REGISTERED NUMBER: 05891820 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2017 |
for |
The Abbey Group Uk Limited |
REGISTERED NUMBER: 05891820 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2017 |
for |
The Abbey Group Uk Limited |
The Abbey Group Uk Limited (Registered number: 05891820) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2017 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 |
The Abbey Group Uk Limited |
Company Information |
for the Year Ended 31 October 2017 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
The Abbey Group Uk Limited (Registered number: 05891820) |
Group Strategic Report |
for the Year Ended 31 October 2017 |
The directors present their strategic report of the company and the group for the year ended 31 October 2017. |
REVIEW OF BUSINESS |
The group has seen revenues increase but profits drop this year which is largely down to a competitive market place. The |
group expects to reverse this decline and press ahead with technological advancements in line with its expectations. |
Turnover has risen by 8.68% in the year, whilst cost of sales has also risen by 20.62%. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
Risk is present in all business. The directors consider the major risks and uncertainties at this point in time are: |
1. Product Mix |
Commodity-like steel products face higher degrees of competition and are more exposed to price volatility. The main |
trade of the group produces higher value added products that provide above average margins, stable volumes and |
contribute to a reduction on relative earnings fluctuations. |
2. Raw Material Position |
The cost efficiency of the groups main operations is highly dependent on the cost and availability of raw materials. The |
group does not rely to heavily on one major supplier for raw materials which gives the group access to readily available |
raw materials at competitive prices. |
3. Market Volatility |
Being the the main trade of the group is operating in the steel industry, its earnings are exposed to cyclical changes to |
supply and demand resulting in price fluctuations that can lead to varied and volatile financial performance. |
Management have significant experience in the steel industry which allows them to take a proactive response to cyclical |
changes in order to reduce the risk that market volatility has on the group's financial performance. |
The Abbey Group Uk Limited (Registered number: 05891820) |
Group Strategic Report |
for the Year Ended 31 October 2017 |
PERFORMANCE MONITORING |
The board monitors the group's performance in a number of ways including key performance indicators. The key |
financial performance indicators for The Abbey Group are as follows: |
2017 | 2016 |
£ | £ |
Revenue | 24,206,722 | 22,274,371 |
Operating profit per employee | 18,163 | 55,786 |
Turnover per employee | 122,877 | 127,282 |
Return on capital employed | 8.2% | 13.7% |
Gross profit margin | 30.55% | 37.5% |
Operating profit margin | 14.8% | 27.2% |
Current Ratio | 5.9:1 | 5.7:1 |
The revenue indicator represents the value of goods delivered to customers in the year and measures sales reduction in |
value terms. |
The operating profit per employee indicator represents the contribution per employee and measures the growth per |
employee in value terms. |
The turnover per production employee indicator represents the sales output per employee and measures production |
efficiency in value terms. |
The return on capital employed indicator represents the value of return to the shareholder in the year through the |
activities of the group and measures return in value terms. |
The gross profit margin is calculated by dividing the gross profit by revenue and measures the total profitability of |
product sales. |
The operating profit margin is the profit generated by the group from its operations excluding finance and investment |
income and costs before taxation. This indicator measures overall profitability of the group for the year. |
The current ratio indicator represents the value of the group's current assets against its current liabilities and measures |
the ability of the group to finance it's operations as they fall due. |
The board also considers the following key non-financial performance indicators: |
1. Customer mix against plans. |
2. Sales activities measured against results. |
These non-financial indicators are reviewed regularly by the board. |
ON BEHALF OF THE BOARD: |
13 July 2018 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Report of the Directors |
for the Year Ended 31 October 2017 |
The directors present their report with the financial statements of the company and the group for the year ended |
31 October 2017. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of manufacturers, forgers and distributors of steel |
products. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2017 will be £ 1,975,000 . |
FUTURE DEVELOPMENTS |
The group plans to continue the growth into future years and the directors are focused and confident regarding business |
development in the future. The directors expect their overall general investments within the group to increase the group's |
trade and profits in future years. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2016 to the date of this |
report. |
FINANCIAL INSTRUMENTS |
The groups principal financial instruments comprise of bank balances, trade debtors, trade creditors and loans both to |
and from the companies which make up the group. |
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach |
to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances the liquidity risk is managed by maintaining a balance in order to ensure all due amounts can |
be paid within the deadlines stipulated when credit is taken. The group makes use of additional funds held in excess of |
that required for the day to day running of the group by investing them in high interest accounts. These do have instant |
access to ensure money is available when required to meet any demands on cash flow. |
In respect of loans to and from the group these comprise of loans both from and to directors and employees, these are |
interest free and payable on demand. The directors are aware of the group's financial position and would not withdraw |
funds unless the group had sufficient funds to satisfy the day to day running of the group. |
Trade debtors are managed in respect of credit and cash flow risk by the regular monitoring of amounts outstanding for |
time limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet the amounts due. |
EURO ISSUES |
The group's systems are Euro compatible. The group has assessed the situation and does not anticipate any problems if |
the Euro is introduced in the UK. |
DIRECTORS INDEMNITY PROVISIONS |
The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act |
2006. This indemnity does not provide cover in the event of a director being proven to have acted fraudulently or |
dishonestly. |
The Abbey Group Uk Limited (Registered number: 05891820) |
Report of the Directors |
for the Year Ended 31 October 2017 |
EMPLOYMENT POLICIES |
The group has equal opportunities policies which are applied to job applicants and existing employees. |
Full and fair consideration is given to the employment of disabled persons and the group has made, and will continue to |
make, every effort to retain and assist any individuals disabled in the course of their employment and to help with their |
rehabilitation. |
Employees are made aware of the financial and economic factors affecting the achievements of the group companies for |
which they work and the way in which their personal contributions are of fundamental importance to the further success |
of the business. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors |
have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting |
Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not |
approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the |
company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the |
directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. |
They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable |
steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have |
taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the |
group's auditors are aware of that information. |
AUDITORS |
The auditors, Sutton McGrath Hartley Limited, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
The Abbey Group Uk Limited |
Opinion |
We have audited the financial statements of The Abbey Group Uk Limited (the 'parent company') and its subsidiaries |
(the 'group') for the year ended 31 October 2017 which comprise the Consolidated Income Statement, Consolidated |
Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, |
Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of |
Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a |
summary of significant accounting policies. The financial reporting framework that has been applied in their preparation |
is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted |
Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2017 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the group in accordance with the ethical requirements |
that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have |
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we |
have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the |
Auditors thereon. |
Our opinion on the financial statements does not cover the other information and we do not express any form of |
assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If, 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. |
Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
The Abbey Group Uk Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the |
course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the |
Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you |
if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible |
for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such |
internal control as the directors determine necessary to enable the preparation of financial statements that are free from |
material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's |
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going |
concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease |
operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. |
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs |
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are |
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic |
decisions of users taken on the basis of these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent |
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's |
members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
The Abbey Group Uk Limited (Registered number: 05891820) |
Consolidated Income Statement |
for the Year Ended 31 October 2017 |
2017 | 2016 |
Notes | £ | £ |
TURNOVER | 3 | 24,206,722 | 22,274,371 |
Cost of sales | 16,810,378 | 13,936,210 |
GROSS PROFIT | 7,396,344 | 8,338,161 |
Administrative expenses | 3,835,121 | 2,327,051 |
3,561,223 | 6,011,110 |
Other operating income | 16,891 | 38,687 |
OPERATING PROFIT | 6 | 3,578,114 | 6,049,797 |
Interest receivable and similar income | 24,979 | 177,575 |
3,603,093 | 6,227,372 |
Gain/loss on revaluation of investment property |
(1,574,909 |
) |
- |
2,028,184 | 6,227,372 |
Interest payable and similar expenses | 7 | 79 | 6,501 |
PROFIT BEFORE TAXATION | 2,028,105 | 6,220,871 |
Tax on profit | 8 | 738,014 | 1,270,401 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,175,117 | 4,950,470 |
Non-controlling interests | 114,974 | - |
1,290,091 | 4,950,470 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 October 2017 |
2017 | 2016 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,290,091 | 4,950,470 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,290,091 |
4,950,470 |
Total comprehensive income attributable to: |
Owners of the parent | 1,175,117 | 4,950,470 |
Non-controlling interests | 114,974 | - |
1,290,091 | 4,950,470 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Consolidated Statement of Financial Position |
31 October 2017 |
2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 1,234,994 | 1,354,961 |
Tangible assets | 12 | 17,214,961 | 16,279,489 |
Investments | 13 | 68,850 | 68,850 |
Investment property | 14 | 3,520,783 | 4,307,000 |
22,039,588 | 22,010,300 |
CURRENT ASSETS |
Stocks | 15 | 508,196 | 533,662 |
Debtors | 16 | 9,186,536 | 6,673,464 |
Cash at bank and in hand | 16,231,374 | 19,845,626 |
25,926,106 | 27,052,752 |
CREDITORS |
Amounts falling due within one year | 17 | 4,402,772 | 4,754,813 |
NET CURRENT ASSETS | 21,523,334 | 22,297,939 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
43,562,922 |
44,308,239 |
PROVISIONS FOR LIABILITIES | 18 | (103,832 | ) | (129,240 | ) |
NET ASSETS | 43,459,090 | 44,178,999 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 204 | 204 |
Retained earnings | 20 | 43,378,912 | 44,178,795 |
SHAREHOLDERS' FUNDS | 43,379,116 | 44,178,999 |
NON-CONTROLLING INTERESTS | 21 | 79,974 | - |
TOTAL EQUITY | 43,459,090 | 44,178,999 |
The financial statements were approved by the Board of Directors on 13 July 2018 and were signed on its behalf by: |
Mrs J M Neal - Director |
The Abbey Group Uk Limited (Registered number: 05891820) |
Company Statement of Financial Position |
31 October 2017 |
2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Investment property | 14 |
CURRENT ASSETS |
Debtors | 16 |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,593,204 | 7,551,408 |
The financial statements were approved by the Board of Directors on |
The Abbey Group Uk Limited (Registered number: 05891820) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2017 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2015 | 204 | 46,278,325 | 46,278,529 | - | 46,278,529 |
Changes in equity |
Dividends | - | (7,050,000 | ) | (7,050,000 | ) | - | (7,050,000 | ) |
Total comprehensive income | - | 4,950,470 | 4,950,470 | - | 4,950,470 |
Balance at 31 October 2016 | 204 | 44,178,795 | 44,178,999 | - | 44,178,999 |
Changes in equity |
Dividends | - | (1,975,000 | ) | (1,975,000 | ) | (35,000 | ) | (2,010,000 | ) |
Total comprehensive income | - | 1,175,117 | 1,175,117 | 114,974 | 1,290,091 |
Balance at 31 October 2017 | 204 | 43,378,912 | 43,379,116 | 79,974 | 43,459,090 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2017 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2015 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2016 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2017 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 October 2017 |
2017 | 2016 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,586,722 | 8,649,528 |
Interest paid | (79 | ) | (6,501 | ) |
Tax paid | (1,678,895 | ) | 18,467 |
Net cash from operating activities | 2,907,748 | 8,661,494 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | 20 |
Purchase of tangible fixed assets | (1,794,512 | ) | (1,023,391 | ) |
Purchase of investment property | (788,692 | ) | - |
Sale of tangible fixed assets | 30,250 | 13,500 |
Interest received | 24,979 | 177,575 |
Net cash from investing activities | (2,527,975 | ) | (832,296 | ) |
Cash flows from financing activities |
Amount introduced by directors | 2,254,365 | 7,352,453 |
Amount withdrawn by directors | (4,238,390 | ) | (2,455,947 | ) |
Equity dividends paid | (1,975,000 | ) | (7,050,000 | ) |
Dividends paid to minority interests | (35,000 | ) | - |
Net cash from financing activities | (3,994,025 | ) | (2,153,494 | ) |
(Decrease)/increase in cash and cash equivalents | (3,614,252 | ) | 5,675,704 |
Cash and cash equivalents at beginning of year |
2 |
19,845,626 |
14,169,922 |
Cash and cash equivalents at end of year | 2 | 16,231,374 | 19,845,626 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 October 2017 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2017 | 2016 |
£ | £ |
Profit before taxation | 2,028,105 | 6,220,871 |
Depreciation charges | 948,760 | 1,079,756 |
Profit on disposal of fixed assets | - | (12,082 | ) |
Loss on revaluation of fixed assets | 1,574,909 | - |
Finance costs | 79 | 6,501 |
Finance income | (24,979 | ) | (177,575 | ) |
4,526,874 | 7,117,471 |
Decrease in stocks | 25,466 | 290,665 |
(Increase)/decrease in trade and other debtors | (529,047 | ) | 1,380,994 |
Increase/(decrease) in trade and other creditors | 563,429 | (139,602 | ) |
Cash generated from operations | 4,586,722 | 8,649,528 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of |
these Statement of Financial Position amounts: |
Year ended 31 October 2017 |
31/10/17 | 1/11/16 |
£ | £ |
Cash and cash equivalents | 16,231,374 | 19,845,626 |
Year ended 31 October 2016 |
31/10/16 | 1/11/15 |
£ | £ |
Cash and cash equivalents | 19,845,626 | 14,169,922 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2017 |
1. | STATUTORY INFORMATION |
The Abbey Group Uk Limited is a |
company's registered number and registered office address can be found on the General Information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Consolidation |
The group accounts consolidate the accounts of The Abbey Group UK Limited and its subsidiary companies. |
The subsidiaries financial years are all coterminous with that of the company except for the subsidiary Royal |
Villa Number 22 Limited, whose financial year ended on 31 December 2017. |
Interim accounts to 31 October 2017 for Royal Villa Number 22 Limited have been prepared and consolidated |
into the group accounts of The Abbey Group UK Limited. |
Turnover |
Turnover is the amount derived from ordinary activities and stated after trade discounts, other sales taxes and |
Value Added Tax. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of businesses in 2007, is being amortised |
evenly over its estimated useful life of twenty and sixteen years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost |
less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
The directors consider that freehold properties are maintained in such a state of repair that their residual value is |
at least equal to their net book values. As a result, the corresponding depreciation would not be material and |
therefore is not charged to the profit and loss account. |
The directors perform annual impairment reviews in accordance with the requirements of FRS102 section 17 and |
section 27 to ensure that the carrying value is not lower than the recoverable amount. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in |
fair value is recognised in profit or loss. |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance |
for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in |
bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income |
Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in |
equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the |
statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of |
exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the |
operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme |
are charged to profit or loss in the period to which they relate. |
Financial instruments |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, |
as 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. |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2017 | 2016 |
£ | £ |
United Kingdom |
Europe |
Rest of the world | 2,335,332 | 2,834,585 |
4. | EMPLOYEES AND DIRECTORS |
2017 | 2016 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2017 | 2016 |
Production and Manual | 128 | 124 |
Administration | 69 | 54 |
5. | DIRECTORS' EMOLUMENTS |
2017 | 2016 |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2017 | 2016 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences | ( |
) |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2017 | 2016 |
£ | £ |
Corporation Tax Interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2017 | 2016 |
£ | £ |
Current tax: |
UK corporation tax |
Prior Year Underprovision | - | (30,352 | ) |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is |
explained below: |
2017 | 2016 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2016 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Tax charged at higher rates | - | 6,127 |
Deferred tax movement | (25,409 | ) | (16,079 | ) |
Effect of change in rates | (23,055 | ) | - |
Total tax charge | 738,014 | 1,270,401 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not |
presented as part of these financial statements. |
10. | DIVIDENDS |
2017 | 2016 |
£ | £ |
Ordinary shares of £1 each |
Interim |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 November 2016 |
and 31 October 2017 | 2,057,321 |
AMORTISATION |
At 1 November 2016 | 702,360 |
Amortisation for year | 119,967 |
At 31 October 2017 | 822,327 |
NET BOOK VALUE |
At 31 October 2017 | 1,234,994 |
At 31 October 2016 | 1,354,961 |
Company |
Goodwill |
£ |
COST |
At 1 November 2016 |
and 31 October 2017 | 1,896,001 |
AMORTISATION |
At 1 November 2016 | 642,001 |
Amortisation for year | 114,000 |
At 31 October 2017 | 756,001 |
NET BOOK VALUE |
At 31 October 2017 | 1,140,000 |
At 31 October 2016 | 1,254,000 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 November 2016 | 12,317,078 | 377,307 | 10,468,146 |
Additions | 1,538,807 | - | 130,852 |
At 31 October 2017 | 13,855,885 | 377,307 | 10,598,998 |
DEPRECIATION |
At 1 November 2016 | - | - | 7,259,225 |
Charge for year | - | - | 662,262 |
At 31 October 2017 | - | - | 7,921,487 |
NET BOOK VALUE |
At 31 October 2017 | 13,855,885 | 377,307 | 2,677,511 |
At 31 October 2016 | 12,317,078 | 377,307 | 3,208,921 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 November 2016 | 774,080 | 484,682 | 82,403 | 24,503,696 |
Additions | 37,653 | 85,576 | 1,624 | 1,794,512 |
Disposals | - | (30,250 | ) | - | (30,250 | ) |
At 31 October 2017 | 811,733 | 540,008 | 84,027 | 26,267,958 |
DEPRECIATION |
At 1 November 2016 | 472,023 | 427,238 | 65,721 | 8,224,207 |
Charge for year | 91,834 | 63,922 | 10,772 | 828,790 |
At 31 October 2017 | 563,857 | 491,160 | 76,493 | 9,052,997 |
NET BOOK VALUE |
At 31 October 2017 | 247,876 | 48,848 | 7,534 | 17,214,961 |
At 31 October 2016 | 302,057 | 57,444 | 16,682 | 16,279,489 |
Cost or valuation at 31 October 2017 is represented by: |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Cost | 13,855,885 | 377,307 | 10,598,998 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Cost | 811,733 | 540,008 | 84,027 | 26,267,958 |
Company |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2016 |
and 31 October 2017 |
DEPRECIATION |
At 1 November 2016 |
Charge for year |
At 31 October 2017 |
NET BOOK VALUE |
At 31 October 2017 |
At 31 October 2016 |
13. | FIXED ASSET INVESTMENTS |
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Shares in group undertakings | - | - |
Other investments not loans | 68,850 | 68,850 |
68,850 | 68,850 |
Additional information is as follows: |
Group |
Investments (neither listed nor unlisted) were as follows: |
2017 | 2016 |
£ | £ |
Artwork | 68,850 | 68,850 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
13. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2016 |
and 31 October 2017 |
NET BOOK VALUE |
At 31 October 2017 |
At 31 October 2016 |
Investments (neither listed nor unlisted) were as follows: |
2017 | 2016 |
£ | £ |
Artwork | 68,850 | 68,850 |
The group or the company's investments at the Statement of Financial Position date in the share capital of |
companies include the following: |
Subsidiaries |
Abbey Forged Products Limited |
Registered office: Beeley Wood Works, Beeley Wood Lane Sheffield, S6 1ND |
Nature of business: steel forgers |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | 19,827,465 | 19,750,910 |
Profit for the year | 2,051,555 | 4,447,525 |
Forge UK Ltd |
Registered office: Beeley Wood Works, Beeley Wood Lane Sheffield, S6 1ND |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | 100 | 100 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
13. | FIXED ASSET INVESTMENTS - continued |
Abbey Engineered Products Limited |
Registered office: Beeley Wood Works, Beeley Wood Lane Sheffield, S6 1ND |
Nature of business: sale of steel products |
% |
Class of shares: | holding |
Ordinary | 80.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | 399,871 | 129,625 |
Profit for the year | 445,346 | 129,525 |
Royal Villa Number 22 Limited |
Registered office: Office of Tricor Services (BVI) Limited PO Box 3340, 2F Palm Grove House, Tortola |
Nature of business: property investment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | (366,151 | ) | 64,682 |
Loss for the year | (430,833 | ) | (35,823 | ) |
Ocean Drive Lot 2A Inc |
Registered office: Beeley Wood Works, Beeley Wood Lane Sheffield, S6 1ND |
Nature of business: property investment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | (26,455 | ) | (26,455 | ) |
Loss for the year | - | (14,627 | ) |
Ocean Drive Lot 4a Inc |
Registered office: Beeley Wood Works, Beeley Wood Lane Sheffield, S6 1ND |
Nature of business: property investment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | (1,340,266 | ) | (92,039 | ) |
Loss for the year | (1,248,224 | ) | (71,570 | ) |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
14. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 November 2016 | 4,307,000 |
Additions | 788,692 |
Impairments | (1,574,909 | ) |
At 31 October 2017 | 3,520,783 |
NET BOOK VALUE |
At 31 October 2017 | 3,520,783 |
At 31 October 2016 | 4,307,000 |
Fair value at 31 October 2017 is represented by: |
£ |
Valuation in 2013 | 104,410 |
Valuation in 2017 | (1,574,909 | ) |
Cost | 4,991,282 |
3,520,783 |
If investment properties had not been revalued they would have been included at the following historical cost: |
2017 | 2016 |
£ | £ |
Cost | 4,991,282 | - |
Aggregate depreciation | (262,537 | ) | - |
Investment properties were valued on an open market basis on 31 October 2017 by the Directors . |
15. | STOCKS |
Group |
2017 | 2016 |
£ | £ |
Work-in-progress | 275,405 | 320,798 |
Finished goods | 232,791 | 212,864 |
508,196 | 533,662 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Trade debtors | 4,508,309 | 4,386,138 |
Amounts owed by group undertakings | - | - |
Other debtors | 505,434 | 251,719 |
Directors' current accounts | 3,946,785 | 1,962,760 | - | - |
Deferred tax asset | - | - | 58,315 | 37,233 |
Prepayments | 226,008 | 72,847 |
9,186,536 | 6,673,464 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Trade creditors | 3,087,294 | 2,448,037 | ( |
) |
Amounts owed to group undertakings | - | - |
Tax | 573,823 | 1,489,293 |
Social security and other taxes | 158,579 | 141,813 |
VAT | 357,867 | 348,411 | - | - |
Other creditors | 43,216 | 8,735 |
Accrued expenses | 181,993 | 318,524 |
4,402,772 | 4,754,813 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2017 | 2016 |
£ | £ |
Deferred tax | 103,832 | 129,240 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2016 | 129,240 |
Credit to Income Statement during year | (25,408 | ) |
Accelerated capital allowances |
Balance at 31 October 2017 | 103,832 |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
18. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 November 2016 | ( |
) |
Provided during year | ( |
) |
Accelerated capital allowances |
Balance at 31 October 2017 | ( |
) |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
B Ordinary | £1 | 4 | 4 |
204 | 204 |
20. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2016 | 44,178,795 |
Profit for the year | 1,175,117 |
Dividends | (1,975,000 | ) |
At 31 October 2017 | 43,378,912 |
Company |
Retained |
earnings |
£ |
At 1 November 2016 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2017 |
21. | NON-CONTROLLING INTERESTS |
As at 31.10.2017, the group owned 80% of Abbey Engineered Limited. At this date, reserves attributable to |
holdings outside of the group totalled £79,994. |
The Abbey Group Uk Limited (Registered number: 05891820) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2017 |
22. | RELATED PARTY DISCLOSURES |
Included in debtors is an amount due from Mrs J M & Mr RS Neal, who are both directors of all related |
company and are the ultimate controlling parties. The loan is as follows: |
Balance brought forward as at 01/11/2016 |
Capital Introduced |
Drawings |
Balance carried forward as at 31/10/2017 |
£ | £ | £ | £ |
Mrs J M and Mr R S Neal | (1,875,710 | ) | 2,167,315 | (4,238,390 | ) | (3,946,785 | ) |
The maximum outstanding balance due to the company from Mrs J M and Mr R S Neal during the year was |
£3,990,598. |
The directors consider themselves to be the only key management personnel. See note 5 for their compensation. |
23. | POST BALANCE SHEET EVENTS |
There are no events since the end of the year which require disclosure to the financial statements. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr and Mrs Neal. |
25. | POWER TO AMEND FINANCIAL STATEMENTS |
The directors have the power to amend the financial statements after they have been issued. |