Company Registration No. 05766476 (England and Wales)
ALUPROF UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
ALUPROF UK LIMITED
COMPANY INFORMATION
Director
W Brozyna
Company number
05766476
(England and Wales)
Registered office
Unit A5 Altrincham Business Park
Stuart Road Broadheath
Altrincham
Cheshire
WA14 5GJ
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
ALUPROF UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Income statement
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 27
ALUPROF UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The director presents the strategic report for the year ended 31 December 2021.
Fair review of the business
This year we faced unprecedented cost inflation in respect of raw materials, components, and products. The current economic environment has created uncertainty in the market and had a tangible impact on our customer network. We addressed these issues directly and worked to minimise the negative impact of cost inflation and increased lead times upon our customers. Our determination and proactivity have enabled us to maintain the best delivery lead times in our industry. Our superior performance during this challenging environment has allowed us to achieve a 30% growth in sales and extend our client portfolio.
We are proud of our driven salesforce, dedicated technical department and efficient administrators. During the year we invested and reinforced our architectural specification team with a view to continually improve and develop our service excellence.
Over the year we have developed innovative new products and have great anticipation and expectation for the impending launch to market. These new systems will further complement our range and address the latest requirements and performance criteria. We continue development of our strategic fire rated product range with a view to working on bespoke high-profile projects and with other dedicated specialist teams.
We look forward with positivity to explore new opportunities arising in different market sectors. We actively seek to develop and embrace new relationships, whilst continuing to strengthen our existing network. We remain committed to the improvement of our customer journey and experience through technical and operational excellence. We are committed to working to the highest of standards and perpetually embrace new technologies and working practices. We understand the importance of our natural environment and have embarked upon an ambitious sustainability programme to contribute to this global effort.
Key performance indicators
The key performance indicators are our turnover £22,778,356 (2020 - £17,553,935) and Profit before Taxation of £1,272,244 (2020 - £937,687) and continuing balance sheet strength.
We are also mindful of the non-financial indicators when reviewing our performance during the year. This would include our continued operations throughout the year, the retention of existing staff, recruitment of new team members and development of our innovative environment.
ALUPROF UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Covid-19
We are fully aware of the economic and social impact of Covid-19 on our company and society. Throughout the pandemic our priority has remained the well being of our staff and the staff of our suppliers and customers.
We have performed detailed Covid-19 Risk Assessments and are continually reviewing all our working practices. We have encouraged and supported the homeworking of our staff where possible. We have also ensured our offices are Covid-19 secure through the implementation of social distancing zones and sanitiser stations.
We remained fully functional throughout the pandemic and continued to support our staff and customers. We understood the government's desire to ensure the continued operation of construction industries and remained committed to making our own steadfast contribution.
W Brozyna
Director
17 February 2022
ALUPROF UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be the sale and distribution of aluminium architectural systems.
Results and dividends
The results for the year are set out on page 8.
During the year a special dividend of £10.19 (2020: £NIL), an interim dividend of £6.32 (2020: £1.82) and final dividend of £10.66 (2020: £1.82) per Ordinary Share was paid in respect of the financial year ended 31st December 2021.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
W Brozyna
Auditor
Champion Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is 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, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the company's ability to continue as a going concern.
The director is 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. He is 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.
ALUPROF UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
On behalf of the board
W Brozyna
Director
17 February 2022
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALUPROF UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Aluprof UK Limited (the 'company') for the year ended 31 December 2021 which comprise the income statement, the statement of financial position, 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
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 IFRSs as adopted by the United Kingdom; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALUPROF UK LIMITED
- 6 -
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 director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: IFRS, Companies Act 2006 & GDPR.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment
accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
ALUPROF UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALUPROF UK LIMITED
- 7 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to deferred income, depreciation methods & cut-off.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets and stock items (including testing of the stock system).
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
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.
Mark Turner FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
17 February 2022
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
ALUPROF UK LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Revenue
3
22,778,356
17,553,935
Cost of sales
(18,746,201)
(14,272,162)
Gross profit
4,032,155
3,281,773
Other operating income
40,447
Administrative expenses
(2,740,661)
(2,355,901)
Operating profit
4
1,291,494
966,319
Finance costs
7
(19,250)
(28,632)
Profit before taxation
1,272,244
937,687
Income tax expense
8
(234,653)
(173,163)
Profit and total comprehensive income for the year
1,037,591
764,524
The income statement has been prepared on the basis that all operations are continuing operations.
ALUPROF UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
Assets
Non-current assets
Intangible assets
10
3,321
6,594
Property, plant and equipment
11
1,067,287
1,244,031
1,070,608
1,250,625
Current assets
Inventories
12
674,221
305,390
Trade and other receivables
13
5,068,920
3,636,969
Cash and cash equivalents
1,323,708
2,316,473
7,066,849
6,258,832
Total assets
8,137,457
7,509,457
Equity and liabilities
Current liabilities
Trade and other payables
15
5,383,684
4,174,591
Current tax liabilities
157,675
93,449
Lease liabilities
16
205,143
201,729
Provisions
18
172,796
210,820
5,919,298
4,680,589
Non-current liabilities
Lease liabilities
16
447,203
595,701
Deferred tax liabilities
17
60,523
66,045
507,726
661,746
Total liabilities
6,427,024
5,342,335
Equity
Called up share capital
20
55,000
55,000
Retained earnings
1,655,433
2,112,122
Total equity
1,710,433
2,167,122
Total equity and liabilities
8,137,457
7,509,457
The financial statements were approved and signed by the director and authorised for issue on 17 February 2022
W Brozyna
Director
Company Registration No. 05766476
ALUPROF UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2020
55,000
1,547,798
1,602,798
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
764,524
764,524
Dividends
9
-
(200,200)
(200,200)
Balance at 31 December 2020
55,000
2,112,122
2,167,122
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
1,037,591
1,037,591
Dividends
9
-
(1,494,280)
(1,494,280)
Balance at 31 December 2021
55,000
1,655,433
1,710,433
ALUPROF UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,008,306
2,186,815
Interest paid
(19,250)
(28,632)
Tax paid
(175,949)
(115,123)
Net cash inflow from operating activities
813,107
2,043,060
Investing activities
Purchase of property, plant and equipment
(177,850)
(120,711)
Proceeds on disposal of property, plant and equipment
11,342
45,294
Net cash used in investing activities
(166,508)
(75,417)
Financing activities
Payment of lease liabilities
(145,084)
(195,677)
Dividends paid
(1,494,280)
(200,200)
Net cash used in financing activities
(1,639,364)
(395,877)
Net (decrease)/increase in cash and cash equivalents
(992,765)
1,571,766
Cash and cash equivalents at beginning of year
2,316,473
744,707
Cash and cash equivalents at end of year
1,323,708
2,316,473
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Aluprof UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A5 Altrincham Business Park, Stuart Road Broadheath, Altrincham, Cheshire, WA14 5GJ. The company's principal activities and nature of its operations are disclosed in the director's report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus he continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised when products and services are delivered.
1.4
Intangible assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Licences, software and development costs
Licence are amortised on a straight line basis over the assets estimated useful economic life of ten years
Software is amortised on a straight line basis over the assets estimated useful economic life of three years
Product development costs are amortised on a straight line basis over the assets estimated useful economic life of three years.
1.5
Property, plant and equipment
Property, plant and equipment 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:
Leasehold improvements
Straight line over the life of the lease
Fixtures and fittings
15% on reducing balance basis
Plant and equipment
Straight line over 15 years
Computers
Straight line over 5 years
Right-of-use assets
Period of the lease
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
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 recognised in the income statement.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible 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.
1.7
Inventories
Inventories 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 inventories to their present location and condition.
The FIFO cost model has been adopted for valuing inventories.
1.8
Cash and cash equivalents
Cash and cash equivalents 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.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets, other than those measured at fair value through profit or 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 of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.14
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 inventories or non-current 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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.17
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Estimation techniques include methods of depreciation as stated within the accounting policies. The provision for bad debts is measured by the collectability of individual debtors and is determined by the management. Estimation techniques are also used to derive the estimated useful life of the intangible assets and the amortisation required in order to write down these assets over their lifetime. Discount factor used in the net present value calculation of lease liabilities.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
3
Revenue
2021
2020
£
£
Revenue analysed by class of business
Building Systems
16,022,833
12,787,622
Roller Shutters
6,495,340
4,572,853
Other
260,183
193,460
22,778,356
17,553,935
2021
2020
£
£
Other significant revenue
Grants received
40,447
4
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
27,386
(10,773)
Research and development costs
56,989
31,672
Government grants
(40,447)
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
6,000
Depreciation of property, plant and equipment
350,023
336,839
Profit on disposal of property, plant and equipment
(6,771)
(35,959)
Amortisation of intangible assets (included within administrative expenses)
3,273
17,946
Cost of inventories recognised as an expense
18,746,201
14,272,162
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Management
1
1
Administration
21
25
Sales
7
5
Total
29
31
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,266,402
1,227,118
Social security costs
153,182
141,434
Pension costs
32,938
31,414
1,452,522
1,399,966
6
Director's remuneration
2021
2020
£
£
Remuneration for qualifying services
73,932
95,950
7
Finance costs
2021
2020
£
£
Interest on lease liabilities
19,185
28,239
Other interest payable
65
393
Total interest expense
19,250
28,632
8
Income tax expense
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
248,368
144,886
Adjustments in respect of prior periods
(8,193)
Total UK current tax
240,175
144,886
Deferred tax
Origination and reversal of temporary differences
(5,522)
28,277
Total tax charge
234,653
173,163
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Income tax expense
(Continued)
- 19 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2021
2020
£
£
Profit before taxation
1,272,244
937,687
Expected tax charge based on a corporation tax rate of 19.00% (2020: 19.00%)
241,726
178,161
Adjustment in respect of prior years
(8,193)
Permanent capital allowances in excess of depreciation
1,120
5,101
Research and development tax credit
(10,099)
Taxation charge for the year
234,653
173,163
9
Dividends
2021
2020
2021
2020
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Interim dividend paid
6.32
1.82
347,600
100,100
Final dividend paid
10.66
1.82
586,230
100,100
Special dividend paid
10.19
-
560,450
-
27.17
3.64
1,494,280
200,200
During the year the dividend distribution policy was revised, and a special dividend was voted in order to apply the new policy to previous years.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
10
Intangible assets
Licences, Software & Development
£
Cost
At 1 January 2020
166,207
At 31 December 2020
166,207
At 31 December 2021
166,207
Amortisation and impairment
At 1 January 2020
141,667
Charge for the year
17,946
At 31 December 2020
159,613
Charge for the year
3,273
At 31 December 2021
162,886
Carrying amount
At 31 December 2021
3,321
At 31 December 2020
6,594
At 31 December 2019
24,540
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
11
Property, plant and equipment
Leasehold improvements
Assets under construction
Fixtures and fittings
Plant and equipment
Computers
Right-of-use assets
Total
£
£
£
£
£
£
£
Cost
At 1 January 2020
112,854
245,987
64,690
638,839
50,174
1,138,571
2,251,115
Additions
1,276
9,361
50,403
16,842
42,829
120,711
Disposals
(1,589)
(74,283)
(75,872)
Other
239,169
(247,263)
4,537
3,557
At 31 December 2020
352,023
76,999
614,959
70,573
1,181,400
2,295,954
Additions
13,528
77,378
7,393
79,551
177,850
Disposals
(10,642)
(43,516)
(54,158)
At 31 December 2021
365,551
76,999
681,695
77,966
1,217,435
2,419,646
Accumulated depreciation and impairment
At 1 January 2020
58,154
24,327
484,845
35,412
178,883
781,621
Charge for the year
29,841
7,669
67,363
8,908
223,058
336,839
Eliminated on disposal
(1,161)
(65,376)
(66,537)
At 31 December 2020
87,995
30,835
486,832
44,320
401,941
1,051,923
Charge for the year
50,200
6,936
63,663
9,010
220,214
350,023
Eliminated on disposal
(6,071)
(43,516)
(49,587)
At 31 December 2021
138,195
37,771
544,424
53,330
578,639
1,352,359
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Property, plant and equipment
Leasehold improvements
Assets under construction
Fixtures and fittings
Plant and equipment
Computers
Right-of-use assets
Total
£
£
£
£
£
£
£
(Continued)
- 22 -
Carrying amount
At 31 December 2021
227,356
-
39,228
137,271
24,636
638,796
1,067,287
At 31 December 2020
264,028
-
46,164
128,127
26,253
779,459
1,244,031
At 31 December 2019
54,700
245,987
40,363
153,994
14,762
959,688
1,469,494
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
12
Inventories
2021
2020
£
£
Finished goods
674,221
305,390
13
Trade and other receivables
2021
2020
£
£
Trade receivables
4,925,963
3,506,419
Prepayments
142,957
130,550
5,068,920
3,636,969
Trade receivables includes an impairment of £129,419 (2020: £66,680).
14
Trade receivables - credit risk
Fair value of trade receivables
The director considers that the carrying amount of trade and other receivables is approximately equal to their fair value.
Ageing of past due but not impaired receivables
2021
2020
£
£
Trade receivables due within 3 months
4,582,429
3,134,103
Trade receivables due within 6 months
343,534
372,316
4,925,963
3,506,419
15
Trade and other payables
2021
2020
£
£
Trade payables
3,677,223
2,994,926
Amount owed to parent undertaking
586,230
Accruals
48,700
34,500
Social security and other taxation
1,059,819
1,139,072
Other payables
11,712
6,093
5,383,684
4,174,591
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
16
Lease liabilities
2021
2020
Maturity analysis
£
£
Within one year
253,951
250,842
In two to three years
379,606
435,761
In over three years
192,636
328,614
Lease liabilities in the financial statements
826,193
1,015,217
Future finance charges and other adjustments
(173,847)
(217,787)
Lease liabilities in the financial statements
652,346
797,430
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2021
2020
£
£
Current liabilities
205,143
201,729
Non-current liabilities
447,203
595,701
652,346
797,430
2021
2020
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
19,185
28,239
The fair value of the company's lease obligations is approximately equal to their carrying amount.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
£
Deferred tax liability at 1 January 2020
37,768
Deferred tax movements in prior year
Charge/(credit) to profit or loss
28,277
Deferred tax liability at 1 January 2021
66,045
Deferred tax movements in current year
Charge/(credit) to profit or loss
(5,522)
Deferred tax liability at 31 December 2021
60,523
18
Provisions for liabilities
Analysis of provisions
Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2021
2020
£
£
Current liabilities
172,796
210,820
Movements on provisions:
£
At 1 January 2021
210,820
Additional provisions in the year
81,833
Utilisation of provision
(119,857)
At 31 December 2021
172,796
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,938
31,414
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.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
20
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
55,000
55,000
55,000
55,000
21
Capital risk management
The company is not subject to any externally imposed capital requirements.
22
Related party transactions
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2021
2020
2021
2020
£
£
£
£
Parent company
32,880
17,092
13,648,556
10,346,558
Entities with joint control or significant influence over the company
5,137,944
3,850,090
32,880
17,092
18,786,500
14,196,648
The following amounts were outstanding at the reporting end date:
2021
2020
Amounts due to related parties
£
£
Parent company
3,167,013
1,724,297
Entities with joint control or significant influence over the company
951,007
1,178,922
4,118,020
2,903,219
Other information
During the course of the year the company purchased technical consulting services from WB Business Consulting Ltd amounting to £15,264 (2020 - £15,264). The director is related to WB Business Consulting Ltd by way of his interest in the Ordinary Share capital of that company. There was no balance outstanding at the year end during the current and prior year. The transactions were conducted on an arm's length basis and were subject to normal company terms and conditions.
23
Controlling party
The entire issued share capital was aquired on the 3rd April 2006 by Aluprof SA which is incorporated in Poland. The Group Report can be obtained from Krajowy Rejestr Sadowy in Poland. The ultimate controlling party is Grupa Kety SA which is a company that is listed on the Warsaw Stock Exchange.
ALUPROF UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 27 -
24
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,037,591
764,524
Adjustments for:
Taxation charged
234,653
173,163
Finance costs
19,250
28,632
Gain on disposal of property, plant and equipment
(6,771)
(35,959)
Amortisation and impairment of intangible assets
3,273
17,946
Depreciation and impairment of property, plant and equipment
350,023
336,839
(Decrease)/increase in provisions
(38,024)
48,982
Movements in working capital:
Increase in inventories
(368,831)
(149,835)
(Increase)/decrease in trade and other receivables
(1,431,951)
949,207
Increase in trade and other payables
1,209,093
53,316
Cash generated from operations
1,008,306
2,186,815
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