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OAT 2012 LIMITED |
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GROUP STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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CONSOLIDATED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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OAT 2012 LIMITED |
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GROUP STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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CONSOLIDATED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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Page |
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Company Information | 1 |
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Group Strategic Report | 2 | to | 3 |
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Report of the Directors | 4 | to | 5 |
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Report of the Independent Auditors | 6 | to | 7 |
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Consolidated Income Statement | 8 |
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Consolidated Other Comprehensive Income | 9 |
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Consolidated Balance Sheet | 10 |
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Company Balance Sheet | 11 |
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Consolidated Statement of Changes in Equity | 12 |
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Company Statement of Changes in Equity | 13 |
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Consolidated Cash Flow Statement | 14 |
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Notes to the Consolidated Cash Flow Statement | 15 |
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Notes to the Consolidated Financial Statements | 16 | to | 26 |
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OAT 2012 LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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The directors present their strategic report of the company and the group for the year ended 30 November 2019. |
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REVIEW OF BUSINESS |
OAT 2012 Limited's trading subsidiary, O A Taylor & Sons Bulbs Limited, maintains their position as the preferred supplier of all types of flowering bulbs to UK and Irish garden centres. |
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The results of the group are in line with the targets set, changes in the market and climatic conditions experienced during the growing and retail seasons. |
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The group continues to see further success in bespoke products to customers outside the core market of garden centres and continues to innovate and introduce new products, packaging and varieties throughout the range. |
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KEY PERFORMANCE INDICATORS |
Given the straightforward commercial nature of the business, the directors' opinion is that supplementary KPI analysis over and above that in the financial statements is not necessary to an understanding of the development, performance and financial strength of the group. |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them. |
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The key risks affecting the company are set out below: |
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Customers |
In order to reduce the potential loss of custom the group values integrity and seeks to conduct its business with professionalism and aspires to provide excellent service in the eyes of our customers. |
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Employees |
The company continues to use the principle of staff training in return for loyalty, openness, commitment and performance, respecting and caring for staff and investing in their employment potential. The company operates a variety of progression based structures, invests in personal and professional development and remains committed to involving all staff in the operation of the business. The company believes in remunerating its staff fairly for doing a good job which includes taking on responsibility, working as a team and supporting the company's continuous improvement. |
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Commodity risk |
As a bulb supplier, the group is also exposed to the vagaries of the climate and consequent impacts upon the price and availability of product. Consequently the group operates a variety of key mitigating tools to reduce exposure to commodity risk, these summarise in contracting supply price and quantity with growers, growing own crops and having a wide customer spectrum to ensure optimum crop utilisation. |
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Foreign exchange risk |
The group imports a wide range of products from Europe, and consequently is at risk from unfavourable exchange rate changes. The group mitigates this risk by working closely with the group's bankers to forward buy currency at appropriate rates for the business. |
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Natural resources |
A further key risk is the environment and the consumption of natural resources. The company respects the environment in which it operates and works to conserve natural resources and enhance the natural environment. The company is working on a range of initiatives to reduce the carbon footprint associated with its supply chains in active participation with customers and suppliers. Various alternative materials that are compostable or recyclable through kerbside recycling are being assessed for use in the packing of bulbs. |
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The withdrawal of the United Kingdom from the European Union |
There is risk associated with the potential change in regulations and direct or indirect costs associated with the importing and exporting of bulbs and flowers to and from the EU due to the withdrawal of the UK from the EU. The company has increased resource and spent considerable time on plans to adjust to the predicted outcomes. |
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COVID-19 |
As with all businesses there is a risk associated with the ongoing COVID-19 pandemic that is causing a shock to the global economy. It is unknown what final impact this will have on group and our industry and will largely be determined by the time taken to get it under control and how quickly people can return to normal lives. |
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As a business we are well aware of the risks and impact this may bring the group but having assessed our situation believe the strong financial position the group finds itself in will enable the directors to mitigate the risks for the long term protection if the group. |
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ON BEHALF OF THE BOARD: |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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The directors present their report with the financial statements of the company and the group for the year ended 30 November 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of bulb wholesalers. |
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The group also trades as a partner in O A Taylor & Sons, farmers and bulb growers. |
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DIVIDENDS |
An interim dividend was paid during the year in respect of the 30 November 2019 year end, being at £612 per 'A' share and £95.53 per 'B' share. |
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The total distribution of dividends during the year ended 30 November 2019 was £955,227.97 |
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FUTURE DEVELOPMENTS |
The group will continue to invest strongly in new machinery and packing equipment. There is an ongoing programme of warehouse renovation using materials with improved insulation to decrease fuel usage. The group is expecting another profitable year in 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2018 to the date of this report. |
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FINANCIAL INSTRUMENTS |
The group imports a wide range of products from Europe, and consequently is at risk from unfavourable exchange rate changes. The group mitigates this risk by working closely with the group's bankers to forward buy currency at appropriate rates for the business. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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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 group'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 group's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAT 2012 LIMITED |
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Opinion |
We have audited the financial statements of OAT 2012 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2019 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 November 2019 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group'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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Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OAT 2012 LIMITED |
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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 group's and the parent 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 group or the parent 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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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. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 | 14,731,597 | 13,242,911 |
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Cost of sales | 9,990,842 | 8,781,593 |
GROSS PROFIT | 4,740,755 | 4,461,318 |
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Administrative expenses | 2,738,586 | 2,663,492 |
2,002,169 | 1,797,826 |
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Other operating income | 148,410 | 64,512 |
OPERATING PROFIT | 6 | 2,150,579 | 1,862,338 |
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Income from fixed asset investments | (167,898 | ) | 21,193 |
Interest receivable and similar income | 7 | 6,645 | 2,311 |
(161,253 | ) | 23,504 |
1,989,326 | 1,885,842 |
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Interest payable and similar expenses | 8 | 115 | 814 |
PROFIT BEFORE TAXATION | 1,989,211 | 1,885,028 |
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Tax on profit | 9 | 293,063 | 367,527 |
PROFIT FOR THE FINANCIAL YEAR |
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Profit attributable to: |
Owners of the parent | 1,696,148 | 1,517,501 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR | 1,696,148 | 1,517,501 |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,696,148 | 1,517,501 |
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Total comprehensive income attributable to: |
Owners of the parent | 1,696,148 | 1,517,501 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONSOLIDATED BALANCE SHEET |
30 NOVEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | (27,123 | ) | (54,244 | ) |
Tangible assets | 13 | 13,098,450 | 13,198,376 |
Investments | 14 | 5,222,557 | 5,929,084 |
18,293,884 | 19,073,216 |
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CURRENT ASSETS |
Stocks | 15 | 1,109,528 | 896,820 |
Debtors | 16 | 4,064,154 | 3,209,518 |
Cash at bank and in hand | 1,517,315 | 887,279 |
6,690,997 | 4,993,617 |
CREDITORS |
Amounts falling due within one year | 17 | 2,903,865 | 2,718,447 |
NET CURRENT ASSETS | 3,787,132 | 2,275,170 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 22,081,016 | 21,348,386 |
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CREDITORS |
Amounts falling due after more than one year | 18 | (33 | ) | (33 | ) |
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PROVISIONS FOR LIABILITIES | 20 | (156,985 | ) | (165,264 | ) |
NET ASSETS | 21,923,998 | 21,183,089 |
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CAPITAL AND RESERVES |
Called up share capital | 21 | 6,666 | 6,666 |
Share premium | 22 | 12,393,334 | 12,393,334 |
Retained earnings | 22 | 9,523,998 | 8,783,089 |
SHAREHOLDERS' FUNDS | 21,923,998 | 21,183,089 |
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The financial statements were approved and authorised for issue by the Board of Directors on 31 March 2020 and were signed on its behalf by: |
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S R Taylor - Director |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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COMPANY BALANCE SHEET |
30 NOVEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 |
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Investments | 14 |
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CURRENT ASSETS |
Cash at bank |
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CREDITORS |
Amounts falling due within one year | 17 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 18 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Share premium | 22 |
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Retained earnings | 22 |
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SHAREHOLDERS' FUNDS |
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Company's profit for the financial year | 955,124 | 559,833 |
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The financial statements were approved and authorised for issue by the Board of Directors on
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 December 2017 | 6,666 | 7,823,027 | 12,393,334 | 20,223,027 |
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Changes in equity |
Dividends | - | (557,439 | ) | - | (557,439 | ) |
Total comprehensive income | - | 1,517,501 | - | 1,517,501 |
Balance at 30 November 2018 | 6,666 | 8,783,089 | 12,393,334 | 21,183,089 |
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Changes in equity |
Dividends | - | (955,239 | ) | - | (955,239 | ) |
Total comprehensive income | - | 1,696,148 | - | 1,696,148 |
Balance at 30 November 2019 | 6,666 | 9,523,998 | 12,393,334 | 21,923,998 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
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Balance at 1 December 2017 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 November 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 November 2019 |
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OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 998,717 | 1,787,035 |
Interest paid | (115 | ) | (814 | ) |
Tax paid | (383,587 | ) | (368,641 | ) |
Net cash from operating activities | 615,015 | 1,417,580 |
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Cash flows from investing activities |
Purchase of tangible fixed assets | (176,665 | ) | (299,108 | ) |
Purchase of fixed asset investments | 167,898 | (21,193 | ) |
Sale of tangible fixed assets | 46,055 | 54,153 |
Sale of fixed asset investments | 636,007 | (237,399 | ) |
Interest received | 6,645 | 2,311 |
Dividends received | (167,898 | ) | 21,193 |
Net cash from investing activities | 512,042 | (480,043 | ) |
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Cash flows from financing activities |
Amount introduced by directors | 795,600 | 1 |
Amount withdrawn by directors | (337,382 | ) | (116,536 | ) |
Equity dividends paid | (955,239 | ) | (557,439 | ) |
Net cash from financing activities | (497,021 | ) | (673,974 | ) |
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Increase in cash and cash equivalents | 630,036 | 263,563 |
Cash and cash equivalents at beginning of year | 2 | 887,279 | 623,716 |
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Cash and cash equivalents at end of year | 2 | 1,517,315 | 887,279 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation | 1,989,211 | 1,885,028 |
Depreciation charges | 233,100 | 220,907 |
(Profit)/loss on disposal of fixed assets | (127,063 | ) | 60,037 |
Finance costs | 115 | 814 |
Finance income | 161,253 | (23,504 | ) |
2,256,616 | 2,143,282 |
Increase in stocks | (212,708 | ) | (34,757 | ) |
Increase in trade and other debtors | (854,636 | ) | (142,934 | ) |
Decrease in trade and other creditors | (190,555 | ) | (178,556 | ) |
Cash generated from operations | 998,717 | 1,787,035 |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 30 November 2019 |
30/11/19 | 1/12/18 |
£ | £ |
Cash and cash equivalents | 1,517,315 | 887,279 |
Year ended 30 November 2018 |
30/11/18 | 1/12/17 |
£ | £ |
Cash and cash equivalents | 887,279 | 623,716 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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1. | STATUTORY INFORMATION |
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OAT 2012 Limited is a limited company incorporated in England and Wales. The address of the registered office is given in the company information on page one of these financial statements. The nature pf the group's operations and principal activities are detailed in the report of the directors on page three. |
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2. | STATUTORY INFORMATION |
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OAT 2012 Limited is a
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. |
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The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
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Going concern |
Whilst many businesses will cease to function due to the ongoing situation, the company has sufficient resources to mitigate any potential reduction in sales due to our customers having to close. However, there is a potential business risk in relation to the supply of bulbs, as the company imports these from Europe, if there are restrictions placed on the supply chain. The directors are constantly reviewing costs to balance the reduced level of business and we will utilise government schemes as necessary. As such there is no material uncertainty as to the going concern status of the business. |
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Basis of consolidation |
The group accounts consolidate the financial statements of the company and its subsidiary undertaking. Intra-group profits are eliminated on consolidation. |
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Turnover |
Turnover represents the total value, excluding value added tax, of sales made during the year. Revenue from the sale of goods and services is recognised when significant risks and benefits of ownership of the product have transferred to the buyer at either despatch or acceptance by the customer of the delivery. |
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Goodwill |
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The surplus of fair value over cost on O A Taylor & Sons Bulbs Limited becoming a subsidiary on 16 March 2012 has been credited to negative goodwill. The negative goodwill will be written off over its expected useful life of 8 years and 10 months up to 31 December 2020 starting in the year it became a subsidiary. |
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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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Tangible fixed assets |
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Freehold property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Computer equipment | - |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
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3. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
|
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slowing moving items. |
|
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
|
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised within the profit and loss account in other administrative expenses. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
|
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
3. | ACCOUNTING POLICIES - continued |
|
Investments |
The subsidiary, O A Taylor & Sons Bulbs Limited, trades as a partner in O A Taylor & Sons. This investment is stated at the balance on the partner's capital account in the partnership accounts. None of the assets or liabilities, except for taxation liabilities, of the partnership are included in these financial statements. |
|
Other fixed asset investments are stated at cost less provision for permanent diminution in value. |
|
Financial instruments |
The company has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments. |
|
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
|
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
|
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method. |
|
4. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the group. |
|
An analysis of turnover by geographical market is given below: |
|
2019 | 2018 |
£ | £ |
United Kingdom |
|
|
Europe |
|
|
|
|
|
5. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
5. | EMPLOYEES AND DIRECTORS - continued |
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Management | 3 | 3 |
Administration | 37 | 37 |
Warehouse & drivers | 69 | 64 |
|
|
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
6. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Negative goodwill amortisation | ( |
) | ( |
) |
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences |
|
|
|
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2019 | 2018 |
£ | £ |
Deposit account interest |
|
|
|
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Bank interest |
|
|
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
9. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax | ( |
) | ( |
) |
Tax on profit |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
|
|
|
Partnership taxable (loss)/profits in excess of accounting (loss)/profits | (97,831 | ) | 7,065 |
this year |
Total tax charge | 293,063 | 367,527 |
|
10. | INDIVIDUAL INCOME STATEMENT |
|
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
|
|
11. | DIVIDENDS |
2019 | 2018 |
£ | £ |
A Ordinary shares of £1 each |
Interim |
|
|
B Ordinary shares of £1 each |
Interim |
|
|
|
|
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
12. | INTANGIBLE FIXED ASSETS |
|
Group |
Negative |
Goodwill | goodwill | Totals |
£ | £ | £ |
COST |
At 1 December 2018 |
and 30 November 2019 |
|
( |
) | ( |
) |
AMORTISATION |
At 1 December 2018 |
|
( |
) | ( |
) |
Amortisation for year |
|
( |
) | ( |
) |
At 30 November 2019 |
|
( |
) | ( |
) |
NET BOOK VALUE |
At 30 November 2019 |
|
( |
) | ( |
) |
At 30 November 2018 | - | (54,244 | ) | (54,244 | ) |
|
13. | TANGIBLE FIXED ASSETS |
|
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 December 2018 | 12,223,535 | 1,768,092 | 150,306 |
Additions | - | 186 | - |
Disposals | (2,348 | ) | - | - |
At 30 November 2019 | 12,221,187 | 1,768,278 | 150,306 |
DEPRECIATION |
At 1 December 2018 | 36,409 | 1,158,985 | 135,829 |
Charge for year | 4,112 | 91,391 | 2,158 |
Eliminated on disposal | - | - | - |
At 30 November 2019 | 40,521 | 1,250,376 | 137,987 |
NET BOOK VALUE |
At 30 November 2019 | 12,180,666 | 517,902 | 12,319 |
At 30 November 2018 | 12,187,126 | 609,107 | 14,477 |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
13. | TANGIBLE FIXED ASSETS - continued |
|
Group |
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2018 | 680,099 | 1,014,104 | 15,836,136 |
Additions | 47,722 | 128,757 | 176,665 |
Disposals | (43,082 | ) | - | (45,430 | ) |
At 30 November 2019 | 684,739 | 1,142,861 | 15,967,371 |
DEPRECIATION |
At 1 December 2018 | 407,463 | 899,074 | 2,637,760 |
Charge for year | 76,441 | 86,119 | 260,221 |
Eliminated on disposal | (29,060 | ) | - | (29,060 | ) |
At 30 November 2019 | 454,844 | 985,193 | 2,868,921 |
NET BOOK VALUE |
At 30 November 2019 | 229,895 | 157,668 | 13,098,450 |
At 30 November 2018 | 272,636 | 115,030 | 13,198,376 |
|
Included in cost of land and buildings is freehold land of £12,017,910 (2018 - £12,057,910) which is not depreciated. |
|
14. | FIXED ASSET INVESTMENTS |
|
Group |
Interest |
in | Unlisted |
partnership | investments | Totals |
£ | £ | £ |
COST |
At 1 December 2018 | 5,921,956 | 7,128 | 5,929,084 |
Share of profits | (167,898 | ) | - | (167,898 | ) |
Withdrawals | (533,416 | ) | (5,213 | ) | (538,629 | ) |
At 30 November 2019 | 5,220,642 | 1,915 | 5,222,557 |
NET BOOK VALUE |
At 30 November 2019 | 5,220,642 | 1,915 | 5,222,557 |
At 30 November 2018 | 5,921,956 | 7,128 | 5,929,084 |
Company |
Interest |
in |
partnership |
£ |
COST |
At 1 December 2018 |
and 30 November 2019 |
|
NET BOOK VALUE |
At 30 November 2019 |
|
At 30 November 2018 |
|
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
14. | FIXED ASSET INVESTMENTS - continued |
|
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
Subsidiary |
|
|
Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
|
|
The figures for the year ended 30 November 2019 for O A Taylor & Sons Bulbs Limited are included within the consolidated financial statements. |
|
15. | STOCKS |
|
Group |
2019 | 2018 |
£ | £ |
Raw materials | 572,635 | 367,166 |
Work-in-progress | 27,371 | 29,333 |
Finished goods | 509,522 | 500,321 |
1,109,528 | 896,820 |
|
There is no material difference between the carrying cost of stocks and its replacement value. |
|
Impairments totalling £84,824 (2018 £81,059) were made against stock in the period. |
|
Stocks recognised as an expense in the period were £7,154,325 (2018 £6,268,866). |
|
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group |
2019 | 2018 |
£ | £ |
Trade debtors | 3,941,067 | 3,075,380 |
Amounts owed by group undertakings | - | 1,464 |
Other debtors | 93,000 | 93,000 |
Prepayments and accrued income | 30,087 | 39,674 |
4,064,154 | 3,209,518 |
|
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
2019 | 2018 | 2019 | 2018 |
£ | £ | £ | £ |
Trade creditors | 1,113,805 | 1,345,145 |
|
|
Amounts owed to group undertakings | - | - |
|
|
Corporation Tax | 64,741 | 146,986 |
|
|
Social security and other taxes | 102,867 | 96,034 |
|
|
VAT | 590,042 | 582,519 | - | - |
Directors' loan accounts | 673,200 | 214,982 | 673,200 | 214,982 |
Accruals and deferred income | 359,210 | 332,781 |
|
|
2,903,865 | 2,718,447 |
|
|
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
|
Group | Company |
2019 | 2018 | 2019 | 2018 |
£ | £ | £ | £ |
Redeemable C shares | 33 | 33 | 33 | 33 |
|
19. | FINANCIAL INSTRUMENTS |
|
Group |
The group has the following financial instruments: |
2019 | 2018 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 3,941,067 | 3,075,380 |
Other debtors | 93,000 | 93,000 |
Financial liabilities measured at amortised cost |
Trade creditors | 1,113,805 | 1,345,145 |
Directors' loan accounts | 713,200 | 214,982 |
Redeemable C shares | 33 | 33 |
|
|
Company |
The company has the following financial instruments: |
2019 | 2018 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Amounts owed to group | 5,589,800 | 6,088,018 |
Financial liabilities measured at amortised cost |
Directors' loan accounts | 713,200 | 214,982 |
Redeemable C shares | 33 | 33 |
|
There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss. |
|
20. | PROVISIONS FOR LIABILITIES |
|
Group |
2019 | 2018 |
£ | £ |
Deferred tax | 156,985 | 165,264 |
|
Group |
Deferred |
tax |
£ |
Balance at 1 December 2018 | 165,264 |
Credit to Income Statement during year | (8,279 | ) |
Balance at 30 November 2019 | 156,985 |
|
The whole of the deferred tax liability relates to accelerated capital allowances. |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
21. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
A Ordinary | £1 | 1,300 | 1,300 |
|
B Ordinary | £1 | 5,366 | 5,366 |
6,666 | 6,666 |
|
Shareholders' Rights |
|
Both 'A' ordinary and 'B' ordinary shares confer the right to received notice of and attend general meetings as well as the right to vote, both ranking equally. They both have full rights to participate in dividend distributions to the extent declared within their respective class as directed by resolution of the members or decision of the directors. They both have equal and full rights to participate in capital distributions (or on disposals), ranking both ahead of the 'C' shares. Neither the 'A' ordinary nor the 'B' ordinary shares are redeemable. |
|
The redeemable 'C' shares do not carry voting rights except where class rights are affected and do not confer the right to participate in dividends. They have the right to participate in distribution of capital only where total distribution exceeds £25,000,000 plus an allowance for any movement in the retail price index. They are redeemable at par on the first business day after 31 December 2020. |
|
22. | RESERVES |
|
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1 December 2018 | 8,783,089 | 12,393,334 | 21,176,423 |
Profit for the year | 1,696,148 | 1,696,148 |
Dividends | (955,239 | ) | (955,239 | ) |
At 30 November 2019 | 9,523,998 | 12,393,334 | 21,917,332 |
|
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1 December 2018 |
|
|
12,408,992 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 30 November 2019 |
|
|
12,408,877 |
|
|
23. | PENSION COMMITMENTS |
|
The group operates a defined contribution pension scheme in respect of the directors. The scheme and its assets are held by independent managers. During the period the group made contributions on behalf of 2 directors totalling £20,000 (2018 £20,000). The group also makes contributions towards selected employees' personal pension policies. The pension charge represents contributions due from the group and amounted to £83,811 (2018 £73,168). |
|
24. | OTHER FINANCIAL COMMITMENTS |
|
At the balance sheet date, the group had outstanding currency option deals of a sterling equivalent to a maximum of £1,323,737. This is in respect of forward contracts in Euros purchased as a hedge against fluctuations in currency. |
OAT 2012 LIMITED (REGISTERED NUMBER: 07932991) |
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2019 |
|
25. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
|
At the period end the group owed the directors £673,200 (2018 £214,982) in respect of their directors loan accounts. |
|
Entities over which the entity has control, joint control or significant influence |
2019 | 2018 |
£ | £ |
Sales | 92,149 | 91,212 |
Purchases | 667,092 | 549,457 |
Amount due from related party | 5,392,285 | 5,898,363 |
|
Other related parties |
2019 | 2018 |
£ | £ |
Sales | 444 | - |
Purchases | - | 420 |
Amount due from related party | 93,000 | 93,000 |
|
26. | ULTIMATE CONTROLLING PARTY |
|
At the balance sheet date there was no controlling party. |