Company Registration No. 00886913 (England and Wales)
Albis (U.K.) Limited
Annual report and financial statements
for the year ended 31 December 2021
Albis (U.K.) Limited
Company information
Directors
Frank Kriebisch
Ian Mills
Tanya Taylor
Josephine Bagnall
Secretary
Tanya Taylor
Company number
00886913
Registered office
No. 5 Lga/Lgc Booths Park
Chelford Road
Knutsford
Cheshire
WA16 8GS
Independent auditor
Saffery Champness LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Bankers
Barclays Bank plc
3 Hardman Street
10th Floor
Manchester
M3 3HF
Deutsche Bank AG
1 Great Winchester Street
London
EC2N 2DB
Allied Irish Bank plc
7/12 Dame Street
Dublin 2
Solicitors
Squire Patton Boggs
1 Spinningfields
1 Hardman Square
Manchester
M3 3EB
Albis (U.K.) Limited
Contents
Page
Strategic report
1 - 7
Directors' report
8 - 9
Directors' responsibilities statement
10
Independent auditor's report
11 - 14
Statement of income and retained earnings
15
Balance sheet
16
Notes to the financial statements
17 - 34
Albis (U.K.) Limited
Strategic report
For the year ended 31 December 2021
Page 1
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
The statement of income and retained earnings is set out on page 15 and shows turnover for the year at £49,341,867 (2020 - £44,167,433) and profit before tax for the year of £7,208,214 (2020 - £2,878,489) with profit after tax of £6,471,377 (2020 - £2,314,780). Further details of turnover are given in note 3 to the financial statements.
Turnover increased on the prior year by £5,174,434 (2020 – decrease of £22,588,413); this was largely driven by the increase in pricing seen across the board as longer lead times and raw material shortages increased demand as businesses emerged from the lockdowns caused by the global impact of the COVID-19 pandemic.
The first half of 2021 therefore saw demand exceeding budgeted levels as various markets and countries reopened and businesses looked to restock. However, as force majeures were announced by many partners, pressure on lead times increased significantly as the year progressed. This continued to be a challenge throughout the year however the business performed strongly, and margins continued to be managed well.
With many partners' lead times having started to reduce and come under control in the second half of 2021, 2022 has started well, however, with the ongoing Ukraine War increasing pressure on energy pricing in particular, expected levelling out of demand and pricing has not happened as producers and partners continue to pass these costs on.
A year on from Brexit, Sterling has remained more stable throughout the year however foreign currency (particularly Euros) continues to require careful management.
Cash management controls continue to be successful, and the company continues to maintain the positive cash position achieved in prior years. The cash position for the business continues to be relatively stable.
Factory and warehouse closure
In November 2019, following a consultation process with the employees, the decision was made to transfer the manufacturing side of the UK business to other Group sites in early 2020. As a result of this decision, the UK production employees were made redundant in the first quarter.
With the closure of the Knutsford plant in February 2020, the majority of the production equipment was either sold, scrapped or transferred elsewhere in the group.
Following completion of the transfer of the manufacturing side to other group production sites and the sale and transfer of the relevant fixed assets, a decision was made in the last quarter of 2020 to fully move UK warehousing to a third-party logistics provider and put the manufacturing, warehousing and current offices up for sale.
Site sale and business relocation
In April 2021, contracts were exchanged for a sale of the whole Knutsford site for £6,300,000 and this was completed on 30 June 2021. At the same time as exchanging contracts on the site sale, a new 6-year lease was signed and following completion of the fit-out, the business relocated to new offices in the summer of 2021.
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 2
The position of the company at the year end
The balance sheet on page 16 of the financial statements shows the company's financial position at the year end in terms of its net assets position. Details of amounts owed to group undertakings, which include the parent company, are shown in note 16 on page 31.
Since 31 December 2019, the spread of COVID-19 has severely impacted many local economies around the globe and continues to do so two years on. In many countries, businesses have been forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown. Global stock markets have also experienced great volatility and a significant weakening. Governments and central banks have responded with monetary and fiscal interventions to stabilise economic conditions.
Throughout the COVID-19 pandemic Albis UK and the Otto Krahn Group have continued to offer the best possible service and support to their customers and the Board and Group Management Board are highly appreciative of the support and dedication of all of the staff, suppliers and customers through such challenging and unprecedented times. Operational changes were made as a result of the pandemic and as a result of the lockdown, with the implementation of social distancing, the provision of personal protective equipment and hand sanitisers along with working from home where possible.
The duration and impact of the COVID-19 pandemic, as well as the effectiveness of government and central bank responses, continues to make it difficult to quantify the ongoing impact of COVID-19. The Board, along with the Group Management Board, have carefully considered the potential financial impact on the company; taking into account the financial position and results of the Company for future periods. The Board have prepared a forecast based on a prudent estimate; reviewed the company's strong cash resources and taken account of the fact that the company has no external borrowings, has group support and the ability to borrow funds should it be necessary. Based on these forecasts the accounts have therefore been prepared on the assumption that there is no material uncertainty of the company continuing as a going concern.
There have been no other events since the balance sheet date which materially affect the position of the company.
Section 172 (1) statement
During the year, the Directors have acted together and individually in good faith when performing their duties to promote the success of the Company for the benefit of its members as a whole while having regard (amongst other matters) to the following matters, examples of which can be found throughout this Strategic report:
• Likely long-term consequences
• Interests of the company's staff and colleagues
• Business relationships with suppliers and customers
• Impact on the community and environment
• Reputation for high standards of business conduct
• Acting fairly between shareholders
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 3
Principal risks and uncertainties
The directors of Albis (U.K.) Limited confirm that we have carried out a robust assessment of the principal risks facing the company, including those that would threaten its business model, future performance, solvency or liquidity. The principal risks and uncertainties facing the company are as follows:-
Competitive risk
Competitive pressure in the UK is a continuing risk for the company, which could result in it losing sales. The company manages this risk by delivering customer excellence and by providing added value to its customers, having competitive lead and response times in the supply of material and handling of customer queries as well as by maintaining strong relationships and local representation with key customers and suppliers.
Foreign currency risk
Sales to Ireland and mainland Europe are made in Euros and to the Far East and the US in US dollars. The company is therefore exposed to movements in the Euro to Sterling and US dollar to Sterling exchange rates.
Management monitors the exchange rate fluctuations closely according to its clearly defined strategy and considers the need to take out forward foreign currency contracts to fix the exchange rate, where it appears there will be significant fluctuations. In addition, most of the company's supplies are bought in Euros to mitigate the receipt of Euros generated from such sales.
Liquidity risk
The company has an overdraft facility with its main bank, Deutsche Bank. This facility is charged at rates over SONIA and EONIA. If the company uses this facility then it is exposed to any interest rate fluctuation.
The overall position is monitored closely by the Board of Directors and the Group to ensure the company has sufficient funds for operations.
Credit risk
Credit risk is the risk that one party will cause a financial loss for that other party by failing to discharge an obligation. Group and company policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of the company's debtors are shown in note 15 on page 31 to the financial statements.
The company's credit risk is managed through insurance and appropriate credit checks which are made on all business prior to sales being allowed.
Impact of Brexit
The UK referendum voted to leave the European Union which resulted in a prolonged period of political and economic uncertainty both in the UK and the EU. As the trade deal determining the UK's relationship with the EU was only just negotiated at the end of 2020, the impact continues to be closely monitored following the new customs and duties rules that came into play and evolved again at the start of 2022. Therefore, the Board continues to monitor this closely and is ensuring that its staff continue to be suitably trained to ensure the business understands and implements any new requirements.
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 4
Impact of COVID-19
The ongoing global pandemic has had an impact on almost all entities either directly or indirectly resulting in some uncertainty about the immediate outlook for many companies as each country manages their own variants, outbreaks, and borders across the world. The COVID 19 pandemic has posed significant challenges for supply chains globally. Following the first Corona-Wave the entire polymer industry experienced a sudden and unforeseen upturn in demand, that can only be satisfied gradually and with extended lead times. Multiple national lockdowns continued to slow or even temporarily stop the flow of raw materials and unforeseeable delays across the whole of the supply chain have been experienced. The Group and local Board continue to monitor developments carefully and are following local government guidelines with a view to protecting and keeping our employees safe. The business is being actively managed with most staff now being based back in the office. Regardless of whether the employees have been at home or in the office, management believes we are successfully staying in contact with customers and are able to sort out problems in the supply chain whilst making sure that any employees who are working from home remain as productive as possible.
Key performance indicators
The company now operates to the 1SO 9001 Quality Standard and is part of the distribution business trading under the globally established ALBIS brand. It is externally audited each year and the last recertification took place in 2020. Management reviews the current systems and processes to ensure the company continues to meet the requirements of the standard and the demands customers place on us.
As part of this quality regime, management has identified Key Performance Indicators (KPIs) which are constantly monitored for improvement in the business. Two such indicators which are important to the business and are measured monthly are stock days and debtors' days. Average monthly stock days were 52 days in 2021 (2020 - 61 days) and average monthly debtors' days were 58 in 2021 (2020 - 63 days). These improvements were as more businesses emerged from the shutdowns and lockdowns brought on by the COVID-19 pandemic and adapted to hybrid working as and when required. Monitoring and improving stock and debtors' days continue to be key focuses in 2022 and management is pleased that previous average days are now being achieved again.
Other information and explanations
Streamlined Energy and Carbon Reporting
The Companies Act 2006 (Strategic Report and Directors' Report) Regulation 2018 requires Albis (U.K.) to disclose annual UK energy consumption and Greenhouse Gas (GHG) emissions from SECR regulated sources. Energy and GHG emissions have been independently calculated by Envantage Ltd for the reporting period 1st January 2021 to 31st December 2021. Reported energy and GHG emissions data is compliant with SECR requirements and has been calculated in accordance with the GHG Protocol and SECR guidelines. Energy and GHG emissions are reported from buildings and transport where operational control is held – this includes electricity, gaseous fuels such as natural gas, and business travel in company-owned or grey-fleet cars.
The table below details the regulated SECR energy and GHG emission sources from the current and previous reporting period.
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 5
Year-on-year change
2021
2020
Energy (kWh)
Electricity
(79.40)%
128,066
621,683
Natural gas
(82.04)%
73,873
411,276
Transport
(50.87)%
32,009
65,149
LPG
(100.00)%
-
9,126
Total Energy (kWh)
(78.87)%
233,948
1,107,234
Emissions (tCO2e)
Electricity*
(81.23)%
27.20
144.90
Natural gas
(82.14)%
13.50
75.60
Transport
(49.36)%
7.90
15.60
LPG
(100.00)%
-
2.00
Total Energy SECR emissions
(79.59)%
48.60
238.10
*Uses scope 2 location-based methodology
Intensity metric
SECR emissions per intensity metric
(tCO2e / £m turnover)
0.99
5.39
Albis (U.K.) Limited is committed to reducing its environmental impact and contribution to climate change through continuous improvement procedures. As production was moved overseas during FY20, the old manufacturing facility has since been vacated and operations downsized to reduce unnecessary operating costs and associated emissions. Downsizing to a more suitable office has resulted in a significant reduction in SECR-regulated emissions of approximately 80%.
Methodology
All activity data has been converted into emissions using factors published by BEIS in 2021. Electricity and natural gas disclosures have been calculated based on metered kWh consumption taken from supplier fiscal invoices. GHG emissions associated with Scope 2 purchased electricity have been reported using the location-based methodology. Transport disclosures have been derived from business mileage expense claim records.
Environmental matters
Environmental protection is an essential part of the business philosophy of the group, with a basic concern being to protect the environment for the present and future generations as well as to maintain all applicable environmental protection laws and guidelines.
We promote environmental awareness to our employees, business partners and contractors and involve them in our activities. Environmental protection is a significant component of our sustainable growth strategy, and it is a factor in our business success.
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 6
The company is fully committed to improving environmental performance in these key areas as well as others and will encourage our business partners and members of the wider community to join in this effort.
Using resources in prudent, economic, and efficient ways is a high priority throughout the company. Our goal is to use the resources provided in a responsible, cost-conscious, and judicious way.
‘Accelerate our Future' strategic program
‘Accelerate our Future' (AoF) is the Group's strategic program, which stipulates guardrails for ALBIS' direction of action. It provides a corresponding new organisational set up and its implementation to overcome the challenges that are arising due to market developments like Globalization and Digitalisation.
Under the AoF program, the Group Distribution and Compounding businesses have been formally separated in 2020 to empower them as independent companies within a Holding structure.
As Albis (U.K.) Limited is no longer a production/compounding site, under the AoF program we continue to be a subsidiary of the ALBIS distribution business, with little impact to the current day to day running of the UK business.
Employee matters
Details of the number of employees and related costs are in note 5 to the financial statements on pages 25 and 26.
The employee gender diversity breakdown as at the end of the financial year was as follows:
Male
Female
Directors of the company
1
2
Employees in other senior executive positions
1
1
Total senior managers other than directors of the company
8
3
Other employees of the company
5
10
Total employees of the company
15
16
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company and group. This is achieved through regular meetings and newsletters to allow a free flow of information and ideas. Employee representatives are consulted regularly on a wide range of matters affecting their interests.
Albis (U.K.) Limited
Strategic report (continued)
For the year ended 31 December 2021
Page 7
Josephine Bagnall
Director
29 April 2022
Albis (U.K.) Limited
Directors' report
For the year ended 31 December 2021
Page 8
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The company is a wholly owned subsidiary of Albis Distribution GmbH & Co. KG, based in Hamburg, Germany. The company continues to distribute engineering, commodity, and specialist thermoplastics for customers mainly in the UK and Ireland. The directors are not aware, at the date of this report, of any likely changes in the company’s activities in the next year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Frank Kriebisch
Ian Mills
Tanya Taylor
Josephine Bagnall
Results and dividends
The results for the year are set out on page 15.
The directors recommended the payment of an interim dividend of £2.00p per share (2020 – £0.675p) which was paid on 24 November 2021. They propose a final dividend of £nil per share (2020 – £nil).
Financial instruments
Details of financial instruments are provided in the strategic report on pages 1-7.
Future developments
The directors aim to maintain the management policies which have resulted in the company’s growth and improved profitability in recent years.
Auditor
Saffery Champness LLP have expressed their willingness to continue in office and in accordance with section 485 of the Companies Act 2006 a resolution proposing that they be re-appointed as auditors will be put to shareholders at a meeting later in the year.
Albis (U.K.) Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 9
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Josephine Bagnall
Director
29 April 2022
Albis (U.K.) Limited
Directors' responsibilities statement
For the year ended 31 December 2021
Page 10
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Albis (U.K.) Limited
Independent auditor's report
To the members of Albis (U.K.) Limited
Page 11
Opinion
We have audited the financial statements of Albis (U.K.) Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Albis (U.K.) Limited
Independent auditor's report (continued)
To the members of Albis (U.K.) Limited
Page 12
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Albis (U.K.) Limited
Independent auditor's report (continued)
To the members of Albis (U.K.) Limited
Page 13
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
Albis (U.K.) Limited
Independent auditor's report (continued)
To the members of Albis (U.K.) Limited
Page 14
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Diane Petit-Laurent FCA (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
29 April 2022
Chartered Accountants
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
Albis (U.K.) Limited
Statement of income and retained earnings
For the year ended 31 December 2021
Page 15
2021
2020
Notes
£
£
Turnover
3
49,341,867
44,167,433
Change in stocks of finished goods and in work in progress
3,189,886
(1,340,995)
52,531,753
42,826,438
Other operating income
4
3,419,375
34,028
Raw materials and consumables
(44,190,957)
(35,264,301)
Other external charges
(1,137,231)
(973,888)
Staff costs
5
(1,885,735)
(2,345,248)
Depreciation
7
(126,167)
(207,889)
Other operating expenses
(1,408,736)
(1,209,937)
(45,329,451)
(39,967,235)
Operating profit
7
7,202,302
2,859,203
Interest receivable and similar income
9
5,912
19,427
Interest payable and similar expenses
10
-
(141)
Profit before taxation
7,208,214
2,878,489
Tax on profit
11
(736,837)
(563,709)
Profit for the financial year
6,471,377
2,314,780
Retained earnings brought forward
14,525,518
18,210,038
Dividends
12
(9,095,000)
(5,999,300)
Retained earnings carried forward
11,901,895
14,525,518
The statement of income has been prepared on the basis that all operations are continuing operations.
Albis (U.K.) Limited
Balance sheet
As at 31 December 2021
Page 16
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
13
267,852
3,110,748
Current assets
Stocks
14
7,781,876
4,593,359
Debtors
15
10,221,435
7,532,923
Cash at bank and in hand
5,970,724
12,327,769
23,974,035
24,454,051
Creditors: amounts falling due within one year
16
(8,527,226)
(9,089,327)
Net current assets
15,446,809
15,364,724
Total assets less current liabilities
15,714,661
18,475,472
Provisions for liabilities
17
(137,188)
Net assets
15,714,661
18,338,284
Capital and reserves
Called up share capital
20
3,400,000
3,400,000
Capital reserve
22
412,766
412,766
Profit and loss reserves
22
11,901,895
14,525,518
Total equity
15,714,661
18,338,284
The financial statements were approved by the board of directors and authorised for issue on 29 April 2022 and are signed on its behalf by:
Tanya Taylor
Josephine Bagnall
Director
Director
Company Registration No. 00886913
Albis (U.K.) Limited
Notes to the financial statements
For the year ended 31 December 2021
Page 17
1
Accounting policies
Company information
Albis (U.K.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is No. 5 Lga/Lgc Booths Park, Chelford Road, Knutsford, Cheshire, WA16 8GS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound (£).
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the parent company, Albis Distribution GmbH & Co. KG, in which Albis (U.K.) Limited is consolidated, can be obtained from Otto Krahn (GmbH & Co.) KG, Grimm 10, D-20457, Hamburg, Germany.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, the basis of which is explained further in the strategic report to these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 18
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings (including developed land)
2% straight line
Plant and machinery
10%, 20% and 33.33% straight line
Fixtures, fittings & equipment
10%, 25% and 33.33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Freehold land, excluding developed land, is not depreciated.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 19
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are valued on a first-in first-out basis and are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
The material value of finished goods in stock is based on the actual raw material costs. The production costs are based on an hourly rate calculated using a target utilisation and actual production costs.
1.7
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 20
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 21
Other financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 22
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 23
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
Expenditure on research and development is written off to the income statement in the year in which it is incurred.
1.18
Group commissions receivable, management fee and royalties payable
Group commissions are determined annually and accounted for on a receivable basis. A management service fee is determined on an annual basis for services provided by Head Office. Group royalties payable are calculated on tonnages of specified production.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 24
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful life of tangible fixed assets
On an annual basis the directors review each category to assess the estimated useful life of assets based on economic utilisation and physical condition.
Finished stock valuation
As noted in the accounting policies, the cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition. This includes production costs based on an hourly rate calculated using target utilisation and actual production costs.
Stock provision
The directors review the stock held for slow moving items which may indicate impairment. For items which have not been sold for a period greater than 12 months, a provision is generally made. Items which have not been sold for more than a period of 24 months are provided for in full unless there is a specific reason not to.
This policy is in line with the parent company, Albis Distribution GmbH & Co. KG.
Bad debt provision
The company insures the majority of its trade debtors. For debts that are not insured, the directors make an estimate of the recoverable value. When assessing recoverability the directors consider the net risk along with the ageing profile of debtors and historic experience.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 25
3
Turnover
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sale of goods
49,341,867
44,167,433
2021
2020
£
£
Turnover analysed by geographical market
UK
45,862,943
38,421,381
Europe
3,443,901
5,728,961
Far East
6,166
17,091
Rest of world
28,857
-
49,341,867
44,167,433
4
Other operating income
Other operating income represents the profit on disposal of the former Albis (U.K.) Limited site based at Parkgate Industrial Estate. In the prior year, this related to the relief claimed under the Coronavirus Job Retention Scheme offered by the UK Government.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Office and management
32
34
Production and warehouse
2
18
Total
34
52
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
5
Employees (continued)
Page 26
2021
2020
£
£
Wages and salaries
1,426,009
1,729,688
Social security costs
159,309
226,258
Pension costs
300,417
389,302
1,885,735
2,345,248
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
259,122
380,084
Company pension contributions to defined contribution schemes
67,923
77,118
Compensation for loss of office
50,355
327,045
507,557
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
156,042
130,556
Company pension contributions to defined contribution schemes
38,505
36,383
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 27
7
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(104,325)
(120,304)
Depreciation of owned tangible fixed assets
126,167
207,889
Profit on disposal of tangible fixed assets (see note 4)
(3,419,375)
(159,213)
Operating lease charges
101,353
71,760
8
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,500
19,000
For other services
All other non-audit services
2,500
2,500
9
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
5,912
19,339
Interest receivable from group companies
1
Other interest income
87
Total income
5,912
19,427
10
Interest payable and similar expenses
2021
2020
£
£
Interest payable to group undertakings
141
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 28
11
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
679,549
584,649
Adjustments in respect of prior periods
(27,922)
50,582
Total current tax
651,627
635,231
Deferred tax
Origination and reversal of timing differences
48,988
(28,241)
Adjustment in respect of prior periods
36,222
(43,281)
Total deferred tax
85,210
(71,522)
Total tax charge
736,837
563,709
The charge for the year can be reconciled to the profit per the statement of income and retained earnings as follows:
2021
2020
£
£
Profit before taxation
7,208,214
2,878,489
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
1,369,561
546,913
Tax effect of expenses that are not deductible in determining taxable profit
24,444
1,643
Adjustments in respect of prior years
(27,922)
50,582
Adjustments to tax charge in respect of prior periods - deferred tax
36,222
(43,281)
Fixed asset differences
(658,808)
17,820
Effect of deferred tax rate
(6,660)
(9,968)
Taxation charge for the year
736,837
563,709
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
11
Taxation (continued)
Page 29
Factors that may affect future tax charges
The UK Government announced in the 2021 Budget that from 1 April 2023, the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.
12
Dividends
2021
2020
£
£
Final paid
5,999,300
Interim paid
9,095,000
9,095,000
5,999,300
An interim dividend of £0.675p per share was paid on 26 May 2021 totalling £2,295,000 with a further interim dividend being paid of £2.00p per share on 24 November 2021 totalling £6,800,000.
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 30
13
Tangible fixed assets
Freehold buildings (including developed land)
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
4,970,815
578,748
393,823
271,078
6,214,464
Additions
217,998
217,998
Disposals
(4,970,815)
(576,902)
(237,568)
(49,313)
(5,834,598)
At 31 December 2021
1,846
374,253
221,765
597,864
Depreciation and impairment
At 1 January 2021
2,168,409
422,098
297,411
215,798
3,103,716
Depreciation charged in the year
44,159
18,341
44,520
19,147
126,167
Eliminated in respect of disposals
(2,212,568)
(438,593)
(200,574)
(48,136)
(2,899,871)
At 31 December 2021
1,846
141,357
186,809
330,012
Carrying amount
At 31 December 2021
232,896
34,956
267,852
At 31 December 2020
2,802,406
156,650
96,412
55,280
3,110,748
14
Stocks
2021
2020
£
£
Raw materials and consumables
9,264
10,634
Finished goods and goods for resale
7,772,612
4,582,725
7,781,876
4,593,359
Included in stocks is a provision against slow moving stock of £112,301 (2020 - £69,187).
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 31
15
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
9,623,575
7,189,077
Corporation tax recoverable
188,373
Amounts owed by group undertakings
254,884
158,310
Other debtors
1,008
1,000
Prepayments and accrued income
125,845
71,576
10,193,685
7,419,963
2021
2020
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 18)
27,750
112,960
Total debtors
10,221,435
7,532,923
Trade debtors are stated after impairment losses of £157,021 (2020 - £157,021).
16
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,746,453
1,754,732
Amounts owed to group undertakings
4,191,736
3,108,705
Corporation tax
483,520
Other taxation and social security
1,653,224
2,865,793
Other creditors
81,723
276,471
Accruals and deferred income
854,090
600,106
8,527,226
9,089,327
17
Provisions for liabilities
2021
2020
£
£
Employee termination benefits
-
137,188
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 32
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2021
2020
Balances:
£
£
Accelerated capital allowances
(35,335)
(36,308)
Short term timing differences
63,085
149,268
27,750
112,960
2021
Movements in the year:
£
Asset at 1 January 2021
(112,960)
Charge to profit or loss
85,210
Asset at 31 December 2021
(27,750)
Of the deferred tax asset set out above, £15,000 (2020 - £33,000) is expected to reverse during the next 12 months. The reversal relates to accelerated capital allowances that are expected to mature and provisions which are expected to be paid.
19
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
300,417
389,302
The company operates a group personal pension plan for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At 31 December 2021 the company owed to the pension scheme £32,242 (2020 - £27,158).
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 33
20
Share capital
2021
2020
£
£
Ordinary share capital
Issued, called up and fully paid
3,400,000 Ordinary shares of £1 each
3,400,000
3,400,000
All shares have equal voting rights and equal rights to participate in dividends and other distributions.
21
Capital reserve
The Capital reserve represents a capital contribution from the company's parent undertaking.
22
Profit and loss reserves
Retained earnings represents accumulated comprehensive income for the year and prior periods less dividends paid.
23
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for motor vehicles, fork lift trucks and the lease of the office building. The office lease is for 6 years with a 3 year break clause. Motor vehicle lease terms range from 36 to 48 months. The fork lift truck, offices and car parking lease terms range from 60 to 72 months. At the end of the lease term, motor vehicles and fork lift trucks are returned to the lessor.
As the warehouse was fully transferred to a third party logistics provider, all of the fork lift trucks were returned to the lessor by the end of April 2021. Therefore the figure falling due within one year also includes the termination charges in the prior year.
At the reporting end date the company had outstanding commitments for future minimum lease and termination payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
64,799
54,993
Between two and five years
123,076
14,147
187,875
69,140
Albis (U.K.) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 34
24
Ultimate controlling party
The directors regard Otto Krahn (GmbH & Co.) KG, a company incorporated in Germany, as the company's ultimate parent undertaking.
Albis Distribution GmbH & Co. KG, a company incorporated in Germany, is the immediate parent undertaking of which Albis (U.K.) Limited is a member and for which group accounts are prepared. Otto Krahn (GmbH & Co.) KG is the parent undertaking of the largest group of which Albis (U.K.) Limited is a member and for which group accounts are prepared. A copy of the group accounts can be obtained from Otto Krahn (GmbH & Co.) KG, Grimm 10, D-20457, Hamburg, Germany.
The ultimate controlling party is Krahn Verwaltung-Gesellschaft GmbH, a company incorporated in Germany.
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