Company registration number 02605236 (England and Wales)
BLP (NORTHERN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
BLP (NORTHERN) LIMITED
COMPANY INFORMATION
Directors
Mr B Kane
Mr L Kane
Mr P Kane
Mrs PA Kane
Mrs V Kane
Mr SB Dobinson
Secretary
Mrs V Kane
Company number
02605236
Registered office
Unit 99/15 North Tyne Ind Estate
Whitley Road
Benton
Newcastle upon Tyne
Tyne and Wear
United Kingdom
NE12 9SZ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
Solicitors
Robert Muckle
Norham House
12 New Bridge Street West
Newcastle upon Tyne
Tyne and Wear
NE1 8AS
BLP (NORTHERN) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
BLP (NORTHERN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Review of Business
The results for the year and financial position of the company are as shown in the annexed financial statements.
The trading performance of the company generated a headline profit before tax and after non-recurring restructuring expenses of £203.6K, leading to an increase in after tax reserves of £170k. The COVID 19 pandemic continued to have an impact with lockdowns and isolation periods affecting trade in Q1 of the year. Sales revenue fell by 8% to £7.0m, compared to 2020 £7.6m, with the final months of the year showing an improving sales level and exceeding expectations as the country showed signs of returning to a pre-pandemic trading picture.
The company continues to pursue its strategy of forming long term relationships with key account clients and, despite the ongoing challenges in the sector, the directors are confident of maintaining a growing business with sustainable profitability.
Principal Risks and Uncertainties
Availability of materials
The longer-term impact on the wider economy of COVID-19 is still causing challenges with the timely availability of raw materials. The cost and availability for the transportation of goods continues to be an issue for the global community. As we entered 2022 there was a sense that costs were settling into a more realistic and sustainable situation.
Revenue concentration
Where clients represent more than 10% of revenue, the business mitigates the risk of revenue concentration through engaging the customer in either 12 month rolling contracts or multi-year contracts.
Loss of adequate working capital
The directors have assessed the risk of the company not being able to satisfy short-term supplier and finance obligations. The business is confident that it can operate with sufficient head room and has commenced repayment of the CIBLS loans accepted in 2020.
Future Developments and R&D
Energy costs
The rising energy costs are yet to have an impact upon the business. The current energy contract for both gas and electricity guarantee a fixed price position until the end of 2022. With rising costs in this area there has been a renewed focus on our commitment to reducing the environmental impact we have and using less gas and electricity where possible.
The company is exploring greener energy sources such as solar panels which will reduce the financial impact of rising energy prices and reduce our carbon footprint.
R&D
As in previous years the company will continue to strive for product and process improvements both internally and alongside its customers. The company will continue to invest resources into developing innovative product designs to satisfy customer desires and strive for continuous improvements in its operations.
BLP (NORTHERN) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Mr P Kane
Director
6 September 2022
BLP (NORTHERN) 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 in the year under review was that of a manufacturing printer and provider of direct mail services.
Results and dividends
The results for the year are set out on page 8.
The total distribution of dividends for the year ended 31 December 2021 will be £60,000.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B Kane
Mr L Kane
Mr P Kane
Mrs PA Kane
Mrs V Kane
Mr SB Dobinson
Auditor
The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the following Annual General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
BLP (NORTHERN) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.
On behalf of the board
Mr P Kane
Director
6 September 2022
BLP (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLP (NORTHERN) LIMITED
- 5 -
Opinion
We have audited the financial statements of BLP (Northern) 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
The directors are responsible for the other information, The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.
Our opinion of the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatements 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BLP (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLP (NORTHERN) 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 or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud is deemed to be low within the entity as the company operate strong internal controls to mitigate any such risk. These controls are reviewed as part of the audit by performing system walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. Manual journal entries are scrutinised by data analytics software used as part of the audit.
The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence of non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
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.
BLP (NORTHERN) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLP (NORTHERN) LIMITED
- 7 -
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.
Michael T Moran BA FCA (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
6 September 2022
Accountants
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
BLP (NORTHERN) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
4
6,986,869
7,581,636
Cost of sales
(4,503,444)
(4,707,240)
Gross profit
2,483,425
2,874,396
Distribution costs
(356,721)
(306,639)
Administrative expenses
(1,969,671)
(2,168,755)
Other operating income
128,040
159,852
Operating profit
5
285,073
558,854
Interest receivable and similar income
8
14
103
Interest payable and similar expenses
9
(81,393)
(82,054)
Profit before taxation
203,694
476,903
Tax on profit
10
(33,243)
(80,097)
Profit for the financial year
170,451
396,806
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BLP (NORTHERN) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Goodwill
12
6,886
11,857
Tangible assets
13
2,460,042
2,553,039
2,466,928
2,564,896
Current assets
Stocks
14
535,976
543,850
Debtors
15
1,496,488
1,789,183
Cash at bank and in hand
492,495
576,409
2,524,959
2,909,442
Creditors: amounts falling due within one year
16
(2,210,344)
(2,496,236)
Net current assets
314,615
413,206
Total assets less current liabilities
2,781,543
2,978,102
Creditors: amounts falling due after more than one year
17
(1,335,433)
(1,634,480)
Provisions for liabilities
Deferred tax liability
21
204,975
205,938
(204,975)
(205,938)
Government grants
20
(31,735)
(38,735)
Net assets
1,209,400
1,098,949
Capital and reserves
Called up share capital
22
281,895
281,895
Capital redemption reserve
82,432
82,432
Profit and loss reserves
845,073
734,622
Total equity
1,209,400
1,098,949
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 L Kane
Mr P Kane
Director
Director
Company Registration No. 02605236
BLP (NORTHERN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
281,895
82,432
472,816
837,143
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
396,806
396,806
Dividends
11
-
-
(135,000)
(135,000)
Balance at 31 December 2020
281,895
82,432
734,622
1,098,949
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
170,451
170,451
Dividends
11
-
-
(60,000)
(60,000)
Balance at 31 December 2021
281,895
82,432
845,073
1,209,400
BLP (NORTHERN) 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
1
260,926
1,335,674
Interest paid
(81,393)
(82,054)
Income taxes (paid)/refunded
(15,582)
127
Net cash inflow from operating activities
163,951
1,253,747
Investing activities
Purchase of tangible fixed assets
(37,017)
(202,701)
Proceeds on disposal of tangible fixed assets
7,000
85,260
Receipts arising from loans made
419
Interest received
14
103
Net cash used in investing activities
(30,003)
(116,919)
Financing activities
Factoring account movement
73,958
(960,834)
Proceeds of new bank loans
250,000
595,000
Repayment of bank loans
(189,195)
(47,414)
Payment of finance leases obligations
(292,625)
(260,676)
Dividends paid
(60,000)
(135,000)
Net cash used in financing activities
(217,862)
(808,924)
Net (decrease)/increase in cash and cash equivalents
(83,914)
327,904
Cash and cash equivalents at beginning of year
576,409
248,505
Cash and cash equivalents at end of year
492,495
576,409
BLP (NORTHERN) LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
170,451
396,806
Adjustments for:
Taxation charged
33,243
80,097
Finance costs
81,393
82,054
Investment income
(14)
(103)
(Gain)/loss on disposal of tangible fixed assets
(7,000)
34,134
Amortisation and impairment of intangible assets
4,971
4,971
Depreciation and impairment of tangible fixed assets
146,919
153,881
Decrease in deferred income
(7,000)
(6,999)
Movements in working capital:
Decrease/(increase) in stocks
7,874
(35,008)
Decrease in debtors
292,695
172,031
(Decrease)/increase in creditors
(462,606)
453,810
Cash generated from operations
260,926
1,335,674
2
Analysis of changes in net debt
1 January 2021
Cash flows
New finance leases
31 December 2021
£
£
£
£
Cash at bank and in hand
576,409
(83,914)
-
492,495
Borrowings excluding overdrafts
(1,498,150)
(134,763)
-
(1,632,913)
Obligations under finance leases
(583,769)
292,625
(16,905)
(308,049)
(1,505,510)
73,948
(16,905)
(1,448,467)
3
Accounting policies
Company information
BLP (Northern) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 99/15 North Tyne Ind Estate, Whitley Road, Benton, Newcastle upon Tyne, Tyne and Wear, United Kingdom, NE12 9SZ.
3.1
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 presented in Sterling (£).
The financial statements have been prepared under the historical cost convention.
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Accounting policies
(Continued)
- 13 -
3.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point the customer has taken delivery of the goods.
3.3
Intangible assets
Goodwill, being the amount paid in connection with the acquisition of a business in 2001, is being amortised evenly over its estimated remaining useful life of ten years. This is calculated on a straight line basis based on the net book value carried forward at 1 January 2016 when the policy was revised in line with FRS 102.
3.4
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.
Depreciation is recognised at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.
Freehold property
1% on cost
Plant and machinery
10% on cost
Motor vehicles
25% on cost
3.5
Impairment of fixed assets
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, and impairment loss is recognised immediately in profit and loss.
3.6
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items.
Raw materials cost is determined on a first-in-first-out (FIFO) basis. Work in progress and finished goods consist of direct labour and materials plus attributable overheads based on a normal level of activity.
Net realisable value is the amount that can be realised from the sale of the stock in the normal course of business after allowing for the costs of realisation.
3.7
Cash and cash equivalents
Cash and cash equivalents comprises cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value.
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Accounting policies
(Continued)
- 14 -
3.8
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current and deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
3.9
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
3.10
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
3.11
Government grants
During the current financial year the company received government grant funding through the Job Retention Scheme as a result of the Covid-19 pandemic. There are also other historic grants in the accounts.
This income has been accounted for in the period in which it relates on an accruals basis.
3.12
Short-term debtors and creditors
Debtors and creditors with no interest rate which are receivable or payable within one year are recorded at transaction price. Any loss arising from impairment are recognised immediately in profit and loss.
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
4
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company.
An analysis of turnover by geographical market is given below:
2021
2020
£
£
Turnover analysed by class of business
Sales UK
6,570,482
7,230,444
Sales Europe
416,387
351,192
6,986,869
7,581,636
2021
2020
£
£
Other revenue
Interest income
14
103
Grants received
128,040
159,852
5
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(128,040)
(159,852)
Fees payable to the company's auditor for the audit of the company's financial statements
5,800
5,800
Depreciation of owned tangible fixed assets
146,919
153,881
(Profit)/loss on disposal of tangible fixed assets
(7,000)
34,134
Amortisation of intangible assets
4,971
4,971
Operating lease charges
23,093
166,162
6
Employees
The average number of employees during the year was as follows:
2021
2020
Number
Number
Production
92
84
Administration
21
22
Total
113
106
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
2,479,246
2,475,891
Social security costs
216,182
216,924
Pension costs
59,504
57,010
2,754,932
2,749,825
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
190,564
177,961
Company pension contributions to defined contribution schemes
14,794
13,656
205,358
191,617
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
14
103
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
14
103
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
48,224
40,303
Other finance costs:
Interest on finance leases and hire purchase contracts
33,169
38,346
Other interest
3,405
81,393
82,054
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
29,749
60,085
Deferred tax
Origination and reversal of timing differences
3,494
20,012
Total tax charge
33,243
80,097
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
203,694
476,903
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
38,702
90,612
Tax effect of expenses that are not deductible in determining taxable profit
2,789
8,131
Tax effect of income not taxable in determining taxable profit
(1,330)
(1,330)
Tax effect of utilisation of tax losses not previously recognised
(4,430)
Permanent capital allowances in excess of depreciation
12,149
(12,101)
Research and development tax credit
(22,561)
(20,777)
Deferred tax
3,494
19,992
Taxation charge for the year
33,243
80,097
11
Dividends
2021
2020
£
£
Interim paid
60,000
135,000
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2021 and 31 December 2021
99,428
Amortisation and impairment
At 1 January 2021
87,571
Amortisation charged for the year
4,971
At 31 December 2021
92,542
Carrying amount
At 31 December 2021
6,886
At 31 December 2020
11,857
13
Tangible fixed assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
1,365,652
3,070,600
69,898
4,506,150
Additions
53,922
53,922
Disposals
(95,350)
(95,350)
At 31 December 2021
1,365,652
3,029,172
69,898
4,464,722
Depreciation and impairment
At 1 January 2021
71,874
1,824,570
56,667
1,953,111
Depreciation charged in the year
29,478
110,505
6,936
146,919
Eliminated in respect of disposals
(95,350)
(95,350)
At 31 December 2021
101,352
1,839,725
63,603
2,004,680
Carrying amount
At 31 December 2021
1,264,300
1,189,447
6,295
2,460,042
At 31 December 2020
1,293,778
1,246,030
13,231
2,553,039
14
Stocks
2021
2020
£
£
Raw materials and consumables
181,937
108,172
Work in progress
162,995
255,080
Finished goods and goods for resale
191,044
180,598
535,976
543,850
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
15
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,388,280
1,699,995
Other debtors
5,685
948
Prepayments and accrued income
102,523
88,240
1,496,488
1,789,183
16
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Bank loans
18
292,154
158,864
Obligations under finance leases
19
239,194
288,352
Other borrowings
18
74,181
223
Trade creditors
1,206,298
1,315,750
Corporation tax
78,856
60,232
Other taxation and social security
179,869
405,138
Other creditors
35,368
77,660
Accruals and deferred income
104,424
190,017
2,210,344
2,496,236
17
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
18
1,266,578
1,339,063
Obligations under finance leases
19
68,855
295,417
1,335,433
1,634,480
18
Loans and overdrafts
2021
2020
£
£
Bank loans
1,558,732
1,497,927
Other loans
74,181
223
1,632,913
1,498,150
Payable within one year
366,335
159,087
Payable after one year
1,266,578
1,339,063
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
19
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
251,365
320,498
In two to five years
72,872
310,464
324,237
630,962
Less: future finance charges
(16,188)
(47,193)
308,049
583,769
20
Government grants
2021
2020
£
£
Arising from government grants
31,735
38,735
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
2021
2020
Balances:
£
£
Accelerated capital allowances
204,975
205,938
2021
Movements in the year:
£
Liability at 1 January 2021
205,938
Credit to profit or loss
(963)
Liability at 31 December 2021
204,975
22
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
21,895
21,895
21,895
21,895
Preference shares of £1 each
260,000
260,000
260,000
260,000
281,895
281,895
281,895
281,895
BLP (NORTHERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
23
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
25,112
45,879
Between two and five years
23,407
48,519
48,519
94,398
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2021
2020
£
£
Key management personnel
1,785
1,785
Other related parties
101,536
163,368
2021-12-312021-01-01falseCCH SoftwareCCH Accounts Production 2022.200Mr B KaneMr L KaneMr P KaneMrs PA KaneMr SB DobinsonMr S B DobinsonMrs V Kane026052362021-01-012021-12-3102605236bus:Director12021-01-012021-12-3102605236bus:Director22021-01-012021-12-3102605236bus:Director32021-01-012021-12-3102605236bus:Director42021-01-012021-12-3102605236bus:CompanySecretaryDirector12021-01-012021-12-3102605236bus:Director52021-01-012021-12-3102605236bus:CompanySecretary12021-01-012021-12-3102605236bus:Director62021-01-012021-12-3102605236bus:RegisteredOffice2021-01-012021-12-3102605236bus:Agent12021-01-012021-12-31026052362021-12-31026052362020-01-012020-12-3102605236core:RetainedEarningsAccumulatedLosses2020-01-012020-12-3102605236core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3102605236core:Goodwill2021-12-3102605236core:Goodwill2020-12-31026052362020-12-3102605236core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-3102605236core:PlantMachinery2021-12-3102605236core:MotorVehicles2021-12-3102605236core:LandBuildingscore:OwnedOrFreeholdAssets2020-12-3102605236core:PlantMachinery2020-12-3102605236core:MotorVehicles2020-12-3102605236core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3102605236core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3102605236core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-3102605236core:Non-currentFinancialInstrumentscore:AfterOneYear2020-12-3102605236core:CurrentFinancialInstruments2021-12-3102605236core:CurrentFinancialInstruments2020-12-3102605236core:Non-currentFinancialInstruments2021-12-3102605236core:Non-currentFinancialInstruments2020-12-3102605236core:ShareCapital2021-12-3102605236core:ShareCapital2020-12-3102605236core:CapitalRedemptionReserve2021-12-3102605236core:CapitalRedemptionReserve2020-12-3102605236core:RetainedEarningsAccumulatedLosses2021-12-3102605236core:RetainedEarningsAccumulatedLosses2020-12-3102605236core:ShareCapital2019-12-3102605236core:CapitalRedemptionReservecore:RestatedAmount2019-12-3102605236core:RetainedEarningsAccumulatedLosses2019-12-31026052362019-12-3102605236core:ShareCapitalOrdinaryShares2021-12-3102605236core:ShareCapitalOrdinaryShares2020-12-310260523612021-01-012021-12-310260523612020-01-012020-12-310260523622021-01-012021-12-310260523622020-01-012020-12-31026052362020-12-3102605236core:Goodwill2021-01-012021-12-3102605236core:LandBuildingscore:OwnedOrFreeholdAssets2021-01-012021-12-3102605236core:PlantMachinery2021-01-012021-12-3102605236core:MotorVehicles2021-01-012021-12-3102605236core:UKTax2021-01-012021-12-3102605236core:UKTax2020-01-012020-12-3102605236core:Goodwill2020-12-3102605236core:LandBuildingscore:OwnedOrFreeholdAssets2020-12-3102605236core:PlantMachinery2020-12-3102605236core:MotorVehicles2020-12-3102605236core:WithinOneYear2021-12-3102605236core:WithinOneYear2020-12-3102605236core:BetweenTwoFiveYears2021-12-3102605236core:BetweenTwoFiveYears2020-12-3102605236bus:PrivateLimitedCompanyLtd2021-01-012021-12-3102605236bus:FRS1022021-01-012021-12-3102605236bus:Audited2021-01-012021-12-3102605236bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP