Caseware UK (AP4) 2021.0.152 2021.0.152 2021-12-312021-12-31250Wholesale trade of motor vehicle parts & accessoriestruetruetruefalsetrue2712021-01-01false 01030722 2021-01-01 2021-12-31 01030722 2020-01-01 2020-12-31 01030722 2021-12-31 01030722 2020-12-31 01030722 2020-01-01 01030722 1 2021-01-01 2021-12-31 01030722 1 2020-01-01 2020-12-31 01030722 d:Director1 2021-01-01 2021-12-31 01030722 d:Director2 2021-01-01 2021-12-31 01030722 d:Director3 2021-01-01 2021-12-31 01030722 d:RegisteredOffice 2021-01-01 2021-12-31 01030722 e:Buildings e:LongLeaseholdAssets 2021-01-01 2021-12-31 01030722 e:Buildings e:LongLeaseholdAssets 2021-12-31 01030722 e:Buildings e:LongLeaseholdAssets 2020-12-31 01030722 e:LandBuildings 2021-12-31 01030722 e:LandBuildings 2020-12-31 01030722 e:PlantMachinery 2021-01-01 2021-12-31 01030722 e:PlantMachinery 2021-12-31 01030722 e:PlantMachinery 2020-12-31 01030722 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 01030722 e:MotorVehicles 2021-01-01 2021-12-31 01030722 e:MotorVehicles 2021-12-31 01030722 e:MotorVehicles 2020-12-31 01030722 e:MotorVehicles e:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 01030722 e:FurnitureFittings 2021-01-01 2021-12-31 01030722 e:FurnitureFittings 2021-12-31 01030722 e:FurnitureFittings 2020-12-31 01030722 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 01030722 e:OtherPropertyPlantEquipment 2021-01-01 2021-12-31 01030722 e:OtherPropertyPlantEquipment 2021-12-31 01030722 e:OtherPropertyPlantEquipment 2020-12-31 01030722 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 01030722 e:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 01030722 e:CurrentFinancialInstruments 2021-12-31 01030722 e:CurrentFinancialInstruments 2020-12-31 01030722 e:CurrentFinancialInstruments 1 2021-12-31 01030722 e:CurrentFinancialInstruments 1 2020-12-31 01030722 e:Non-currentFinancialInstruments 2021-12-31 01030722 e:Non-currentFinancialInstruments 2020-12-31 01030722 e:Non-currentFinancialInstruments 1 2021-12-31 01030722 e:Non-currentFinancialInstruments 1 2020-12-31 01030722 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 01030722 e:CurrentFinancialInstruments e:WithinOneYear 2020-12-31 01030722 e:Non-currentFinancialInstruments e:AfterOneYear 2021-12-31 01030722 e:Non-currentFinancialInstruments e:AfterOneYear 2020-12-31 01030722 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2021-12-31 01030722 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2020-12-31 01030722 e:UKTax 2021-01-01 2021-12-31 01030722 e:UKTax 2020-01-01 2020-12-31 01030722 e:ShareCapital 2021-01-01 2021-12-31 01030722 e:ShareCapital 2021-12-31 01030722 e:ShareCapital 2020-01-01 2020-12-31 01030722 e:ShareCapital 2020-12-31 01030722 e:ShareCapital 2020-01-01 01030722 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 01030722 e:RetainedEarningsAccumulatedLosses 2021-12-31 01030722 e:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 01030722 e:RetainedEarningsAccumulatedLosses 2020-12-31 01030722 e:RetainedEarningsAccumulatedLosses 2020-01-01 01030722 e:AcceleratedTaxDepreciationDeferredTax 2021-12-31 01030722 e:AcceleratedTaxDepreciationDeferredTax 2020-12-31 01030722 d:OrdinaryShareClass1 2021-01-01 2021-12-31 01030722 d:OrdinaryShareClass1 2021-12-31 01030722 d:OrdinaryShareClass1 2020-12-31 01030722 d:PreferenceShareClass1 2021-01-01 2021-12-31 01030722 d:PreferenceShareClass1 2021-12-31 01030722 d:PreferenceShareClass1 2020-12-31 01030722 d:PreferenceShareClass2 2021-01-01 2021-12-31 01030722 d:PreferenceShareClass2 2021-12-31 01030722 d:PreferenceShareClass2 2020-12-31 01030722 d:FRS102 2021-01-01 2021-12-31 01030722 d:Audited 2021-01-01 2021-12-31 01030722 d:FullAccounts 2021-01-01 2021-12-31 01030722 d:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 01030722 e:WithinOneYear 2021-12-31 01030722 e:WithinOneYear 2020-12-31 01030722 e:BetweenOneFiveYears 2021-12-31 01030722 e:BetweenOneFiveYears 2020-12-31 01030722 e:MoreThanFiveYears 2021-12-31 01030722 e:MoreThanFiveYears 2020-12-31 01030722 2 2021-01-01 2021-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01030722









L. BENNETT & SON LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

 
L. BENNETT & SON LIMITED
 
 
COMPANY INFORMATION


Directors
J L Bennett 
M A Bennett 
S A King 




Registered number
01030722



Registered office
3 Prime Point
Bessemer Road

Welwyn Garden City

Hertfordshire

AL7 1HU




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
L. BENNETT & SON LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3
Directors' Responsibilities Statement
 
4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 26

 
L. BENNETT & SON LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction
 
The company sells motor accessories and parts to the general public and other traders.

Business review
 
The directors are pleased with the current year’s trading results, considering the testing conditions across the industry brought on by the Covid-19 pandemic. 
As a result of the reduced Covid-19 restrictions in place during the year, the subsidiary branches were able to remain open, which had a positive impact on turnover. 
The company was able to successfully launch branches in Enfield and Park Royal and the directors continue to search for new locations to facilitate further expansion.

Principal risks and uncertainties
 
The principal risks associated with the company's trade are anticipation of consumer demands throughout the year and the related levels of stocks to hold, availability of adequate finance, the state of the general economy and business confidence.
The directors acknowledge the importance of maintaining close relationships with key customers in order to be able to identify the early signs of potential financial difficulties. Sales and stock trends are constantly reviewed to enable early action to be taken in the event of sales declining and stock orders deteriorating.
Treasury Operations And Financial Instruments
The company's principal financial instruments include bank accounts, bank loans and other financing facilities to raise finance for the company's operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity Risk
The company manages its cash requirements in order to minimise interest expense, whilst ensuring the
company has sufficient liquid resources to meet the operational needs of the business.
Credit Risk
Borrowings are made through the banks and companies which must fulfil credit rating criteria approved by the
board. The company uses a debt factoring facility for managing its cashflow.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are
reviewed on a regular basis and provision is made for doubtful debts when necessary.
 
Page 1

 
L. BENNETT & SON LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


Price Risk
Expenditure incurred by the company is authorised prior to it being made by the management in order to ensure
that goods and services are not obtained at a higher price than necessary.

Financial key performance indicators
 
The company's key performance indicators are turnover, gross profit, gross profit percentage, stock levels and funding availabilities. 


This report was approved by the board on 8 August 2022 and signed on its behalf.



J L Bennett
Director
Page 2

 
L. BENNETT & SON LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements for the year ended 31 December 2021.

Results and dividends

The profit for the year, after taxation, amounted to £3,166,566 (2020 - £2,721,966).

During the year, an interim dividend of £2,000,000 (2020: £1,000,000) was paid. The directors do not recommend a final dividend.

Directors

The directors who served during the year were:

J L Bennett 
M A Bennett 
S A King 

Future developments

The directors continue to actively search for new locations to facilitate expansion and open new branches. This is whilst investing in existing branches to maintain turnover levels.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 August 2022 and signed on its behalf.
 





J L Bennett
Director
Page 3

 
L. BENNETT & SON LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 
L. BENNETT & SON LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF L. BENNETT & SON LIMITED
 

Opinion


We have audited the financial statements of L. Bennett & Son Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2021 and of its profit for the 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.


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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
L. BENNETT & SON LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF L. BENNETT & SON LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
L. BENNETT & SON LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF L. BENNETT & SON LIMITED (CONTINUED)


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 an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:
 - Had a direct effect on the determination of material amounts and disclosures in the financial statements.     These include the UK Companies Act and tax legislation etc; and 
 - Do not have a direct effect on the financial statements but compliance with which may be fundamental to     the company's ability to operate. 
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur.  Audit procedures performed by the audit engagement team include: 
 - Identifying and testing journal entries, in particular any unusual journal entries posted around the year      end and journal entries with no descriptions
 - Assessing the extent of compliance with the relevant laws and regulations
 - Identifying and assessing the design effectiveness of controls management has in place to prevent and     detect fraud.
 - Challenging assumptions and judgements made by management in significant accounting estimates;      and
 - Carrying out a review of large and unusual bank transactions 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 7

 
L. BENNETT & SON LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF L. BENNETT & SON LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Christina Georgiou (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

8 August 2022
Page 8

 
L. BENNETT & SON LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
£
£

  

Turnover
 4 
29,793,089
22,722,282

Cost of sales
  
(14,438,542)
(10,978,417)

Gross profit
  
15,354,547
11,743,865

Administrative expenses
  
(11,557,000)
(9,603,502)

Other operating income
 5 
226,644
1,251,086

Operating profit
 6 
4,024,191
3,391,449

Interest receivable and similar income
 10 
7,145
4,510

Interest payable and similar expenses
 11 
(66,853)
(29,172)

Profit before tax
  
3,964,483
3,366,787

Tax on profit
 12 
(797,917)
(644,821)

Profit for the financial year
  
3,166,566
2,721,966

There were no recognised gains and losses for 2021 or 2020 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 12 to 26 form part of these financial statements.
Page 9

 
L. BENNETT & SON LIMITED
REGISTERED NUMBER: 01030722

BALANCE SHEET
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Tangible assets
 14 
1,820,804
1,600,782

  
1,820,804
1,600,782

Current assets
  

Stocks
 15 
5,921,203
4,626,373

Debtors: amounts falling due within one year
 16 
6,225,384
6,453,521

Cash at bank and in hand
 17 
158,944
77,930

  
12,305,531
11,157,824

Creditors: amounts falling due within one year
 18 
(6,926,962)
(6,693,503)

Net current assets
  
 
 
5,378,569
 
 
4,464,321

Total assets less current liabilities
  
7,199,373
6,065,103

Creditors: amounts falling due after more than one year
 19 
(360,000)
(501,477)

Provisions for liabilities
  

Deferred tax
 21 
(237,356)
(128,175)

  
 
 
(237,356)
 
 
(128,175)

Net assets
  
6,602,017
5,435,451


Capital and reserves
  

Called up share capital 
 22 
2,367
2,367

Profit and loss account
 23 
6,599,650
5,433,084

  
6,602,017
5,435,451


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 August 2022.




J L Bennett
Director

The notes on pages 12 to 26 form part of these financial statements.
Page 10

 
L. BENNETT & SON LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
2,367
5,433,084
5,435,451


Comprehensive income for the year

Profit for the year
-
3,166,566
3,166,566
Total comprehensive income for the year
-
3,166,566
3,166,566

Dividends: Equity capital
-
(2,000,000)
(2,000,000)


Total transactions with owners
-
(2,000,000)
(2,000,000)


At 31 December 2021
2,367
6,599,650
6,602,017



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2020
2,367
3,711,118
3,713,485


Comprehensive income for the year

Profit for the year
-
2,721,966
2,721,966
Total comprehensive income for the year
-
2,721,966
2,721,966

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


Total transactions with owners
-
(1,000,000)
(1,000,000)


At 31 December 2020
2,367
5,433,084
5,435,451


The notes on pages 12 to 26 form part of these financial statements.
Page 11

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

L Bennett & Son Limited is a private company, limited by shares and incorporated in England & Wales, United Kingdom, with a registration number 01030722.  The address of the registered office is 3 Prime Point, Bessemer Road, Welwyn Garden City, Herts, AL7 1HU.
The nature of the companys operations and principal activities are the sale of motor accessories and parts to the general public and other traders.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of L Bennett & Son Holdings as at 31st December 2021 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue is recognised upon delivery of the goods. 

Page 12

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.4

Operating leases: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets.  Assets acquired by finance leases are depreciated over the shorter of the lease term and their useful lives.  Assets acquired by hire purchase are depreciated over their useful lives.  Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods.  The finance element of the rental payment is charged to profit and loss so as to produce constant periodic rate of charge on the net obligation oustanding in each period. 

 
2.5

Government grants

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following basis.

Depreciation is provided on the following basis:

Plant and machinery
-
33%
Reducing balance
Motor vehicles
-
33%
Straight line
Fixtures and fittings
-
15%
Reducing balance
Other fixed assets
-
15%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 15

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates
and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements,
estimates and assumptions are based on the best and most reliable evidence available at the time when
the decisions are made, and are based on historical experience and other factors that are considered to
be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and
assumptions, the actual results and outcomes may differ.
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, if the revision affects only that
period, or in the period of the revision and future periods, if the revision affects both current and future
periods.
The directors do not believe that there have been judgements (apart from those involving estimates) made
in the process of applying the above accounting policies that have had a significant effect on amounts
recognised in the financial statements.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2021
2020
£
£

Net rents receivable
81,619
68,888

Government grants receivable
145,025
1,182,198

226,644
1,251,086



6.


Operating profit

The operating profit is stated after charging:

2021
2020
£
£

Depreciation of tangible fixed assets
274,165
229,621

Auditors remuneration
28,500
23,500

Other operating lease rentals
1,054,852
913,791

Defined contribution pension costs
229,595
185,586

Page 16

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

7.


Auditors' remuneration

2021
2020
£
£


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
28,500
23,500


The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2021
2020
£
£

Wages and salaries
6,708,472
5,537,904

Social security costs
525,760
435,689

Cost of defined contribution scheme
229,595
185,586

7,463,827
6,159,179


The average monthly number of employees, including the directors, during the year was as follows:


        2021
        2020
            No.
            No.







Administration
28
20



Selling
243
230

271
250


9.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
152,701
162,154

Company contributions to defined contribution pension schemes
3,813
1,200

156,514
163,354


During the year retirement benefits were accruing to 2 directors (2020 - 2) in respect of defined contribution pension schemes.

Page 17

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

10.


Interest receivable

2021
2020
£
£


Other interest receivable
7,145
4,510

7,145
4,510


11.


Interest payable and similar expenses

2021
2020
£
£


Bank interest payable
-
140

Other loan interest payable
66,853
29,032

66,853
29,172


12.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
688,736
635,646


688,736
635,646


Total current tax
688,736
635,646

Deferred tax


Origination and reversal of timing differences
52,216
9,175

Changes to tax rates
56,965
-

Total deferred tax
109,181
9,175


Taxation on profit on ordinary activities
797,917
644,821
Page 18

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2020 - higher than) the standard rate of corporation tax in the UK of 19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Profit on ordinary activities before tax
3,964,482
3,366,786


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
753,252
639,689

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
8,254
3,398

Short-term timing difference leading to an increase (decrease) in taxation
(1,431)
-

Non-taxable income
(19,123)
-

Other differences leading to an increase (decrease) in the tax charge
56,965
1,734

Total tax charge for the year
797,917
644,821


Factors that may affect future tax charges

During March 2021 the UK chancellor announced an expected change to the UK’s main  corporation tax rates from 19% to 25% which was subsequently enacted into the Finance Act in June 2021. The main rate will increase to 25% from 1 April 2023 and will impact the corporation tax provision of the Company from that date. The deferred tax provision has been adjusted in these financial statements in recognition of this change. 


13.


Dividends

2021
2020
£
£


Ordinary shares
2,000,000
1,000,000

2,000,000
1,000,000
Page 19

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

14.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£



Cost or valuation


At 1 January 2021
637,897
355,732
718,933
1,765,344


Additions
-
41,694
260,366
198,524


Disposals
-
(67,129)
(41,690)
-


Transfers between classes
-
-
-
74,998



At 31 December 2021

637,897
330,297
937,609
2,038,866



Depreciation


At 1 January 2021
-
292,079
591,559
1,044,512


Charge for the year on owned assets
-
29,803
116,202
120,506


Disposals
-
(67,058)
(35,365)
-


Transfers between classes
-
-
-
31,627



At 31 December 2021

-
254,824
672,396
1,196,645



Net book value



At 31 December 2021
637,897
75,473
265,213
842,221



At 31 December 2020
637,897
63,653
127,374
720,832
Page 20

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

           14.Tangible fixed assets (continued)


Other fixed assets
Total

£
£



Cost or valuation


At 1 January 2021
74,998
3,552,904


Additions
-
500,584


Disposals
-
(108,819)


Transfers between classes
(74,998)
-



At 31 December 2021

-
3,944,669



Depreciation


At 1 January 2021
23,973
1,952,123


Charge for the year on owned assets
7,654
274,165


Disposals
-
(102,423)


Transfers between classes
(31,627)
-



At 31 December 2021

-
2,123,865



Net book value



At 31 December 2021
-
1,820,804



At 31 December 2020
51,026
1,600,782
Page 21

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

           14.Tangible fixed assets (continued)





The net book value of land and buildings may be further analysed as follows:


2021
2020
£
£

Long leasehold
637,897
637,897

637,897
637,897



15.


Stocks

2021
2020
£
£

Finished goods and goods for resale
5,921,203
4,626,373

5,921,203
4,626,373



16.


Debtors

2021
2020
£
£


Trade debtors
3,654,995
3,518,274

Amounts owed by group undertakings
1,354,002
1,194,280

Other debtors
996,637
1,593,784

Prepayments and accrued income
219,750
147,183

6,225,384
6,453,521



17.


Cash and cash equivalents

2021
2020
£
£

Cash at bank and in hand
158,944
77,930

158,944
77,930


Page 22

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Creditors: Amounts falling due within one year

2021
2020
£
£

Bank loans
145,997
1,312,019

Trade creditors
3,045,959
2,721,430

Corporation tax
305,930
355,740

Other taxation and social security
739,669
537,903

Proceeds of factored debts
1,887,662
1,076,542

Other creditors
547,080
581,593

Accruals and deferred income
254,665
108,276

6,926,962
6,693,503


Disclosure of the terms and conditions attached to the non-equity shares is made in note 22.

The proceeds of factored debts liability is owing in respect of a debtor financing arrangement and is secured on the trade debts of the company. 
The bank facilities are secured by a debenture and a cross guarantee with its parent company, and a legal charge in favour of the bank.


19.


Creditors: Amounts falling due after more than one year

2021
2020
£
£

Bank loans
-
141,477

Share capital treated as debt
360,000
360,000

360,000
501,477


Page 23

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

20.


Loans


Analysis of the maturity of loans is given below:


2021
2020
£
£

Amounts falling due within one year

Bank loans
145,997
1,312,019


145,997
1,312,019


Amounts falling due 2-5 years

Bank loans
-
141,477


-
141,477


145,997
1,453,496



21.


Deferred taxation




2021


£






At beginning of year
(128,175)


Charged to profit or loss
(109,181)



At end of year
(237,356)

The provision for deferred taxation is made up as follows:

2021
2020
£
£


Accelerated capital allowances
(237,356)
(128,175)

(237,356)
(128,175)

Page 24

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

22.


Share capital

2021
2020
£
£
Shares classified as equity

Allotted, called up and fully paid



2,367 (2020 - 2,367) Ordinary shares of £1.00 each
2,367
2,367

2021
2020
£
£
Shares classified as debt

Allotted, called up and fully paid



306,000 (2020 - 306,000) "A" Redeemable preference shares shares of £1.00 each
306,000
306,000
54,000 (2020 - 54,000) "B" Redeemable preference shares shares of £1.00 each
54,000
54,000

360,000

360,000


The redeemable preference shares which are classified as a liability are redeemable at the option of the company.  No premium is payable on redemption.


23.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


24.


Pension commitments

The Company operates a defined contributions pension scheme.  The assets of the scheme are held separately from those of the Company in an independently administered fund.  The pension cost charge represents contributions payable by the Company to the fund and amounted to £229,595 (2020: £185,856).  Contributions totalling £20,440 (2020: £21,935) were payable to the fund at the balance sheet date and are included in creditors. 

Page 25

 
L. BENNETT & SON LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

25.


Commitments under operating leases

At 31 December 2021 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2021
2020
£
£


Not later than 1 year
708,061
734,562

Later than 1 year and not later than 5 years
2,134,275
2,641,532

Later than 5 years
370,915
573,886

3,213,251
3,949,980


26.


Transactions with directors

At the year end, £832,201 (2020: £951,433) was due from the directors of the company. Interest of £7,145 (2020: £4,510) has been charged on the loan. The balances outstanding from the directors have been cleared post year end. 


27.


Related party transactions

The company is a subsidiary of L Bennett & Sons Holdings Limited, and the holding company exerts
significant influence over this entity. During the year, a dividend of £2,000,000 (2020: £1,000,000) was paid.
During the year transactions with the following related parties outside of the group occurred:
Other related parties
The company rents properties from these entities for which rents of £171,700 (2020: £171,700) were
charged for the year.
At the year-end the following amounts were due from / (to) related parties.


2021
2020
£
£

Key management personnel
832,201
951,433
Entities with significant influence
1,354,002
1,194,280
2,186,203
2,145,713


28.


Controlling party

The ultimate parent company is L Bennett & Son Holdings Limited, a company incorporated in England.
The ultimate controlling party is the Bennett family.
 
Page 26