REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30th September 2020 |
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James Gordon Limited |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30th September 2020 |
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for |
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James Gordon Limited |
James Gordon Limited (Registered number: SC293893) |
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Contents of the Financial Statements |
for the Year Ended 30th September 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 | to | 5 |
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Income Statement | 6 |
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Other Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Cash Flow Statement | 10 |
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Notes to the Cash Flow Statement | 11 |
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Notes to the Financial Statements | 12 | to | 19 |
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James Gordon Limited |
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Company Information |
for the Year Ended 30th September 2020 |
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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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Chartered Accountants |
Statutory Auditors |
Dumfries Enterprise Park |
Heathhall |
Dumfries |
DUMFRIESSHIRE |
DG1 3SJ |
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SOLICITORS: |
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135 King Street |
Castle Douglas |
DG7 1NA |
James Gordon Limited (Registered number: SC293893) |
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Strategic Report |
for the Year Ended 30th September 2020 |
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The directors present their strategic report for the year ended 30th September 2020. |
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James Gordon Limited is an agricultural engineering company. It sells and repairs agricultural machinery and associated parts. It also runs a petrol station in Castle Kennedy. The business has been in existence for over 150 years. |
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The directors believe that the company is well placed to service the agricultural industry in the south and west of Scotland and that the long experience that both they and their management team have in the local industry is to the benefit of both the company and its customers, many of whom have been with the company for generations. |
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REVIEW OF BUSINESS |
The directors are happy with the results. The company has had another successful year of trade. Turnover has increased from £42.5m to £43.0m and gross profits have increased from £6.0m to £6.1m. Gross profit percentage has increased from 14.0% to 14.1%. The bottom line profits before tax have increased from £542k to £587k. These results were achieved despite the Covid-19 pandemic affecting the second half of the financial year. The company operates largely in the agricultural and construction industries however which have largely continued to trade throughout the lockdown. The directors are working to maintain profit levels next year. The Directors intend to maintain their close working relationship with Claas UK and Doosan. |
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Key Performance Indicators (KPI's) |
Given the straightforward nature of the business, the directors are of the opinion that there are no additional KPI's other than the measures of turnover and gross profit reported above that are necessary for an understanding of the development, performance or position of the business. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both national and independent machinery dealers, employee retention and product availability. |
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Financial risk management |
The company's operations expose it to little in the way of financial risk. However, a variety of financial risks do exist to an extent including credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. |
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Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual is subject to a limit which can only be reassessed by a director. |
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Liquidity risk |
The company requires only limited short term debt finance to ensure there are sufficient available funds for operations. |
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Interest rate risk |
The company has interest bearing liabilities including a bank overdraft and stocking loans. The amount of interest charged on these liabilities is not sufficient to significantly affect company operations. |
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FUTURE OUTLOOK |
The COVID-19 outbreak in the UK in March 2020 presented significant challenges for all businesses in the UK. The company provides services to key industries in agriculture and construction however and continued to trade throughout the crisis with suitable precautions in place. At time of writing the lockdown restrictions have almost been removed completely and we hope to continue to trade unrestricted in future. The directors expect to report normal profits in the next financial period. There are no plans for significant expansion within the next twelve months.. |
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ON BEHALF OF THE BOARD: |
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James Gordon Limited (Registered number: SC293893) |
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Report of the Directors |
for the Year Ended 30th September 2020 |
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The directors present their report with the financial statements of the company for the year ended 30th September 2020. |
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DIVIDENDS |
An interim dividend of 33p per share was paid on 22nd November 2019. The directors recommend that no final dividend be paid. |
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The total distribution of dividends for the year ended 30th September 2020 will be £
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1st October 2019 to the date of this report. |
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Other changes in directors holding office are as follows: |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Farries, Kirk and McVean, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
James Gordon Limited |
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Opinion |
We have audited the financial statements of James Gordon Limited (the 'company') for the year ended 30th September 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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). We have audited the financial statements of James Gordon Limited (the 'company') for the year ended 30th September 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice. |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30th September 2020 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | 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 company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
James Gordon Limited |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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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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Chartered Accountants |
Statutory Auditors |
Dumfries Enterprise Park |
Heathhall |
Dumfries |
DUMFRIESSHIRE |
DG1 3SJ |
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James Gordon Limited (Registered number: SC293893) |
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Income Statement |
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for the Year Ended 30th September 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses | ( |
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596,911 | 640,790 |
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Other operating income |
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OPERATING PROFIT | 6 |
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Interest payable and similar expenses | 7 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 8 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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James Gordon Limited (Registered number: SC293893) |
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Other Comprehensive Income |
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for the Year Ended 30th September 2020 |
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2020 | 2019 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR |
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James Gordon Limited (Registered number: SC293893) |
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Balance Sheet |
30th September 2020 |
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2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 14 | ( |
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PROVISIONS FOR LIABILITIES | 18 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Capital redemption reserve | 20 |
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Retained earnings | 20 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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James Gordon Limited (Registered number: SC293893) |
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Statement of Changes in Equity |
for the Year Ended 30th September 2020 |
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Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1st October 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 30th September 2019 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30th September 2020 |
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James Gordon Limited (Registered number: SC293893) |
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Cash Flow Statement |
for the Year Ended 30th September 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Interest element of hire purchase payments paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Inter-company loan | ( |
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Stocking loan | (877,955 | ) | 1,625,931 |
Capital repayments in year | ( |
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Equity dividends paid | ( |
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Net cash from financing activities | ( |
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Increase/(decrease) in cash and cash equivalents |
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Cash and cash equivalents at beginning of year | 2 | (439,541 | ) | (239,008 | ) |
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Cash and cash equivalents at end of year | 2 | 340,051 | ( |
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James Gordon Limited (Registered number: SC293893) |
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Notes to the Cash Flow Statement |
for the Year Ended 30th September 2020 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2020 | 2019 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance costs | 127,157 | 114,845 |
967,593 | 867,455 |
Decrease/(increase) in stocks |
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Increase in trade and other debtors | ( |
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Increase/(decrease) in trade and other creditors |
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Cash generated from operations |
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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 30th September 2020 |
30.9.20 | 1.10.19 |
£ | £ |
Cash and cash equivalents | 340,051 | 1,747 |
Bank overdrafts |
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340,051 | (439,541 | ) |
Year ended 30th September 2019 |
30.9.19 | 1.10.18 |
£ | £ |
Cash and cash equivalents | 1,747 | 2,576 |
Bank overdrafts | ( |
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(439,541 | ) | (239,008 | ) |
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3. | ANALYSIS OF CHANGES IN NET DEBT |
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Other |
non-cash |
At 1.10.19 | Cash flow | changes | At 30.9.20 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 1,747 | 338,304 | 340,051 |
Bank overdrafts | (441,288 | ) | 441,288 | - |
(439,541 | ) |
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340,051 |
Debt |
Finance leases | (304,612 | ) | 239,519 | - | (338,120 | ) |
Debts falling due |
within 1 year | (1,869,608 | ) | 877,954 | - | (991,654 | ) |
(2,174,220 | ) | 1,117,473 | - | (1,329,774 | ) |
Total | (2,613,761 | ) | 1,897,065 | - | (989,723 | ) |
James Gordon Limited (Registered number: SC293893) |
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Notes to the Financial Statements |
for the Year Ended 30th September 2020 |
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1. | STATUTORY INFORMATION |
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James Gordon Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
The following represent the significant judgements and estimates in the financial statements: |
Depreciation as detailed separately in the Tangible Fixed Assets policy. |
Provision for bad debt which is calculated on a specific case by case basis. |
Provision against warranty debt which is also calculated specifically. |
Provision against both parts and machinery stock values. Machinery stock provisions are specifically calculated on individual machinery where necessary. The company provide in full against all parts stock greater than 18 months old. |
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Turnover |
Turnover represents the net invoiced sales of goods and services, excluding value added tax. The company sells agricultural machinery and supplies as well as repairing such machinery. It also sells road fuels and ancillary goods from a petrol station in Castle Kennedy. |
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The point of sale for machinery and goods is the point of supply to the customer except in some occasional cases where a special order might mean point of sale is at point of order. Repair work is invoiced on completion of the work involved to customer satisfaction. Any deposits taken are not recognised as sales but instead credited against a customer account until such times as the goods are supplied. |
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Tangible fixed assets |
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Plant and machinery | - |
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Motor vehicles | - |
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Amounts written off each asset over the estimated useful life represent cost less residual value. |
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Government grants |
The company has been in receipt of Government Grants in the form of Covid Rates Grants and also a limited amount of Job Retention Scheme income. Covid Rates Grants were recognised in full when received whilst Job Retention Scheme grants were recognised in the period to which the underlying furloughed staff costs relate. |
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Stocks |
Parts stocks, not individually identifiable, are valued on an average cost basis. Fuel stocks are valued at most recent cost price. Individual items of agricultural machinery are valued at the lower of actual cost and net realisable value. Obsolete items and slow moving items are not valued. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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James Gordon Limited (Registered number: SC293893) |
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Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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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. |
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The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company contributes to a defined contribution pension scheme. Contributions payable to the pension scheme are charged to profit or loss in the period to which they relate. |
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Financial instruments |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
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Trade debtors |
Trade debtors are amounts due from customers for the sale of goods and services performed in the ordinary course of business. |
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Trade debtors are recognised initially at the transaction price and represent the full value of the goods and services charged to customers, including any amounts charged on for third parties. |
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Trade Creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. |
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Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date they are presented as non current liabilities. |
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Borrowings |
Interest bearing borrowings are initially recorded at transaction price, net of transaction costs. Subsequently they are measured at amortised cost using the effective interest rate method, less impairment. |
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Interest expense is recognised on the basis of the effective interest rate method and is included in interest payable and similar charges. |
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Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
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Share Capital |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. |
James Gordon Limited (Registered number: SC293893) |
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Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the principal activities of the company. |
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An analysis of turnover by class of business is given below: |
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2020 | 2019 |
£ | £ |
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4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Directors | 3 | 3 |
Office and management | 9 | 7 |
Direct employees | 85 | 69 |
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5. | DIRECTORS' EMOLUMENTS |
2020 | 2019 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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6. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2020 | 2019 |
£ | £ |
Other operating leases |
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Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts |
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Profit on disposal of fixed assets | ( |
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Auditors' remuneration |
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Auditors' remuneration for non audit work |
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James Gordon Limited (Registered number: SC293893) |
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Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
|
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Bank interest |
|
|
Stocking loan interest |
|
|
Hire purchase |
|
|
|
|
|
8. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2019 - 19%). |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes |
|
( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
|
Deferred taxation | 21,574 | 13,177 |
Total tax charge | 111,577 | 102,266 |
|
9. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary shares of £1 each |
Interim |
|
|
James Gordon Limited (Registered number: SC293893) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
|
10. | TANGIBLE FIXED ASSETS |
Plant and | Motor | Computer |
machinery | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1st October 2019 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
|
( |
) |
|
( |
) |
At 30th September 2020 |
|
|
|
|
DEPRECIATION |
At 1st October 2019 |
|
|
|
|
Charge for year |
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
( |
) |
At 30th September 2020 |
|
|
|
|
NET BOOK VALUE |
At 30th September 2020 |
|
|
|
|
At 30th September 2019 |
|
|
|
|
|
As noted below, the hire purchase liabilities are secured against the assets so financed. Therefore £425,533 (2019 - £386,266) of the fixed assets are secured in such manner. |
|
In addition, as the bank hold a floating charge over the whole assets of the company, effectively all £604,283 (2019 - £574,655) of fixed assets are pledged as security for liabilities. |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st October 2019 |
|
|
|
Additions |
|
|
|
Transfer to ownership | - | (195,460 | ) | (195,460 | ) |
At 30th September 2020 |
|
|
|
DEPRECIATION |
At 1st October 2019 |
|
|
|
Charge for year |
|
|
|
Transfer to ownership | - | (121,959 | ) | (121,959 | ) |
At 30th September 2020 |
|
|
|
NET BOOK VALUE |
At 30th September 2020 |
|
|
|
At 30th September 2019 |
|
|
|
James Gordon Limited (Registered number: SC293893) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
|
11. | STOCKS |
2020 | 2019 |
£ | £ |
Spares & accessories |
|
|
Filling station stock | 56,575 | 48,457 |
Work-in-progress |
|
|
Agricultural machinery |
|
|
|
|
|
At the year end the company held no Consignment Stock of agricultural machinery (2019 - £Nil). The value of this stock is not included within either the assets or liabilities of the company as it remains an asset of the manufacturer rather than the company. Such stocks may eventually be purchased by the company but they are not committed to doing so and do not bear the risk of obsolescence on the items. |
|
At the year end the directors have recognised £473,803 of impairment losses against stock (2019 - £649,889) in line with their policy for stock valuation which includes providing in full for all parts stock over 18 months old, writing back new machinery stock by 2% for every six month period held in stock and used machinery stocks to their net realisable value where cost is deemed to be higher than that. |
|
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Prepayments |
|
|
|
|
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 15) |
|
|
Other loans (see note 15) |
|
|
Hire purchase contracts (see note 16) |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
VAT | 1,475,355 | 536,322 |
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2020 | 2019 |
£ | £ |
Hire purchase contracts (see note 16) |
|
|
|
15. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
Stocking loans | 991,654 | 1,869,608 |
|
|
James Gordon Limited (Registered number: SC293893) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
|
16. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating | leases |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
The original lease the company signed with respect to property expired on 30 September 2011, after which time it is renewed annually by 'tacit relocation' for a period of three years at a time until such time as a notice of termination is given. Rent reviews take place every three years from September 2011. |
|
17. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank overdraft |
|
|
Stocking loans |
|
|
Hire purchase contracts | 338,120 | 304,612 |
|
|
|
The bank overdraft is secured by means of a Bond and Floating Charge over the whole assets of the company. |
|
The bank overdraft is also secured by means of a guarantee given by the holding company, Montgomerie Holdings Limited, and on property owned by that company. |
|
The stocking loans are secured upon the specific assets included in the stocking plans. |
|
The hire purchase creditors are secured on the assets on which the finance is actually outstanding. |
|
18. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax | 72,618 | 51,044 |
|
Deferred |
tax |
£ |
Balance at 1st October 2019 |
|
Provided during year |
|
Balance at 30th September 2020 |
|
James Gordon Limited (Registered number: SC293893) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30th September 2020 |
|
18. | PROVISIONS FOR LIABILITIES - continued |
|
The provision for deferred taxation arises as a result of accelerated capital allowances. |
|
19. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 390,000 | 390,000 |
|
20. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
|
At 1st October 2019 |
|
|
4,612,114 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 30th September 2020 |
|
|
4,959,081 |
|
Called up share capital represents the nominal value of shares that have been issued. |
|
Capital redemption reserve represent the value of capital redeemed out of distributable profits. |
|
Retained earnings includes all current and prior period retained profits and losses. |
|
21. | ULTIMATE PARENT COMPANY |
|
The company is a subsidiary of Montgomerie Holdings Limited which has its Registered Office at the same address as James Gordon Limited. |
|
Copies of the consolidated group financial statements can be obtained from Companies House. |
|
22. | RELATED PARTY DISCLOSURES |
|
|
2020 | 2019 |
£ | £ |
Rent payable | 159,600 | 159,600 |
Amount due from related party |
|
|
|
23. | POST BALANCE SHEET EVENTS |
|
Subsequent to the financial year end the company has continued to trade on a relatively normal basis despite the ongoing Covid-19 pandemic. The directors do not expect the pandemic to have any significant effect on next year's financial figures. |