REGISTERED NUMBER: |
ANNAGHMORE AGENCIES LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
REGISTERED NUMBER: |
ANNAGHMORE AGENCIES LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 5 |
Independent Auditors' Report | 7 |
Income Statement | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
ANNAGHMORE AGENCIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: |
20 William Street |
Cookstown |
Tyrone |
BT808NB |
SOLICITORS: |
12-14 Mandeville Street |
Portadown |
Co Armagh |
BT62 3NZ |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
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 AND FUTURE DEVELOPMENTS |
The company reported a profit for the financial year of £937,517 (2020: £543,342) on a turnover of £13.3m (2020: £12.7m). At the year end, the company had net assets of £5.3m (2020:£4.3m). |
The directors consider the results for the year and the position of the company at the year end to be satisfactory given current trading conditions. |
The directors are committed to long-term creation of shareholder value by increasing the company's market share through organic growth. Whilst the incoming year is significantly challenging, results to date suggest the company have been able to perform well despite testing conditions. |
Key performance indicators |
2021 | 2020 | 2019 |
Gross profit margin | 36.7% | 36.8% | 35.0% |
Movement in turnover | 4.5% | (7.6% | ) | 7.5% |
Average number of employees | 57 | 60 | 70 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the company's strategy are subject to a number of risks. The directors consider the key business risks and uncertainties affecting the company relate to the current economic conditions, competition from other furniture suppliers and a decline in disposable income. These risks are addressed through not being overly reliant on any one customer, strong customer service as well as investment in its resources and facilities. |
Financial Risk Management |
The company's operations expose it to a variety of financial risks that include foreign exchange risk, price risk, credit risk, liquidity risk and interest rate risk. |
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. |
Foreign Exchange Risk |
While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, both on sales in euro and purchases in euro and US dollars. The company enters into forward contracts to hedge against some foreign exchange exposure. |
Price Risk Management |
The company is exposed to commodity price risk as a result of its operations. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. The company has no exposure to equity securities price risk as it holds no listed or other equity investments. |
Credit Risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Liquidity Risk |
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions. |
Interest Rate Risk |
The company has interest bearing liabilities at variable rates. The company constantly reviews the current and expected future interest rates to ensure certainty of future interest cash flows. |
Covid-19 Risk |
The directors continue to monitor the situation closely and implement changes where necessary to minimise the risk of business disruptions. The company is flexible, having adapted easily to social distancing amongst employees. |
ENVIRONMENT |
The company recognises its responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever it is possible. |
HEALTH AND SAFETY |
The company is committed to achieving the highest practicable standards in health and safety management and strives to make its sites and offices safe environments for employees and customers alike. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
HUMAN RESOURCES |
The company's most important resource is its people, their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical. |
ON BEHALF OF THE BOARD: |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors present their report with the audited financial statements of the Company for the year ended 31 December 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company during the year was that of wholesaling of reproduction furniture. |
DIVIDENDS |
FUTURE DEVELOPMENTS |
The section on future developments, which is detailed in the Strategic report, is included in the report by cross-reference. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
CHARITABLE CONTRIBUTIONS |
The company made charitable contributions amounting to £400 (2020: £288) during the year, principally for the benefit of the local communities in which the company operates. No donations for political purposes were made during the year. |
RESEARCH AND DEVELOPMENT |
The company is currently undertaking research and development projects covering process improvements. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
ANNAGHMORE AGENCIES LIMITED |
Opinion |
We have audited the financial statements of Annaghmore Agencies Limited (the 'Company') for the year ended 31 December 2021 which comprise the Income Statement, 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
ANNAGHMORE AGENCIES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters 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. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page five, 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
ANNAGHMORE AGENCIES LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained understanding of the legal and regulatory requirements applicable to the company's financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102), Grant funding bodies regulation and UK taxation legislation; |
- We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition, recognition of grant income and management override. |
The audit response to risks identified included: |
- Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 5 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
644,600 | 605,583 |
Other operating income |
OPERATING PROFIT | 7 |
Finance costs | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Receivables: amounts falling due within one year |
12 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PAYABLES |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Capital repayments on HP contracts | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(1,371,905 |
) |
Cash and cash equivalents at end of year |
2 |
713,635 |
2,232,889 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2021 | 2020 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 36,545 | 58,602 |
882,653 | 866,497 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 | 713,635 | 2,232,889 |
Year ended 31 December 2020 |
31/12/20 | 1/1/20 |
£ | £ |
Cash and cash equivalents | 2,232,889 | 26,190 |
Bank overdrafts | ( |
) |
2,232,889 | (1,371,905 | ) |
3. | Analysis of changes in net funds |
At 1/1/21 | Cash flow | At 31/12/21 |
£ | £ | £ |
Net cash |
Cash at bank | 2,232,889 | (1,519,254 | ) | 713,635 |
2,232,889 | ( |
) | 713,635 |
Debt |
Finance leases | (321,733 | ) | 125,516 | (196,217 | ) |
Debts falling due within 1 year | (267,500 | ) | 237,500 | (30,000 | ) |
Debts falling due after 1 year | (132,500 | ) | 32,500 | (100,000 | ) |
(721,733 | ) | 395,516 | (326,217 | ) |
Total | 1,511,156 | (1,123,738 | ) | 387,418 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | Statutory information |
Annaghmore Agencies Limited is a private company, limited by shares, registered in Northern Ireland within the United Kingdom. The company's registered number and registered office address can be found on the Company Information page. |
2. | Statement of compliance |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 4). |
The following principal accounting policies have been applied consistently throughout the year. |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.The following criteria must also be met before revenue is recognised: |
Sale of goods: |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the significant risks and rewards of ownership have been transferred to the buyer; |
- the company retains no continuing involvement or control over the goods; |
- the amount of revenue can be measured reliably; |
- it is probable that future economic benefits will flow through the company |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | Accounting policies - continued |
Property, plant and equipment |
Property, Plant and Equipment 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. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The estimated useful lives range as follows: |
Leasehold Improvements | 10% reducing balance |
Plant and Machinery | 12.5% reducing balance |
Motor Vehicles | 25% reducing balance |
Fixtures and Fittings | 10% reducing balance |
The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or 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 within the Income Statement. |
Inventories |
Inventories are valued 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. |
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 the Income Statement. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | Accounting policies - continued |
Financial instruments |
The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
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. |
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | 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 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. |
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. |
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. |
Finance costs |
Finance costs are charged to the Income statement and retained earnings 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. |
Dividends |
Dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final dividends are recognised when approved by the shareholders at an annual general meeting. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Operating leases: Lessee |
Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight line basis over the period of the lease. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
4. | Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(a) Critical judgements in applying the company's accounting policies |
There are no critical judgements in applying the entity's accounting policies. |
(b) Critical accounting estimates and assumptions |
There are no critical accounting estimates and assumptions |
5. | Turnover |
The whole of turnover is attributable to the company's main activity which is carried out in the United Kingdom and the Republic of Ireland. |
No analysis of turnover is presented as the directors consider such disclosure to be seriously prejudicial to the company's interests. |
6. | Employees and directors |
2021 | 2020 |
£ | £ |
Wages and salaries | 1,132,087 | 1,426,591 |
Social security costs | 100,394 | 110,560 |
Other pension costs | 19,915 | 23,016 |
1,252,396 | 1,560,167 |
The average number of employees during the year was as follows: |
2021 | 2020 |
Selling and Distribution | 35 | 47 |
Administration | 13 | 13 |
48 | 60 |
During the year, retirement benefits were accruing to 1 director (2020: 1) in respect of defined benefit pension schemes. The directors of the company are considered to be key management. Included in the staff costs above is £Nil (2020: £117,377) in respect of redundancy and related costs. |
2021 | 2020 |
£ | £ |
Directors' remuneration |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Depreciation of tangible assets | 226,574 | 245,913 |
Operating lease rentals - land and buildings | 408,000 | 316,957 |
(Profit)/Loss on disposal of tangible assets | (5,164 | ) | (4,679 | ) |
Exchange losses/(gains) | 45,749 | (30,630 | ) |
Fees payable to the company's auditors for the audit of the company's financial statements | 10,500 | 10,500 |
Defined contribution pension cost (note 6) | 19,915 | 23,016 |
8. | Finance costs |
2021 | 2020 |
£ | £ |
Bank interest |
Hire purchase interest |
9. | Taxation |
Analysis of the tax charge: |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 89,069 | 65,526 |
Prior year adjustment | (30,227 | ) | (19,702 | ) |
Deferred tax | 13,282 | (27,185 | ) |
72,124 | 18,639 |
Reconciliation of total tax charge included in the 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 before tax | 624,698 | 561,982 |
Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020: 19%) | 118,693 | 106,776 |
Effects of: |
Expenses not deductible for tax purposes | 2,972 | 2,990 |
Income not taxable | (983 | ) | (27,185 | ) |
Origination and reversal of timing differences | 18,559 | 28,850 |
Adjustment in respect of Research & Development | (36,890 | ) | (71,425 | ) |
Prior year adjustment | (30,227 | ) | (19,702 | ) |
72,124 | 18,639 |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
10. | Property, plant and equipment |
Fixtures |
Improvements | Plant and | and | Motor |
to property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
The net book value of assets held under finance leases or hire purchase contracts was £196,217 (2020: £322,125) |
11. | Stocks |
2021 | 2020 |
£ | £ |
Finished goods |
12. | Receivables: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade receivables |
Other receivables |
Prepayments and accrued income |
Trade receivables of £943,826 (2020: £994,713) are subject to an invoice discounting arrangement. |
13. | Payables: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade payables |
Tax |
Social security and other taxes |
Other payables |
Accruals and deferred income |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
13. | Payables: amounts falling due within one year - continued |
Security |
The bank loans are secured by an all monies debenture over the company. There is a fixed and floating charge over book debts of the company. |
Hire purchase and finance leases are secured by the assets to which they relate. |
14. | Payables: amounts falling due after one year |
2021 | 2020 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | Bank overdraft |
An analysis of the maturity of bank overdraft is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | Leasing agreements |
Minimum lease payments under hire purchase fall due as follows: |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
17. | Financial instruments |
2021 | 2020 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost |
1,524,907 |
1,278,676 |
Financial liabilities |
Financial liabilities measured at amortised cost |
(1,374,334 |
) |
(1,181,971 |
) |
Financial assets measured at amortised cost comprise of trade debtors and other debtors. |
Financial liabilities measured at amortised cost comprise of bank overdraft and invoice discounting, bank loans, trade creditors, other creditors, accruals, amounts owed to related undertakings and obligations under finance lease and hire purchase agreements. |
18. | Provisions for liabilities |
2021 | 2020 |
£ | £ |
Deferred tax | 84,255 | 70,973 |
Deferred tax |
£ |
Balance at 1 January 2021 |
Provided during year |
Balance at 31 December 2021 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary Shares | 0.10 | 2 | 2 |
20. | Capital commitments |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
21. | Ultimate controlling party |
As none of the shareholders hold a majority shareholding there is deemed to be no ultimate controlling party. |
ANNAGHMORE AGENCIES LIMITED (REGISTERED NUMBER: NI026511) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
22. | Related party transactions |
The company has identified the following transactions, which fall to be disclosed under the terms of paragraph 33. 1A from the provisions of FRS "Related Party Disclosures". |
Mr C. McKeown and Mr G. McKeown as directors of the company are regarded as related parties as identified by FRS "Related Party Disclosures". |
The warehouses, which the company operate at 29 Annaghmore Road, are owed by the company director, Mr C. McKeown. Mr C. McKeown rents the warehouse at 29 Annaghmore Road, to Annaghmore Agencies Ltd. Normal commercial terms, including the rent paid of £168,000 per annum (2020: £127,957), apply to the rental agreement. |
The warehouse, which the company uses at 29A Annaghmore Road, is owned by the company director, Mr G. McKeown. Mr G. McKeown rents the warehouse at 29A Annaghmore Road, to Annaghmore Agencies Ltd. Normal commercial terms, including the current rent paid of £240,000 per annum (2020: £180,000), apply to the rental agreement. |
Included within other debtors due within one year (note 13) is a balance of £331,521 owed to Annaghmore Agencies by companies in which the directors have an interest. |
23. | Commitments under operating leases |
At 31 December, the company had future minimum lease payments under non-cancellable operating leases as follows: |
2021 | 2020 |
£ | £ |
Land and buildings expiry date: |
Within 1 year | 312,000 | 312,000 |
Within 1-2 years | 624,000 | 624,000 |
Within 2-5 years | 672,000 | 672,000 |
Later than 5 years | 1,620,000 | 1,620,000 |
3,228.000 | 3,228,000 |