Operating profit
4
181,882
773,208
Interest payable and similar expenses
8
(41,875)
(84,837)
Profit before taxation
140,007
688,371
Tax on profit
9
(32,111)
(127,107)
Profit for the financial year
107,896
561,264
Retained earnings brought forward
2,789,590
2,798,326
Dividends
10
(710,000)
(570,000)
Retained earnings carried forward
2,187,486
2,789,590
The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.
BIP CANDY & TOYS UK LIMITED
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
24,518
42,040
Current assets
Stocks
12
1,754,882
1,608,077
Debtors
13
2,324,028
3,527,593
Cash at bank and in hand
5,820
1,487,460
4,084,730
6,623,130
Creditors: amounts falling due within one year
14
(1,879,392)
(3,830,743)
Net current assets
2,205,338
2,792,387
Total assets less current liabilities
2,229,856
2,834,427
Provisions for liabilities
Deferred tax liability
15
2,370
4,837
(2,370)
(4,837)
Net assets
2,227,486
2,829,590
Capital and reserves
Called up share capital
17
28,000
28,000
Capital redemption reserve
18
12,000
12,000
Profit and loss reserves
18
2,187,486
2,789,590
Total equity
2,227,486
2,829,590
The financial statements were approved by the board of directors and authorised for issue on 22 June 2021 and are signed on its behalf by:
R C Korsmit
Director
Company Registration No. SC198334
BIP CANDY & TOYS UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(261,026)
1,921,101
Interest paid
(41,875)
(84,837)
Income taxes paid
(101,739)
(135,013)
Net cash (outflow)/inflow from operating activities
(404,640)
1,701,251
Investing activities
Proceeds on disposal of tangible fixed assets
3,000
Net cash generated from/(used in) investing activities
3,000
-
Financing activities
Dividends paid
(1,080,000)
(200,000)
Net cash used in financing activities
(1,080,000)
(200,000)
Net (decrease)/increase in cash and cash equivalents
(1,481,640)
1,501,251
Cash and cash equivalents at beginning of year
1,487,460
(13,791)
Cash and cash equivalents at end of year
5,820
1,487,460
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 11 -
1
Accounting policies
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
Going concern
On 11 March 2020, Covid-19 was designated a pandemic by the World Health Organisation (WHO). The directors continue to review the impact on the business, ensuring provisions are put in place to mitigate any risk to the company’s ability to trade as a going concern. At the date of signing the financial statements, in the opinion of the directors, Covid-19 will not impact on the company’s ability to trade as a going concern. Consequently, the company continues to adopt the going concern basis in preparing the financial statements.
true
1.3
Turnover
Turnover represents amounts derived from the provision of goods and services (net of VAT and trade discounts) to customers during the year.
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.
1.4
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.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements
10 years straight line
Plant and machinery
3 years straight line
Fixtures, fittings & equipment
3 years straight line
Motor vehicles
4 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
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.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 12 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value. Cost is
c
alculated
using the average cost method of valuation.
Net realisable value is based on estimated selling price less the estimated cost of disposal.
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’
.
Basic f
inancial instruments are recognised in the company's statement of financial position 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.
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.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value
,
unless hedge accounting is applied and the hedge is a cash flow hedge.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled. The company enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk. The company follows the accounting policy of the group and hedge accounting is applied. Any gain or loss on forward exchange contracts expiring during the year are taken through the profit and loss account.
1.9
Hedge accounting
The company follows the accounting policy of the group and hedge accounting is applied. Any gain or loss on forward exchange contracts expiring during the year are taken through the profit and loss account.
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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 14 -
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.
1.11
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
s
asset are consumed.
1.14
Government grants
Amounts received in connection with the Coronavirus Job Retention Scheme are allocated to the profit and loss account when they are received and disclosed as
other
operating income
.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling, where appropriate, at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.16
Royalties
The company recognises royalties payable as and when they become due.
1.17
Company information
BIP Candy & Toys UK Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Summit House, 4-5 Mitchell Street, Edinburgh, Scotland, EH6 7BD.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 15 -
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.
In considering the going concern assumption, the director has had to apply judgement in relation to the potential impact that Covid-19 may have on the economies the company operates in and on the company. In arriving at this judgment, the director has considered the financial resilience of the company and how it would managed any downturn as a result of the pandemic.
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
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sales generated under the company's principal activity
13,124,207
18,451,915
2021
2020
£
£
Other significant revenue
Grants received
43,942
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
12,277,567
16,232,619
European Union
846,640
2,219,296
13,124,207
18,451,915
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(113,472)
(38,248)
Government grants
(43,942)
Depreciation of owned tangible fixed assets
17,522
20,369
Profit on disposal of tangible fixed assets
(3,000)
Operating lease charges
47,008
43,979
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 16 -
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 company
27,200
21,500
For other services
Services relating to corporate finance transactions
1,705
671
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Sales
4
5
Administration
4
4
Marketing and product design
4
5
Logistics and quality control
5
5
Total
17
19
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
603,402
853,547
Social security costs
58,014
79,265
Pension costs
100,255
94,850
761,671
1,027,662
7
Director's remuneration
2021
2020
£
£
Remuneration for qualifying services
87,402
166,440
Company pension contributions to defined contribution schemes
438
1,316
87,840
167,756
Directors' remuneration includes benefits-in-kind.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 17 -
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
5,604
22,193
Interest on invoice finance arrangements
36,092
62,197
41,696
84,390
Other finance costs:
Other interest
179
447
41,875
84,837
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
29,448
130,626
Adjustments in respect of prior periods
5,130
Total current tax
34,578
130,626
Deferred tax
Origination and reversal of timing differences
(2,467)
(3,519)
Total tax charge
32,111
127,107
2021
2020
£
£
Profit before taxation
140,007
688,371
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
26,601
130,790
Tax effect of expenses that are not deductible in determining taxable profit
380
1,447
Permanent capital allowances in excess of depreciation
2,467
3,519
Deferred tax
(2,467)
(3,519)
Corporation tax not provided for
5,130
(5,130)
Taxation charge for the year
32,111
127,107
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 18 -
10
Dividends
2021
2020
£
£
Interim paid on Ordinary shares
710,000
570,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2020
35,027
62,466
30,251
11,400
139,144
Disposals
(50,666)
(11,400)
(62,066)
At 31 March 2021
35,027
11,800
30,251
77,078
Depreciation and impairment
At 1 April 2020
7,006
58,532
20,166
11,400
97,104
Depreciation charged in the year
3,503
3,934
10,085
17,522
Eliminated in respect of disposals
(50,666)
(11,400)
(62,066)
At 31 March 2021
10,509
11,800
30,251
52,560
Carrying amount
At 31 March 2021
24,518
24,518
At 31 March 2020
28,021
3,934
10,085
42,040
12
Stocks
2021
2020
£
£
Work in progress
27,397
Finished goods and goods for resale
1,727,485
1,608,077
1,754,882
1,608,077
Finished goods valuation above includes provision against slow-moving stocks of £122,000 (2020 - £96,000).
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 19 -
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,168,395
3,214,515
Corporation tax recoverable
1,755
Amounts owed by group undertakings
219,853
Other debtors
36,874
3,263
Prepayments and accrued income
117,004
89,962
2,324,028
3,527,593
Other
debtors
includes amounts owed
to
the company
by
RBS Invoice Finance of £
34,111
(20
20
-
£
nil
) relating to cash
held
in respect of trade debts discounted on a recourse
basis.
14
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
797,407
1,157,088
Corporation tax
65,406
Other taxation and social security
624,710
292,579
Dividends payable
370,000
Other creditors
65,910
1,612,147
Accruals and deferred income
391,365
333,523
1,879,392
3,830,743
Other creditors includes amounts owed by the company to RBS Invoice Finance of £
nil
(20
20
-
£
1,465,210
) relating to cash received in respect of trade debts discounted on a recourse basis and is
secured by a floating charge over all of the assets of the company.
15
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
2021
2020
Balances:
£
£
Accelerated capital allowances
2,370
4,837
2021
Movements in the year:
£
Liability at 1 April 2020
4,837
Credit to profit or loss
(2,467)
Liability at 31 March 2021
2,370
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 20 -
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,255
94,850
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.
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
28,000
28,000
28,000
28,000
18
Reserves
Capital redemption reserve
Capital redemption reserve
records the nominal value of shares repurchased by the company.
Own shares
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss reserve
Profit and loss reserve includes all current and prior period retained profits and losses.
19
Financial commitments, guarantees and contingent liabilities
Forward exchange contracts
The company's policy is to enter into forward exchange contracts on future purchases where there is a high degree of likelihood of an exposure occurring. Gains and losses on these contracts are recognised in the profit and loss when they are completed.
At 31 March 2021, the company had outstanding contracts amounting to £8,449,315 (2020 - £7,134,376), translated at the contract rate in US Dollars and Euros, due to mature within one year. This represents $6,837,677 and €3,807,552 (2020 - $5,733,801 and €3,050,000). The fair value relating to forward exchange contracts amounted to a loss of £253,354 (2020 - gain £168,842).
Goods committed to
At 31 March 2021, the company was committed to purchases of goods amounting to £800,564 (2020 - £339,205).
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 21 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
43,500
43,500
Between two and five years
130,500
130,500
In over five years
76,125
119,625
250,125
293,625
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Other information
No guarantees have been given or received.
The company has taken advantage of the exemption under the Financial Reporting Standard
102 Section 33.1A
from
disclosing any transactions and balances with group entities of which the group owns 100% of the share
capital.
22
Ultimate controlling party
The parent company of BIP Candy & Toys UK Limited is
BIP Holland B
.
V
, who
own
10
0% of the issued Ordinary share capital of the company, and is registered in
the Netherlands
.
The financial statements of the company are consolidated into the accounts of BCF Holding B.V. located at Bredaseweg 123, 4872 LA Etten-Leur, Netherlands,. This company owns 100% of the issued Ordinary share capital of BIP Holland B.V.
This company is itself 70.1% owned by DOK Kindersüßwaren GmbH, a company registered in Germany, located at Aspastraße 24, 59394 Nordkirchen, Germany.
BIP CANDY & TOYS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 22 -
23
Cash (absorbed by)/generated from operations
2021
2020
£
£
Profit for the year after tax
107,896
561,264
Adjustments for:
Taxation charged
32,111
127,107
Finance costs
41,875
84,837
Gain on disposal of tangible fixed assets
(3,000)
Depreciation and impairment of tangible fixed assets
17,522
20,369
Movements in working capital:
(Increase)/decrease in stocks
(146,805)
876,167
Decrease in debtors
1,205,320
10,238
(Decrease)/increase in creditors
(1,515,945)
241,119
Cash (absorbed by)/generated from operations
(261,026)
1,921,101
24
Analysis of changes in net funds
1 April 2020
Cash flows
31 March 2021
£
£
£
Cash at bank and in hand
1,487,460
(1,481,640)
5,820
2021-03-31
2020-04-01
false
CCH Software
CCH Accounts Production 2021.100
I Gavin
R C Korsmit
SC198334
2020-04-01
2021-03-31
SC198334
bus:Director2
2020-04-01
2021-03-31
SC198334
bus:Director1
2020-04-01
2021-03-31
SC198334
bus:RegisteredOffice
2020-04-01
2021-03-31
SC198334
bus:Agent1
2020-04-01
2021-03-31
SC198334
2021-03-31
SC198334
2019-04-01
2020-03-31
SC198334
core:RetainedEarningsAccumulatedLosses
2020-03-31
SC198334
core:RetainedEarningsAccumulatedLosses
2019-03-31
SC198334
core:RetainedEarningsAccumulatedLosses
2021-03-31
SC198334
core:RetainedEarningsAccumulatedLosses
2020-03-31
SC198334
core:ShareCapital
2021-03-31
SC198334
core:ShareCapital
2020-03-31
SC198334
core:CapitalRedemptionReserve
2021-03-31
SC198334
core:CapitalRedemptionReserve
2020-03-31
SC198334
2020-03-31
SC198334
core:RetainedEarningsAccumulatedLosses
2019-04-01
2020-03-31
SC198334
core:LeaseholdImprovements
2021-03-31
SC198334
core:PlantMachinery
2021-03-31
SC198334
core:FurnitureFittings
2021-03-31
SC198334
core:MotorVehicles
2021-03-31
SC198334
core:LeaseholdImprovements
2020-03-31
SC198334
core:PlantMachinery
2020-03-31
SC198334
core:FurnitureFittings
2020-03-31
SC198334
core:MotorVehicles
2020-03-31
SC198334
core:CurrentFinancialInstruments
core:WithinOneYear
2021-03-31
SC198334
core:CurrentFinancialInstruments
core:WithinOneYear
2020-03-31
SC198334
core:CurrentFinancialInstruments
2021-03-31
SC198334
core:CurrentFinancialInstruments
2020-03-31
SC198334
2020-03-31
SC198334
2019-03-31
SC198334
core:LeaseholdImprovements
2020-04-01
2021-03-31
SC198334
core:PlantMachinery
2020-04-01
2021-03-31
SC198334
core:FurnitureFittings
2020-04-01
2021-03-31
SC198334
core:MotorVehicles
2020-04-01
2021-03-31
SC198334
1
2020-04-01
2021-03-31
SC198334
1
2019-04-01
2020-03-31
SC198334
core:UKTax
2020-04-01
2021-03-31
SC198334
core:UKTax
2019-04-01
2020-03-31
SC198334
2
2020-04-01
2021-03-31
SC198334
2
2019-04-01
2020-03-31
SC198334
core:LeaseholdImprovements
2020-03-31
SC198334
core:PlantMachinery
2020-03-31
SC198334
core:FurnitureFittings
2020-03-31
SC198334
core:MotorVehicles
2020-03-31
SC198334
core:WithinOneYear
2021-03-31
SC198334
core:WithinOneYear
2020-03-31
SC198334
core:BetweenTwoFiveYears
2021-03-31
SC198334
core:BetweenTwoFiveYears
2020-03-31
SC198334
core:MoreThanFiveYears
2021-03-31
SC198334
core:MoreThanFiveYears
2020-03-31
SC198334
bus:PrivateLimitedCompanyLtd
2020-04-01
2021-03-31
SC198334
bus:FRS102
2020-04-01
2021-03-31
SC198334
bus:Audited
2020-04-01
2021-03-31
SC198334
bus:FullAccounts
2020-04-01
2021-03-31
xbrli:pure
xbrli:shares
iso4217:GBP