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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: C F Sutton
Mrs M Sutton
B F Sutton



REGISTERED OFFICE: Castle Garages
Cuckoos Row
Raglan
Monmouthshire
NP15 2HH



REGISTERED NUMBER: 11516137 (England and Wales)



AUDITORS: Graham Paul Limited
(Statutory Auditor)
Court House
Court Road
Bridgend
CF31 1BE



SOLICITORS: Gabb and Co
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:





C F Sutton - Director


26 August 2022

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.

C F Sutton
Mrs M Sutton
B F Sutton

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:





C F Sutton - Director


26 August 2022

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.




Nigel Williams BCom FCA (Senior Statutory Auditor)
for and on behalf of Graham Paul Limited
(Statutory Auditor)
Court House
Court Road
Bridgend
CF31 1BE

26 August 2022

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 577,282 324,930

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 1,363,180 1,253,333
Investments 13 2,186,424 2,186,424
3,549,604 3,439,757

CURRENT ASSETS
Debtors 15 - 350
Cash at bank 7,151 10,359
7,151 10,709
CREDITORS
Amounts falling due within one year 16 400,895 903,952
NET CURRENT LIABILITIES (393,744 ) (893,243 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,155,860

2,546,514

CREDITORS
Amounts falling due after more than one
year

17

406,512

461,243
NET ASSETS 2,749,348 2,085,271

CAPITAL AND RESERVES
Called up share capital 23 1,000 1,000
Share premium 24 2,185,524 2,185,524
Retained earnings 24 562,824 (101,253 )
SHAREHOLDERS' FUNDS 2,749,348 2,085,271

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 26 August 2022 and were signed on its behalf by:





C F Sutton - Director


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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
30 29

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 1,320,000
Additions 178,073
At 31 December 2021 1,498,073
DEPRECIATION
At 1 January 2021 66,667
Charge for year 68,226
At 31 December 2021 134,893
NET BOOK VALUE
At 31 December 2021 1,363,180
At 31 December 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


13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2021
and 31 December 2021 2,186,424
NET BOOK VALUE
At 31 December 2021 2,186,424
At 31 December 2020 2,186,424

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Frank Sutton Limited
Registered office: Castle Garage, Cuckoos Row, Raglan, Monmouthshire, NP15 2HH
Nature of business: Supply and maintenance of agricultural machinery
%
Class of shares: holding
Ordinary 100.00
2021 2020
£    £   
Aggregate capital and reserves 2,278,372 2,579,714
Profit for the year 598,658 328,331


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 - - - 350
Prepayments and accrued income 139,399 256,914 - -
1,659,591 1,335,191 - 350

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 69,138 69,138
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 - - 112,322 501,204
Tax 102,512 128,417 6,330 9,089
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 3,000 3,000
5,250,674 5,207,880 400,895 903,952

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2021 2020 2021 2020
£    £    £    £   
Bank loans (see note 18) 446,512 506,243 406,512 461,243
Hire purchase contracts (see note 19) 154,192 296,087 - -
600,704 802,330 406,512 461,243

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 69,138 69,138
401,035 417,179 69,138 69,138
Amounts falling due between one and two years:
Bank loans - 1-2 years 79,138 79,138 69,138 69,138
Amounts falling due between two and five years:
Bank loans - 2-5 years 237,414 237,414 207,414 207,414
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: £    £   
750 Ordinary £1 1,000 750
250 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 (101,253 ) 2,185,524 2,084,271
Profit for the year 864,077 864,077
Dividends (200,000 ) (200,000 )
At 31 December 2021 562,824 2,185,524 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.