COLTON_PACKAGING_LIMITED - Accounts
COLTON_PACKAGING_LIMITED - Accounts
Company Registration No. 06317948 (England and Wales)
FOR THE YEAR ENDED 31 DECEMBER 2014
COMPANY INFORMATION
Directors
(Appointed 1 January 2015)
Company number
Registered office
Auditors
Business address
Unit 1
Manor Drive
Sileby
Loughborough
Leics
LE12 7RZ
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 5
Profit and loss account
6
Balance sheet
7
Cash flow statement
8
Notes to the cash flow statement
9
Notes to the financial statements
10 - 18
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
The directors present the strategic report and financial statements for the year ended 31 December 2014.
Review of the business
The directors report that the company experienced a significant improvement in turnover and gross margin in 2014 compared to 2013, which was due to increased sales volumes mainly within the existing customer base. The gross profit percentage was in line with the previous year..
We consider that our key performance indicators are as follows:
2014
2013
Turnover
11,195,332
8,909,266
Gross margin
2,557,615
2,037,870
Pre-tax profits
656,281
442,815
Top 40 customer retention
93.00%
93.00%
Debtor days
52 days
52 days
Stock turn
30 days
36 days
As for many businesses of our size, the environment in which we operate continues to be challenging. The market we are in is highly competitive. Margins are under pressure from both increased costs and a determination from clients to reduce selling prices.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
On behalf of the board
Director
22 April 2015
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
The directors present their report and financial statements for the year ended 31 December 2014.
Principal activities
Results and dividends
The results for the year are set out on page 6.
Directors
The following directors have held office since 1 January 2014:
(Appointed 1 January 2015)
Auditors
In accordance with company's articles, a resolution proposing that Clear & Lane be reappointed as auditors of the company will be put to the Annual General Meeting.
Statement of directors' responsibilities
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.
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.
- 2 -
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
Statement of disclosure to auditors
On behalf of the board
Director
- 3 -
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF COLTON PACKAGING LIMITED
We have audited the financial statements of Colton Packaging Limited for the year ended 31 December 2014 set out on pages 6 to 18. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 auditors' 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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
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-
give a true and fair view of the state of the company's affairs as at 31 December 2014 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF COLTON PACKAGING LIMITED
Matters on which we are required to report by exception
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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
for and on behalf of Clear & Lane Limited
Chartered Accountants
Statutory Auditor
- 5 -
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2014
2014
2013
Notes
£
£
Turnover
2
Cost of sales
(8,637,717 )
(6,871,396 )
Gross profit
Administrative expenses
(1,901,096 )
(1,595,890 )
Operating profit
4
Other interest receivable and similar income
3
-
Interest payable and similar charges
5
(238 )
(122 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
6
(196,630 )
(124,044 )
Profit for the year
16
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
- 6 -
BALANCE SHEET
AS AT
31 DECEMBER 2014
2014
2013
Notes
£
£
£
£
Fixed assets
Intangible assets
8
Tangible assets
9
Current assets
Stocks
10
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one year
12
(2,277,227 )
(2,200,307 )
Net current assets
Total assets less current liabilities
Provisions for liabilities
13
(4,937 )
(5,508 )
Capital and reserves
Called up share capital
15
Other reserves
16
-
Profit and loss account
16
Shareholders' funds
17
Approved by the Board and authorised for issue on 22 April 2015
Director
Director
Company Registration No. 06317948
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CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
2014
2013
£
£
£
£
Net cash inflow from operating activities
Returns on investments and servicing of finance
Interest received
-
Interest paid
(238 )
(122 )
Non equity dividends paid
(3,600)
(3,600)
Net cash outflow for returns on investments and servicing of finance
(3,838)
(2,765)
Taxation
(127,442 )
(186,633 )
Capital expenditure
Payments to acquire tangible assets
(86,976)
(1,890)
Net cash outflow for capital expenditure
(86,976)
(1,890)
Equity dividends paid
(146,500 )
(65,800 )
Net cash inflow before management of liquid resources and financing
Financing
Purchase of own shares
(85,000)
-
Repayment of directors current account
(10,000)
(1,154,082)
Net cash outflow from financing
(95,000)
(1,154,082)
Increase/(decrease) in cash in the year
(355,787 )
- 8 -
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
1
Reconciliation of operating profit to net cash outflow from operating activities
2014
2013
£
£
Operating profit
Depreciation of tangible assets
23,287
20,639
Amortisation of intangible assets
236,880
84,600
Increase in stocks
(13,747)
(38,077)
Increase in debtors
(436,505)
(187,754)
Increase in creditors within one year
216,794
733,995
Net cash inflow from operating activities
2
Analysis of net debt
1 January 2014
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
(61)
-
Bank overdrafts
(297,857 )
223,533
-
(74,324 )
(297,753)
-
(74,281 )
Directors current accounts
(10,000)
10,000
-
-
Net debt
(307,753 )
233,472
-
(74,281 )
3
Reconciliation of net cash flow to movement in net debt
2014
2013
£
£
Increase/(decrease) in cash in the year
(355,787 )
Cash outflow from decrease in debt
10,000
1,154,082
Movement in net debt in the year
233,472
798,295
Opening net debt
(307,753)
(1,106,048)
Closing net debt
(74,281 )
(307,753 )
- 9 -
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1
Accounting policies
1.1
Accounting convention
1.2
Turnover
Revenue is recognised in the period in which the goods are despatched.
1.3
Goodwill
1.4
Tangible fixed assets and depreciation
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
1.5
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Stock
Stock is valued at the lower of cost and net realisable value.
1.7
Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.8
Deferred taxation
Deferred taxation is recognised in respect of all material timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
2
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
3
Investment income
2014
2013
£
£
Other interest
-
- 10 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
4
Operating profit
2014
2013
£
£
Operating profit is stated after charging:
Amortisation of intangible assets
Depreciation of tangible assets
Operating lease rentals
125,259
125,342
Auditors' remuneration
5
Interest payable
2014
2013
£
£
On other loans wholly repayable within five years
238
122
6
Taxation
2014
2013
£
£
Domestic current year tax
U.K. corporation tax
Adjustment for prior years
-
Total current tax
Deferred tax
Deferred tax charge/credit current year
(571)
(1,760)
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 21.49 % (2013 - 22.95 %)
Effects of:
Non deductible expenses
Depreciation add back
55,939
24,136
Capital allowances
(1,965 )
(816 )
Adjustments to previous periods
-
56,166
24,174
Current tax charge for the year
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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
7
Dividends
2014
2013
£
£
Dividends on equity shares:
Ordinary interim paid
108,700
65,800
Ordinary final proposed
61,700
37,800
Dividends on non-equity shares:
Preference interim paid
3,600
3,600
8
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2014 & at 31 December 2014
Amortisation
At 1 January 2014
Charge for the year
At 31 December 2014
Net book value
At 31 December 2014
At 31 December 2013
- 12 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
9
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2014
-
Additions
-
At 31 December 2014
Depreciation
At 1 January 2014
-
Charge for the year
At 31 December 2014
Net book value
At 31 December 2014
At 31 December 2013
-
10
Stocks
2014
2013
£
£
Finished goods and goods for resale
11
Debtors
2014
2013
£
£
Trade debtors
Other debtors
Prepayments and accrued income
- 13 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
12
Creditors: amounts falling due within one year
2014
2013
£
£
Bank overdraft ( note a )
Trade creditors
Corporation tax
Other taxes and social security costs
Directors' current accounts
-
Accruals and deferred income
Proposed dividend
( a ) The bank overdraft is secured by a debenture over the assets of the company together with a
fixed charge over the company's long term leasehold property.
13
Provisions for liabilities
Deferred tax liability
£
Balance at 1 January 2014
5,508
Profit and loss account
(571 )
Balance at 31 December 2014
The deferred tax liability is made up as follows:
2014
2013
£
£
Accelerated capital allowances
14
Retirement Benefits
2014
2013
£
£
Contributions payable by the company for the year
- 14 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
15
Share capital
2014
2013
£
£
Allotted, called up and fully paid
16
Statement of movements on reserves
Other reserves
(see below)
(see below)
Profit
and loss
account
and loss
account
£
£
Balance at 1 January 2014
-
Profit for the year
-
Transfer to other reserves
-
(85,000)
Dividends paid
-
(174,000 )
Movement during the year
85,000
-
Balance at 31 December 2014
Other reserves
Capital redemption reserve
Capital redemption reserve movement
85,000
Balance at 31 December 2014
85,000
During the year 85,000 £1 preference shares were redeemed at par. In accordance with sections 733-737 of the Companies Act 2006 the diminishment in share capital resulted in an £85,000 transfer
from distributable profits to a capital redemption reserve.
17
Reconciliation of movements in Shareholders' funds
2014
2013
£
£
Profit for the financial year
Dividends
(174,000 )
(107,200 )
285,651
211,571
Movements on other reserves
85,000
-
Net addition to shareholders' funds
Opening Shareholders' funds
Closing Shareholders' funds
- 15 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
18
Financial commitments
At 31 December 2014 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 December 2015:
Land and buildings
2014
2013
£
£
Operating leases which expire:
Within one year
-
19
Directors' remuneration
2014
2013
£
£
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
245,910
231,196
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2013 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
20
Capital commitments
2014
2013
£
£
At 31 December 2014 the company had capital commitments as follows:
Contracted for but not provided in the financial statements
63,500
-
Authorised but not contracted for
2,600,000
-
- 16 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
21
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2014
2013
Number
Number
Warehousing and drivers
11
11
Selling and distribution
7
7
Administration
8
8
26
26
Employment costs
2014
2013
£
£
Wages and salaries
Social security costs
Other pension costs
22
Control
The company is controlled by Mr R. J. Colton who has a majority stake in the ordinary share capital of the company.
- 17 -
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2014
23
Related party relationships and transactions
The company has entered into a Guarantee with National Westminster Bank Plc to secure the liabilities to the bank of Carnweather Limited up to a limit of £
The company was invoiced £58,674 (2013- £101,252) from Colton Management Services for the lease of commercial vehicles and plant in the year. Colton Management Services is an unincorporated business owned by Mr R. J. Colton and his wife. On 30 September 2014 Colton Management Services ceased trading and Colton Packaging Limited acquired the motor vehicles and plant for a consideration of £79,200 which the directors consider to be their market value.
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