41 false false false true false false false false false false true false false false false true true No description of principal activity 2021-01-01 Sage Accounts Production Advanced 2021 - FRS102_2021 1,049,623 1,043,541 85,000 85,000 xbrli:pure xbrli:shares iso4217:GBP 02213714 2021-01-01 2021-12-31 02213714 2021-12-31 02213714 2020-12-31 02213714 2020-01-01 2020-12-31 02213714 2020-12-31 02213714 bus:RegisteredOffice 2021-01-01 2021-12-31 02213714 bus:OrdinaryShareClass1 2021-01-01 2021-12-31 02213714 bus:LeadAgentIfApplicable 2021-01-01 2021-12-31 02213714 bus:Agent1 2021-01-01 2021-12-31 02213714 bus:Director3 2021-01-01 2021-12-31 02213714 bus:Director4 2021-01-01 2021-12-31 02213714 bus:CompanySecretary1 2021-01-01 2021-12-31 02213714 bus:Director1 2021-01-01 2021-12-31 02213714 bus:Director3 2021-12-31 02213714 bus:Director1 2021-12-31 02213714 core:WithinOneYear 2021-12-31 02213714 core:WithinOneYear 2020-12-31 02213714 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-12-31 02213714 core:LandBuildings core:OwnedOrFreeholdAssets 2020-12-31 02213714 core:PlantMachinery 2020-12-31 02213714 core:FurnitureFittings 2020-12-31 02213714 core:MotorVehicles 2020-12-31 02213714 core:LandBuildings core:OwnedOrFreeholdAssets 2021-12-31 02213714 core:PlantMachinery 2021-12-31 02213714 core:FurnitureFittings 2021-12-31 02213714 core:MotorVehicles 2021-12-31 02213714 core:AfterOneYear 2021-12-31 02213714 core:AfterOneYear 2020-12-31 02213714 core:UKTax 2021-01-01 2021-12-31 02213714 core:UKTax 2020-01-01 2020-12-31 02213714 core:LandBuildings core:OwnedOrFreeholdAssets 2021-01-01 2021-12-31 02213714 core:PlantMachinery 2021-01-01 2021-12-31 02213714 core:FurnitureFittings 2021-01-01 2021-12-31 02213714 core:MotorVehicles 2021-01-01 2021-12-31 02213714 core:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 02213714 bus:AllOrdinaryShares 2021-01-01 2021-12-31 02213714 core:RetainedEarningsAccumulatedLosses 2020-12-31 02213714 core:RetainedEarningsAccumulatedLosses 2019-12-31 02213714 core:RetainedEarningsAccumulatedLosses 2021-12-31 02213714 core:RetainedEarningsAccumulatedLosses 2020-12-31 02213714 core:ShareCapital 2021-12-31 02213714 core:ShareCapital 2020-12-31 02213714 core:CapitalRedemptionReserve 2021-12-31 02213714 core:CapitalRedemptionReserve 2020-12-31 02213714 core:BetweenOneFiveYears 2021-12-31 02213714 core:BetweenOneFiveYears 2020-12-31 02213714 core:LandBuildings core:OwnedOrFreeholdAssets 2020-12-31 02213714 core:PlantMachinery 2020-12-31 02213714 core:FurnitureFittings 2020-12-31 02213714 core:MotorVehicles 2020-12-31 02213714 countries:UnitedKingdom 2021-01-01 2021-12-31 02213714 countries:UnitedKingdom 2020-01-01 2020-12-31 02213714 countries:RestWorldOutsideUK 2021-01-01 2021-12-31 02213714 countries:RestWorldOutsideUK 2020-01-01 2020-12-31 02213714 bus:LeadAgentIfApplicable 2020-01-01 2020-12-31 02213714 bus:FRS102 2021-01-01 2021-12-31 02213714 bus:Audited 2021-01-01 2021-12-31 02213714 bus:FullAccounts 2021-01-01 2021-12-31 02213714 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2021-01-01 2021-12-31 02213714 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 02213714 bus:OrdinaryShareClass1 2021-12-31 02213714 bus:OrdinaryShareClass1 2020-12-31 02213714 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2021-01-01 2021-12-31
COMPANY REGISTRATION NUMBER: 02213714
TRIAX UK LIMITED
ACCOUNTS
31 December 2021
TRIAX UK LIMITED
ACCOUNTS
YEAR ENDED 31 DECEMBER 2021
CONTENTS
PAGES
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the accounts
12 to 20
TRIAX UK LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
THE BOARD OF DIRECTORS
Mr C Frees
Mr G Vaughan
COMPANY SECRETARY
Mr K J Laken
REGISTERED OFFICE
Unit 14 Abergorki Industrial Estate
Treorchy
Mid Glamorgan
United Kingdom
CF42 6DL
Parent Company
Triax A/S
Bjornkaevej 3
DK-8783 Hornsyld
Denmark
Ultimate Holding Company
Trik Holding XXI S.L.
Donostia Lbilbidea, 28
Astigarraga
20115 Gipuzkoa
Spain
AUDITOR
Meadows & Co Limited
Chartered Accountants & statutory auditor
Headlands House
1 Kings Court
Kettering Parkway
Kettering
NN15 6WJ
BANKERS
Nordea Bank Plc
6th Floor
5 Aldermanbury Square
London
EC2V 7AZ
HSBC Bank Plc
Harry Weston Road
Binley
Coventry
CV3 2SH
TRIAX UK LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2021
PRINCIPAL ACTIVITY AND BUSINESS REVIEW
The company's principal activity during the year continued to be the manufacture and sale of multimedia systems for the reception, distribution and storage of video, audio and data.
Despite the company operating with a reduced capacity during the Spring of 2020 due to COVID-19 pandemic, it nevertheless has had a successful year as a result of maintaining and developing strong growth in key commercial trading partners and focusing on new build projects in the UK. The Directors are committed to maintaining and developing the company's market position. Details of the company's trading performances are set out on page 10. Details of sales by geographical location and employees are set out in notes 4 and 8 respectively.
PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties affecting the company are considered to relate to competition from other suppliers and customer retention, which are subject to continuous review.
Although part of the company's customer base is based in Eire and Northern Ireland, it has adopted all the necessary export procedures following Brexit. The directors are therefore confident that there will be no effect on its continual trading with both Eire and Northern Ireland.
The company's activities expose it to a number of financial risks including credit risk, cash flow risk, foreign exchange risk and liquidity risk.
The company's principal financial assets are bank balances and trade debtors. The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debtors. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
The company is also exposed to risks associated with changes in foreign exchange rates. These risks are monitored on an ongoing basis but the company does not enter into any hedging activity and does not use financial instruments.
Liquidity risk is monitored through regular management meetings and detailed forecasts extending across a 12 month period.
KEY PERFORMANCE INDICATORS
Given the straight forward nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.
FUTURE DEVELOPMENTS AND OUTLOOK
The company's business activities, together with the factors likely to affect its future development, performance and position, are set out in this report. The financial position of the company and its liquidity position are set out in the attached accounts. In addition, the principal risks and uncertainties section above details the policies and processes in place to manage financial risk, and exposures to credit and liquidity risk.
The company will continue to manufacture and sell multimedia equipment as an independent organisation within an international group. The directors are committed to the development and improvement of the company's product range by investment and innovation and remain focused on providing their customers with a high quality service level.
To maintain performance in a challenging market the directors are committed to improving quality and maintaining a competitive cost structure.
This report was approved by the board of directors on 14 September 2022 and signed on behalf of the board by:
Mr K J Laken Company Secretary
Registered office:
Unit 14 Abergorki Industrial Estate
Treorchy
Mid Glamorgan
United Kingdom
CF42 6DL
TRIAX UK LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2021
The directors present their report and the accounts of the company for the year ended 31 December 2021 .
DIRECTORS
The directors who served the company during the year were as follows:
Mr G Vaughan
Mr C Frees
(Appointed 30 June 2021)
Mr P Lyhne Uhrenholt
(Resigned 30 June 2021)
DIVIDENDS
Particulars of recommended dividends are detailed in note 12 to the accounts.
DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT
The directors have chosen, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the strategic report, directors' report and the accounts in accordance with applicable law and regulations. Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these accounts, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 September 2022 and signed on behalf of the board by:
Mr K J Laken Company Secretary
Registered office:
Unit 14 Abergorki Industrial Estate
Treorchy
Mid Glamorgan
United Kingdom
CF42 6DL
TRIAX UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRIAX UK LIMITED
YEAR ENDED 31 DECEMBER 2021
OPINION
We have audited the accounts of Triax UK Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, statement of financial position and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the accounts: - give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the accounts section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the accounts 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 accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the accounts are prepared is consistent with the accounts; and
- the strategic report and the directors' report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the accounts 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 directors' responsibilities statement, the directors are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We have undertaken high level reviews of the results and position of the company for the year in question, and have considered the effects of the industry and wider economy on the company. We have made enquiries of management regarding the company's own risk assessment procedures and any identified irregularities, including fraud, identified in the year. We have used our knowledge and understanding of the company's business, including the remuneration of key management personnel, to assess how and where irregularities, including fraud, might arise and we have planned our testing using a risk based approach. We have considered the potential for irregularities, including fraud, in all our testing but have also carried out specific testing to comply with the ISA (UK) requirements regarding management override of controls. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the accounts, including the disclosures, and whether the accounts represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. USE OF OUR REPORT
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
David Kelland FCA
(Senior Statutory Auditor)
For and on behalf of
Meadows & Co Limited
Chartered Accountants & statutory auditor
Headlands House
1 Kings Court
Kettering Parkway
Kettering
NN15 6WJ
14 September 2022
TRIAX UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
YEAR ENDED 31 DECEMBER 2021
2021
2020
Note
£
£
TURNOVER
4
12,736,930
11,065,837
Cost of sales
9,727,193
8,218,880
-------------
-------------
GROSS PROFIT
3,009,737
2,846,957
Administrative expenses
1,663,089
1,648,255
Other operating income
6,183
58,106
------------
------------
OPERATING PROFIT
5
1,352,831
1,256,808
Other interest receivable and similar income
9
56,392
Interest payable and similar expenses
10
51,444
49,583
------------
------------
PROFIT BEFORE TAXATION
1,301,387
1,263,617
Tax on profit
11
251,764
220,076
------------
------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME
1,049,623
1,043,541
------------
------------
Dividends paid and payable
12
( 2,750,000)
RETAINED EARNINGS AT THE START OF THE YEAR
2,739,161
1,695,620
------------
------------
RETAINED EARNINGS AT THE END OF THE YEAR
1,038,784
2,739,161
------------
------------
All the activities of the company are from continuing operations.
TRIAX UK LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2021
2021
2020
Note
£
£
£
FIXED ASSETS
Tangible assets
14
403,842
434,282
CURRENT ASSETS
Stocks
15
2,143,630
1,522,053
Debtors
16
3,853,759
3,724,987
Cash at bank and in hand
56,674
1,892,906
------------
------------
6,054,063
7,139,946
CREDITORS: amounts falling due within one year
17
5,118,869
4,528,632
------------
------------
NET CURRENT ASSETS
935,194
2,611,314
------------
------------
TOTAL ASSETS LESS CURRENT LIABILITIES
1,339,036
3,045,596
CREDITORS: amounts falling due after more than one year
18
99,252
105,435
------------
------------
NET ASSETS
1,239,784
2,940,161
------------
------------
CAPITAL AND RESERVES
Called up share capital
21
1,000
1,000
Capital redemption reserve
22
200,000
200,000
Profit and loss account
22
1,038,784
2,739,161
------------
------------
SHAREHOLDERS FUNDS
1,239,784
2,940,161
------------
------------
These accounts were approved by the board of directors and authorised for issue on 14 September 2022 , and are signed on behalf of the board by:
Mr G Vaughan
Director
Company registration number: 02213714
TRIAX UK LIMITED
NOTES TO THE ACCOUNTS
YEAR ENDED 31 DECEMBER 2021
1. GENERAL INFORMATION
The company is a private company, limited by shares, incorporated in England and Wales, with a registered number 02213714 . The address of the registered office and principal place of business is Unit 14 Abergorki Industrial Estate, Treorchy, Mid Glamorgan, CF42 6DL, United Kingdom.
2. STATEMENT OF COMPLIANCE
Statement of compliance These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical costs basis and are prepared in sterling, which is the functional currency of the entity.
Foreign currencies
Assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of transaction with all differences taken to the profit and loss account.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Triax A/S which can be obtained from its registered office which is detailed in Note 25. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover, which is stated net of value added tax, represents amounts invoiced to third parties in the ordinary course of business for goods supplied and for services provided as principal. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer (usually on the despatch of the goods); the amount of revenue can be measured reliably ; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
UK corporation tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the year end date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the accounts that arise from the inclusion of gains and losses in tax assessments in the periods different from those in which they are recognised in the accounts. A net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs
-
12 months
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the period in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold Property
-
40 years straight-line basis
Plant and Machinery
-
3-10 years straight-line basis
Fixtures and Fittings
-
3-10 years straight-line basis
Motor Vehicles
-
5 years straight-line basis
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Government grants
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. Grants of a revenue nature are credited to income in the period to which they relate.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
4. TURNOVER
Turnover arises from:
2021
2020
£
£
Sale of goods
12,736,930
11,065,837
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2021
2020
£
£
United Kingdom
11,317,925
9,788,066
Overseas
1,419,005
1,277,771
-------------
-------------
12,736,930
11,065,837
-------------
-------------
5. OPERATING PROFIT
Operating profit or loss is stated after charging/crediting:
2021
2020
£
£
Depreciation of tangible assets
30,440
31,002
Impairment of trade debtors
(2,300)
(7,349)
--------
--------
6. AUDITOR'S REMUNERATION
2021
2020
£
£
Fees payable for the audit of the accounts
14,100
13,800
--------
--------
Fees payable to the company's auditor and its associates for other services:
Taxation advisory services
200
500
--------
--------
7. STAFF COSTS
The average number of persons employed by the company during the year, including the directors, amounted to:
2021
2020
No.
No.
Production staff
24
27
Administrative staff
17
18
----
----
41
45
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2021
2020
£
£
Wages and salaries
1,203,038
1,241,273
Social security costs
124,020
135,030
Other pension costs
36,890
38,267
------------
------------
1,363,948
1,414,570
------------
------------
8. DIRECTORS' REMUNERATION
The directors' aggregate remuneration in respect of qualifying services was:
2021
2020
£
£
Remuneration
161,368
163,648
Company contributions to defined contribution pension plans
8,901
8,770
---------
---------
170,269
172,418
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2021
2020
No.
No.
Defined contribution plans
1
1
----
----
Mr P Lyhne Uhrenholt is remunerated by a group company.
9. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
2021
2020
£
£
Interest on cash and cash equivalents
56,392
----
--------
10. INTEREST PAYABLE AND SIMILAR EXPENSES
2021
2020
£
£
Interest on banks loans and overdrafts
51,444
49,583
--------
--------
11. TAX ON PROFIT
Major components of tax expense
2021
2020
£
£
Current tax:
UK current tax expense
251,764
220,076
---------
---------
Tax on profit
251,764
220,076
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2020: lower than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).
2021
2020
£
£
Profit on ordinary activities before taxation
1,301,387
1,263,617
------------
------------
Profit on ordinary activities by rate of tax
247,263
240,087
Effect of expenses not deductible for tax purposes
4,501
612
Effect of capital allowances and depreciation
372
Effect of movement in provisions
( 20,995)
------------
------------
Tax on profit
251,764
220,076
------------
------------
12. DIVIDENDS
2021
2020
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
2,750,000
------------
----
13. INTANGIBLE ASSETS
Development costs
£
Cost
At 1 January 2021 and 31 December 2021
85,000
--------
Amortisation
At 1 January 2021 and 31 December 2021
85,000
--------
Carrying amount
At 31 December 2021
--------
At 31 December 2020
--------
14. TANGIBLE ASSETS
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
845,517
1,302,956
308,502
19,670
2,476,645
Disposals
( 396,087)
( 396,087)
---------
------------
---------
--------
------------
At 31 December 2021
845,517
906,869
308,502
19,670
2,080,558
---------
------------
---------
--------
------------
Depreciation
At 1 January 2021
439,293
1,281,537
305,798
15,735
2,042,363
Charge for the year
21,134
4,589
782
3,935
30,440
Disposals
( 396,087)
( 396,087)
---------
------------
---------
--------
------------
At 31 December 2021
460,427
890,039
306,580
19,670
1,676,716
---------
------------
---------
--------
------------
Carrying amount
At 31 December 2021
385,090
16,830
1,922
403,842
---------
------------
---------
--------
------------
At 31 December 2020
406,224
21,419
2,704
3,935
434,282
---------
------------
---------
--------
------------
15. STOCKS
2021
2020
£
£
Raw materials and consumables
665,416
380,510
Finished goods and goods for resale
1,478,214
1,141,543
------------
------------
2,143,630
1,522,053
------------
------------
16. DEBTORS
2021
2020
£
£
Trade debtors
2,190,257
1,901,529
Amounts owed by group undertakings
1,649,446
1,814,203
Prepayments and accrued income
5,427
8,031
Other debtors
8,629
1,224
------------
------------
3,853,759
3,724,987
------------
------------
17. CREDITORS: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
1,381,592
1,414,346
Trade creditors
2,268,671
1,738,494
Amounts owed to group undertakings
96,638
121,015
Accruals and deferred income
620,689
602,718
Corporation tax
106,092
119,775
Social security and other taxes
581,303
451,396
Other creditors
63,884
80,888
------------
------------
5,118,869
4,528,632
------------
------------
The bank overdraft is secured by a floating charge on all freehold land and property of the company.
18. CREDITORS: amounts falling due after more than one year
2021
2020
£
£
Government grants
99,252
105,435
--------
---------
19. GOVERNMENT GRANTS
The amounts recognised in the accounts for government grants are as follows:
2021
2020
£
£
Recognised in other operating income:
Government grants recognised directly in income
6,183
58,106
-------
--------
20. EMPLOYEE BENEFITS
The amount recognised in the statement of income and retailed earnings as an expense in relation to defined contributions plans was £36,890 (2020: £36,269).
21. CALLED UP SHARE CAPITAL
Issued, called up and fully paid
2021
2020
No.
£
No.
£
Ordinary shares of £ 1 each
1,000
1,000
1,000
1,000
-------
-------
-------
-------
22. RESERVES
Called up share capital - represents the nominal value of shares that have been issued. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
23. OPERATING LEASES
The total future minimum lease payments under non-cancellable operating leases are as follows:
2021
2020
£
£
Not later than 1 year
31,440
18,074
Later than 1 year and not later than 5 years
33,359
36,172
--------
--------
64,799
54,246
--------
--------
24. RELATED PARTY TRANSACTIONS
Advantage has been taken of the exemption conferred by FRS102 to wholly owned subsidiary undertakings, not to disclose transactions with other group companies. During the period, remuneration paid to key management amounted £264,944 (2020: £279,272). There are no other related party transactions requiring disclosure.
25. CONTROLLING PARTY
The parent undertaking of both the smallest and largest group of which the company is a member and for which group accounts are prepared is Triax A/S , a company incorporated in Denmark. The registered office of Triax A/S is Bjornkaevej 3, DK-8783, Hornsyld, Denmark. The company's ultimate holding company was Polaris Private Equity, but this changed on 26 March 2021 to be Trik Holding XXI S.L. Triax A/S and Polaris Private Equity are incorporated in Denmark and Trik Holding XXI S.L. is incorporated in Spain.