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REPORT OF THE DIRECTORS AND |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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2PURE LIMITED |
REGISTERED NUMBER:
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REPORT OF THE DIRECTORS AND |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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FOR |
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2PURE LIMITED |
2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2021 |
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Report of the Directors | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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REVIEW OF BUSINESS |
The general market conditions for our sector remained difficult throughout the year due to the overall economic conditions, the remaining impact of the Covid-19 pandemic, the uncertainty caused by the UK's exit from the European Union at the start of 2021 and the prevailing global issues. The Directors actively manage the company on a day-to-day basis to take account of changes in market conditions and interventions to maintain the profitability of the business. |
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The Company continues to operate as a multi-channel distribution business with a customer base in the Cycle, Run, Outdoor and Lifestyle sectors, reducing the reliance on any single channel whilst increasing the opportunities and our attractiveness as a partner for new brands and customers. |
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The Company has continued to invest in its operational and financial systems, staff development and brand portfolio to ensure the business is positioned in the future to take advantage of market opportunities. The Company is continuing to invest in the development of its digital and e-commerce strategy during the current year. |
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The Directors are delighted to report that the Company has remained profitable in 2021, despite the difficult prevailing economic conditions and major disruption caused by both the Covid-19 pandemic and Brexit. Our investment in digital channels has continued to improve sales, overall margin and the service we can offer customers and suppliers. Further investment has been made in tools, resource and specialist digital skills to support the digital services, which has resonated with both our suppliers and customers and created opportunities to acquire new brand partners. |
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The Directors believe that the investments made in the past 4 years provide a solid foundation, both financial and operational, to better enable the business to adapt to challenges and opportunities going forward and remain confident of maintaining sales growth and profitability in the current financial year. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
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DIRECTORS' INSURANCE AND INDEMNITIES |
The directors have the benefit of the indemnity provisions contained in the company's Articles of Association, and the company has maintained throughout the year directors' and officers' liability insurance for the benefit of the company, the directors and its officers. |
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This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
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ON BEHALF OF THE BOARD: |
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2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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BALANCE SHEET |
31 December 2021 |
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31.12.21 | 31.12.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 6 |
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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 |
7 |
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PROVISIONS FOR LIABILITIES | 10 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Share premium |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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BALANCE SHEET - continued |
31 December 2021 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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2Pure Limited is a
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Registered number: |
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Registered office: |
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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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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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Tangible fixed assets |
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Plant and machinery etc | - |
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The directors undertake an impairment review of tangible fixed assets where there is an indication of impairment. |
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Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability |
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The company received grants in relation to the Coronavirus Job Retention Scheme which is accounted as a revenue grant. |
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The company also benefited from the 80% government guarantee in respect of the loan received under the Coronavirus Business Interruption Loan Scheme and the initial interest support provided by the government to cover the first twelve months of interest. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Basic financial instruments |
Short term debtors are measured at transaction price less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Short term creditors are measured at transaction price. Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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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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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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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling using exchange rates as determined by the board. The exchange rates applied to transactions throughout the year were US$1.30 and €1.105. The normal basis for dealing with foreign currency transactions is to either use the rate of exchange ruling at the date of transaction or by using a fixed average rate which is regularly reviewed and updated. The balance reflected as exchange differences in these accounts will therefore be different from that used under the normal accounting basis. The board do not consider that this impacts on the true and fair view. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
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 operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2021 |
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4. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
etc |
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COST |
At 1 January 2021 |
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Additions |
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At 31 December 2021 |
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DEPRECIATION |
At 1 January 2021 |
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Charge for year |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Trade debtors |
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Other debtors |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Included within bank facilities is a trading loan balance of £575,781 (2020 - £687,291) which is renewable on a 180 day basis. |
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Included within other creditors is a loan of £500,000 (2020 - £500,000). The loan is secured and bears interest at varying rate and although there are no formal terms for repayment, the directors do not anticipate the repayment of the loan being required in the next twelve months. |
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Included within other creditors are pension contributions of £4,397 (2020 - £4,793) in respect of the company's auto enrolment pension scheme together with £43,500 (2020 - £nil) in respect of director's pension contributions approved by the board and due for payment in full for the year ended 31 December 2021. |
2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2021 |
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7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Bank loans |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loans more 5 yr by instal | - | 106,667 |
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A bank loan of £800,000 was advanced under the Coronavirus Business Interruption Loan Scheme in August 2020 with monthly repayments over a five year term commencing from September 2021. The interest charge for the first twelve months will be covered by government assistance and reflected as both grant income and loan interest expense in the financial statements. |
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8. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.21 | 31.12.20 |
£ | £ |
Within one year |
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Between one and five years |
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9. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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31.12.21 | 31.12.20 |
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Bank overdraft |
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Other loans |
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Bank loans | 575,781 | 687,291 |
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The balance due on the invoice discounting agreement at 31 December 2021 was £530,464 (2020 - in funds). |
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The bank facilities are, with the exception of a loan balance of £746,667 advanced under the Coronavirus Business Interruption Loan Scheme (whereby the government provides 80% security and certain of the directors provide a personal guarantee for the balance), secured by prior ranking bond and floating charge over all the assets of the company. |
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The other loan is secured by a second ranking floating charge. |
2PURE LIMITED (REGISTERED NUMBER: SC298940) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2021 |
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10. | PROVISIONS FOR LIABILITIES |
31.12.21 | 31.12.20 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
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Other timing differences | ( |
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4,085 | 3,420 |
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Deferred |
tax |
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Balance at 1 January 2021 |
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Pension contributions accrued | (8,265 | ) |
Capital allowances in advance |
of depreciation | 8,930 |
Balance at 31 December 2021 |
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11. | RELATED PARTY DISCLOSURES |
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Remuneration paid to the directors (including pension contributions) amounted to £105,819 (2020 - £117,371). In addition, £nil (2020 - £30,000) was paid to a director in respect of compensation for loss of employment income. One director also received payment by way of consultancy fees of £36,000 (2020 - £7,000). |
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Coralinn LLP, a business holding 49% (2020 - 49%) of the share capital by way of Ordinary B shares, has invested £500,000 (2020 - £500,000) by way of loan finance. The loan is secured by a second ranking floating charge and bears interest at 10% pa (2020 - variable) with £50,000 (2020 - £66,904) interest charged for the year. The company operates an inter-business loan account with Coralinn LLP and an amount of £3,491(2020 - £1,491) is included in other creditors. The loan has no formal terms for repayment, although the directors do not anticipate the repayment of the loan being required in the next twelve months. |