REGISTERED NUMBER: 11516137 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
FRANK SUTTON HOLDINGS LIMITED |
REGISTERED NUMBER: 11516137 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
FRANK SUTTON HOLDINGS LIMITED |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings |
10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 16 |
FRANK SUTTON HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
Court House |
Court Road |
Bridgend |
CF31 1BE |
SOLICITORS: |
Old Bank House |
Beaufort Street |
Crickhowell |
Powys |
NP8 1AD |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors present their strategic report of the company and the group for the year ended 31 December 2021. |
REVIEW OF BUSINESS |
The Group's principal activity during the year continued to be that of the supply and maintenance of agricultural and turf machinery in the new and second-hand market. |
The subsidiary company Frank Sutton Limited (Company) is a main dealer for the sale and maintenance of John Deere and Kramer equipment also selling a variety of other main brands relevant to this market. |
During the year the company experienced an increase in turnover of 24% following a decrease of 11% in 2020. The company trades in diverse markets across Wales and into Southern England. The directors are committed to the ongoing development of the company seeking new customers and markets whilst continuing to deliver an excellent service to its existing customer base. |
In 2021 turnover increased due to more certainty in the marketplace with regards to food production. Other sectors of the business also returned healthy margins such as Turf Care, with more customers investing in our products due to the reliability, service and support we deliver. Our Retail Finance business has also increased in turnover with more customers seeking new ways to fund their machinery purchases. The continuing aim of the directors is to use the strong financial and marketplace position of the company to deliver ongoing growth and reinforce the strong foundation of a unique business model. |
Increasing the turnover from the 2019 and 2020 values during a COVID year is the result of a solid business foundation built on long established family values and a good understanding of customers' expectations. Both company sites at Raglan and Bridgend continued to perform well both delivering a resilient trading performance. |
The company has embraced new technology offering real time remote diagnostics of machinery and over the air programming and updates. This results in increased customer satisfaction and less downtime. Continual development of both sites is ongoing, with better display areas and the modernisation of showrooms for a better customer environment. The use of technology has increased dramatically in agriculture, so the company is seeing major growth in this type of equipment. |
The directors remain committed to the John Deere and Kramer brands and the market share for John Deere tractors in the region is over 30% which is higher than the national average. The directors are delighted with the trading results returned in a year COVID uncertainty. The company has maintained all its franchise accreditations and approvals. |
The 2022 year has started well with healthy current levels of sales, but the company is hampered with supply shortages for machinery which has been brought about by COVID related problems. The company is also excited to announce new franchises which include Yamaha ATV equipment and Caterpillar construction equipment which will be implemented this year. |
The directors are also pleased to be able to report a strong balance sheet position which shows significant distributable reserves putting the company in a strong position to develop and expand. |
The Directors continue to be aware of the cash flow challenges faced by the business but feel confident that as they have done so far in the development of the company, they will be able to fund growth as it develops from the various third party financial resources they have worked with so far and by using the directors own sources of finance. |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
REVIEW OF BUSINESS |
Financial Key Performance Indicators |
The Group uses a range of performance measures to monitor and manage the business effectively. |
These are both financial and and non-financial and the most significant of these are the key performance indicators (KPl's). The KPl's for the year ended 31 December 2021 with comparatives for the year ended 31 December 2020 and 31 December 2019 are summarised as follows: |
31 December 2021 |
31 December 2020 |
31 December 2019 |
£ | £ | £ |
Turnover | 19,418,559 | 15,536,607 | 17,405,194 |
Gross profit margin | 9% | 7.95% | 8.3% |
Profit before tax | 674,291 | 413,198 | 459,579 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group is exposed to price, credit, liquidity and cash flow risks as it trades from day to day. The group manages these risks by financing its operations through retained profits, use of an overdraft, main dealer finance plans, long term bank and shareholder borrowings where necessary. |
The management objectives are to retain sufficient liquid funds in the business to enable it to meet its day to day requirements, minimise the group's exposure to fluctuating cash flows, and ensure that the business maintains and monitors its plans to manage 'spikes' in cash outflows caused by VAT and significant supplier payments. |
The group makes little use of financial instruments other than standard overdraft funding, a bank loan and an operational bank account so it's exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the group. |
ON BEHALF OF THE BOARD: |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021. |
DIVIDENDS |
An interim dividend of £200,000 per share on the Ordinary £1 shares was paid on 17 September 2021. The directors recommend that no final dividend be paid on these shares. |
No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 December 2021 will be £ 200,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
AUDITORS |
The auditors, Graham Paul Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FRANK SUTTON HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Frank Sutton Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2021 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FRANK SUTTON HOLDINGS LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FRANK SUTTON HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's principle activity which is that of the supply and maintenance of agricultural and turf machinery in the new and second-hand market; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- We assessed the extent of the compliance with the laws and regulations identified above by making enquiries of management and inspecting any legal correspondence; and |
- The laws and regulations identified were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquires of the directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- Understanding the design of the company's remuneration policies. |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; |
- Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 where indicative of potential bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- Agreeing financial statement disclosure to underlying supporting documentation; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Reviewing correspondence relevant to tax and legal matters where available. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely 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. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FRANK SUTTON HOLDINGS LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
(Statutory Auditor) |
Court House |
Court Road |
Bridgend |
CF31 1BE |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 3 | 19,418,559 | 15,536,607 |
Cost of sales | 17,677,734 | 14,308,527 |
GROSS PROFIT | 1,740,825 | 1,228,080 |
Administrative expenses | 985,177 | 749,472 |
755,648 | 478,608 |
Other operating income | 4 | - | 28,502 |
OPERATING PROFIT | 6 | 755,648 | 507,110 |
Interest payable and similar expenses | 7 | 81,357 | 93,912 |
PROFIT BEFORE TAXATION | 674,291 | 413,198 |
Tax on profit | 8 | 97,009 | 88,268 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 277,489 | 152,559 |
Dividends | 10 | (200,000 | ) | (200,000 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
654,771 |
277,489 |
Profit attributable to: |
Owners of the parent | 577,282 | 324,930 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | (14,548 | ) |
Tangible assets | 12 | 1,945,211 | 2,011,239 |
Investments | 13 | - | - |
1,945,211 | 1,996,691 |
CURRENT ASSETS |
Stocks | 14 | 5,191,123 | 5,247,887 |
Debtors | 15 | 1,659,591 | 1,335,191 |
Cash at bank and in hand | 7,334 | 10,543 |
6,858,048 | 6,593,621 |
CREDITORS |
Amounts falling due within one year | 16 | 5,250,674 | 5,207,880 |
NET CURRENT ASSETS | 1,607,374 | 1,385,741 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,552,585 |
3,382,432 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(600,704 |
) |
(802,330 |
) |
PROVISIONS FOR LIABILITIES | 22 | (110,586 | ) | (116,089 | ) |
NET ASSETS | 2,841,295 | 2,464,013 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 1,000 | 1,000 |
Share premium | 24 | 2,185,524 | 2,185,524 |
Retained earnings | 24 | 654,771 | 277,489 |
SHAREHOLDERS' FUNDS | 2,841,295 | 2,464,013 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 August 2022 and were signed on its behalf by: |
C F Sutton - Director |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
COMPANY BALANCE SHEET |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Share premium | 24 |
Retained earnings | 24 | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 864,077 | 182,052 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 834,570 | 619,884 |
Interest paid | (31,562 | ) | (34,099 | ) |
Interest element of hire purchase payments paid |
(49,795 |
) |
(59,813 |
) |
Tax paid | (128,417 | ) | - |
Net cash from operating activities | 624,796 | 525,972 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (548,598 | ) | (101,661 | ) |
Sale of tangible fixed assets | 419,775 | 371,500 |
Net cash from investing activities | (128,823 | ) | 269,839 |
Cash flows from financing activities |
New loans in year | - | 50,000 |
Loan repayments in year | (59,731 | ) | (52,836 | ) |
Capital repayments in year | (111,652 | ) | (297,448 | ) |
Amount introduced by directors | - | 200,000 |
Amount withdrawn by directors | (111,655 | ) | (272,994 | ) |
Grants received | - | 28,502 |
Equity dividends paid | (200,000 | ) | (200,000 | ) |
Net cash from financing activities | (483,038 | ) | (544,776 | ) |
Increase in cash and cash equivalents | 12,935 | 251,035 |
Cash and cash equivalents at beginning of year |
2 |
(332,498 |
) |
(583,533 |
) |
Cash and cash equivalents at end of year |
2 |
(319,563 |
) |
(332,498 |
) |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation | 674,291 | 413,198 |
Depreciation charges | 229,210 | 236,563 |
Profit on disposal of fixed assets | (48,907 | ) | (115,604 | ) |
Decrease recoverable on contracts | 132,184 | - |
Government grants | - | (28,502 | ) |
Finance costs | 81,357 | 93,912 |
1,068,135 | 599,567 |
Decrease/(increase) in stocks | 56,764 | (63,064 | ) |
(Increase)/decrease in trade and other debtors | (456,584 | ) | 963,598 |
Increase/(decrease) in trade and other creditors | 166,255 | (880,217 | ) |
Cash generated from operations | 834,570 | 619,884 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 7,334 | 10,543 |
Bank overdrafts | (326,897 | ) | (343,041 | ) |
(319,563 | ) | (332,498 | ) |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 10,543 | 4,882 |
Bank overdrafts | (343,041 | ) | (588,415 | ) |
(332,498 | ) | (583,533 | ) |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 10,543 | (3,209 | ) | 7,334 |
Bank overdrafts | (343,041 | ) | 16,144 | (326,897 | ) |
(332,498 | ) | 12,935 | (319,563 | ) |
Debt |
Finance leases | (1,454,690 | ) | 111,652 | (1,343,038 | ) |
Debts falling due within 1 year | (74,138 | ) | - | (74,138 | ) |
Debts falling due after 1 year | (506,243 | ) | 59,731 | (446,512 | ) |
(2,035,071 | ) | 171,383 | (1,863,688 | ) |
Total | (2,367,569 | ) | 184,318 | (2,183,251 | ) |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Frank Sutton Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
These group accounts are prepared using the acquisition method. |
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 is recognised once a purchase order is raised. |
Goodwill |
Negative goodwill, being the excess of the net fair value of the identifiable assets and liabilities over the cost of the acquisition of Frank Sutton Limited in 2019, is being amortised evenly over its estimated useful life of three years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, plus any costs directly attributable to bringing the asset to its working condition for intended use. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Freehold property | - Straight line over 15 years |
Long leasehold | - Straight line over 15 years |
Plant and machinery | - at varying rates on cost |
Motor vehicles | - 25% on cost |
Land is not depreciated. |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Machinery stock is valued at the lower of cost and net realisable value. Parts stock is valued at average cost. |
If after twelve months an item of plant and machinery for resale remains in stock, the company will write down the asset by 20% reducing balance each year. Parts stock is written down by 100% when it is three years old. |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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 tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
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. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
£ | £ |
Sale of goods | 19,015,894 | 15,254,705 |
Rent receivable | 910 | 910 |
Commissions receivable | 82,619 | 77,151 |
Bonus income | 278,436 | 133,358 |
Hire income | 40,700 | 70,483 |
19,418,559 | 15,536,607 |
An analysis of turnover by geographical market is given below: |
2021 | 2020 |
£ | £ |
United Kingdom | 19,418,559 | 15,499,607 |
Europe | - | 37,000 |
19,418,559 | 15,536,607 |
4. | OTHER OPERATING INCOME |
2021 | 2020 |
£ | £ |
Government grants | - | 28,502 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
5. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 927,363 | 924,119 |
Social security costs | 86,026 | 84,334 |
Other pension costs | 18,892 | 15,822 |
1,032,281 | 1,024,275 |
The average number of employees during the year was as follows: |
2021 | 2020 |
Admin | 6 | 3 |
Sales | 2 | 4 |
Lorry drivers | 2 | 2 |
Stores | 5 | 5 |
Workshop | 15 | 15 |
The average number of employees by undertakings that were proportionately consolidated during the year was 30 (2020 - 29 ) . |
2021 | 2020 |
£ | £ |
Directors' remuneration | 42,715 | 38,841 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Hire of plant and machinery | 8,982 | 4,404 |
Depreciation - owned assets | 157,644 | 85,493 |
Depreciation - assets on hire purchase contracts | 86,114 | 165,617 |
Profit on disposal of fixed assets | (48,907 | ) | (115,604 | ) |
Goodwill amortisation | (14,548 | ) | (14,547 | ) |
Auditors' remuneration | 11,500 | 13,000 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank interest | 17,143 | 16,898 |
Bank loan interest | 14,408 | 16,815 |
Interest on overdue tax | - | 386 |
Interest payable | 11 | - |
Hire purchase | 49,795 | 59,813 |
81,357 | 93,912 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 102,512 | 77,417 |
Deferred tax | (5,503 | ) | 10,851 |
Tax on profit | 97,009 | 88,268 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax | 674,291 | 413,198 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
128,115 |
78,508 |
Effects of: |
Depreciation in excess of capital allowances | 23,540 | 21,548 |
Deferred tax | (5,503 | ) | 10,851 |
Profit on sale of assets | (48,907 | ) | (21,965 | ) |
Chargeable gains | 1,844 | 2,090 |
Consolidation adjustments | (2,080 | ) | (2,764 | ) |
Total tax charge | 97,009 | 88,268 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Ordinary shares of £1 each |
Interim | 200,000 | 200,000 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 | (43,642 | ) |
AMORTISATION |
At 1 January 2021 | (29,094 | ) |
Amortisation for year | (14,548 | ) |
At 31 December 2021 | (43,642 | ) |
NET BOOK VALUE |
At 31 December 2021 | - |
At 31 December 2020 | (14,548 | ) |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and | Motor |
property | leasehold | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2021 | 1,320,000 | 318,738 | 249,041 | 989,313 | 2,877,092 |
Additions | 178,073 | - | 13,100 | 357,425 | 548,598 |
Disposals | - | (318,738 | ) | - | (260,308 | ) | (579,046 | ) |
At 31 December 2021 | 1,498,073 | - | 262,141 | 1,086,430 | 2,846,644 |
DEPRECIATION |
At 1 January 2021 | 66,667 | 126,511 | 219,408 | 453,267 | 865,853 |
Charge for year | 68,226 | 14,153 | 8,243 | 153,136 | 243,758 |
Eliminated on disposal | - | (140,664 | ) | - | (67,514 | ) | (208,178 | ) |
At 31 December 2021 | 134,893 | - | 227,651 | 538,889 | 901,433 |
NET BOOK VALUE |
At 31 December 2021 | 1,363,180 | - | 34,490 | 547,541 | 1,945,211 |
At 31 December 2020 | 1,253,333 | 192,227 | 29,633 | 536,046 | 2,011,239 |
Included in cost of land and buildings is freehold land of £320,000 (2020 - £320,000) which is not depreciated. |
Included in freehold property is investment property rented to Frank Sutton Limited. At the year end the carrying value of this property was £1,363,180 (2020: £1,253,333). |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2021 | 685,959 |
Additions | 216,000 |
Disposals | (198,003 | ) |
At 31 December 2021 | 703,956 |
DEPRECIATION |
At 1 January 2021 | 256,038 |
Charge for year | 86,114 |
Eliminated on disposal | (22,083 | ) |
At 31 December 2021 | 320,069 |
NET BOOK VALUE |
At 31 December 2021 | 383,887 |
At 31 December 2020 | 429,921 |
Company |
Freehold |
property |
£ |
COST |
At 1 January 2021 |
Additions |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Castle Garage, Cuckoos Row, Raglan, Monmouthshire, NP15 2HH |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
14. | STOCKS |
Group |
2021 | 2020 |
£ | £ |
Finished goods | 5,191,123 | 5,247,887 |
The cost of stock recognised as an expense during the year was £16,204,115 (2020: £13,341,228). |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Trade debtors | 1,492,592 | 915,691 |
Amounts recoverable on contract | 19,020 | 151,204 |
Other debtors | 8,580 | 11,382 |
VAT | - | - |
Prepayments and accrued income | 139,399 | 256,914 |
1,659,591 | 1,335,191 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 401,035 | 417,179 |
Hire purchase contracts (see note 19) | 1,188,846 | 1,158,603 |
Trade creditors | 2,744,711 | 2,453,039 |
Amounts owed to group undertakings | - | - |
Tax | 102,512 | 128,417 |
Social security and other taxes | 19,828 | 19,332 |
VAT | 239,554 | 86,298 | 239 | - |
Other creditors | 14,615 | 246,008 |
Directors' current accounts | 209,866 | 321,521 | 209,866 | 321,521 |
Accruals and deferred income | 329,707 | 377,483 |
5,250,674 | 5,207,880 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans (see note 18) | 446,512 | 506,243 |
Hire purchase contracts (see note 19) | 154,192 | 296,087 |
600,704 | 802,330 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 326,897 | 343,041 |
Bank loans | 74,138 | 74,138 |
401,035 | 417,179 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 79,138 | 79,138 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 237,414 | 237,414 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 129,960 | 189,691 | 129,960 | 184,691 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year | 1,188,846 | 1,158,603 |
Between one and five years | 154,192 | 296,087 |
1,343,038 | 1,454,690 |
Group |
Non-cancellable | operating leases |
2021 | 2020 |
£ | £ |
Within one year | 4,404 | 4,404 |
Between one and five years | 4,404 | 8,808 |
8,808 | 13,212 |
Operating lease payments recognised as an expense during the year amounted to £4,404 (2020: £4,404). |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
£ | £ |
Bank overdrafts | 326,897 | 343,041 |
Bank loans | 520,650 | 580,381 |
Hire purchase contracts | 1,343,038 | 1,454,690 |
2,190,585 | 2,378,112 |
The subsidiary company's bank overdraft of £326,897 (December 2020: £343,041) is repayable on demand and is secured by a debenture on the banks standard form dated 6 July 2004 and a cross guarantee and debenture between it and its parent Frank Sutton Holdings Limited dated 19 March 2019. |
The parent company bank loan is secured by is secured via : |
- A charge over Marley Industrial Estate, St Mary Hill, Bridgend, CF35 5DU dated 20 August 2019 |
- A charge over Castle Garage, Monmouth Road, Raglan, NP15 2HH dated 20 August 2019 |
- A cross guarantee and debenture between Frank Sutton Limited dated 19 March 2019 |
Obligations under hire purchase contracts are secured on the assets to which they relate. |
21. | FINANCIAL INSTRUMENTS |
The carrying amount for each category of financial instrument is as follows: |
Financial assets measured at amortised cost |
2021 | 2020 |
£ | £ |
Trade debtors | 1,492,592 | 920,139 |
Other debtors | 8,580 | 11,382 |
Cash at bank and in hand | 7,150 | 10,543 |
1,508,322 | 942,064 |
Financial liabilities measured at amortised cost |
2021 | 2020 |
£ | £ |
Bank overdrafts | 396,305 | 343,041 |
Bank loans | 451,512 | 580,381 |
Trade creditors | 2,744,711 | 2,453,039 |
Other creditors | 14,615 | 246,008 |
Finance leases | 1,343,028 | 1,454,690 |
4,950,171 | 5,077,159 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
22. | PROVISIONS FOR LIABILITIES |
Group |
2021 | 2020 |
£ | £ |
Deferred tax | 110,586 | 116,089 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2021 | 116,089 |
Credit to Income Statement during year | (5,503 | ) |
Balance at 31 December 2021 | 110,586 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 750 |
Ordinary B | £1 | - | 250 |
1,000 | 1,000 |
24. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2021 | 277,489 | 2,185,524 | 2,463,013 |
Profit for the year | 577,282 | 577,282 |
Dividends | (200,000 | ) | (200,000 | ) |
At 31 December 2021 | 654,771 | 2,185,524 | 2,840,295 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2021 | ( |
) | 2,084,271 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2021 | 2,748,348 |
FRANK SUTTON HOLDINGS LIMITED (REGISTERED NUMBER: 11516137) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
25. | PENSION COMMITMENTS |
The subsidiary company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme. Pension costs amounted to £18,892 (2020 - £18,823). |
Unpaid contributions outstanding at 31 December 2021 amounted to £1,522 (2020 - £1,155). |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the balance sheet date £209,866 (2020: £321,521) was owed to directors Mr CF & Mrs M Sutton. No interest was charged on this loan. |
27. | RELATED PARTY DISCLOSURES |
The ultimate controlling party is the Sutton family. |