Company Registration Number
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SHORTRIDGE LTD
COMPANY INFORMATION
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SHORTRIDGE LTD
CONTENTS
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SHORTRIDGE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
The directors present their strategic report for Shortridge Ltd for the year ended 30th September 2020.
The company’s principal activities during the year continued to be the provision of high quality linen hire, laundry and workwear services to North England and Southern Scotland.
The key financial and other performance indicators during the year were as follows:
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SHORTRIDGE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
The board of directors continually assesses the principal risks facing the business as well as reviewing the controls used for managing these risks.
On March 11th 2020 the World Health Organisation declared a pandemic due to the COVID-19 virus. Management of the operational issues associated with the ongoing circumstances around this event formed a substantial consideration for the business throughout the year, and still continue to do so at the time of writing. In Britain the UK Government imposed a shutdown on the hospitality industry between the end of March 2020 and early July 2020 (and subsequently again in November 2020 and January 2021). In addition to this complete operational shutdown, revenues were deeply impacted by lower than normal activity levels afterwards from July 2020 to the end of the financial year. Efforts were made to mitigate fixed costs as much as possible during this time, and a CBILS loan has been agreed with the Company’s bankers. Government guidelines with respect to employee, and customer safety have also had to be implemented resulting in changes to company procedures and giving rise to additional costs. In the context of this environment, service performance, reliability, and COVID safety have been important in supporting the customer. Shortridge hopes to be flexible and reactive to customers’ needs, and seeks to provide excellent service and attractive products. The business continues to be seen as very customer responsive compared to competitors and is widely respected. In addition to COVID-19, the economic outlook due to the UK’s withdrawal from the European Union continues to generate concern about inflation in the labour market. The problem is equally applicable to all laundry services companies. There are additional challenges in recruiting and retaining high quality staff due to business location. The company hopes to provide a welcoming, friendly, and fair workplace where there is attention to personal development and training, allied with good working conditions, and therefore good staff can be attracted and retained. Managing IT risk and maintaining IT security is also important in the modern business environment and the company takes this very seriously and has a successful ongoing programme of improvement for the structure of the IT systems generally.
This report was approved by the board
and signed on its behalf.
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SHORTRIDGE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
The directors present their report and the financial statements for the year ended 30 September 2020.
The directors are responsible for preparing the Strategic report, the Directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The 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 to 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.
The loss for the year, after taxation, amounted to £
262,564
(2019 -
profit
£
764,066
)
.
Interim dividends for £240,000 were paid during the year, there were no dividends proposed or paid after the year-end.
The directors who served during the year were:
There are no significant future developments planned for the company.
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SHORTRIDGE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Treasury operations and financial instruments
The directors actively manage the treasury function which is responsible for managing liquidity, interest and foreign currency risks associated with the company’s activities. The company’s principal financial instruments are bank balances used to provide working capital to the company. In addition, the company has various other financial assets and liabilities such as trade receivables and trade payables arising directly from its operations. Liquidity risk The company manages its cash requirements to maximise interest income whilst ensuring that the company has sufficient liquid resources to meet the operating needs of business activities. Credit risk Investment of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the board. All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an on-going basis and provision is made for doubtful debts where necessary.
The auditors, Armstrong Watson Audit Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SHORTRIDGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF SHORTRIDGE LTD
We have audited the financial statements of Shortridge Ltd (the 'Company') for the year ended 30 September 2020, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity
and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council'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.
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
∙
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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SHORTRIDGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF SHORTRIDGE LTD (CONTINUED)
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
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SHORTRIDGE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS, AS A BODY, OF SHORTRIDGE LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' 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 an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Carlisle
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SHORTRIDGE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
REGISTERED NUMBER:
02853436
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 27 form part of these financial statements.
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SHORTRIDGE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
30 SEPTEMBER 2020
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SHORTRIDGE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
Shortridge Ltd ('the Company') is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Joseph Noble Road, Lillyhall Industrial Estate, Workington, Cumbria CA14 4JX.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Company operates.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has net current assets of £888,320, following a loss of £262,564 in the year.
On 11 March 2020, the World Health Organisation declared the COVID-19 Virus a pandemic, following which a series of new measures were implemented by the government in United Kingdom, together with other countries in the World. The company has availed itself of government support during the Covid-19 pandemic, in the form of the Job Retention Scheme. The company has also been granted asset finance payment holidays from its lenders. Since the balance sheet date the company has also obtained additional funding via the Coronavirus Business Interuption Loan Scheme. In light of COVID-19, management have reviewed the current business status, and have no intentions of ceasing the Company or liquidating. This together with the above support provides the company with the required liquid reserves and enables the company to meet its liabilities as they fall due for a minimum of twelve months from the approval of these financial statements.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
2.
Accounting policies (continued)
Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) Establishing useful economic lives for depreciation purposes of property, plant and equipment Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The directors regularly review these assets useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation charges for the period. Details of the depreciation policies based on estimated useful economic lives are included in accounting policies note 2.10. (b) Providing for doubtful debts the company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the aging of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers.
The whole of the turnover is attributable to the principal activity of the business.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
11.
Taxation (continued)
There were no factors that may affect future tax charges.
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
13.
Tangible fixed assets (continued)
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
In the prior year management fees receivable from a related company were included in revenue. The directors believe that these amounts are more appropriately classified as other income. As such, the comparative figures have been restated to reflect this. The effect of this adjustment has been to:
- reduce revenue by £283,590 - increase other income by £283,590 This restatement has had no impact on the overall profit for the year or balance sheet position for either the current or comparative financial period.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £237,838 (2019 - £68,804). Contributions totalling £
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SHORTRIDGE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2020
In the opinion of the directors, no party has control over the company.
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