REGISTERED NUMBER:
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GUTTRIDGE LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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REGISTERED NUMBER:
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GUTTRIDGE LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 | to | 6 |
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Income Statement | 7 |
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Other Comprehensive Income | 8 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Statement of Cash Flows | 11 |
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Notes to the Statement of Cash Flows | 12 |
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Notes to the Financial Statements | 13 | to | 21 |
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GUTTRIDGE LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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The directors present their strategic report for the year ended 31 December 2021. |
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REVIEW OF BUSINESS |
In 2021 the company recovered to pre pandemic business levels, with a number of projects delayed from 2020 being completed. The UK market recovered well in the year, however the recovery in exports was noticably slower. Global supply chain issues and volatile raw material costs continued to be of concern and increased pressure on margins. The company's order book remains strong going into 2022. The company continues to trade on the strengths of its technical capability, employee skills, capability and knowledge. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Guttridge Limited operates in a variety of markets and manages the risks inherent in its activities. The company seeks to mitigate exposure to all forms of risk, both internal and external, where practical through delegated authority management, cross functional contract review, the use of common visual metrics and employee development. Where practical, risk is transferred to insurers if deemed cost effective. |
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External risks include political and economic conditions, actions of global competitors, the effect of legislation or other regulatory action, foreign exchange, raw material prices, the continuing global pandemic and the impact of the conflict in Ukraine. |
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Internal risks include investment in new products and technologies, controls failure, warranty and inability to supply on time. |
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FUTURE DEVELOPMENTS |
Guttridge Limited will continue to pursue its core activities and seek new business opportunities in both the UK and overseas. We are committed to investing in the development of existing employees and also continue to bring in skilled and capable people to support the business expansion. Our on-going investment into bulk solids handling capability, internally and with external research institutions, continues. |
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KEY PERFORMANCE INDICATORS |
The key performance indicators are sales, profit and cash generation which are closely monitored throughout the year and measured and managed against pre-set targets. |
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COVID-19 |
As with all businesses there is a risk associated with the ongoing COVID-19 pandemic that is causing a shock to the global economy. It is unknown what final impact this will have on business and our industry and will largely be determined by the time taken to get it under control and how quickly people can return to normal lives. |
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As a business we are well aware of the risks and impact this may bring the business but having assessed our situation believe the position the business finds itself in will enable the directors to mitigate the risks for the long term protection of the business. |
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ON BEHALF OF THE BOARD: |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the design and manufacture of materials handling machinery for the Animal feed, Cereals, Pet Foods, Chemicals, Biomass, Recycling, Minerals, Food and Pharmaceutical industries and subcontract sheet metal fabrication work. |
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DIVIDENDS |
During the year, no interim dividends were paid. |
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The directors recommend that no final dividend be paid. The total distribution of dividends for the year ended 31 December 2021 is therefore £nil (2020 - £nil). |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUTTRIDGE LIMITED |
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Opinion |
We have audited the financial statements of Guttridge Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUTTRIDGE LIMITED |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and |
regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
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The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. This included the identification and testing of unusual material journal entries, and challenging management on key estimates. These key areas of uncertainty are disclosed in the |
accounting policies. |
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Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations, and Employment laws. |
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Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management, and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of |
the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUTTRIDGE LIMITED |
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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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Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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188,753 | (384,608 | ) |
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Other operating income |
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OPERATING PROFIT/(LOSS) | 5 |
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Interest receivable and similar income |
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191,580 | (348,643 | ) |
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Interest payable and similar expenses | 6 |
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PROFIT/(LOSS) BEFORE TAXATION |
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Tax on profit/(loss) | 7 | ( |
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PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
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PROFIT/(LOSS) FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Revaluation of land and buildings |
Income tax relating to other comprehensive
income |
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OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Stocks | 9 |
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Debtors | 10 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 11 |
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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 | 12 | ( |
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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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Revaluation reserve | 19 |
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Capital redemption reserve | 19 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
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Balance at 1 January 2020 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2021 |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest paid | ( |
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Interest element of hire purchase payments paid | ( |
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Exceptional coronavirus funding |
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Tax paid |
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Other |
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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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Sale 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 |
New loans in year |
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Loan repayments in year |
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Capital repayments in year | ( |
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Net cash from financing activities | ( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of year | 2 |
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16,569 |
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Cash and cash equivalents at end of year | 2 | 356,254 | 910,735 |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit/(loss) before taxation |
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Depreciation charges |
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(Profit)/loss on disposal of fixed assets | ( |
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Government grants | ( |
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Finance costs | 39,857 | 37,281 |
Finance income | - | (41 | ) |
376,844 | (174,680 | ) |
Decrease/(increase) in stocks |
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Increase in trade and other debtors | ( |
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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 Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
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Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 356,254 | 910,735 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 910,735 | 21,292 |
Bank overdrafts |
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910,735 | 16,569 |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 910,735 | (554,481 | ) | 356,254 |
910,735 | ( |
) | 356,254 |
Debt |
Finance leases | (114,431 | ) | 75,667 | (38,764 | ) |
Debts falling due within 1 year | (150,297 | ) | (17,289 | ) | (167,586 | ) |
Debts falling due after 1 year | (1,839,090 | ) | 161,332 | (1,677,758 | ) |
(2,103,818 | ) | 219,710 | (1,884,108 | ) |
Total | (1,193,083 | ) | (334,771 | ) | (1,527,854 | ) |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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1. | STATUTORY INFORMATION |
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Guttridge Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Critical accounting judgements and key sources of estimation uncertainty |
Stock and warranty provisions are considered key accounting estimates. Specific testing has been conducted to gain assurance over these amounts. |
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Turnover |
Sales are recognised when control of goods has transferred to its customer, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied. |
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Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 30 to 90 days, which is consistent with market practice. |
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A receivable (financial asset) is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due. |
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Tangible fixed assets |
Freehold land and buildings are initially recognised at cost. Freehold land and buildings are subsequently carried at the revalued amount less accumulated impairment losses. As such no depreciation is currently being provided on this class of assets, |
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All other items of plant and machinery are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. |
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Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter. |
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Freehold land and buildings | Depreciation not provided. |
Plant and machinery | 25% on written down value & 12.5%, 20% & 50% on cost |
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Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value including an element of profit recognised to the stage of completion at the year end. |
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Cost of finished goods and work in progress includes overheads appropriate to the stage of manufacture. Net realisable value is based upon estimated selling price less further costs to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items. |
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GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
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 statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Where assets are financed by leasing agreements that give rights approximating to ownership ('finance leases'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as obligations to the lessor. |
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Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the profit and loss account in proportion to the remaining balance outstanding. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Critical accounting judgements and estimation uncertainty |
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
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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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
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There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements. |
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Going concern |
The directors have assessed the potential impact of the ongoing COVID-19 pandemic on the company's ability to continue as a going concern. |
|
The directors are fully aware of the risks and impact that this may bring to the business but have concluded that the company has the resources to mitigate these risks for the long term protection of the business. |
|
They have therefore concluded that the company can be classed as a going concern. |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
2. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
The company has adopted the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
|
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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. |
|
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
|
Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest. |
|
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. Accounts 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. |
|
3. | TURNOVER |
|
The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2021 | 2020 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
Asia |
|
|
Africa | - | 34,893 |
North America | 3,289 | 7,530 |
Oceania | 1,362 | - |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Production staff | 47 | 51 |
Sales and technical | 32 | 33 |
Administration | 10 | 10 |
|
|
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
5. | OPERATING PROFIT/(LOSS) |
|
The operating profit (2020 - operating loss) is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
|
|
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
|
Government grants |
|
( |
) |
Research and development costs |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest paid |
|
|
Other interest paid |
|
|
Hire purchase interest paid |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Deferred tax | ( |
) | ( |
) |
Tax on profit/(loss) | ( |
) | ( |
) |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax credit 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: |
|
2021 | 2020 |
£ | £ |
Profit/(loss) before tax |
|
( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
(2020 - |
|
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes |
|
( |
) |
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses | ( |
) |
|
Additional tax relief on research and development | (14,208 | ) | - |
|
|
Deferred tax movement | (47,589 | ) | (20,222 | ) |
Total tax credit | (47,589 | ) | (20,222 | ) |
|
Tax effects relating to effects of other comprehensive income |
|
There were no tax effects for the year ended 31 December 2021. |
|
2020 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of land and buildings |
|
62,183 | 62,183 |
|
8. | TANGIBLE FIXED ASSETS |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2021 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) | ( |
) |
At 31 December 2021 |
|
|
|
DEPRECIATION |
At 1 January 2021 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal |
|
( |
) | ( |
) |
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
8. | TANGIBLE FIXED ASSETS - continued |
|
Cost or valuation at 31 December 2021 is represented by: |
|
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
Valuation in 2017 | 1,142,062 | - | 1,142,062 |
Valuation in 2019 | 150,000 | - | 150,000 |
Cost | 1,157,938 | 3,105,659 | 4,263,597 |
2,450,000 | 3,105,659 | 5,555,659 |
|
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
|
2021 | 2020 |
£ | £ |
Cost | 1,895,407 | 1,895,407 |
Aggregate depreciation | 737,469 | 777,731 |
|
Value of land in freehold land and buildings | 1,157,938 | 1,117,676 |
|
Freehold land and buildings were valued on an open market basis on 26 February 2019 by Savills (UK) Limited . |
|
The net book value of tangible fixed assets includes £193,605 (2020 - £238,571) in respect of assets held under hire purchase contracts. |
|
9. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials and consumables |
|
|
Work-in-progress |
|
|
Finished goods and goods for resale |
|
|
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
Trade creditors |
|
|
Other taxes and social security |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
|
|
|
13. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans payable due more than five years in
instalments |
1,015,987 |
1,165,170 |
|
Interest is charged at 2.85% above Barclays Bank base rate. |
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2021 | 2020 |
£ | £ |
Bank loans |
|
|
Hire purchase contracts | 38,764 | 114,431 |
|
|
|
The bank facilities are secured by a charge on the company's freehold land and buildings. There is a debenture in favour of Barclays Bank plc dated 14th August 1991 in respect of all monies with a fixed and floating charge. |
|
Amounts due under hire purchase contracts are secured on the asset to which they relate. |
|
16. | FINANCIAL INSTRUMENTS |
|
The company has the following financial instruments: |
|
2021 | 2020 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 2,056,868 | 1,219,610 |
Financial liabilities measured at amortised cost |
Bank loans and overdrafts | 1,845,344 | 2,103,818 |
Trade creditors | 1,916,010 | 1,747,750 |
Hire purchase contracts | 38,764 | 114,431 |
|
There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss. |
|
17. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax brought forward | 25,144 | 72,733 |
Government grants brought forward | 2,200 | 2,316 |
|
|
|
Deferred | Government |
tax | grants |
£ | £ |
Balance at 1 January 2021 |
|
|
Credit to Income Statement during year | ( |
) |
|
Balance at 31 December 2021 |
|
|
|
18. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £1 | £1 |
9,822 | Ordinary | £1 | 9,822 | 9,822 |
9,822 | 9,822 |
GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
|
19. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
|
At 1 January 2021 |
|
|
|
3,425,237 |
Profit for the year |
|
- | - |
|
At 31 December 2021 |
|
|
|
3,624,549 |
|
Revaluation Reserve |
|
The Revaluation Reserve represents the cumulative effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted. |
|
Capital Redemption Reserve |
|
The Capital Redemption Reserve represents the amounts accumulated following the redemption of the company's own shares |
|
20. | PENSION COMMITMENTS |
|
2021 | 2020 |
|
£ | £ |
Defined Contribution |
|
Contribution payable by the company for the period | 101,115 | 103,672 |
|
21. | RELATED PARTY DISCLOSURES |
|
|
2021 | 2020 |
£ | £ |
Sales |
|
|
Purchases |
|
|
|
During the year, a total of key management personnel compensation of £
|
|
22. | ULTIMATE CONTROLLING PARTY |
|
The ultimate controlling party as at the balance sheet date was Mitchells Holdings (Asia) PTE Ltd. |