Company Registration No. 11003793 (England and Wales)
WHITEMEADOW INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE ACCOUNTING REFERENCE PERIOD ENDED 31 DECEMBER 2019
PREPARED TO 27 DECEMBER 2019
WHITEMEADOW INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
P Ainley
M Clarridge
P Garnett
A Kitchen
D Oscroft
I Oscroft
P Wesson
Company number
11003793
Registered office
Orchard Way
Calladine Business Park
Sutton in Ashfield
Nottinghamshire
NG17 1JU
Auditor
Azets Audit Services
Unit N
Ivanhoe Business Park
Ashby de la Zouch
Leicestershire
LE65 2AB
WHITEMEADOW INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 35
WHITEMEADOW INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 1 -
The directors present the strategic report for the year ended 31 December 2019.
Fair review of the business
The principle activities of the business continue to perform well in what are becoming ever increasingly difficult and uncertain market conditions, our flexibility and ability to quickly introduce new product ranges and react to our customers’ requirements is one of our key strengths and where we pride ourselves.
We continue to invest in our business model through infrastructure, production facilities and transport whilst our key investment area is people, where we have been recognised as an approved investor in people.
During the year we have seen positive increases in turnover throughout the business from £52.2m to £52.8m, and increase of 1%. Costs have also increased during the year largely through the falling sterling prices particularly against the euro, along with increasing labour costs.
The business continues to use a set of long-term measures to manage performance, keeping tight controls over Cash, Creditors, Debtors and Order Books and lead times, whilst retaining control over labour costs through turnover and retention analysis.
We continue to work with our staff through regular JCC forums and newsletters and are constantly looking at ways to improve these and other communication lines.
Principal Risks and uncertainties
The pandemic outbreak of COVID-19 in 2020 has had a significant impact on the retail industry with many non-essential retailers temporarily closing and furloughing staff.
We like many manufacturers had to suspend production throughout this period, we operated on a very reduced skeleton staff to ensure our employees continued to receive income, and we were able to pay and collect monies due successfully through the period. Towards the end of May 2020 our Health and Safety and Production teams ensured our facilities were safe environments for our teams to return.
The overall impact of COVID-19 is currently very difficult to predict. However, the directors believe that the measures being implemented to manage costs, the utilisation of Government support scheme's such as the Job Retention Scheme, and the ability of the company to meet the trading directives issued by the Government has enabled it to trade through the current situation and return in a very positive position going forwards with a strong order book and customer base.
Brexit remains an uncertainty going forwards, through uncertainty of supply chains, exchange rates and labour markets, we have key people within the business working constantly to reduce the potential impact of these areas in what remains a very fluid challenging environment and feel we are well placed to respond to the eventual outcome.
I Oscroft
Director
16 November 2020
WHITEMEADOW INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2019.
Principal activities
The principal activity of the group is the design, manufacture and sale of upholstered furniture.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Ainley
M Clarridge
P Garnett
A Kitchen
D Oscroft
I Oscroft
P Wesson
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
On 7 September 2020 Group Audit Services Limited, trading as Baldwins Audit Services, changed it's name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.
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 auditor
of the
company 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 auditor
of the
company
is
aware of that information.
WHITEMEADOW INVESTMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
Post Reporting Date Events
The outbreak of the COVID-19 pandemic has led to the UK Government imposing travel and trade restrictions including social distancing measures. The directors have considered the risk to the company's activities and its income streams and believe no further disclosures concerning the impact of the pandemic are relevant to the financial statements.
The directors have considered available cash resources over the next 12 months and they feel that the company is in a position to meet its liabilities as and when they fall due for a period of at least 12 months from the signing of these accounts.
On behalf of the board
I Oscroft
Director
16 November 2020
WHITEMEADOW INVESTMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WHITEMEADOW INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WHITEMEADOW INVESTMENTS LIMITED
- 5 -
Opinion
We have audited the
financial statements of Whitemeadow Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2019 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 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.
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
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 or the parent
company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
WHITEMEADOW INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITEMEADOW INVESTMENTS LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept 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.
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
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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
WHITEMEADOW INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WHITEMEADOW INVESTMENTS LIMITED
- 7 -
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.
Miss Lisa Emery (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
16 November 2020
Chartered Accountants
Statutory Auditor
Unit N
Ivanhoe Business Park
Ashby de la Zouch
Leicestershire
LE65 2AB
WHITEMEADOW INVESTMENTS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
Year
Period
ended
ended
31 December
31 December
2019
2018
Notes
£
£
Turnover
3
52,826,112
61,972,029
Cost of sales
(37,031,524)
(42,503,686)
Gross profit
15,794,588
19,468,343
Administrative expenses
(13,646,726)
(17,069,994)
Other operating expenses
(27,376)
-
Operating profit
4
2,120,486
2,398,349
Interest receivable and similar income
7
34,659
(12,983)
Interest payable and similar expenses
8
(334,246)
(483,112)
Profit before taxation
1,820,899
1,902,254
Tax on profit
9
(711,385)
(842,676)
Profit for the financial year
1,109,514
1,059,578
Profit for the financial year is all attributable to the owners of the parent company.
WHITEMEADOW INVESTMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
Year
Period
ended
ended
31 December
31 December
2019
2018
£
£
Profit for the year
1,109,514
1,059,578
Other comprehensive income
-
-
Total comprehensive income for the year
1,109,514
1,059,578
Total comprehensive income for the year is all attributable to the owners of the parent company.
WHITEMEADOW INVESTMENTS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Goodwill
10
5,334,125
7,274,102
Tangible assets
11
5,067,122
4,637,126
Investments
12
185,632
40,900
10,586,879
11,952,128
Current assets
Stocks
14
2,703,822
2,536,010
Debtors
15
11,911,876
11,229,413
Cash at bank and in hand
641,456
264,220
15,257,154
14,029,643
Creditors: amounts falling due within one year
16
(18,075,848)
(16,370,487)
Net current liabilities
(2,818,694)
(2,340,844)
Total assets less current liabilities
7,768,185
9,611,284
Creditors: amounts falling due after more than one year
17
(5,488,301)
(8,504,406)
Provisions for liabilities
19
(100,792)
(37,300)
Net assets
2,179,092
1,069,578
Capital and reserves
Called up share capital
21
10,000
10,000
Profit and loss reserves
2,169,092
1,059,578
Total equity
2,179,092
1,069,578
The financial statements were approved by the board of directors and authorised for issue on 16 November 2020 and are signed on its behalf by:
16 November 2020
I Oscroft
Director
WHITEMEADOW INVESTMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 11 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investments
12
16,000,065
16,000,065
Current assets
Debtors
15
447,891
250,273
Cash at bank and in hand
5,547
40,759
453,438
291,032
Creditors: amounts falling due within one year
16
(3,770,185)
(3,432,110)
Net current liabilities
(3,316,747)
(3,141,078)
Total assets less current liabilities
12,683,318
12,858,987
Creditors: amounts falling due after more than one year
17
(5,294,504)
(8,182,415)
Net assets
7,388,814
4,676,572
Capital and reserves
Called up share capital
21
10,000
10,000
Profit and loss reserves
7,378,814
4,666,572
Total equity
7,388,814
4,676,572
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £2,712,242 (2018 - £4,666,572 profit).
The financial statements were approved by the board of directors and authorised for issue on 16 November 2020 and are signed on its behalf by:
16 November 2020
I Oscroft
Director
Company Registration No. 11003793
WHITEMEADOW INVESTMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 9 October 2017
-
-
-
Period ended 31 December 2018:
Profit and total comprehensive income for the period
-
1,059,578
1,059,578
Issue of share capital
21
10,000
-
10,000
Balance at 31 December 2018
10,000
1,059,578
1,069,578
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
1,109,514
1,109,514
Balance at 31 December 2019
10,000
2,169,092
2,179,092
WHITEMEADOW INVESTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2019
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 9 October 2017
-
-
-
Period ended 31 December 2018:
Profit and total comprehensive income for the period
-
4,666,572
4,666,572
Issue of share capital
21
10,000
-
10,000
Balance at 31 December 2018
10,000
4,666,572
4,676,572
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
2,712,242
2,712,242
Balance at 31 December 2019
10,000
7,378,814
7,388,814
WHITEMEADOW INVESTMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 14 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,683,102
8,113,992
Interest paid
(334,242)
(483,112)
Income taxes paid
(928,733)
(716,034)
Net cash inflow from operating activities
1,420,127
6,914,846
Investing activities
Purchase of business
-
(15,968,806)
Purchase of intangible assets
-
(1,168,335)
Disposal of intangibles
140,094
-
Purchase of tangible fixed assets
(990,869)
1,800
Proceeds on disposal of tangible fixed assets
19,280
-
Loans to joint ventures
(144,732)
(40,800)
Interest received
1,305
-
Income from joint ventures
33,354
(13,200)
Net cash used in investing activities
(941,568)
(17,189,341)
Financing activities
Proceeds from issue of loan notes
-
12,995,600
Issue of convertible loans
-
4,400
Interest on loan notes
-
156,659
Repayment of loan notes
-
(1,925,274)
Payment of finance leases obligations
(101,323)
(692,670)
Net cash (used in)/generated from financing activities
(101,323)
10,538,715
Net increase in cash and cash equivalents
377,236
264,220
Cash and cash equivalents at beginning of year
264,220
-
Cash and cash equivalents at end of year
641,456
264,220
WHITEMEADOW INVESTMENTS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 15 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(2,541,155)
11,351,252
Interest paid
(242,660)
(360,428)
Income taxes paid
(21,464)
-
Net cash (outflow)/inflow from operating activities
(2,805,279)
10,990,824
Investing activities
Proceeds on disposal of subsidiaries
-
(16,000,065)
Interest received
67
-
Dividends received
2,770,000
5,040,000
Net cash generated from/(used in) investing activities
2,770,067
(10,960,065)
Financing activities
Proceeds from issue of shares
-
10,000
Net cash (used in)/generated from financing activities
-
10,000
Net (decrease)/increase in cash and cash equivalents
(35,212)
40,759
Cash and cash equivalents at beginning of year
40,759
-
Cash and cash equivalents at end of year
5,547
40,759
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 16 -
1
Accounting policies
Company information
Whitemeadow Investments Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
Orchard Way, Calladine Business Park, Sutton in Ashfield, Nottinghamshire, NG17 1JU.
The group consists of Whitemeadow Investments Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements are prepared to the 27 December 2019, but the accounting reference period is until the 31 December 2019. This is allowable per Section 390 of the Companies Act 2006,
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated financial statements incorporate those of Whitemeadow Investments Limited and all of its subsidiaries (ie entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to
27 December 2019.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 17 -
Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates. In the group financial statements, associates are accounted for
using the equity method.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a
contractual arrangement are treated as joint ventures.
In the group financial statements, joint ventures are accounted for using the equity method.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business 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 5 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:
Freehold land and buildings
15-40 years straight line
Plant and machinery
25% straight line
Fixtures and fittings
25% - 33% straight line
Motor vehicles
25% straight line
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 18 -
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 recognised in the profit and loss account.
1.7
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.8
Impairment of fixed assets
At each reporting
period
end date, the
group
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 19 -
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.
1.9
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 replacement cost and 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.
1.10
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.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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
m
ethod 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.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 20 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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. Amounts 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.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 21 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group 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 group.
1.13
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
group’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
if, and only if, there is
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.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 22 -
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
d
asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 23 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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) have had the most significant effect on amounts recognised in the financial statements.
Business Continuity
The directors have considered the impact of COVID-19 on the business which has occurred since the balance sheet date. They believe that the group will have sufficient cash and facilities available to it to trade during the period of restrictions imposed by the UK Government and until the industry returns to business as usual. The Directors will access government support as needed and believe that this government support as well as other commercial facilities will be readily available if and when required to enable the group to continue to trade as a going concern for at least 12 months from signing these accounts.
3
Turnover and other revenue
2019
2018
£
£
Turnover analysed by class of business
Sale of goods less discounts
52,826,112
61,972,029
2019
2018
£
£
Other significant revenue
Interest income
1,305
217
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
50,500,430
58,660,792
Rest of European Union
2,325,682
3,311,237
52,826,112
61,972,029
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 24 -
4
Operating profit
2019
2018
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(11,431)
(5,071)
Depreciation of owned tangible fixed assets
443,672
645,107
Depreciation of tangible fixed assets held under finance leases
102,458
-
(Profit)/loss on disposal of tangible fixed assets
(4,537)
23,175
Amortisation of intangible assets
1,939,977
2,214,450
Operating lease charges
1,031,874
1,104,370
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the parent and company's subsidiaries
23,000
15,000
23,000
15,000
For other services
Audit-related assurance services
3,000
1,900
Taxation compliance services
3,000
1,875
6,000
3,775
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2019
2018
2019
2018
Number
Number
Number
Number
515
465
-
-
79
67
-
-
Total
594
532
-
-
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
6
Employees
(Continued)
- 25 -
Their aggregate remuneration comprised:
Group
Company
2019
2018
2019
2018
£
£
£
£
Wages and salaries
14,448,667
16,276,733
-
-
Social security costs
1,052,773
1,264,057
-
-
Pension costs
359,920
440,006
-
-
15,861,360
17,980,796
-
-
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
1,305
217
Income from fixed asset investments
Income from participating interests - joint ventures
33,354
(13,200)
Total income
34,659
(12,983)
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
1,305
217
8
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
73,780
100,744
Other interest on financial liabilities
242,538
360,428
316,318
461,172
Other finance costs:
Interest on finance leases and hire purchase contracts
17,806
21,940
Other interest
122
-
Total finance costs
334,246
483,112
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 26 -
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
722,181
894,317
Adjustments in respect of prior periods
(20,997)
-
Total current tax
701,184
894,317
Deferred tax
Origination and reversal of timing differences
18,179
(51,641)
Adjustment in respect of prior periods
(7,978)
-
Total deferred tax
10,201
(51,641)
Total tax charge
711,385
842,676
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,820,899
1,902,254
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
345,971
361,428
Tax effect of expenses that are not deductible in determining taxable profit
84,803
435,844
Adjustments in respect of prior years
(14,130)
-
Effect of change in corporation tax rate
(3,760)
-
Other non-reversing timing differences
-
(98,212)
Non-tax deductible amortisation of goodwill
-
44,881
Depreciation in excess of capital allowances
-
16,325
Profit on sale of fixed assets
(26)
7,537
Other factors
-
74,873
Income from joint ventures
(6,337)
-
Amortisation adjustment
304,864
-
Taxation charge
711,385
842,676
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 27 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2019 and 31 December 2019
10,912,415
Amortisation and impairment
At 1 January 2019
3,638,313
Amortisation charged for the year
1,939,977
At 31 December 2019
5,578,290
Carrying amount
At 31 December 2019
5,334,125
At 31 December 2018
7,274,102
The company had no intangible fixed assets at 31 December 2019 or 31 December 2018.
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2019
3,558,364
1,242,599
779,976
1,470,762
7,051,701
Additions
(8,214)
338,061
357,945
303,077
990,869
Disposals
-
-
(49,843)
(42,790)
(92,633)
At 31 December 2019
3,550,150
1,580,660
1,088,078
1,731,049
7,949,937
Depreciation and impairment
At 1 January 2019
336,004
846,892
608,858
622,821
2,414,575
Depreciation charged in the year
129,603
148,179
73,681
194,667
546,130
Eliminated in respect of disposals
-
-
(49,586)
(28,304)
(77,890)
At 31 December 2019
465,607
995,071
632,953
789,184
2,882,815
Carrying amount
At 31 December 2019
3,084,543
585,589
455,125
941,865
5,067,122
At 31 December 2018
3,222,360
395,707
171,118
847,941
4,637,126
The company had no tangible fixed assets at 31 December 2019 or 31 December 2018.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
11
Tangible fixed assets
(Continued)
- 28 -
At the 31st December 2019, the following entitled persons; Ian Oscroft, Paul Wesson, Garfield Peter Garnett and Andrew Kitchen held a fixed charge by way of a legal mortgage over all of the freehold and leasehold properties. The entitled persons also held fixed and floating charges over all the assets of the company at this date.
12
Fixed asset investments
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Investments in subsidiaries
13
-
-
16,000,065
16,000,065
Investments in joint ventures
100
100
-
-
Loans to joint ventures
185,532
40,800
-
-
185,632
40,900
16,000,065
16,000,065
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
Loans to group undertakings and participating interests
Total
£
£
£
Cost or valuation
At 1 January 2019
100
40,800
40,900
Additions
-
144,732
144,732
At 31 December 2019
100
185,532
185,632
Carrying amount
At 31 December 2019
100
185,532
185,632
At 31 December 2018
100
40,800
40,900
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 January 2019 and 31 December 2019
16,000,065
Carrying amount
At 31 December 2019
16,000,065
At 31 December 2018
16,000,065
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 29 -
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2019 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
W M Frames Limited
United Kingdom
Ordinary
0
100.00
Whitemeadow Furniture Limited
United Kingdom
Ordinary
0
100.00
Whitemeadow Group Holdings Limited
United Kingdom
Ordinary
100.00
-
The Branded Furniture Company Limited
United Kingdom
Ordinary
65.00
-
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
W M Frames Limited
111,994
Whitemeadow Furniture Limited
3,122,781
2,675,855
Whitemeadow Group Holdings Limited
4,883,431
2,587,611
The Branded Furniture Company Limited
31,047
51,254
14
Stocks
Group
Company
2019
2018
2019
2018
£
£
£
£
Raw materials and consumables
2,355,568
2,287,826
-
-
Work in progress
218,717
124,682
-
-
Finished goods and goods for resale
129,537
123,502
-
-
2,703,822
2,536,010
-
-
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 30 -
15
Debtors
Group
Company
2019
2018
2019
2018
Amounts falling due within one year:
£
£
£
£
Trade debtors
11,109,464
10,718,159
-
-
Amounts owed by group undertakings
-
-
333,327
189,000
Other debtors
13,303
13,705
-
-
Prepayments and accrued income
674,545
436,276
-
-
11,797,312
11,168,140
333,327
189,000
Amounts falling due after more than one year:
Deferred tax asset (note 19)
114,564
61,273
114,564
61,273
Total debtors
11,911,876
11,229,413
447,891
250,273
16
Creditors: amounts falling due within one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Obligations under finance leases
18
180,315
153,444
-
-
Trade creditors
5,080,504
4,907,103
13
24
Amounts owed to group undertakings
-
-
98,261
128,096
Corporation tax payable
309,070
536,619
30,991
21,464
Other taxation and social security
1,493,068
1,039,973
60,255
33,353
Other creditors
9,522,955
8,299,120
2,887,911
2,887,911
Accruals and deferred income
1,489,936
1,434,228
692,754
361,262
18,075,848
16,370,487
3,770,185
3,432,110
Amounts included in other creditors totalling £5,002,217 are secured against trade debtors in note 17.
17
Creditors: amounts falling due after more than one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Obligations under finance leases
18
193,797
321,991
-
-
Other creditors
5,294,504
8,182,415
5,294,504
8,182,415
5,488,301
8,504,406
5,294,504
8,182,415
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 31 -
18
Finance lease obligations
Group
Company
2019
2018
2019
2018
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
178,765
153,444
-
-
In two to five years
195,347
321,991
-
-
374,112
475,435
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2019
2018
2019
2018
Group
£
£
£
£
Accelerated capital allowances
100,792
37,300
114,564
61,273
Liabilities
Liabilities
Assets
Assets
2019
2018
2019
2018
Company
£
£
£
£
Accelerated capital allowances
-
-
114,564
61,273
Group
Company
2019
2019
Movements in the year:
£
£
Asset at 1 January 2019
(23,973)
(61,273)
Charge/(credit) to profit or loss
10,201
(53,291)
Asset at 31 December 2019
(13,772)
(114,564)
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 32 -
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
359,920
440,006
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
21
Share capital
Group and company
2019
2018
Ordinary share capital
£
£
Issued and fully paid
100,000 Ordinary of 10p each
10,000
10,000
22
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2019
2018
2019
2018
£
£
£
£
Within one year
510,747
591,177
-
-
Between two and five years
1,165,137
1,684,312
-
-
In over five years
96,250
181,800
-
-
1,772,134
2,457,289
-
-
23
Controlling party
In the opinion of the directors the controlling and ultimate controlling party is I R Oscroft.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 33 -
24
Events after the reporting date
Since the year end, the spread of COVID-19 has severely impacted many local economies around the globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite periods of time. The Company has been able to continue to operate throughout this period of disruption, notwithstanding measures taken based upon Government advice to contain the spread of the virus, including travel bans, quarantines, and social distancing.
The Company has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 December 2019 have not been adjusted to reflect their impact.
The UK Government has responded with monetary and fiscal interventions to stabilise economic conditions and the Company has utilised the furlough measures introduced by the Government for a small number of employees.
The directors do not feel that there has been any detrimental material financial effect as a result of the measures being taken in response to the outbreak, although they continue to assess the effect on the company given the uncertainties surrounding the longevity of the pandemic.
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2019
2018
£
£
Aggregate compensation
960,012
944,858
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2019
2018
Balance
Balance
£
£
Company
Entities with control, joint control or significant influence over the company
333,327
54,000
Other information
The company has taken the exemption under paragraph 33.1A of FRS 102 which permits non disclosure of transactions that have taken place between two or more members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 34 -
26
Cash generated from group operations
2019
2018
£
£
Profit for the year after tax
1,109,514
1,059,578
Adjustments for:
Taxation charged
711,385
842,676
Finance costs
334,245
483,112
Investment income
(34,659)
12,983
(Gain)/loss on disposal of tangible fixed assets
(4,537)
23,175
Amortisation and impairment of intangible assets
1,939,977
2,214,450
Depreciation and impairment of tangible fixed assets
546,130
645,107
Movements in working capital:
(Increase)/decrease in stocks
(167,812)
633,493
Increase in debtors
(629,172)
(2,385,569)
(Decrease)/increase in creditors
(981,875)
4,584,987
Cash generated from operations
2,823,196
8,113,992
Difference
(140,094)
-
Per cash flow statement page
2,683,102
8,113,992
27
Cash (absorbed by)/generated from operations - company
2019
2018
£
£
Profit for the year after tax
2,712,242
4,666,572
Adjustments for:
Taxation credited
(22,300)
(39,809)
Finance costs
242,660
360,428
Investment income
(2,770,067)
(5,040,000)
Movements in working capital:
Increase in debtors
(144,327)
(189,000)
(Decrease)/increase in creditors
(2,559,363)
11,593,061
Cash (absorbed by)/generated from operations
(2,541,155)
11,351,252
WHITEMEADOW INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 35 -
28
Analysis of changes in net funds/(debt) - group
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
264,220
377,236
641,456
Obligations under finance leases
(475,435)
101,323
(374,112)
(211,215)
478,559
267,344
29
Analysis of changes in net funds - company
1 January 2019
Cash flows
31 December 2019
£
£
£
Cash at bank and in hand
40,759
(35,212)
5,547
2019-12-31
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