REGISTERED NUMBER:
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Nilorn UK Limited |
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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REGISTERED NUMBER:
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Nilorn UK Limited |
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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Nilorn UK Limited (Registered number: 00434050) |
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Contents of the Financial Statements |
for the year ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Income Statement | 9 |
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Other Comprehensive Income | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Cash Flow Statement | 13 |
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Notes to the Cash Flow Statement | 14 |
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Notes to the Financial Statements | 16 |
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Nilorn UK Limited |
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Company Information |
for the year ended 31 December 2019 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants & Statutory Auditor |
33 George Street |
Wakefield |
West Yorkshire |
WF1 1LX |
Nilorn UK Limited (Registered number: 00434050) |
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Strategic Report |
for the year ended 31 December 2019 |
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The Board of Directors and the Managing Director of Nilorn UK Limited hereby submit the strategic report for the financial year |
ended 31 December 2019. |
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REVIEW OF BUSINESS AND FUTURE DEVELOPMENT |
The company is a wholly owned subsidiary of Nilörngruppen AB (Publ) 556322-3782 in Borås, Sweden (Nilörn). |
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Nilörn offers a complete profiling concept through branding and design in the form of labels, packaging and accessories as well as |
logistical solutions to customers, mainly in fashion and retail industry. |
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In this review the directors seek to present a balanced and comprehensive analysis of the performance of the business during the |
year and its position at the end of the year. The review is consistent with the size and structure of our business and is written in the |
context of the risks and uncertainties faced by the company and the industry in general. |
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SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR |
The results for the year and financial position of the company are as shown in the annexed financial statements. |
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These results have been achieved in a demanding market environment where the economic outlook remained muted and downward |
pressure on margins continued. We have measures in place that allows monitoring of the company performance on an ongoing |
basis. |
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During late summer, the company relocated to a brand new purposefully designed building of 15,500sq ft on 2 floors. The building |
is now the home of the whole UK operation and encompasses space for manufacturing, warehouse, distribution as well as sales, |
support and administration, housing the entire UK company under one roof. |
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KEY PERFORMANCE INDICATORS |
The Company's key performance indicators during the year were as follows: |
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2019 | 2018 | Change |
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Turnover | £6.3m | £6.3m | £0.0m |
Operating profit | £1.2m | £1.7m | £(0.5m | ) |
Operating profit margin | 19.1% | 27.6% | (8.5% | ) |
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Dividends to Nilörngruppen AB | £1.5m | £1.6m | £(0.1m | ) |
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Nilorn UK Limited (Registered number: 00434050) |
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Strategic Report |
for the year ended 31 December 2019 |
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ENVIRONMENTAL WORK |
Nilorn works actively to contribute to a more sustainable future. |
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For Nilorn sustainability means meeting individuals' and customers long term requirements. Our efforts for a sustainable future are |
many facetted: |
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Environmental responsibility with respect to the products we deliver and the impact on the environment of our daily work. |
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Social and ethical responsibility, meaning that we want to ensure that our products are manufactured under good working |
conditions, which comply with international conventions and laws and that we offer a good workplace for our employees. |
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Good business ethics, which includes preventing corruption and promoting healthy competition and integrity protection. |
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See the Nilörngruppen's sustainability report for more details: |
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http://www.nilorn.com/sustainability/sustainability-report |
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A MARKET WITH OPPORTUNITIES |
The global as well as the European market for branding and design is growing. Brand name owners are increasing their investments |
actions that will help strengthen their brands where labels, packaging and accessories are important elements. |
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Low price brands as well as premium brands are investing ever more resources into differentiation. Nilorn has extensive experience |
in collaboration with the fashion and garment industries and as the market leading specialist, the Group possesses solid knowledge |
in the fields of design and design development. Nilorn chiefly co-operates with high demand for development of concepts that |
strengthen their brands. Through close co-operation with its customer, Nilorn understands which factors each customer's brand in |
the marketplace. Based heron Nilorn develops concepts that contribute to differentiating and strengthening the customer companies |
most important asset, their brands. This creates value both for Nilorn's customers, the brand owners and for their customers, the end |
consumers. |
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FUTURE PLANS |
We will continue to invest in our business as needs must, but we are mindful that we live in a new economic landscape with much |
uncertainty so we will adjust our plans accordingly. |
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Nilorn UK Limited (Registered number: 00434050) |
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Strategic Report |
for the year ended 31 December 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The labelling industry remains highly competitive and the company is subject to common industry risks and challenges which in |
recent years have been exacerbated by the poor economic climate. Given the continuing political and economic uncertainties |
following the Brexit vote and the general election the Director's consider this challenging environment will continue in the coming |
year. |
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In order to remain competitive the company and the group continue to invest in design, logistic solution and the contribution of |
belonging to an international group. |
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The company's business is also affected by fluctuations in the prices of raw material and currencies given the impact of the recent |
decline in sterling and the consequential effect on commodity prices. The Directors seek to mitigate the effect of such price |
fluctuations via purchasing and stockholding policies and practices. |
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The company has a wide and varied customer base, but also a few major customers. As a consequence, the directors believe that the |
company is well placed to manage its business risks successfully, depending on the development in the retail market overall and of |
the development of the major clients. |
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With the worldwide spread of COVID-19 and the impacts this is having on everyday working lives and the retail landscape of our |
principle clients we do see more risk and uncertainty this year. This is mitigated somewhat for Nilorn UK Limited by being part of |
an internationally diverse and successful Group, with the resources to sustain a long period of disruption. |
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ON BEHALF OF THE BOARD: |
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5 May 2020 |
Nilorn UK Limited (Registered number: 00434050) |
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Report of the Directors |
for the year ended 31 December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the sale of woven and printed labels, swing tickets and |
packaging and garment trims. |
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DIVIDENDS |
An interim dividend of £ Redeemable Preference £1 shares. |
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The total distribution of dividends for the year ended 31 December 2019 will be £
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report. |
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Other changes in directors holding office are as follows: |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in |
accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have |
elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United |
Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting |
Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements |
unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the |
company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue
in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's |
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that |
the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company |
and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information, being |
information needed by the auditors in connection with preparing their report, of which the auditors are unaware. Having made |
enquiries of fellow directors and the company's auditors, each director has taken all the steps that he/she is obliged to take as a |
director in order to make himself/herself aware of any relevant audit information and to establish that the auditors are aware of that |
information. |
Nilorn UK Limited (Registered number: 00434050) |
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Report of the Directors |
for the year ended 31 December 2019 |
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AUDITORS |
The auditors, Jolliffe Cork LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Nilorn UK Limited |
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Opinion |
We have audited the financial statements of Nilorn UK Limited (the 'company') for the year ended 31 December 2019 which |
comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow |
Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting |
policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom |
Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and |
Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our |
responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements |
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit |
of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities |
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide |
a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt
about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and |
the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in |
our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider |
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or |
otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are |
required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other |
information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, |
we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial
statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Nilorn UK Limited |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not |
identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our |
opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not
visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the |
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the |
directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due |
to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going |
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the |
directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material |
misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance |
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a |
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in |
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial |
statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's |
website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act |
2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to |
them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume |
responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the |
opinions we have formed. |
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for and on behalf of
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Chartered Accountants & Statutory Auditor |
33 George Street |
Wakefield |
West Yorkshire |
WF1 1LX |
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Nilorn UK Limited (Registered number: 00434050) |
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Income Statement |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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1,941,025 | 2,052,538 |
OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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PROFIT FOR THE FINANCIAL YEAR |
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Nilorn UK Limited (Registered number: 00434050) |
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Other Comprehensive Income |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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Nilorn UK Limited (Registered number: 00434050) |
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Balance Sheet |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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Investments | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 13 | ( |
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PROVISIONS FOR LIABILITIES | 17 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
behalf by: |
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Nilorn UK Limited (Registered number: 00434050) |
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Statement of Changes in Equity |
for the year ended 31 December 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2019 |
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Nilorn UK Limited (Registered number: 00434050) |
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Cash Flow Statement |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Capital repayments in year | ( |
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Equity dividends paid | ( |
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Net cash from financing activities | ( |
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Decrease in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
year |
2 |
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166,267 |
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Cash and cash equivalents at end of year | 2 | ( |
) | 100,487 |
Nilorn UK Limited (Registered number: 00434050) |
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Notes to the Cash Flow Statement |
for the year ended 31 December 2019 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Finance income | (19,759 | ) | (46,812 | ) |
1,220,954 | 1,766,419 |
Decrease in stocks |
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Decrease/(increase) in trade and other debtors |
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( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance |
Sheet amounts: |
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Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 1,491 | 100,487 |
Bank overdrafts | ( |
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(75,245 | ) | 100,487 |
Year ended 31 December 2018 |
31.12.18 | 1.1.18 |
£ | £ |
Cash and cash equivalents | 100,487 | 166,267 |
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Nilorn UK Limited (Registered number: 00434050) |
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Notes to the Cash Flow Statement |
for the year ended 31 December 2019 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
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At 1.1.19 | Cash flow | At 31.12.19 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 100,487 | (98,996 | ) | 1,491 |
Bank overdrafts | - | (76,736 | ) | (76,736 | ) |
100,487 | ( |
) | (75,245 | ) |
Debt |
Finance leases | (44,064 | ) | 20,223 | (23,841 | ) |
(44,064 | ) | 20,223 | (23,841 | ) |
Total | 56,423 | (155,509 | ) | (99,086 | ) |
Nilorn UK Limited (Registered number: 00434050) |
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Notes to the Financial Statements |
for the year ended 31 December 2019 |
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1. | STATUTORY INFORMATION |
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Nilorn UK Limited is a
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number and registered office address can be found on the Company Information page. |
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The functional and presentation currency for the company is the pound sterling (£). All financial information presented has |
been rounded to the nearest (£), unless otherwise stated. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The directors are of the opinion that the company continues to be a going concern and have therefore adopted that basis in |
the preparation of the financial statements. |
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Preparation of consolidated financial statements |
The financial statements contain information about Nilorn UK Limited as an individual company and do not contain |
consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies |
Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are |
included by full consolidation in the consolidated financial statements of its parent, Nilongruppen AB, a company |
registered in Sweden. |
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Revenue recognition |
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. |
Revenue is measured at the fair value of the consideration received, after discounts, rebates, exclusive of VAT and other |
sales taxes or duty. |
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Tangible fixed assets |
All fixed assets are recorded initially at cost. |
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Depreciation is provided at the following annual rates in oder to write off each asset over its estimated useful life: |
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Plant and machinery - over 4 to 10 years straight line |
Fixtures, fittings and equipment - over 3 to 10 years straight line |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving |
items. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent |
that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively |
enacted by the balance sheet date. |
Nilorn UK Limited (Registered number: 00434050) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in |
which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted |
or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be |
recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Transactions denominated in foreign currency are translated into sterling at the rates ruling at the dates of the transactions. |
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling |
at the balance sheet date. Exchange differences are dealt with through the profit and loss account and are separately |
disclosed if material. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire |
purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over |
their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the |
future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension scheme |
The company operates a work place pension scheme for its employees with contributions payable to the schemes being |
charged to the profit and loss account in the period to which they relate. |
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Investments |
Investments are included at cost less amounts written off. Profits or losses arising from disposal of fixed asset investments |
are treated as part of the result from ordinary activities. |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2019 | 2018 |
£ | £ |
United Kingdom | 2,075,136 | 2,767,893 |
Rest of Europe | 1,045,024 | 1,147,193 |
Rest of World | 3,136,801 | 2,412,238 |
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Nilorn UK Limited (Registered number: 00434050) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
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3. | TURNOVER - continued |
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Turnover is attributable to the continuing activity of sale of printed labels, swing tickets and other woven jacquard products. |
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4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2019 | 2018 |
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Administration | 3 | 3 |
Sales | 17 | 19 |
Production | 11 | 10 |
Management | 5 | 5 |
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2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging: |
|
2019 | 2018 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
Operating lease payments - property |
|
|
Operating lease payments - motor |
|
|
Operating lease payments - other |
|
|
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
5. | OPERATING PROFIT - continued |
|
In addition to remuneration for the audit, the auditors have also levied the following fees: |
|
2019 | 2018 |
£ | £ |
Tax advisory services | 2,450 | 2,400 |
|
6. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
under/over provision in prior year | (41,988 | ) | 3,713 |
Total current tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained |
below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Other timing differences |
|
|
Research and development enhanced expenditure | ( |
) | - |
Group loss relief | ( |
) | - |
Total tax charge | 71,596 | 344,867 |
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
7. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Ordinary shares of £1 each |
Interim dividend ordinary |
|
|
|
8. | TANGIBLE FIXED ASSETS |
Fixtures, |
Plant and | fittings |
machinery | & equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2019 |
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 January 2019 |
and 31 December 2019 |
|
DEPRECIATION |
At 1 January 2019 |
|
Charge for year |
|
At 31 December 2019 |
|
NET BOOK VALUE |
At 31 December 2019 |
|
At 31 December 2018 |
|
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2019 |
and 31 December 2019 |
|
PROVISIONS |
At 1 January 2019 |
and 31 December 2019 | 372,415 |
NET BOOK VALUE |
At 31 December 2019 |
|
At 31 December 2018 |
|
|
Name | Country of | Class of | Percentage | Nature of |
incorporation | shares | held | business |
Nilorn Portugal LDA |
Portugal |
Ordinary |
98% |
Label
Manufacturer |
Lee and Ferreria LDA |
Portugal |
Ordinary |
100% |
Property
Investment |
Calmon Portugal Limited | UK | Ordinary | 100% | Holding company |
Calmon Abacus Textiles Private
Limited |
India |
Ordinary |
49% |
Label
Manufacture |
|
10. | STOCKS |
2019 | 2018 |
£ | £ |
Raw materials |
|
|
Finished goods |
|
|
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Tax |
|
|
VAT |
|
|
Prepayments and accrued income |
|
|
|
|
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Hire purchase contracts (see note 15) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | - | 40,020 |
Accruals and deferred income |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 15) |
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
15. | LEASING AGREEMENTS - continued |
|
Non-cancellable operating |
leases |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2019 | 2018 |
£ | £ |
Hire purchase contracts | 23,841 | 44,064 |
|
Obligations under hire purchase contracts are secured over the specific assets to which they relate. |
|
17. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax | 28,484 | 15,311 |
|
Deferred |
tax |
£ |
Balance at 1 January 2019 |
|
Accelerated capital allowances | 13,173 |
Balance at 31 December 2019 |
|
|
18. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 100,000 | 100,000 |
Nilorn UK Limited (Registered number: 00434050) |
|
Notes to the Financial Statements - continued |
for the year ended 31 December 2019 |
|
|
19. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2019 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 December 2019 |
|
|
20. | ULTIMATE PARENT COMPANY |
|
The ultimate parent company and controlling party, and the smallest and largest group for which group accounts are |
prepared, of Nilorn UK Limited is Nilörngruppen AB, a public company incorporated in Sweden. |
|
21. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial |
Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly |
owned subsidiaries within the group. |
|
22. | ULTIMATE CONTROLLING PARTY |
|
In the opinion of the directors there is no individual ultimate controlling party. |