Company Registration No. NI046240 (Northern Ireland)
COURTNEY & NELSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
COURTNEY & NELSON LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
COURTNEY & NELSON LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mrs P A McWilliams
Mr D C McWilliams
Secretary
Mrs P A McWilliams
Company number
NI046240
Registered office
4th Floor Donegall House
7 Donegall Square North
Belfast
BT1 5GB
Auditor
Moore (N.I.) LLP
4th Floor Donegall House
7 Donegall Square North
Belfast
BT1 5GB
Business address
73 Boucher Crescent
Boucher Road
Belfast
BT12 6HU
Bankers
Ulster Bank Limited
365 - 367 Ormeau Road
Belfast
BT7 3GP
Solicitors
Carson McDowell LLP
Murray House, Murray Street
Belfast
BT1 6DN
Pinsent Masons LLP
Arnott House
12 - 16 Bridge Street
Belfast
BT1 1LS
Wilson Nesbitt Solicitors
Hamilton House
3 Joy Street
Belfast
BT2 8LE
COURTNEY & NELSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -

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

Fair review of the business

The market for the distribution of confectionery, tobacco and grocery products remains very competitive. The company seeks to manage the risk of losing customers to key competitors by the provision of added value services to customers, improving response times in the supply of products and the handling of customer queries and by maintaining strong relationships and local representation with local customers. The directors are pleased to have achieved the level of turnover in the current year.

Principal risks and uncertainties

The management and the execution of the company's strategy are subject to a number of risks.

Key performance indicators

Given the straightforward nature of the business the company's directors are of the opinion that analysis using KPIs is not necessary for the understanding of the development, performance or position of the company.

Financial risk management
Given the size of the company, the directors have retained the responsibility of monitoring the financial risks of the company.
Interst rate cash flow risk
The company has interest bearing assets in the form of cash balances which earn interest at variable rates.  The company has a policy of maintaining debt at variable rates.  The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Credit risk
Policies and procedures exist to ensure that customers have an appropriate credit history. All trade customers are allocated a credit limit which is regularly monitored.
Environment
The company recognises its responsibility to carry out its operations whilst minisiming enviromental impacts. The directors' continued aim is to comply with all applicable enviromental legislation, prevent pollution and reduce waste wherever possible.
Health and safety

The company is committed to achieving the highest practicable standards in health and safety management and strives to make all work areas safe environments for employees and customers alike.

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

Mr D C McWilliams
Director
6 September 2022
COURTNEY & NELSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

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

Principal activities
The principal activity of the company is that of the wholesale supply of confectionery, tobacco and grocery products.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs P A McWilliams
Mr D C McWilliams
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends paid to employees amounted to £30,000. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Moore (N.I.) LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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). 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D C McWilliams
Director
6 September 2022
COURTNEY & NELSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF COURTNEY & NELSON LIMITED
- 4 -
Opinion

We have audited the financial statements of Courtney & Nelson Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 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 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. 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 our audit:

COURTNEY & NELSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COURTNEY & NELSON LIMITED
- 5 -
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 and 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those with governance.

Our approach was as follows:

- Enquiry of management, those charged with governance and correspondence with the entity’s solicitors around actual and potential litigation and claims.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

-We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non=compliance with laws and regulations.

-Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

COURTNEY & NELSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF COURTNEY & NELSON LIMITED
- 6 -

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement team included:

-We obtained an understanding of the company's internal control systems in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

-We obtained an understanding of how the company complies with relevant laws and regulations by making enquiries of management and those charged with governance

-Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims.

-Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

-Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

-Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment through collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant finding, including any significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.

Dr R I Peters Gallagher OBE FCA (Senior Statutory Auditor)
For and on behalf of Moore (N.I.) LLP
6 September 2022
Chartered Accountants
Statutory Auditor
4th Floor Donegall House
7 Donegall Square North
Belfast
BT1 5GB
COURTNEY & NELSON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
16,694,718
15,163,957
Cost of sales
(14,360,612)
(13,278,995)
Gross profit
2,334,106
1,884,962
Distribution costs
(1,257,442)
(1,138,552)
Administrative expenses
(354,125)
(431,818)
Operating profit
4
722,539
314,592
Interest receivable and similar income
7
9,084
8,728
Amounts written off investments
8
-
0
(936)
Profit before taxation
731,623
322,384
Tax on profit
9
(137,924)
(48,778)
Profit for the financial year
593,699
273,606

The profit and loss account has been prepared on the basis that all operations are continuing operations.

COURTNEY & NELSON LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,020,662
1,773,429
Current assets
Stocks
12
1,524,238
1,359,904
Debtors
13
1,161,613
1,351,117
Cash at bank and in hand
2,408,752
2,626,965
5,094,603
5,337,986
Creditors: amounts falling due within one year
14
(1,566,335)
(2,152,956)
Net current assets
3,528,268
3,185,030
Total assets less current liabilities
5,548,930
4,958,459
Provisions for liabilities
Deferred tax liability
15
54,827
28,055
(54,827)
(28,055)
Net assets
5,494,103
4,930,404
Capital and reserves
Called up share capital
17
2,113
2,113
Share premium account
1,199,923
1,199,923
Profit and loss reserves
4,292,067
3,728,368
Total equity
5,494,103
4,930,404
The financial statements were approved by the board of directors and authorised for issue on 6 September 2022 and are signed on its behalf by:
Mr D C McWilliams
Director
Company Registration No. NI046240
COURTNEY & NELSON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
2,113
1,199,923
3,471,262
4,673,298
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
273,606
273,606
Dividends
10
-
-
(16,500)
(16,500)
Balance at 31 December 2020
2,113
1,199,923
3,728,368
4,930,404
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
593,699
593,699
Dividends
10
-
-
(30,000)
(30,000)
Balance at 31 December 2021
2,113
1,199,923
4,292,067
5,494,103
COURTNEY & NELSON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
318,903
949,610
Income taxes paid
(81,479)
(115,273)
Net cash inflow from operating activities
237,424
834,337
Investing activities
Purchase of tangible fixed assets
(588,892)
(66,065)
Proceeds on disposal of tangible fixed assets
154,171
30,001
Receipts arising from loans made
-
0
51,692
Interest received
9,084
8,728
Net cash (used in)/generated from investing activities
(425,637)
24,356
Financing activities
Dividends paid
(30,000)
(16,500)
Net cash used in financing activities
(30,000)
(16,500)
Net (decrease)/increase in cash and cash equivalents
(218,213)
842,193
Cash and cash equivalents at beginning of year
2,626,965
1,784,772
Cash and cash equivalents at end of year
2,408,752
2,626,965
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information

Courtney & Nelson Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 4th Floor Donegall House, 7 Donegall Square North, Belfast, BT1 5GB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
2% on straight line
Fixtures, fittings & equipment
12.5% - 25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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. Amounts 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.

COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2021
2020
£
£
Turnover analysed by class of business
Sale of goods
16,694,718
15,163,957
2021
2020
£
£
Other significant revenue
Interest income
9,084
8,728
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Turnover and other revenue
(Continued)
- 16 -
2021
2020
£
£
Turnover analysed by geographical market
UK Sales
16,119,002
14,641,029
EU Sales
575,716
522,928
16,694,718
15,163,957
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
9,500
Depreciation of owned tangible fixed assets
197,875
139,522
(Profit)/loss on disposal of tangible fixed assets
(10,387)
8,798
Cost of stocks recognised as an expense
14,360,612
13,278,995
Operating lease charges
35,500
26,625
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Management
4
4
Clerical
5
5
Other
24
23
33
32

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
861,959
852,712
Social security costs
78,449
78,978
Pension costs
104,145
106,332
1,044,553
1,038,022
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
14,352
14,352
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
9,084
8,728

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
9,084
8,728
8
Amounts written off investments
2021
2020
£
£
Amounts written back to/(written off) current loans
-
(936)
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
111,152
81,479
Adjustments in respect of prior periods
-
0
(17,524)
Total current tax
111,152
63,955
Deferred tax
Origination and reversal of timing differences
26,772
(15,177)
Total tax charge
137,924
48,778
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit before taxation
731,623
322,384
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
139,008
61,253
Tax effect of expenses that are not deductible in determining taxable profit
23
4,630
Gains not taxable
(1,974)
-
0
Change in unrecognised deferred tax assets
26,772
-
0
Permanent capital allowances in excess of depreciation
(25,905)
-
0
Under/(over) provided in prior years
-
0
(17,105)
Tax expense for the year
137,924
48,778
10
Dividends
2021
2020
£
£
Final paid
30,000
16,500
11
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
1,572,896
108,807
800,104
2,481,807
Additions
-
0
14,214
574,678
588,892
Disposals
-
0
-
0
(492,836)
(492,836)
At 31 December 2021
1,572,896
123,021
881,946
2,577,863
Depreciation and impairment
At 1 January 2021
157,291
63,138
487,947
708,376
Depreciation charged in the year
31,458
12,005
154,412
197,875
Eliminated in respect of disposals
-
0
-
0
(349,050)
(349,050)
At 31 December 2021
188,749
75,143
293,309
557,201
Carrying amount
At 31 December 2021
1,384,147
47,878
588,637
2,020,662
At 31 December 2020
1,415,606
45,670
312,153
1,773,429
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
12
Stocks
2021
2020
£
£
Finished goods and goods for resale
1,524,238
1,359,904
1,524,238
1,359,904
13
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
854,923
992,302
Other debtors
272,236
271,036
Prepayments and accrued income
34,454
87,779
1,161,613
1,351,117
14
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,114,165
1,745,744
Corporation tax
111,152
81,479
Other taxation and social security
157,950
216,049
Other creditors
72,390
17,289
Accruals and deferred income
110,678
92,395
1,566,335
2,152,956
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
54,827
28,055
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
15
Deferred taxation
(Continued)
- 20 -
2021
Movements in the year:
£
Liability at 1 January 2021
28,055
Charge to profit or loss
26,772
Liability at 31 December 2021
54,827

The net deferred tax liability expected to reverse in 12 months is £26,772. This primarily relates to the reversal of tax timing differences on capital allowances.

16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
104,145
106,332

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
2,078 Ordinary shares of £1 each
2,078
2,078
35 Employee shares of £1 each
35
35
2,113
2,113

The ordinary shares entitle the shareholders to:

 

The employee shares entitle the shareholder to:

 

The employee shares do not entitle the shareholder to:

 

COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021
2020
£
£
Within one year
35,500
35,500
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021
2020
£
£
Aggregate compensation
14,352
14,352
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Mr D McWilliams and Mrs P McWilliams are directors of Courtney and Nelson Investments Limited. During the year there was a transfer of £41,956 to Courtney and Nelson Investments from the company. The amount outstanding at the balance sheet date from Courtney and Nelson Investments Limited is £312,992 (2020: £271,036) and is included in other debtors. All transactions between Courtney and Nelson Limited and related parties have been negotiated at arms length and at normal market value.

 

20
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
593,699
273,606
Adjustments for:
Taxation charged
137,924
48,778
Investment income
(9,084)
(8,728)
(Gain)/loss on disposal of tangible fixed assets
(10,387)
8,798
Depreciation and impairment of tangible fixed assets
197,875
139,522
Other gains and losses
-
936
Movements in working capital:
Increase in stocks
(164,334)
(111,501)
Decrease in debtors
189,504
65,525
(Decrease)/increase in creditors
(616,294)
532,674
Cash generated from operations
318,903
949,610
COURTNEY & NELSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
21
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
2,626,965
(218,213)
2,408,752
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