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REGISTERED NUMBER: 00731549 (England and Wales)















GUTTRIDGE LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021






GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 6

Income Statement 7

Other Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13 to 21


GUTTRIDGE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2021







DIRECTORS: C Chen
M D Mittasch
S P Spratt



SECRETARY: S P Spratt



REGISTERED OFFICE: Wardentree Park
Pinchbeck
Spalding
Lincolnshire
PE11 3UU



REGISTERED NUMBER: 00731549 (England and Wales)



SENIOR STATUTORY AUDITOR: David Gratton BSc FCA



AUDITORS: Duncan & Toplis Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
In 2021 the company recovered to pre pandemic business levels, with a number of projects delayed from 2020 being completed. The UK market recovered well in the year, however the recovery in exports was noticably slower. Global supply chain issues and volatile raw material costs continued to be of concern and increased pressure on margins. The company's order book remains strong going into 2022. The company continues to trade on the strengths of its technical capability, employee skills, capability and knowledge.

PRINCIPAL RISKS AND UNCERTAINTIES
Guttridge Limited operates in a variety of markets and manages the risks inherent in its activities. The company seeks to mitigate exposure to all forms of risk, both internal and external, where practical through delegated authority management, cross functional contract review, the use of common visual metrics and employee development. Where practical, risk is transferred to insurers if deemed cost effective.

External risks include political and economic conditions, actions of global competitors, the effect of legislation or other regulatory action, foreign exchange, raw material prices, the continuing global pandemic and the impact of the conflict in Ukraine.

Internal risks include investment in new products and technologies, controls failure, warranty and inability to supply on time.

FUTURE DEVELOPMENTS
Guttridge Limited will continue to pursue its core activities and seek new business opportunities in both the UK and overseas. We are committed to investing in the development of existing employees and also continue to bring in skilled and capable people to support the business expansion. Our on-going investment into bulk solids handling capability, internally and with external research institutions, continues.

KEY PERFORMANCE INDICATORS
The key performance indicators are sales, profit and cash generation which are closely monitored throughout the year and measured and managed against pre-set targets.

COVID-19
As with all businesses there is a risk associated with the ongoing COVID-19 pandemic that is causing a shock to the global economy. It is unknown what final impact this will have on business and our industry and will largely be determined by the time taken to get it under control and how quickly people can return to normal lives.

As a business we are well aware of the risks and impact this may bring the business but having assessed our situation believe the position the business finds itself in will enable the directors to mitigate the risks for the long term protection of the business.

ON BEHALF OF THE BOARD:





S P Spratt - Director


19 April 2022

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the design and manufacture of materials handling machinery for the Animal feed, Cereals, Pet Foods, Chemicals, Biomass, Recycling, Minerals, Food and Pharmaceutical industries and subcontract sheet metal fabrication work.

DIVIDENDS
During the year, no interim dividends were paid.

The directors recommend that no final dividend be paid. The total distribution of dividends for the year ended 31 December 2021 is therefore £nil (2020 - £nil).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

C Chen
M D Mittasch
S P Spratt

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





S P Spratt - Director


19 April 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUTTRIDGE LIMITED

Opinion
We have audited the financial statements of Guttridge Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUTTRIDGE LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and
regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. This included the identification and testing of unusual material journal entries, and challenging management on key estimates. These key areas of uncertainty are disclosed in the
accounting policies.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations, and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management, and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of
the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
GUTTRIDGE LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




David Gratton BSc FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

19 April 2022

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £    £   

TURNOVER 3 11,728,734 8,558,536

Cost of sales 8,714,715 6,173,775
GROSS PROFIT 3,014,019 2,384,761

Administrative expenses 2,825,266 2,769,369
188,753 (384,608 )

Other operating income 2,827 35,924
OPERATING PROFIT/(LOSS) 5 191,580 (348,684 )

Interest receivable and similar income - 41
191,580 (348,643 )

Interest payable and similar expenses 6 39,857 37,281
PROFIT/(LOSS) BEFORE TAXATION 151,723 (385,924 )

Tax on profit/(loss) 7 (47,589 ) (20,222 )
PROFIT/(LOSS) FOR THE FINANCIAL YEAR 199,312 (365,702 )

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £    £   

PROFIT/(LOSS) FOR THE YEAR 199,312 (365,702 )


OTHER COMPREHENSIVE INCOME
Revaluation of land and buildings
Income tax relating to other comprehensive
income

-

62,183
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

-

62,183
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 199,312 (303,519 )

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 3,053,443 3,218,690

CURRENT ASSETS
Stocks 9 1,286,678 1,320,635
Debtors 10 3,235,131 2,321,753
Cash at bank and in hand 356,254 910,735
4,878,063 4,553,123
CREDITORS
Amounts falling due within one year 11 2,592,033 2,383,851
NET CURRENT ASSETS 2,286,030 2,169,272
TOTAL ASSETS LESS CURRENT LIABILITIES 5,339,473 5,387,962

CREDITORS
Amounts falling due after more than one year 12 (1,677,758 ) (1,877,854 )

PROVISIONS FOR LIABILITIES 17 (27,344 ) (75,049 )
NET ASSETS 3,634,371 3,435,059

CAPITAL AND RESERVES
Called up share capital 18 9,822 9,822
Revaluation reserve 19 1,292,062 1,292,062
Capital redemption reserve 19 3,078 3,078
Retained earnings 19 2,329,409 2,130,097
SHAREHOLDERS' FUNDS 3,634,371 3,435,059

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 19 April 2022 and were signed on its behalf by:





S P Spratt - Director


GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

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

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   

Balance at 1 January 2020 9,822 2,495,799 1,229,879 3,078 3,738,578

Changes in equity
Total comprehensive income - (365,702 ) 62,183 - (303,519 )
Balance at 31 December 2020 9,822 2,130,097 1,292,062 3,078 3,435,059

Changes in equity
Total comprehensive income - 199,312 - - 199,312
Balance at 31 December 2021 9,822 2,329,409 1,292,062 3,078 3,634,371

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (423,408 ) (558,799 )
Interest paid (37,273 ) (32,216 )
Interest element of hire purchase payments paid (2,584 ) (5,065 )
Exceptional coronavirus funding 2,827 35,802
Tax paid - (40,076 )
Other 4,468 -
Net cash from operating activities (455,970 ) (600,354 )

Cash flows from investing activities
Purchase of tangible fixed assets (24,644 ) (77,123 )
Sale of tangible fixed assets 1,800 23,863
Interest received - 41
Net cash from investing activities (22,844 ) (53,219 )

Cash flows from financing activities
New loans in year - 2,012,000
Loan repayments in year - (464,261 )
Capital repayments in year (75,667 ) -
Net cash from financing activities (75,667 ) 1,547,739

(Decrease)/increase in cash and cash equivalents (554,481 ) 894,166
Cash and cash equivalents at beginning of year 2 910,735 16,569

Cash and cash equivalents at end of year 2 356,254 910,735

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2021 2020
£    £   
Profit/(loss) before taxation 151,723 (385,924 )
Depreciation charges 188,735 206,482
(Profit)/loss on disposal of fixed assets (644 ) 3,446
Government grants (2,827 ) (35,924 )
Finance costs 39,857 37,281
Finance income - (41 )
376,844 (174,680 )
Decrease/(increase) in stocks 33,957 (384,803 )
Increase in trade and other debtors (1,062,005 ) (671,021 )
Increase in trade and other creditors 227,796 671,705
Cash generated from operations (423,408 ) (558,799 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 356,254 910,735
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 910,735 21,292
Bank overdrafts - (4,723 )
910,735 16,569


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank and in hand 910,735 (554,481 ) 356,254
910,735 (554,481 ) 356,254
Debt
Finance leases (114,431 ) 75,667 (38,764 )
Debts falling due within 1 year (150,297 ) (17,289 ) (167,586 )
Debts falling due after 1 year (1,839,090 ) 161,332 (1,677,758 )
(2,103,818 ) 219,710 (1,884,108 )
Total (1,193,083 ) (334,771 ) (1,527,854 )

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021

1. STATUTORY INFORMATION

Guttridge Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Critical accounting judgements and key sources of estimation uncertainty
Stock and warranty provisions are considered key accounting estimates. Specific testing has been conducted to gain assurance over these amounts.

Turnover
Sales are recognised when control of goods has transferred to its customer, being when the products are delivered to the customer and there is no unfulfilled obligation that could affect the customer's acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Accumulated experience is used to estimate and provide for the discounts, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 30 to 90 days, which is consistent with market practice.

A receivable (financial asset) is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before payment is due.

Tangible fixed assets
Freehold land and buildings are initially recognised at cost. Freehold land and buildings are subsequently carried at the revalued amount less accumulated impairment losses. As such no depreciation is currently being provided on this class of assets,

All other items of plant and machinery are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.

Freehold land and buildingsDepreciation not provided.
Plant and machinery 25% on written down value & 12.5%, 20% & 50% on cost

Stocks
Stock and work in progress are valued at the lower of cost and net realisable value including an element of profit recognised to the stage of completion at the year end.

Cost of finished goods and work in progress includes overheads appropriate to the stage of manufacture. Net realisable value is based upon estimated selling price less further costs to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items.


GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Where assets are financed by leasing agreements that give rights approximating to ownership ('finance leases'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as obligations to the lessor.

Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the profit and loss account in proportion to the remaining balance outstanding.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Critical accounting judgements and estimation uncertainty
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.

There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

Going concern
The directors have assessed the potential impact of the ongoing COVID-19 pandemic on the company's ability to continue as a going concern.

The directors are fully aware of the risks and impact that this may bring to the business but have concluded that the company has the resources to mitigate these risks for the long term protection of the business.

They have therefore concluded that the company can be classed as a going concern.

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has adopted the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

3. TURNOVER

The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021 2020
£    £   
United Kingdom 10,834,266 7,532,956
Europe 588,717 671,833
Asia 301,100 311,324
Africa - 34,893
North America 3,289 7,530
Oceania 1,362 -
11,728,734 8,558,536

4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 2,946,044 2,948,723
Social security costs 301,402 293,768
Other pension costs 101,115 103,672
3,348,561 3,346,163

The average number of employees during the year was as follows:
2021 2020

Production staff 47 51
Sales and technical 32 33
Administration 10 10
89 94

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

4. EMPLOYEES AND DIRECTORS - continued

2021 2020
£    £   
Directors' remuneration 84,570 94,809
Directors' pension contributions to money purchase schemes 4,493 5,457

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 2

5. OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging/(crediting):

2021 2020
£    £   
Hire of plant and machinery 10,297 14,700
Other operating leases - 6,764
Depreciation - owned assets 143,769 161,517
Depreciation - assets on hire purchase contracts 44,966 44,966
(Profit)/loss on disposal of fixed assets (644 ) 3,446
Auditors' remuneration 9,000 9,000
Foreign exchange differences 23,320 8,482
Government grants - (122 )
Research and development costs - 6,627

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Bank interest paid 37,273 31,532
Other interest paid - 684
Hire purchase interest paid 2,584 5,065
39,857 37,281

7. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2021 2020
£    £   
Deferred tax (47,589 ) (20,222 )
Tax on profit/(loss) (47,589 ) (20,222 )

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

7. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit/(loss) before tax 151,723 (385,924 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19%
(2020 - 19%)

28,827

(73,326

)

Effects of:
Expenses not deductible for tax purposes 242 17,326
Income not taxable for tax purposes - (12,757 )
Depreciation in excess of capital allowances 21,716 68,757
Utilisation of tax losses (36,577 ) -
Additional tax relief on research and development (14,208 ) -


Deferred tax movement (47,589 ) (20,222 )
Total tax credit (47,589 ) (20,222 )

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2021.

2020
Gross Tax Net
£    £    £   
Revaluation of land and buildings - 62,183 62,183

8. TANGIBLE FIXED ASSETS
Freehold Plant and
property machinery Totals
£    £    £   
COST OR VALUATION
At 1 January 2021 2,450,000 3,092,246 5,542,246
Additions - 24,644 24,644
Disposals - (11,231 ) (11,231 )
At 31 December 2021 2,450,000 3,105,659 5,555,659
DEPRECIATION
At 1 January 2021 - 2,323,556 2,323,556
Charge for year - 188,735 188,735
Eliminated on disposal - (10,075 ) (10,075 )
At 31 December 2021 - 2,502,216 2,502,216
NET BOOK VALUE
At 31 December 2021 2,450,000 603,443 3,053,443
At 31 December 2020 2,450,000 768,690 3,218,690

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

8. TANGIBLE FIXED ASSETS - continued

Cost or valuation at 31 December 2021 is represented by:

Freehold Plant and
property machinery Totals
£    £    £   
Valuation in 2017 1,142,062 - 1,142,062
Valuation in 2019 150,000 - 150,000
Cost 1,157,938 3,105,659 4,263,597
2,450,000 3,105,659 5,555,659

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2021 2020
£    £   
Cost 1,895,407 1,895,407
Aggregate depreciation 737,469 777,731

Value of land in freehold land and buildings 1,157,938 1,117,676

Freehold land and buildings were valued on an open market basis on 26 February 2019 by Savills (UK) Limited .

The net book value of tangible fixed assets includes £193,605 (2020 - £238,571) in respect of assets held under hire purchase contracts.

9. STOCKS
2021 2020
£    £   
Raw materials and consumables 786,600 1,016,616
Work-in-progress 412,567 229,904
Finished goods and goods for resale 87,511 74,115
1,286,678 1,320,635

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 1,973,976 1,219,610
Amounts owed by group undertakings 712,807 861,434
Other debtors 172,101 -
Prepayments and accrued income 376,247 240,709
3,235,131 2,321,753

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Bank loans and overdrafts (see note 13) 167,586 150,297
Hire purchase contracts (see note 14) 38,764 75,667
Trade creditors 1,833,118 1,746,029
Other taxes and social security 291,002 259,428
Other creditors 14,471 13,400
Accruals and deferred income 247,092 139,030
2,592,033 2,383,851

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2021 2020
£    £   
Bank loans (see note 13) 1,677,758 1,839,090
Hire purchase contracts (see note 14) - 38,764
1,677,758 1,877,854

13. LOANS

An analysis of the maturity of loans is given below:

2021 2020
£    £   
Amounts falling due within one year or on demand:
Bank loans 167,586 150,297

Amounts falling due between two and five years:
Bank loans - 2-5 years 661,771 673,920

Amounts falling due in more than five years:

Repayable by instalments
Bank loans payable due more than five years in
instalments

1,015,987

1,165,170

Interest is charged at 2.85% above Barclays Bank base rate.

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2021 2020
£    £   
Net obligations repayable:
Within one year 38,764 75,667
Between one and five years - 38,764
38,764 114,431

Non-cancellable operating leases
2021 2020
£    £   
Within one year - 6,428
Between one and five years - 2,679
- 9,107

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

15. SECURED DEBTS

The following secured debts are included within creditors:

2021 2020
£    £   
Bank loans 1,845,344 1,989,387
Hire purchase contracts 38,764 114,431
1,884,108 2,103,818

The bank facilities are secured by a charge on the company's freehold land and buildings. There is a debenture in favour of Barclays Bank plc dated 14th August 1991 in respect of all monies with a fixed and floating charge.

Amounts due under hire purchase contracts are secured on the asset to which they relate.

16. FINANCIAL INSTRUMENTS

The company has the following financial instruments:

2021 2020
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 2,056,868 1,219,610
Financial liabilities measured at amortised cost
Bank loans and overdrafts 1,845,344 2,103,818
Trade creditors 1,916,010 1,747,750
Hire purchase contracts 38,764 114,431

There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss.

17. PROVISIONS FOR LIABILITIES
2021 2020
£    £   
Deferred tax brought forward 25,144 72,733
Government grants brought forward 2,200 2,316
27,344 75,049

Deferred Government
tax grants
£    £   
Balance at 1 January 2021 72,733 2,316
Credit to Income Statement during year (47,589 ) -
Balance at 31 December 2021 25,144 2,316

18. CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:
Number:Class:Nominal20212020
value:£1£1
9,822Ordinary£19,8229,822
9,8229,822

GUTTRIDGE LIMITED (REGISTERED NUMBER: 00731549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021

19. RESERVES
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1 January 2021 2,130,097 1,292,062 3,078 3,425,237
Profit for the year 199,312 - - 199,312
At 31 December 2021 2,329,409 1,292,062 3,078 3,624,549

Revaluation Reserve

The Revaluation Reserve represents the cumulative effect of revaluations of tangible fixed assets where a policy of revaluation has been adopted.

Capital Redemption Reserve

The Capital Redemption Reserve represents the amounts accumulated following the redemption of the company's own shares

20. PENSION COMMITMENTS

20212020

£ £
Defined Contribution

Contribution payable by the company for the period101,115103,672

21. RELATED PARTY DISCLOSURES

Other related parties
2021 2020
£    £   
Sales 164,339 92,323
Purchases 49,680 61,556

During the year, a total of key management personnel compensation of £ 337,779 (2020 - £ 362,361 ) was paid.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party as at the balance sheet date was Mitchells Holdings (Asia) PTE Ltd.