BURT BOULTON & HAYWOOD LIMITED
Company Registration No. 03540326 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
BURT BOULTON & HAYWOOD LIMITED
COMPANY INFORMATION
Directors
Mr A P Mononen
Mr J Monni
Mr O Hulleberg
Mr T K Mononen
Mr K Källarsson
Secretary
Mr O Hulleberg
Company number
03540326
Registered office
Alexandra Docks
Newport
Gwent
NP20 2WA
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BURT BOULTON & HAYWOOD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
BURT BOULTON & HAYWOOD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Burt Boulton & Haywood Limited is a wholly owned subsidiary of Scanpole Oy and a part of the Iivari Mononen Group.
Fair review of the business
The company’s performance in 2021 was driven by the continued demand in the utility sector as well as the increased demand
for
treated timber products.
The company revenue for the period was £ 19,714,359 with
an
increase of 25% compared to previous year. The company had net current assets of £ 2,288,671 at 31 December 2021 which is down on the previous year net current assets balance of £ 2,653,156.
We anticipate that volumes across business streams will change in 2022 to some extent. Demand for power transmission and telecommunication poles is expected to increase, as well as the demand for treated timber products.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition and future legislation relating to the Biocidal Products (preservatives) Regulations.
Competition
The company operates in a competitive market, and to reduce this risk the company works with its customers and suppliers to ensure that the company's products meet their needs in order to retain their custom. If necessary, the company then adjusts its strategy to better meet the customer's needs.
Future legislation relating to Biocidal Products (preservatives)
The company utilises certain wood preservative products which may be subject to future legislation changes - such legislation includes the Biocidal Products Regulation (BPR). Under the BPR wood preservatives are
authorised for a period of 5 to 10 years. One of the preservatives used by the company is classed as products for substitution', namely creosote. The company is mitigating this risk by researching alternative wood preservatives that meet BPR criteria as well as researching alternative materials that would be acceptable to the utility sector.
Environmental matter
Burt Boulton & Haywood Limited's facilities are located at a leased site in the dock of Newport. The operations are permitted by Newport City Council and Natural Resources Wales.
COVID-19
The global COVID-19 pandemic has brought up uncertainty to the economic landscape in general. So far, the prevailing situation has not had notable impact
on
the company’s raw material procurement, production or orderbook, but has increased the costs of certain products and services in the supply chain. The impact of COVID-19
on
the company’s operations will continue to be less than to the majority of other businesses.
Key performance indicators
Management have identified Key Performance Indicators (KPI’s) that are used to drive business performance and set targets for units and employees throughout the business that will deliver the desired strategic goals.
The KPI’s used by the management to assess performance of the company are turnover and EBIT. The company has recognized turnover of £ 19,714,3
59
(2020: £ 15,819,672) and EBIT of £ 845,592 (2020: 1,553,864).
BURT BOULTON & HAYWOOD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Mr A P Mononen
Director
13 April 2022
BURT BOULTON & HAYWOOD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the manufacture of telegraph and transmission poles and related timber preservation.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to
£1
,000
,000.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A P Mononen
Mr J Monni
Mr O Hulleberg
Mr T K Mononen
Mr K Källarsson
Auditor
In accordance with the company's articles, a resolution proposing that Dyke Yaxley Limited be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
Although
the company has consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a
small entity
under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
review of business, principal risks and uncertainties and future developments
.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mr A P Mononen
Director
13 April 2022
BURT BOULTON & HAYWOOD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
The directors are responsible for preparing the annual 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 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:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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 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.
BURT BOULTON & HAYWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BURT BOULTON & HAYWOOD LIMITED
- 5 -
Opinion
We have audited the financial statements of Burt Boulton & Haywood Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BURT BOULTON & HAYWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BURT BOULTON & HAYWOOD LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
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.
BURT BOULTON & HAYWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BURT BOULTON & HAYWOOD LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations
We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material
misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
We did not identify any key audit matters relating to irregularities, including fraud.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material
misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
BURT BOULTON & HAYWOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BURT BOULTON & HAYWOOD LIMITED
- 8 -
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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Young FCA (Senior Statutory Auditor)
For and on behalf of Dyke Yaxley Limited
15 April 2022
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
BURT BOULTON & HAYWOOD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
Turnover
3
19,714,359
15,819,672
Cost of sales
(17,579,186)
(12,754,997)
Gross profit
2,135,173
3,064,675
Distribution costs
(21,941)
(8,077)
Administrative expenses
(1,267,640)
(1,502,734)
Operating profit
4
845,592
1,553,864
Interest payable and similar expenses
6
(1,182)
(2,950)
Profit before taxation
844,410
1,550,914
Tax on profit
7
(160,294)
(311,700)
Profit for the financial year
684,116
1,239,214
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BURT BOULTON & HAYWOOD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
£
£
Profit for the year
684,116
1,239,214
Other comprehensive income
-
-
Total comprehensive income for the year
684,116
1,239,214
BURT BOULTON & HAYWOOD LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 11 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
9
379,314
274,364
Current assets
Stocks
10
3,732,278
3,476,628
Debtors
11
970,486
855,308
Cash at bank and in hand
68
4,702,764
4,332,004
Creditors: amounts falling due within one year
12
(2,414,093)
(1,678,848)
Net current assets
2,288,671
2,653,156
Total assets less current liabilities
2,667,985
2,927,520
Provisions for liabilities
Provisions
13
305,898
255,901
Deferred tax liability
14
29,535
23,183
(335,433)
(279,084)
Net assets
2,332,552
2,648,436
Capital and reserves
Called up share capital
15
500,002
500,002
Profit and loss reserves
16
1,832,550
2,148,434
Total equity
2,332,552
2,648,436
The financial statements were approved by the board of directors and authorised for issue on 13 April 2022 and are signed on its behalf by:
Mr A P Mononen
Director
Company Registration No. 03540326
BURT BOULTON & HAYWOOD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
500,002
2,909,220
3,409,222
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
1,239,214
1,239,214
Dividends
8
-
(2,000,000)
(2,000,000)
Balance at 31 December 2020
500,002
2,148,434
2,648,436
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
684,116
684,116
Dividends
8
-
(1,000,000)
(1,000,000)
Balance at 31 December 2021
500,002
1,832,550
2,332,552
BURT BOULTON & HAYWOOD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,626,978
2,147,634
Interest paid
(1,182)
(2,950)
Income taxes paid
(331,366)
(177,910)
Net cash inflow from operating activities
1,294,430
1,966,774
Investing activities
Purchase of tangible fixed assets
(294,551)
(30,833)
Proceeds on disposal of tangible fixed assets
53
63,999
Net cash (used in)/generated from investing activities
(294,498)
33,166
Financing activities
Dividends paid
(1,000,000)
(2,000,000)
Net cash used in financing activities
(1,000,000)
(2,000,000)
Net decrease in cash and cash equivalents
(68)
(60)
Cash and cash equivalents at beginning of year
68
128
Cash and cash equivalents at end of year
68
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
1
Accounting policies
Company information
Burt Boulton & Haywood Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Alexandra Docks, Newport, Gwent, NP20 2WA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Iivari Mononen Oy
. These consolidated financial statements are available from its registered office
,
Rantakatu 25c, 80100 Joensuu, Finland.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
10% straight line basis
Plant and machinery
25% straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or
loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in
profit
or
loss
in the period
in which
it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Pole sales
19,714,359
15,819,672
2021
2020
£
£
Turnover analysed by geographical market
UK
19,714,359
15,819,672
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(2,525)
91,511
Fees payable to the company's auditor for the audit of the company's financial statements
20,609
10,750
Depreciation of owned tangible fixed assets
189,548
182,777
(Profit)/loss on disposal of tangible fixed assets
7,381
Operating lease charges
16,010
21,023
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Production
23
19
Management and administration
10
8
Total
33
27
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,513,412
1,141,201
6
Interest payable and similar expenses
2021
2020
£
£
Interest payable to group undertakings
910
2,950
Other interest
272
1,182
2,950
7
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
153,942
331,366
Deferred tax
Origination and reversal of timing differences
6,352
(19,666)
Total tax charge
160,294
311,700
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
7
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
844,410
1,550,914
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
160,438
294,674
Tax effect of expenses that are not deductible in determining taxable profit
5,690
10,218
Permanent capital allowances in excess of depreciation
(12,186)
26,474
Deferred tax adjustments in respect of prior years
6,352
(19,666)
Taxation charge for the year
160,294
311,700
8
Dividends
2021
2020
£
£
Final paid
1,000,000
2,000,000
9
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Total
£
£
£
Cost
At 1 January 2021
377,000
3,383,083
3,760,083
Additions
117,723
176,828
294,551
Disposals
(72)
(72)
At 31 December 2021
494,723
3,559,839
4,054,562
Depreciation and impairment
At 1 January 2021
355,212
3,130,507
3,485,719
Depreciation charged in the year
27,451
162,097
189,548
Eliminated in respect of disposals
(19)
(19)
At 31 December 2021
382,663
3,292,585
3,675,248
Carrying amount
At 31 December 2021
112,060
267,254
379,314
At 31 December 2020
21,788
252,576
274,364
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
10
Stocks
2021
2020
£
£
Raw materials and consumables
3,732,278
3,476,628
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
839,391
511,193
Amounts owed by group undertakings
344,497
Other debtors
9,161
Prepayments and accrued income
121,934
(382)
970,486
855,308
12
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
447,814
383,505
Amounts owed to group undertakings
1,282,172
218,390
Corporation tax
153,942
331,366
Other taxation and social security
528,291
724,446
Other creditors
10,891
Accruals and deferred income
1,874
10,250
2,414,093
1,678,848
13
Provisions for liabilities
2021
2020
£
£
305,898
255,901
The provision relates to potential land remediation work.
Movements on provisions:
£
At 1 January 2021
255,901
Additional provisions in the year
49,997
At 31 December 2021
305,898
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
ACAs
29,535
23,183
2021
Movements in the year:
£
Liability at 1 January 2021
23,183
Charge to profit or loss
6,352
Liability at 31 December 2021
29,535
15
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
2021
2020
2021
2020
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
500,000
500,000
500,000
500,000
Preference shares classified as equity
500,000
500,000
Total equity share capital
500,002
500,002
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
16
Profit and loss reserves
2021
2020
£
£
At the beginning of the year
2,148,434
2,909,220
Profit for the year
684,116
1,239,214
Dividends declared and paid in the year
(1,000,000)
(2,000,000)
At the end of the year
1,832,550
2,148,434
17
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties and for some vehicles. Leases are negotiated for an average term of 10 years and rentals are fixed for this period with an option to extend for a further 10 years at the prevailing market rate.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
241,820
228,239
Between two and five years
270,738
445,868
512,558
674,107
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Entities with control, joint control or significant influence over the company
7,959,312
8,128,989
4,878,769
4,381,188
Other group entities
-
53,000
3,347,036
2,168,939
Services provided
Services purchased
2021
2020
2021
2020
£
£
£
£
Entities with control, joint control or significant influence over the company
438,950
422,528
240,847
272,917
Other group entities
-
-
34,613
54,238
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
18
Related party transactions
(Continued)
- 23 -
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
906,366
168,274
Other group entities
375,807
50,115
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
-
344,497
19
Ultimate controlling party
The ultimate parent company is Iivari Mononen Oy a company incorporated and trading in Finland.
The ultimate parent company Iivari Mononen Oy prepares accounts for the group. The registered office of the company is Rantakatu 25c, 80100 Joensuu, Finland.
20
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
684,116
1,239,214
Adjustments for:
Taxation charged
160,294
311,700
Finance costs
1,182
2,950
(Gain)/loss on disposal of tangible fixed assets
7,381
Depreciation and impairment of tangible fixed assets
189,548
182,777
Increase in provisions
49,997
45,830
Movements in working capital:
Increase in stocks
(255,650)
(1,131,652)
(Increase)/decrease in debtors
(115,178)
2,426,656
Increase/(decrease) in creditors
912,669
(937,222)
Cash generated from operations
1,626,978
2,147,634
BURT BOULTON & HAYWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
21
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
68
(68)
-
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Mr A P Mononen
Mr A P Mononen
Mr J Monni
Mr T K Mononen
Mr K Källarsson
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