REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2020 |
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PRINT-RITE EUROPE LTD. |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2020 |
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for |
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PRINT-RITE EUROPE LTD. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Contents of the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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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 | 3 |
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Report of the Independent Auditors | 6 |
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Statement of Comprehensive Income | 9 |
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Statement of Financial Position | 10 |
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Statement of Changes in Equity | 11 |
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Notes to the Financial Statements | 12 |
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PRINT-RITE EUROPE LTD. |
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Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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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 |
10 Stadium Business Court |
Millennium Way |
Pride Park |
Derby |
DE24 8HP |
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Bankers: |
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63 Bath Street |
Ilkeston |
Derbyshire |
DE7 8DD |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their strategic report with the audited financial statements for the year ended 31 December 2020. The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006. |
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Principal activity |
The principal activity of the company in the year under review was that of the sale and distribution of printer consumables and 3D printers. |
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Review of business |
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and complexity of our business and is written in the context of the risks and uncertainties we face. |
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The company's activities involve sale and distribution of printer consumables and 3D printers. The company's customer sales mix was impacted by COVID19 due to shortage of container and back order. Overheads have been managed and remain under control, and where appropriate the furloughing opportunity given by the UK Government has been used. |
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Impact report |
Through the COVID19 period we have followed the goals of protecting our staff and protecting the business. We have minimised risk by adhering to government guidelines (PPE, space etc), where possible moved staff to working from home, for key teams that must be on site we introduced shift work if appropriate and frequently reviewed our policies and the impact on staff welfare. |
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Key performance indicators |
The key financial performance indicators of turnover, gross margin and return on capital employed are shown below: |
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2020 | 2019 |
Turnover - £ | 2,488,456 | 3,663,347 |
Gross profit - % | 9.7% | 11.9% |
Net profit before tax - % | -44.0% | -22.5% |
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Principal risks and uncertainties |
The principal risk affecting the company is the ongoing impact and uncertainty of COVID19, exchange rate fluctuations, and potential stock delays during the early months of post-Brexit. |
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The company's liquidity risk is mitigated by loan facilities at preferential rates from the Group company. |
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On behalf of the board: |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Report of the Directors |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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Principal activity |
The sale and distribution of printer consumables and 3D printers. |
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Dividends |
The directors do not recommend the payment of a dividend. |
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Future developments |
No significant events or future developments have occurred since the year end. |
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Directors |
The directors who have held office during the period from 1 January 2020 to the date of this report are as follows: |
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Ms S Y V Tsui - resigned 10 March 2020 |
Mr L M Ho - resigned 10 March 2020 |
Ms Y C G Fung - resigned 10 March 2020 and re-appointed 11 October 2021 |
Mr K W Chau - appointed 10 March 2020 and resigned 11 October 2021 |
Mr H I Lei - appointed 10 March 2020 |
Mr S C B Ho - appointed 10 March 2020 and resigned 1 September 2021 |
Mr S W Weedon - appointed 1 September 2021 |
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Financial risk management objectives and policies |
The Company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the Company's policies approved by the board of directors, which provide written principles on the use of financial derivative to manage these risks. The Company does not use derivative financial instruments for speculative purpose. |
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The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. |
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The Company's principal financial assets and liabilities are bank balances and cash, trade and other receivables and stock. |
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The Group's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. |
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The Company has no significant concentration of credit risk, with expose spread over a large number of counterparties and customers. |
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In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company monitors cash balances and manages this through the timing of group payables being settled. |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Report of the Directors |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Going concern |
The directors believe that the company continues to play a major role in the market place, adding value to distributors by improved stock availability and proactive end user support. Effective promotional campaigns and maintaining strong relationships with our leading customers mean the directors remain positive about strengthening this position in 2021 with growth planned. |
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The directors have considered detailed future forecasts together with the summary 2021 plan which also shows a profit and is based on current opportunities and an up to date reflection of the economic prospects for the business. |
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The directors have considered the financial position of the company at the date of signing these financial statements and the directors confirm that the Company is continuing to trade well despite a tough market and sees no reasons why it shouldn't continue to do so in the foreseeable future. |
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The Company is financed by a combination of intergroup debit and credit extended from its parent undertaking. The directors have received a letter of support from its parent company confirming that they will continue to support the company for a period of 12 months from the date of these financial statements. |
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Covid 19 has had a significant impact on the Company and other businesses within this sector. The decline in sales has resulted from lockdown of our business premises and staff working from home to perform the minimum daily activities to sustain the business. The Directors believe that once the Government reduces its lockdown measures that the sales levels will return to a normal level of trade in a relatively short period of time. |
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Taking all these matters into account, and not withstanding an extremely challenging economic environment, the directors consider it appropriate to prepare and approve these financial statements on the going concern basis. |
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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; |
- | 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. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Report of the Directors |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Auditors |
Each of the persons who is a director at the date of approval of this report confirms that: |
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- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and |
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- they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is 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 |
Print-Rite Europe Ltd. |
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Opinion |
We have audited the financial statements of Print-Rite Europe Ltd. (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 2020 and of its loss 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: |
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- 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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However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in the strategic 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. |
Report of the Independent Auditors to the Members of |
Print-Rite Europe Ltd. |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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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- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. Specifically checking that ISO accreditations are being upheld as well as ensuring no instances of non-compliance are noted in respect of other UK company, employment and taxation laws and regulations. |
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- Enquiring of management of any known or suspected instances of fraud, as well as considering management's assessment of the susceptibility of the financial statements to fraud. |
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- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate an increased risk of material misstatement as a result of fraud. |
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- Reporting local results to parent entity, and ensuring there are no unusual relationships that management at a group level feel indicate a potential risk of material misstatement as a result of fraud. |
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- Ensuring amounts recorded as owed to and receivable from other group companies materially reconcile back to the intercompany matrix schedule. |
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- Performing substantive testing over a selection of journal entries made in the period, to address the risk of fraud due to management override of controls. |
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- Assessing accounting estimates which have a material impact of the year end accounts, to determine if there is indication of management bias. |
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We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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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 |
Print-Rite Europe Ltd. |
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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 |
10 Stadium Business Court |
Millennium Way |
Pride Park |
Derby |
DE24 8HP |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Statement of Comprehensive |
Income |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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Turnover | 4 |
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Cost of sales |
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Gross profit |
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Administrative expenses |
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(1,812,937 | ) | (1,064,569 | ) |
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Other operating income |
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Operating loss | ( |
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Interest receivable and similar income | 6 |
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Loss before taxation | 7 | ( |
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Tax on loss | 9 |
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Loss for the financial year | ( |
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Other comprehensive income | - | - |
Total comprehensive income for the year | ( |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Statement of Financial Position |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 10 |
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Tangible assets | 11 |
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Investments | 12 |
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Current assets |
Stocks | 13 |
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Debtors | 14 |
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Cash at bank and in hand |
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Creditors |
Amounts falling due within one year | 15 |
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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
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16 |
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Net assets |
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Capital and reserves |
Called up share capital | 20 |
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Retained earnings | 21 |
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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
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2019 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 December 2020 |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | STATUTORY INFORMATION |
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Print-Rite Europe Ltd. is a
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. |
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The financial statements are prepared in sterling, which is the functional currency of the entity. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Judgements and key sources of estimation uncertainty |
Due to the nature of finished goods which involve cartridges for certain printer models, there is an obsolescence risk relating to the cartridges, if the printer model it belongs to becomes a redundancy model. Technological advancements mean that models do advance, with 3D printing being the latest significant development. Therefore, in light of this risk, management are responsible for reviewing the stock holding for slow moving or obsolete cartridges. |
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Where stock items have been identified as slow moving, management use their judgement in considering whether future special offers will allow stock items to be sold at a reduced cost and, stock values are then written down to reflect the lower of cost and estimated selling prices less cost to complete and sell. Management use information available from historic special offers when considering the impact of future events. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
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Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Intangible assets are being amortised over their useful economic life of 10 years. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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3. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
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An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
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Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
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Long leasehold property - 20 years |
Plant and machinery - 5 years |
Fixtures, fittings and equipment - 5 years |
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Government grants |
Income is recognised so as to match with the related expenses. Where grants are received in advance of the related expenses, they are recognised in accruals and deferred income on the balance sheet. Grants are recognised in the profit and loss account on recognition of certain milestones being achieved. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are measured at the fair value of consideration less any accumulated impairment losses. |
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Investments in subsidiary undertakings which are in nature intercompany loans have been recorded as such within current debtors these are measured at their fair value. |
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Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, trade discounts, rebates and costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
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Stock is valued on a FIFO (first-in, first-out) basis. Provision is made for obsolete, slow-moving or defective items where appropriate. |
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Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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Income tax |
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. |
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Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
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Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
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Going concern |
These accounts are prepared on a going concern basis, which assumes the company will continue in operational existence for the foreseeable future. The company's ability to meet future working capital requirements and therefore continue as a going concern is dependent upon the continued support of its parent. The directors of the parent have provided a letter of support confirming their intentions for a period not less than 12 months from the approval of these accounts. |
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Consolidation |
The company has taken the advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings are consolidated at a higher level in Print-Rite Holdings Limited, a company incorporated in Hong Kong. |
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Copies of the consolidated financial statements of Print-Rite Holdings Limited are available from Companies Registry, 14th floor, High Block, Queensway Government Offices, 66 Queensway, Hong Kong. |
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4. | TURNOVER |
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Turnover arises from: |
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31/12/20 | 31/12/19 |
£ | £ |
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Sale of goods | 2,488,456 | 3,663,347 |
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The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below: |
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31/12/20 | 31/12/19 |
£ | £ |
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United Kingdom | 895,874 | 1,331,874 |
Rest of Europe | 1,577,044 | 2,317,662 |
Rest of World | 15,538 | 13,811 |
2,488,456 | 3,663,347 |
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5. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
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Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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5. | EMPLOYEES AND DIRECTORS - continued |
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The average number of employees during the year was as follows: |
2020 | 2019 |
|
Production staff |
|
|
Distribution staff |
|
|
Administration staff |
|
|
|
|
|
During the current year and the prior year all directors were paid by other group companies. It is not practicable to attribute any of these emoluments to individual group companies. |
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
|
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Deposit account interest |
|
|
Other interest |
|
|
|
|
|
7. | LOSS BEFORE TAXATION |
|
The loss is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Other operating leases |
|
|
Depreciation - owned assets |
|
|
Computer software amortisation |
|
|
Foreign exchange differences | ( |
) |
|
Cost of stock recognised as an expense (excl. impairment of stock) |
|
|
|
8. | AUDITORS' REMUNERATION |
2020 | 2019 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's
financial statements |
|
12,000 |
|
9. | TAXATION |
|
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 December 2020 nor for the year ended 31 December 2019. |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
9. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of
(2019 - |
( |
) |
( |
) |
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Utilisation of tax losses |
|
|
|
|
Total tax charge | - | - |
|
10. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
Cost |
At 1 January 2020 |
|
Additions |
|
At 31 December 2020 |
|
Amortisation |
Amortisation for year |
|
At 31 December 2020 |
|
Net book value |
At 31 December 2020 |
|
At 31 December 2019 |
|
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | Plant and | and | Computer |
improvements | machinery | fittings | Equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 January 2020 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 31 December 2020 |
|
|
|
|
|
Depreciation |
At 1 January 2020 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 31 December 2020 |
|
|
|
|
|
Net book value |
At 31 December 2020 |
|
|
|
|
|
At 31 December 2019 |
|
|
|
|
|
|
12. | FIXED ASSET INVESTMENTS |
Subsidiary |
undertaking |
£ |
Cost |
At 1 January 2020 |
and 31 December 2020 |
|
Net book value |
At 31 December 2020 |
|
At 31 December 2019 |
|
|
13. | STOCKS |
2020 | 2019 |
£ | £ |
Finished goods |
|
|
|
There is no material difference between the replacement value of stock and the value shown on the statement of financial position. |
|
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
VAT |
|
|
Deferred tax asset |
|
|
Prepayments and accrued income |
|
|
|
|
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 17) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Social security and other taxes |
|
|
VAT |
|
|
Accruals and deferred income |
|
|
|
|
|
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans (see note 17) |
|
|
|
17. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
|
|
|
18. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
19. | FINANCIAL INSTRUMENTS |
|
Note 3 to these financial statements details the accounting policy for financial instruments. |
|
The company has the following financial instruments: |
|
|
|
2020 | 2019 |
£ | £ |
Financial assets that are debt instruments measured at amortised
costs |
|
Trade debtors | 124,824 | 232,227 |
Amounts owed by group undertakings | 10,821,504 | 10,231,367 |
Other debtors | 15,500 | 15,500 |
|
Financial liabilities measured at amortised costs |
Trade creditors | 147,656 | 81,504 |
Amounts owed to group undertakings | 10,954,113 | 10,824,573 |
|
No interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through the income statement. |
|
Intercompany loans to subsidiaries are measured at fair value. |
|
20. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 10,000 | 10,000 |
|
21. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2020 |
|
Deficit for the year | ( |
) |
At 31 December 2020 |
|
|
22. | PENSION COMMITMENTS |
|
The principal employee benefit, as operated by the company, is that of a defined benefit contribution scheme. The assets of the scheme are administered by trustees in a fund independent from those of the company. |
|
The pension expense for the year was £24,971 (2019: £25,739). |
|
23. | RELATED PARTY DISCLOSURES |
|
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £nil (2019: £85,077). |
PRINT-RITE EUROPE LTD. (REGISTERED NUMBER: 03200492) |
|
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
24. | ULTIMATE CONTROLLING PARTY |
|
The company's ultimate parent company and controlling party is Starbo Investment Limited, a company incorporated in Hong Kong. |
|
The company's immediate parent company and controlling party is Print-Rite Investment Limited, a company incorporated in the British Virgin Islands. |
|
The smallest group in which the results of the company are consolidated is that headed by Print-Rite Holdings Limited, a company incorporated in Hong Kong. |
|
The largest group in which the results of the company are consolidated is that headed by Starbo Investment Limited, a company incorporated in Hong Kong. |
|
25. | GUARANTEES |
|
At the year-end date, there is a bank guarantee of £60,000 (2019: £60,000). |