Sanglier Limited - Limited company accounts 20.1

REGISTERED NUMBER: 04577960 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 30 April 2020

for

Sanglier Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Profit and Loss Account

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTOR:

N Davies

SECRETARY:

H P Marshall

REGISTERED OFFICE:

Shelly Close

Lowmoor Business Park

Kirkby in Ashfield

Nottinghamshire

NG17 7JZ

REGISTERED NUMBER:

04577960 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

The company's principal activity continues to be the supply of aerosol adhesives.

REVIEW OF BUSINESS

The company decreased sales in the year by 5.8% from £17.9m to £16.8m. The decrease is due to the effect of COVID 19 in sales in April together with a flat export market for goods due to Covid and Brexit uncertainty. Pre-tax profits decreased by £253k from £612k to £359k due to lower margins arising out of shortages in materials increasing costs of raw materials.

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all chemical companies Sanglier is affected by large movements in currency rates for the Euro and the US dollar. This is because many raw materials are sourced from the EU and petrochemical products are valued in Dollars. The decision by the UK to exit the EU has had a negative affect of the raw material development of the business and together with shortages of many solvented materials has resulted in large increases in materials costs since the financial year. Ongoing uncertainty regarding the outcome of Brexit negotiations means that it is unclear as to how the financial currency markets will react in the near future. It is also clear that a 'No deal' outcome will result in tariffs that could harm our export markets and potentially affect growth rates in the UK as a whole.

FINANCIAL INSTRUMENTS

The company uses basic financial instruments comprising bank borrowing and invoice factoring to finance its operations. The main purpose of these financial instruments is to provide finance for the company's operations. The major areas of financial risk to the company are interest and liquidity risks. The directors review and agree policies for managing each of these risks and they are summarised below:

Interest rate Risk

Interest rates are currently very low and the directors do not believe that even significant increases in interest rates would have a material impact on the results of the company.

Liquidity Risk

The company has significant credit lines in excess of any foreseeable requirement.

RESEARCH AND DEVELOPMENT

Continuing investment in research and development is key to the success of the business. Through an in-house technical team, the company is able to retain control over product manufacturing methods and can readily adapt its product offering to respond swiftly to new markets and advances in techniques.

FUTURE OUTLOOK

The Brexit vote has meant that future trading conditions are potentially uncertain. As yet there has been no reduction in demand for the company's products although the weakness of Sterling will potentially give rise to inflationary pressures resulting in increased prices. The coronavirus pandemic is expected to last throughout next year and as yet has not had a negative affect of the performance of the company but widespread unemployment as a result of the pandemic would affect UK sales should this occur.

ON BEHALF OF THE BOARD:

N Davies - Director

24 November 2020

The director presents his report with the financial statements of the company for the year ended 30 April 2020.

DIVIDENDS

The total distribution of dividends for the year ended 30 April 2020 will be £ 607,730 .

DIRECTOR

N Davies held office during the whole of the period from 1 May 2019 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The matters required to be disclosed under SI (2008) 410 Sch 7 relating to financial instruments and research and development are contained within the Strategic report as is applicable in accordance with s414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

N Davies - Director

24 November 2020

Opinion

We have audited the financial statements of Sanglier Limited (the 'company') for the year ended 30 April 2020 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 April 2020 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.

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 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

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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company'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 director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Wayne Thomas ACA (Senior Statutory Auditor)

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

30 November 2020

TURNOVER

3

16,845,786

17,882,530

Cost of sales

12,998,661

14,049,650

GROSS PROFIT

3,847,125

3,832,880

Administrative expenses

3,432,782

3,168,122

414,343

664,758

Other operating income

1,302

2,450

OPERATING PROFIT

5

415,645

667,208

Interest receivable and similar income

-

10

415,645

667,218

Interest payable and similar expenses

7

56,844

54,830

PROFIT BEFORE TAXATION

358,801

612,388

Tax on profit

8

16,400

66,719

PROFIT FOR THE FINANCIAL YEAR

342,401

545,669

FIXED ASSETS

Tangible assets

10

1,445,693

1,525,894

CURRENT ASSETS

Stocks

11

1,579,620

1,842,581

Debtors

12

3,195,918

3,555,575

Cash at bank and in hand

1,535,759

184,153

6,311,297

5,582,309

CREDITORS

Amounts falling due within one year

13

3,208,169

4,218,884

NET CURRENT ASSETS

3,103,128

1,363,425

TOTAL ASSETS LESS CURRENT LIABILITIES

4,548,821

2,889,319

CREDITORS

Amounts falling due after more than one year

14

(2,696,257

)

(718,796

)

PROVISIONS FOR LIABILITIES

18

(82,030

)

(134,660

)

NET ASSETS

1,770,534

2,035,863

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Share premium

20

19,000

19,000

Retained earnings

20

1,750,534

2,015,863

SHAREHOLDERS' FUNDS

1,770,534

2,035,863

The financial statements were approved by the director and authorised for issue on 24 November 2020 and were signed by:

N Davies - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 May 2018

1,000

2,481,511

19,000

2,501,511

Changes in equity

Dividends

-

(1,011,317

)

-

(1,011,317

)

Total comprehensive income

-

545,669

-

545,669

Balance at 30 April 2019

1,000

2,015,863

19,000

2,035,863

Changes in equity

Dividends

-

(607,730

)

-

(607,730

)

Total comprehensive income

-

342,401

-

342,401

Balance at 30 April 2020

1,000

1,750,534

19,000

1,770,534

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax. Turnover is recognised when the company has transferred significant risks and reward of ownership to the buyer and it is probable that the company will receive the previously agreed amounts upon payment. These criteria are considered to be met when the goods are delivered to the buyer.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and necessary condition for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life:

Freehold property

- Straight line over 50 years

Leasehold property

- over the period of the lease

Plant and machinery

- 10% and 20% on cost

Fixtures and fittings

- 10% and 20% on cost

Motor vehicles

- Straight line over 2 years

Computer equipment

- Straight line over 3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Stocks

Stocks are valued at purchase invoice price on an average cost basis, which are then stated at the lower of this cost or net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Profit & Loss account.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme for its staff and a small self administered scheme for the directors. Contributions paid for the year are charged in the profit and loss account.

Debt factoring

The gross equivalent of debts factored is included within trade debtors with the corresponding amount relating to proceeds received from the factor included within creditors. The interest element and other factor's charges are recognised within the profit and loss account as they accrue.

Judgements in applying accounting policies and key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken in to account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2020

2019

£

£

UK

9,549,056

10,458,799

EU

7,239,298

7,363,563

Rest of world

57,432

60,168

16,845,786

17,882,530

4.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Wages and salaries

1,937,337

1,822,298

Social security costs

190,401

192,334

Other pension costs

48,253

29,050

2,175,991

2,043,682

The average number of employees during the year was as follows:

2020

2019

Production and administration

72

69

2020

2019

£

£

Director's remuneration

12,320

12,080

Director's pension contributions to money purchase schemes

370

191

5.	OPERATING PROFIT

The operating profit is stated after charging:

2020

2019

£

£

Depreciation - owned assets

256,230

223,380

Loss on disposal of fixed assets

73

-

Auditors' remuneration

13,350

15,690

Auditors' remuneration for non audit work

6,650

4,280

Foreign exchange differences

3,013

13,150

6.	EXCEPTIONAL ITEMS

2020

2019

£

£

Legal settlements

23,522

-

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

38,076

37,644

Bank loan interest

18,648

17,186

Interest on taxation

120

-

56,844

54,830

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2020

2019

£

£

Current tax:

UK corporation tax

61,118

92,795

UK corporation tax overpaid

(38,718

)

(39,602

)

Total current tax

22,400

53,193

Deferred tax

(6,000

)

13,526

Tax on profit

16,400

66,719

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2020

2019

£

£

Profit before tax

358,801

612,388

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

68,172

116,354

Effects of:

Expenses not deductible for tax purposes

1,496

854

R&D tax repayments

(38,718

)

(39,602

)

Other permanent differences

7,537

11,883

Group relief

(22,087

)

(22,770

)

Total tax charge

16,400

66,719

9.

DIVIDENDS

2020

2019

£

£

Interim

607,730

1,011,317

10.	TANGIBLE FIXED ASSETS

Freehold

Leasehold

Plant and

property

property

machinery

£

£

£

COST

At 1 May 2019

1,132,730

192,926

1,530,917

Additions

2,135

15,611

121,114

Disposals

-

-

-

At 30 April 2020

1,134,865

208,537

1,652,031

DEPRECIATION

At 1 May 2019

314,084

80,371

1,045,051

Charge for year

27,498

27,769

145,231

Eliminated on disposal

-

-

-

At 30 April 2020

341,582

108,140

1,190,282

NET BOOK VALUE

At 30 April 2020

793,283

100,397

461,749

At 30 April 2019

818,646

112,555

485,866

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 May 2019

102,356

157,730

3,116,659

Additions

8,420

28,822

176,102

Disposals

-

(9,661

)

(9,661

)

At 30 April 2020

110,776

176,891

3,283,100

DEPRECIATION

At 1 May 2019

56,409

94,850

1,590,765

Charge for year

13,740

41,992

256,230

Eliminated on disposal

-

(9,588

)

(9,588

)

At 30 April 2020

70,149

127,254

1,837,407

NET BOOK VALUE

At 30 April 2020

40,627

49,637

1,445,693

At 30 April 2019

45,947

62,880

1,525,894

11.

STOCKS

2020

2019

£

£

Raw materials

1,174,982

1,359,431

Finished goods

404,638

483,150

1,579,620

1,842,581

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,853,109

3,306,643

Other debtors

118,512

43,199

Prepayments

224,297

205,733

3,195,918

3,555,575

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 15)

31,760

35,487

Trade creditors

2,020,154

2,488,324

Tax

61,166

92,795

Social security and other taxes

45,965

56,125

Other creditors

27,722

3,870

Factoring arrangement advances

739,589

1,371,228

Accrued expenses

281,813

171,055

3,208,169

4,218,884

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans (see note 15)

2,696,257

718,796

15.

LOANS

An analysis of the maturity of loans is given below:

2020

2019

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

-

4,283

Bank loans

31,760

31,204

31,760

35,487

Amounts falling due between one and two years:

Bank loans - 1-2 years

432,563

31,993

Amounts falling due between two and five years:

Bank loans - 2-5 years

1,863,694

686,803

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than 5 years

400,000

-