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Eurostation Holdings Limited

Registered number: 11574848
Annual report and
 consolidated financial statements
For the year ended 31 December 2021

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Amanda Lewis 
Richard Shonn 
Steven Shonn 




Registered number
11574848



Registered office
The Old School House
39 Bengal Street

Manchester

Manchester

M4 6AF




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

One St Peters Square

Manchester

M2 3DE





 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Independent Auditor's Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Statement of Financial Position
 
11 - 12
Company Statement of Financial Position
 
13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15
Consolidated Statement of Cash Flows
 
16 - 17
Notes to the Financial Statements
 
18 - 39


 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

Introduction
 
The principal activity of the Group continues to be that of wholesaling branded domestic products.

Business review
 
The Group had an extraordinary year in 2020 as it traded exceptionally well through the Covid-19 pandemic. In 2021 we saw trade move back towards pre Covid levels and as such, the Group has seen a 9.2% reduction in sales compared to 2020 but a growth of 28% when compared to 2019. Gross margin remained consistent in 2021 at 24.1% compared to 24.0% in the previous year.
The directors continue to monitor the distribution and administration costs to ensure the Group remains profitable.
The Group retains a strong balance sheet with £15m in reserves at the year end. The Company will continue to see future growth and sustained profitability levels in future years.

Principal risks and uncertainties
 
The business is impacted by the performance of the retail sector but, where risks can be identified, they have been addressed and actions taken where possible to control them.
Fluctuations in currency continue to affect the group’s trading and any devaluation of Sterling poses a challenge to the business. The business reduces this risk by entering into forward contract currency deals.
Whilst risk and uncertainty in the market is still present, the directors feel that the group is well positioned to build on this year’s results and will continue to trade well in future years.

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172(1) Statement
The Companies (Miscellaneous Reporting) Regulations 2018, requires Directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006, when performing their duty to promote the success of the Company and the Group under S172. This S172 statement explains how, during the financial year, group Directors:
• have engaged with employees, suppliers, customers & others
• have maintained the company and the groups reputation for good business conduct
• have acted fairly for all shareholders whilst having regard to other stakeholders
S172(1) (A) – The likely consequences of any decision in the long term
The Directors understand the business and environment in which we operate, including the challenges faced by the UK & European retail sector.  The strategy set by the board is intended to strengthen our position as a wholesaler of high-quality domestic household products at competitive prices.
To achieve our strategic ambitions, the board have continued to develop relationships with suppliers and customers to communicate our strategy, ensuring our goals are understood and achievable. 
The Directors recognise how our goals are viewed by our stakeholders and have taken decisions they believe best support strategic objectives.
S172(1) (B) – The interests of the company’s employees
The Directors recognise that its employees are core to the business and play a huge part in the delivery of our strategic goals. The success of our business depends on attracting and retaining employees and keeping them motivated. The Directors understand that we must be a responsible employee from pay and benefits to health and safety in the workplace. The directors consider the implications of decisions on employees and the wider
- 1 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

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

workforce where relevant and feasible.
S172(1) (C) – The need to foster the company’s business relationships with suppliers, customers and others
Delivering our strategy requires mutually beneficial relationships with suppliers & customers. The board continuously reviews and approves the approach to suppliers and assesses customer related priorities and with whom we do business with. The board communicates with the business on these matters by way of business updates.
S172(1) (D) – The impact of the company’s operations on the community and the environment
The Directors are aware of the growing importance of environmental sustainability & preservation. The board understand that we must act responsibly in this regard in our day to day business activities.  The board will discuss any environmental issues with their senior management team as and when required.
S172(1) E – The desirability of the company maintaining a reputation for high standards of business conduct
This aspect has always been inherent within the values & the strategic ambitions of the company. The Directors periodically review and approve the company frameworks such as employee handbook, Statements of Operating Procedures & Modern Slavery Statements. This is to ensure that high standards are maintained within the company and other business relationships. The board is informed of any key changes to relevant compliances and take these into consideration during the review process.
S172(1) F – The need to act fairly as between members of the company
The Directors will make decisions in line with company and the group strategy whilst taking into consideration the impact on stakeholders. In doing so they act fairly as between the members of the company.

Future Developments

The Group has a combination of funding lines in place which are regularly reviewed to ensure there is sufficient headroom available to meet all working capital requirements.
The directors consider the Group to be well positioned to continue the current level of performance into the future.


This report was approved by the board on 23 August 2022 and signed on its behalf.



R L Shonn
Director

- 2 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS 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.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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


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

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £2,865,922 (2020 - £3,714,389).

The Company declared dividends of £278,458 during the year.

Directors

The directors who served during the year were:

Amanda Lewis 
Daniel Shonn (resigned 2 March 2021)
Richard Shonn 
Steven Shonn 

- 3 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021

Streamlined Energy and Carbon Report (SECR)

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (‘2018 Regulations’ or ‘SECR Requirements’) require businesses to report on their energy use and GHG emissions. This SECR shows the data required and explains the Company’s approach to environmental issues.

UK Energy use in 2021:
                                                                  GHG CO2e
Electricity (kWh)                        699,163            302
Gas (kWh)                                 243,696           105
Diesel (Gal)                                 65,281            580
Total                                                                  987
  
Tonnes of CO2e per sales revenue  0.0000156 
As a group we are always monitoring ways to reduce our carbon footprint. We have made changes to the lighting in our head office by switching to LED along with plans to install motion sensor lighting where appropriate.
We have increased the number of fully electric and hybrid cars within our company fleet and offer on-site electric vehicle charging points.
The majority of our CO2e comes from diesel consumption by our commercial fleet of HGV’s. During the year we have replaced some of these vehicles with newer models with lower CO2 emissions and improved fuel consumption rates. This will be continued with the remaining vehicles in the commercial fleet when the leases come up for renewal.
The Company actively encourages staff to recycle all paper and plastics wherever possible and has contracts in place for the collection of all recyclable waste from site.
The Company is a signatory of the international Association for Soaps, Detergents and Maintenance Products (AISE) Charter for Sustainable Cleaning. The Company complies with all appropriate waste packaging and electrical and electronic regulations and aims to record the packaging weight of all our products with a view to identifying ways in which to minimize packaging and make continuous improvement in the management of its environmental impact.


- 4 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


Disclosure of information to auditor

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 and the Group's auditor is 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 and the Group's auditor is aware of that information.

Post balance sheet events

On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.

Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 23 August 2022 and signed on its behalf.
 





Richard Shonn
Director

- 5 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROSTATION HOLDINGS LIMITED
 

Opinion

We have audited the financial statements of Eurostation Holdings Limited (the ‘Parent Company’) and its subsidiaries (the 'Group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Positions, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group and Parent Company’s affairs as at 31 December 2021 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 Group's and Parent 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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s 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.
- 6 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROSTATION HOLDINGS LIMITED
 

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.

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 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 light of the knowledge and understanding of the Group and Parent 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

- 7 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROSTATION HOLDINGS LIMITED
 

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 Group's and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend either to liquidate the Group or Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Group and Parent Company and their industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and Parent Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and Parent Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions.
- 8 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROSTATION HOLDINGS LIMITED
 

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.




Neil Barton (Senior Statutory Auditor)

  
for and on behalf of

Mazars LLP
Chartered Accountants and Statutory Auditor 
One St Peters Square
Manchester
M2 3DE



26 August 2022
- 9 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
Note
 £
£

  

Turnover
 4 
63,438,524
69,929,426

Cost of sales
  
(48,143,679)
(53,127,234)

Gross profit
  
15,294,845
16,802,192

Distribution costs
  
(3,463,837)
(3,934,315)

Administrative expenses
  
(8,140,803)
(8,241,523)

Other operating income
 5 
69,336
226,751

Operating profit
 6 
3,759,541
4,853,105

Interest receivable and similar income
 10 
35
-

Interest payable and similar expenses
 11 
(122,799)
(89,703)

Profit before taxation
  
3,636,777
4,763,402

Tax on profit
 12 
(751,657)
(975,526)

Profit for the financial year
  
2,885,120
3,787,876

Profit for the year attributable to:
  

Non-controlling interests
  
19,198
73,487

Owners of the parent Company
  
2,865,922
3,714,389

  
2,885,120
3,787,876

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

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

The notes on pages 18 to 39 form part of these financial statements.

- 10 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
REGISTERED NUMBER: 11574848

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Intangible assets
 14 
792,187
841,988

Tangible assets
 15 
2,900,283
3,117,102

  
3,692,470
3,959,090

Current assets
  

Stocks
 17 
7,900,934
7,629,768

Debtors: amounts falling due within one year
 18 
10,706,344
11,492,924

Cash at bank and in hand
 19 
3,671,908
2,130,969

  
22,279,186
21,253,661

Creditors: amounts falling due within one year
 20 
(6,592,197)
(7,387,295)

Net current assets
  
 
 
15,686,989
 
 
13,866,366

Total assets less current liabilities
  
19,379,459
17,825,456

Creditors: amounts falling due after more than one year
 21 
(3,648,369)
(1,466,640)

Provisions for liabilities
  

Deferred taxation
 23 
-
(7,389)

Net assets
  
15,731,090
16,351,427


Capital and reserves
  

Called up share capital 
 24 
1,000
1,000

Revaluation reserve
 25 
271,872
271,872

Profit and loss account
 25 
15,181,784
15,821,319

Equity attributable to owners of the parent Company
  
15,454,656
16,094,191

Non-controlling interests
  
276,434
257,236

  
15,731,090
16,351,427


- 11 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
REGISTERED NUMBER: 11574848
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2021

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2022.

Richard Shonn
Director

The notes on pages 18 to 39 form part of these financial statements.

- 12 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
REGISTERED NUMBER: 11574848

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021

2021
2020
Note
£
£

Fixed assets
  

Investments
 16 
16,340
16,340

  
16,340
16,340

Current assets
  

Debtors: amounts falling due within one year
 18 
1,125
-

  
1,125
-

Creditors: amounts falling due within one year
 20 
(16,365)
(16,365)

Net current liabilities
  
 
 
(15,240)
 
 
(16,365)

Total assets less current liabilities
  
1,100
(25)

  

  

Net assets/(liabilities)
  
1,100
(25)


Capital and reserves
  

Called up share capital 
 24 
1,000
1,000

Profit and loss account
  
100
(1,025)

  
1,100
(25)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 August 2022.


Richard Shonn
Director

The notes on pages 18 to 39 form part of these financial statements.

- 13 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

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


Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£


At 1 January 2020
1,000
271,872
12,700,425
12,973,297
183,749
13,157,046


Comprehensive income for the year

Profit for the year
-
-
3,714,389
3,714,389
73,487
3,787,876
Total comprehensive income for the year
-
-
3,714,389
3,714,389
73,487
3,787,876

Dividends: Equity capital
-
-
(593,495)
(593,495)
-
(593,495)


Total transactions with owners
-
-
(593,495)
(593,495)
-
(593,495)



At 1 January 2021
1,000
271,872
15,821,319
16,094,191
257,236
16,351,427


Comprehensive income for the period

Profit for the period
-
-
2,865,922
2,865,922
19,198
2,885,120
Total comprehensive income for the period
-
-
2,865,922
2,865,922
19,198
2,885,120

Dividends: Equity capital
-
-
(3,505,457)
(3,505,457)
-
(3,505,457)


Total transactions with owners
-
-
(3,505,457)
(3,505,457)
-
(3,505,457)


At 31 December 2021
1,000
271,872
15,181,784
15,454,656
276,434
15,731,090


The notes on pages 18 to 39 form part of these financial statements.

- 14 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

COMPANY 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 2020
1,000
-
1,000


Comprehensive income for the year

Profit for the year

-
592,470
592,470


Contributions by and distributions to owners

Dividends: Equity capital
-
(593,495)
(593,495)


Total transactions with owners
-
(593,495)
(593,495)



At 1 January 2021
1,000
(1,025)
(25)


Comprehensive income for the year

Profit for the year
-
3,506,582
3,506,582
Total comprehensive income for the period
-
3,506,582
3,506,582


Contributions by and distributions to owners

Dividends: Equity capital
-
(3,505,457)
(3,505,457)


Total transactions with owners
-
(3,505,457)
(3,505,457)


At 31 December 2021
1,000
100
1,100


The notes on pages 18 to 39 form part of these financial statements.

- 15 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021
2020
£
£

Cash flows from operating activities

Profit for the financial year
2,885,120
3,787,876

Adjustments for:

Amortisation of intangible assets
49,801
49,801

Depreciation of tangible assets
271,763
275,795

Interest paid
122,799
90,228

Interest received
(35)
-

Taxation charge
751,657
975,526

(Increase) in stocks
(271,166)
(906,399)

(Increase) in debtors
(744,620)
(1,106,137)

Decrease in amounts owed by related parties
303,682
273,853

(Decrease)/increase in creditors
(1,128,965)
2,583,485

Corporation tax (paid)
(993,517)
(529,422)

Net cash generated from operating activities

1,246,519
5,494,606


Cash flows from investing activities

Purchase of tangible fixed assets
(54,944)
(61,832)

Interest received
35
-

Net cash from investing activities

(54,909)
(61,832)
- 16 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021


2021
2020

£
£



Cash flows from financing activities

New/repayment of loans
2,249,271
(893,117)

Repayment of/new finance leases
(69,007)
(72,231)

Dividends paid
(3,505,457)
(593,495)

Interest paid
(122,799)
(90,228)

Movements on invoice discounting
1,797,321
(2,690,376)

Repayment of other loans
-
(180,737)

Net cash used in financing activities
349,329
(4,520,184)

Net increase in cash and cash equivalents
1,540,939
912,590

Cash and cash equivalents at beginning of year
2,130,969
1,218,379

Cash and cash equivalents at the end of year
3,671,908
2,130,969


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,671,908
2,130,969

3,671,908
2,130,969


- 17 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1.


General information

Eurostation Holdings Limited ('the Company') is a private limited company incorporated in the England and Wales on the 18 September 2018. The address of its registered office and principal place of business is:
The Old School House
39 Bengal Street
Manchester
M4 6AF
The principal activities of the Group is that of wholesaling branded domestic products.

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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the merger method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their book values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The financial statements have been prepared on a going concern basis.
The directors consider that the Company has adequate resources to continue in operational existence for the foreseeable future.
Potential sources of uncertainty noted by the directors include the withdrawal of the United Kingdom from the European Union, and Coronavirus and the COVID-19 pandemic. However at the date of this report is it not possible to reliably determine the effects that these developments will have on the Company. Accordingly the directors have continued to prepare the financial statements on the going concern basis.

- 18 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

- 19 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Interest income

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

 
2.8

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.

 
2.9

Borrowing costs

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

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

- 20 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the period 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

- 21 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
10 years straight line
Trademarks
-
20 years straight line

 
2.13

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 straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Plant & machinery
-
20%
- 33%
Fixtures & fittings
-
33%
Computer equipment
-
33%

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.

- 22 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.15

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 reporting 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.

 
2.16

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.

 
2.17

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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

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.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

- 23 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group 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.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.21

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.

- 24 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In applying the Group's accounting policies, the directors are required to make judgments, estimates and assumptions in determining the carrying amount of assets and liabilities. The directors' judgments, estimates and assumptions are based on the best and most reliable evidence available at the time when 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 judgments, estimates and assumptions, the actual results and outcomes may differ.
The estimates and 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 believe that the critical accounting policies where judgments or estimates are necessarily applied are stock provisions, bad debt provisions and the useful expected lives of property, plant and equipment, and trademarks.


4.


Turnover

An analysis of turnover by class of business is as follows:


2021
2020
£
£

Sale of goods
63,438,524
69,929,426

63,438,524
69,929,426


Analysis of turnover by country of destination:

2021
2020
£
£

United Kingdom
56,636,503
62,918,999

Rest of Europe
6,472,566
6,552,977

Rest of the world
329,455
457,450

63,438,524
69,929,426



5.


Other operating income

2021
2020
£
£

Other operating income
69,336
226,751


- 25 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

6.


Operating profit

The operating profit is stated after charging:

2021
2020
£
£

Depreciation of tangible fixed assets
271,763
275,795

Exchange differences
(1,203,017)
453,480

Amortisation of intangible assets, including goodwill
49,801
49,801

Defined contribution pension costs
124,759
129,483

Fees payable to the Group's auditor for the audit of the Company's annual financial statements
1,125
1,025


7.


Auditor's remuneration

2021
2020
£
£


Fees payable to the Group's auditor for the audit of the Group's annual financial statements
32,000
30,900


Fees payable to the Group's auditor in respect of:


Taxation compliance services
11,175
10,850

All other services
10,800
10,500

21,975
21,350

- 26 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

8.


Employees

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


Group
Group
2021
2020
£
£


Wages and salaries
4,322,682
4,441,960

Social security costs
454,009
476,312

Cost of defined contribution scheme
124,759
129,483

4,901,450
5,047,755


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


        2021
        2020
            No.
            No.







Management Staff
3
4



Admin Staff
70
45



Production Staff
48
82

121
131


9.


Directors' remuneration

2021
2020
£
£

Directors' emoluments
542,885
638,752

Company contributions to defined contribution pension schemes
17,961
25,500

560,846
664,252


During the year retirement benefits were accruing to 3 directors (2020 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £207,544 (2020 - £199,632).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,319 (2020 - £12,000).

- 27 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

10.


Interest receivable

2021
2020
£
£


Other interest receivable
35
-


11.


Interest payable and similar expenses

2021
2020
£
£


Bank interest payable
16,405
27,645

Other loan interest payable
95,311
62,058

Other interest payable
11,083
-

122,799
89,703


12.


Taxation


2021
2020
£
£

Corporation tax


Current tax on profits for the year
781,627
992,478

Adjustments in respect of previous periods
604
(322)


782,231
992,156


Total current tax
782,231
992,156

Deferred tax


Origination and reversal of timing differences
(32,081)
(16,630)

Adjustments in respect of prior periods
(634)
-

Effect of tax rate change on opening balance
2,141
-

Total deferred tax
(30,574)
(16,630)


Taxation on profit on ordinary activities
751,657
975,526
- 28 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS 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 of19% (2020 - 19%). The differences are explained below:

2021
2020
£
£


Profit on ordinary activities before tax
3,636,777
4,763,402


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
690,988
905,046

Effects of:


Expenses not deductible for tax purposes
57,247
57,204

Fixed asset differences
9,330
11,383

Adjustment to deferred tax in respect of previous periods
(634)
(389)

Adjustment to tax in respect of previous periods
604
(322)

Remeasurement of deferred tax for changes in tax rates
(5,568)
2,799

Other differences leading to an increase in the tax charge
(59)
-

Group relief surrendered/(claimed)
(251)
(195)

Total tax charge for the year
751,657
975,526


Factors that may affect future tax charges

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.


13.


Dividends

2021
2020
£
£


Equity dividends
3,505,457
593,495

- 29 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

14.


Intangible assets

Group





Trademarks
Goodwill
Total

£
£
£



Cost


At 1 January 2021
950,000
15,340
965,340



At 31 December 2021

950,000
15,340
965,340



Amortisation


At 1 January 2021
118,750
4,602
123,352


Charge for the year
47,500
2,301
49,801



At 31 December 2021

166,250
6,903
173,153



Net book value



At 31 December 2021
783,750
8,437
792,187



At 31 December 2020
831,250
10,738
841,988



- 30 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

15.


Tangible fixed assets

Group






Freehold property
Plant & machinery
Fixtures & fittings
Computer equipment
Total

£
£
£
£
£



Cost 


At 1 January 2021
3,100,000
962,094
585,813
273,920
4,921,827


Additions
-
-
21,706
33,238
54,944



At 31 December 2021

3,100,000
962,094
607,519
307,158
4,976,771



Depreciation


At 1 January 2021
419,370
642,994
554,707
187,654
1,804,725


Charge for the year
59,910
154,873
18,959
38,021
271,763



At 31 December 2021

479,280
797,867
573,666
225,675
2,076,488



Net book value



At 31 December 2021
2,620,720
164,227
33,853
81,483
2,900,283



At 31 December 2020
2,680,630
319,100
31,106
86,266
3,117,102

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2021
2020
£
£



Plant and machinery
59,188
118,376

59,188
118,376

- 31 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost and net book value


At 1 January 2021
16,340



At 31 December 2021
16,340





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Eurostation Limited
The Old School House, 39 Bengal Street, Manchester, M4 6AF
Ordinary
  100%
151 Products Limited*
The Old School House, 39 Bengal Street, Manchester, M4 6AF
Ordinary
100%
Swirl Consumer Products Limited*
The Old School House, 39 Bengal Street, Manchester, M4 6AF
Ordinary
80%
Star Wipes Limited*
The Old School House, 39 Bengal Street, Manchester, M4 6AF
Ordinary
100%

All Subsidiaries marked with a * above are held indirectly by the parent company Eurostation Holdings Limited. 


17.


Stocks

Group
Group
2021
2020
£
£

Raw materials and consumables
7,900,934
7,629,768

7,900,934
7,629,768


- 32 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

18.


Debtors

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£


Trade debtors
7,274,393
7,163,320
-
-

Amounts owed by associated undertakings
929,019
1,034,461
1,125
-

Other debtors
509,923
1,959,672
-
-

Prepayments and accrued income
1,969,824
1,335,471
-
-

Deferred taxation
23,185
-
-
-

10,706,344
11,492,924
1,125
-


Amounts owed from group undertakings are interest free and repayable on demand.


19.


Cash and cash equivalents

Group
Group
2021
2020
£
£

Cash at bank and in hand
3,671,908
2,130,969

3,671,908
2,130,969


- 33 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2021
2020
2021
2020
£
£
£
£

Bank loans
170,869
172,336
-
-

Invoice finance
348,379
-
-
-

Trade creditors
1,908,010
2,272,293
-
-

Amounts owed to group undertakings
-
-
16,365
16,365

Amounts owed to other related parties
205,701
7,461
-
-

Corporation tax
781,627
992,913
-
-

Other taxation and social security
771,305
899,587
-
-

Obligations under finance lease and hire purchase contracts
69,008
69,007
-
-

Other creditors
833,864
1,839,504
-
-

Accruals and deferred income
1,503,434
1,134,194
-
-

6,592,197
7,387,295
16,365
16,365


The invoice finance balance is secured against certain trade debtor balances.
Amounts owed to group undertakings are interest free and repayable on demand.


21.


Creditors: Amounts falling due after more than one year

Group
Group
2021
2020
£
£

Bank loans
3,642,619
1,391,881

Net obligations under finance leases and hire purchase contracts
5,750
74,759

3,648,369
1,466,640


The company enters into short term "import loan" agreements with the bank, whereby the funds borrowed are secured on the stock purchased.
Bank loans is a mortgage, repayable in equal instalments until October 2029, with interest charged at 2.09% above HSBC Bank Plc base rate. The mortgage is secured by way of a debenture comprising a fixed and floating charge over the freehold property. An amount of £573,435 (2020: £700,192) is due after more than 5 years.
The invoice finance balance is secured against certain trade debtor balances.
Net obligations under finance leases and hire purchase contracts are secured over the assets to which they relate. 

- 34 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

22.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2021
2020
£
£

Within one year
69,008
69,007

Between 1-5 years
5,750
74,759

74,758
143,766


23.


Deferred taxation


Group



2021
2020


£

£






At beginning of year
(7,389)
(24,019)


Charged to profit or loss
30,574
16,630



At end of year
23,185
(7,389)

The deferred taxation balance is made up as follows:

Group
Group
2021
2020
£
£

Accelerated capital allowances
12,353
(14,260)

Short term timing differences
10,832
6,871

23,185
(7,389)

- 35 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

24.


Share capital

2021
2020
£
£
Allotted, called up and fully paid



2,500 (2020 - 2,500) A ordinary shares of £0.10 each
250
250
1,250 (2020 - 1,250) B ordinary shares of £0.10 each
125
125
3,750 (2020 - 3,750) C ordinary shares of £0.10 each
375
375
1,250 (2020 - 1,250) D ordinary shares of £0.10 each
125
125
1,250 (2020 - 1,250) E ordinary shares of £0.10 each
125
125

1,000

1,000



25.


Reserves

Revaluation reserve

This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Profit & loss account

This reserve records retained earnings and accumulated losses.

26.


Analysis of net debt




At 1 January 2021
Cash flows
At 31 December 2021
£

£

£

Cash at bank and in hand

2,130,969

1,540,939

3,671,908

Debt due after 1 year

(1,391,881)

(2,411,800)

(3,803,681)

Debt due within 1 year

(172,336)

162,529

(9,807)

Finance leases

(143,766)

69,008

(74,758)


422,986
(639,324)
(216,338)

- 36 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

27.


Contingencies

The Company has given an unlimited cross company guarantee in favour of a related company Shonn Brothers (Manchester) Limited to HSBC Bank plc, for all overdrawn balances.
A composite company multilateral guarantee dated 3 December 2015 is also now held by HSBC Bank Plc.
Also the Company has given a guarantee in favour of HM Revenue and Customs for £130,000 (2020: £130,000). 


28.


Pension commitments

The Group operates a defined contribution plan for all employees of the Group. Contributions made into this plan are paid by the Group at rates specified in the rules of the schemes. The total amount recognised in profit and loss during the period was £124,759 (2020: £129,483). At 31 December 2021 the amount of pensions outstanding on the period end date was £778 (2020: £962).


29.


Commitments under operating leases

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


Group
Group
2021
2020
£
£

Not later than 1 year
160,319
218,376

Later than 1 year and not later than 5 years
22,282
185,327

182,601
403,703

The Company had no commitments under the non-cancellable operating leases as at the reporting date.

- 37 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

30.


Related party transactions

The Company has taken advantage of the exemption permitted by Section 33 Related Party Disclosures, not to provide disclosures of transactions entered into with other wholly-owed members of the group.
151 Products Limited made purchases from Swirl Consumer Products Limited during the year amounting to £1,306,621 (2020: £2,424,103) and sales to Swirl Consumer Products Limited amounting to £580,243 (2020: £1,112,777). Swirl Consumer Products Limited is an 80% subsidiary of the Group.
151 Products Limited made purchases from Doff Portland Limited during the year amounting to £836,126 (2020: £809,557) and sales to Doff Portland Limited amounting to £574,678 (2020: £472,668). Doff Portland Limited owes the Group £732,477 (2020: £541,261) at the Statement of Financial Position date, and this is included within other debtors due within one year. Doff Portland Limited is a related party by virtue of common directorship (R L Shonn).
151 Products Limited made purchases from Propeller Investments LLP amounting to £152,666 (2020: £127,530). Propeller Investments LLP owes the Group £93,731 (2020: £93,731) at the Statement of Financial Position date, and this is included within other debtors due within one year. Propeller Investments LLP is a related party by virtue of common directorship (R L Shonn and S M Shonn).
151 Products Limited made purchases from Shonn Brothers (Manchester) Limited amounting to £21,209 (2020: £33,158) and sales to Shonn Brothers (Manchester) Limited amounting to £981,222 (2020: £76,855). At the Statement of Financial Position date Shonn Brothers (Manchester) Limited owed the Group £137,345 (2020: £110,167). This is included within other debtors due within one year. At the Statement of Financial Position date Shonn Brothers (Manchester) Limited were due £23 (2020: £11). This is included within other creditors due within one year. Shonn Brothers (Manchester) Limited is a related party by virtue of common directorship (all directors).
151 Products Limited made purchases during the year from B7 Ventures Limited amounting to £240,961 (2020: £226,561). At the Statement of Financial Position date B7 Ventures Limited is owed £24,096 (2020: £45,313). B7 Ventures Limited is a related party by virtue of common directorship (R L Shonn).
At the Statement of Financial Position date D P Brandco Limited owes £100,420 (2020: £100,420). D P Brandco Limited is a related party by virtue of common directorship (R L Shonn and I P George).
At the Statement of Financial Position date Chorio Limited owes £713 (2020: £713). Chorio Limited is a related party by virtue of common directorship (D S Shonn).
At the Statement of Financial Position date Saxwood Limited owes £713 (2020: £713). Saxwood Limited is a related party by virtue of common directorship (R L Shonn).
At the Statement of Financial Position date an other related party under common control was owed £198,240. 
All loans to and from related parties are unsecured and repayable on demand.
Key management personnel are deemed to be the directors.
The Group has an unlimited cross company guarantee with a related party dated 21 November 2002.

- 38 -

 
 11574848
31 December 2021
EUROSTATION HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

31.


Post balance sheet events

On 24 February 2022 Russian Forces entered Ukraine, resulting in Western Nation reactions including announcements of sanctions against Russia and Russian interests worldwide and an economic ripple effect on the global economy. The directors have carried out an assessment of the potential impact of Russian Forces entering Ukraine on the business, including the impact of mitigation measures and uncertainties, and have concluded that this is a non-adjusting post balance sheet event with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.


32.


Controlling party

The Company is controlled by the directors. The Company is not deemed to have a single controlling or ultimate controlling party.

 
- 39 -