Company Registration No. 03636372 (England and Wales)
BREWER & BUNNEY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
BREWER & BUNNEY LIMITED
COMPANY INFORMATION
Directors
Mr J A Brown
(Appointed 4 March 2021)
Mr M Keller
(Appointed 4 March 2021)
Mr T E Marder
(Appointed 4 March 2021)
Mr D T Riley
(Appointed 4 March 2021)
Company number
03636372
Registered office
Wolf Laundry
Unit 5B Ashroyds Way
Hoyland
Barnsley
S74 9SB
Auditor
Parsons Accountants Ltd
No 2 Silkwood Office Park
Fryers Way
Wakefield
WF5 9TJ
BREWER & BUNNEY LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 20
BREWER & BUNNEY LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 1 -
The directors present their annual report and financial statements for the period ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the sale, rental and maintenance of commercial laundry equipment.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr J A Brown
(Appointed 4 March 2021)
Mr M Keller
(Appointed 4 March 2021)
Mr T E Marder
(Appointed 4 March 2021)
Mr D T Riley
(Appointed 4 March 2021)
Mr F D Brewer
(Resigned 4 March 2021)
Mr A P Durnin
(Resigned 4 March 2021)
Mr L Harris
(Resigned 4 March 2021)
Mr D J Hayes
(Resigned 4 March 2021)
Auditor
Parsons Accountants Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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;
-
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.
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.
BREWER & BUNNEY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 2 -
On behalf of the board
Mr J A Brown
Director
17 June 2022
BREWER & BUNNEY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BREWER & BUNNEY LIMITED
- 3 -
We have audited the financial statements of Brewer & Bunney Limited (the 'company') for the period ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, 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 period 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.
Basis for qualified opinion
With respect to the opening stock having a carrying amount of £499,540 the audit evidence available to us was limited because an itemised stock listing was not available and we did not observe the counting of the physical stock as at 30 November 2020, since that date was prior to our appointment as auditor of the company. Owing to the nature of the company's records, we were unable to obtain sufficient appropriate audit evidence regarding the stock valuation and quantities by using other procedures.
Since the opening stock affects the financial result for the current year, we are unable to determine whether adjustments might have been necessary in respect of the profit for the year reported in the Statement of Income and Retained Earnings.
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.
BREWER & BUNNEY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BREWER & BUNNEY LIMITED
- 4 -
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 directors'
r
eport for the financial period for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock, described above:
-
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
-
we were unable to determine whether adequate accounting records had been maintained.
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 directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which 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; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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.
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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
BREWER & BUNNEY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BREWER & BUNNEY LIMITED
- 5 -
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Other matters which we are required to address
The company was not required to have a statutory audit for the year ended 30 November 2020 as it was entitled to exemption from the provision of the Companies Act 2006 relating to the audit of the financial statements for the period by virtue of section 477 and no member or members requested an audit. Accordingly, the users of these financial statements should note that the comparative figures are unaudited.
BREWER & BUNNEY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BREWER & BUNNEY LIMITED
- 6 -
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.
Ian Parsons
Senior Statutory Auditor
For and on behalf of Parsons Accountants Ltd
17 June 2022
Chartered Accountants
Statutory Auditor
No 2 Silkwood Office Park
Fryers Way
Wakefield
WF5 9TJ
BREWER & BUNNEY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 7 -
13 months
12 months
ended
ended
31 December
30 November
2021
2020 Unaudited
Notes
£
£
Turnover
3
4,007,638
2,880,468
Cost of sales
(2,243,453)
(1,751,945)
Gross profit
1,764,185
1,128,523
Administrative expenses
(1,173,719)
(1,058,527)
Other operating income
75,789
Operating profit
4
590,466
145,785
Interest payable and similar expenses
7
(61)
Profit before taxation
590,466
145,724
Tax on profit
8
(123,253)
(16,662)
Profit for the financial period
467,213
129,062
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BREWER & BUNNEY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020 Unaudited
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,366,292
1,150,486
Current assets
Stocks
12
633,057
499,540
Debtors
13
401,946
520,295
Cash at bank and in hand
258,795
196,922
1,293,798
1,216,757
Creditors: amounts falling due within one year
14
(773,821)
(937,877)
Net current assets
519,977
278,880
Total assets less current liabilities
1,886,269
1,429,366
Provisions for liabilities
Deferred tax liability
15
198,192
119,484
(198,192)
(119,484)
Net assets
1,688,077
1,309,882
Capital and reserves
Called up share capital
16
40,000
40,000
Profit and loss reserves
1,648,077
1,269,882
Total equity
1,688,077
1,309,882
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 17 June 2022 and are signed on its behalf by:
Mr J A Brown
Director
Company Registration No. 03636372
BREWER & BUNNEY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2019
40,000
1,278,281
1,318,281
Period ended 30 November 2020:
Profit and total comprehensive income for the period
-
129,062
129,062
Dividends
9
-
(137,461)
(137,461)
Balance at 30 November 2020
40,000
1,269,882
1,309,882
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
467,213
467,213
Dividends
9
-
(89,018)
(89,018)
Balance at 31 December 2021
40,000
1,648,077
1,688,077
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Brewer & Bunney Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Wolf Laundry, Unit 5B Ashroyds Way, Hoyland, Barnsley, S74 9SB.
1.1
Reporting period
The current accounting period has been lengthened to thirteen months to align the company's year end with that of the ultimate controlling party. The year end will remain the same in future years but the time scale will return to twelve months and as such the comparative amounts presented in the financial statements (included the related notes) are not entirely comparable.
1.2
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. 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 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
:
The
disclosure
requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
-
Section 26 ‘Share based Payment’
:
Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of NIBE Industrier AB. These consolidated financial statements are available from its registered office, NIBE Industrier AB, Hannabadsvägen 5, Markaryd, Sweden (visitors address), Box 14. SE 285 21, Markaryd, Sweden (postal address).
1.3
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation
, based on the companys forecasts and projections,
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.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.4
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is
10 years
.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
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.
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
20% on cost
Plant and equipment
33% on cost, 25% on cost & 20% on cost
Fixtures and fittings
33% on cost
Motor vehicles
25% on cost
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
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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.
1.9
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.
1.10
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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.11
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.
1.12
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
Critical judgements
The following judgements (apart from those involving estimates)
that management has made in the process of applying the entity's accounting policies
have had the most significant
effect on amounts recognised in the financial statements.
Valuation of Stock
Stock is valued at the lower of cost and net realisable value, Judgement is required from management in assessing the net realisable value of stock items. This is applied by management using their knowledge of the business and specifically any stock items that may be damaged, obsolete or slow-moving.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 15 -
3
Turnover and other revenue
2021
2020 Unaudited
£
£
Turnover analysed by class of business
Sale of goods
3,472,462
2,552,794
Rendering of services
535,176
327,674
4,007,638
2,880,468
2021
2020 Unaudited
£
£
Other revenue
Grants received
75,789
4
Operating profit
2021
2020 Unaudited
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
(75,789)
Depreciation of owned tangible fixed assets
524,037
434,715
(Profit)/loss on disposal of tangible fixed assets
(166)
14,608
Operating lease charges
169,030
110,820
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020 Unaudited
Number
Number
26
25
Their aggregate remuneration comprised:
2021
2020 Unaudited
£
£
Wages and salaries
1,152,527
1,010,088
Social security costs
8,086
30,507
1,160,613
1,040,595
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 16 -
6
Directors' remuneration
2021
2020 Unaudited
£
£
Remuneration for qualifying services
62,291
221,486
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period.
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020 Unaudited
£
£
Remuneration for qualifying services
n/a
71,202
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period.
7
Interest payable and similar expenses
2021
2020 Unaudited
£
£
Interest on bank overdrafts and loans
61
8
Taxation
2021
2020 Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
44,546
(1,118)
Deferred tax
Origination and reversal of timing differences
78,707
17,780
Total tax charge
123,253
16,662
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
8
Taxation
(Continued)
- 17 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2021
2020 Unaudited
£
£
Profit before taxation
590,466
145,724
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020 Unaudited: 19.00%)
112,189
27,688
Tax effect of expenses that are not deductible in determining taxable profit
100,079
82,596
Tax effect of income not taxable in determining taxable profit
(32)
Permanent capital allowances in excess of depreciation
(169,735)
(110,284)
Under/(over) provided in prior years
2,045
Deferred tax movement
78,707
16,662
Taxation charge for the period
123,253
16,662
9
Dividends
2021
2020 Unaudited
£
£
Final paid
137,461
Interim paid
89,018
89,018
137,461
10
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2020 and 31 December 2021
195,000
Amortisation and impairment
At 1 December 2020 and 31 December 2021
195,000
Carrying amount
At 31 December 2021
At 30 November 2020
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 18 -
11
Tangible fixed assets
Land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2020
14,746
3,267,166
108,375
25,036
3,415,323
Additions
794,763
13,252
3,000
811,015
Disposals
(621,917)
(5,536)
(627,453)
At 31 December 2021
14,746
3,440,012
121,627
22,500
3,598,885
Depreciation and impairment
At 1 December 2020
13,795
2,129,922
102,639
18,481
2,264,837
Depreciation charged in the period
374
512,971
4,716
5,976
524,037
Eliminated in respect of disposals
(550,746)
(5,535)
(556,281)
At 31 December 2021
14,169
2,092,147
107,355
18,922
2,232,593
Carrying amount
At 31 December 2021
577
1,347,865
14,272
3,578
1,366,292
At 30 November 2020
951
1,137,244
5,736
6,555
1,150,486
12
Stocks
2021
2020 Unaudited
£
£
Work in progress
20,797
Finished goods and goods for resale
612,260
499,540
633,057
499,540
13
Debtors
2021
2020 Unaudited
Amounts falling due within one year:
£
£
Trade debtors
325,611
467,411
Amounts owed by group undertakings
22,200
Other debtors
10,835
13,522
Prepayments and accrued income
43,300
39,362
401,946
520,295
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 19 -
14
Creditors: amounts falling due within one year
2021
2020 Unaudited
£
£
Trade creditors
305,438
427,349
Amounts owed to group undertakings
162,694
Corporation tax
42,502
Other taxation and social security
97,708
168,892
Other creditors
124,559
319,343
Accruals and deferred income
40,920
22,293
773,821
937,877
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020 Unaudited
Balances:
£
£
Accelerated capital allowances
198,192
119,484
2021
Movements in the period:
£
Liability at 1 December 2020
119,484
Charge to profit or loss
78,708
Liability at 31 December 2021
198,192
16
Share capital
2021
2020 Unaudited
2021
2020 Unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
36,000
40,000
36,000
40,000
Ordinary B of £1 each
4,000
-
4,000
-
40,000
40,000
40,000
40,000
17
Financial commitments, guarantees and contingent liabilities
Unlimited Multilateral Guarantee given by Brewer & Bunney Limited as part of group banking arrangements.
BREWER & BUNNEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 20 -
18
Operating lease commitments
Lessee
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 Unaudited
£
£
Within one year
53,058
57,478
Between two and five years
21,455
49,513
74,513
106,991
19
Related party transactions
During the year purchases of goods and services totalling £502,048 (2020 - £nil), management fees payable of £100,000 (2020 - £nil) were charged in addition to recharged expenditure of £60,722 (2020 - £nil) with a related company under common control. Sales were made to this company totalling £59,279 (2020 - £nil). At the balance sheet date a balance of £162,694 (2020 - £nil) was owed to this entity.
20
Directors' transactions
Dividends totalling £89,018 (2020 Unaudited - £137,461) were paid in the period in respect of shares held by the company's directors.
The company paid rent to
a director of the company
to the
the sum of £
27,083
(2020: £25,000).
21
Ultimate controlling party
The immediate parent entity is Wolf Laundry Holdings Limited.
The ultimate controlling party of Wolf Laundry Holdings Limited is Nibe Industrier AB.
The registered address of Nibe Industrier AB is Box 14, SE-285 21 Markaryd, Sweden.
2021-12-31
2020-12-01
false
CCH Software
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Mr J A Brown
Mr M Keller
Mr T E Marder
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Mr F D Brewer
Mr A P Durnin
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