|
ATKINSON NORTHERN LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
Registered number: 01536154
|
|
ATKINSON NORTHERN LIMITED
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Waltons Clark Whitehill Limited
|
|
|
Chartered Accountants & Statutory Auditors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATKINSON NORTHERN LIMITED
CONTENTS
|
|
|
|
|
|
|
|
|
Independent auditors' report
|
|
Consolidated profit and loss account
|
|
Consolidated statement of total recognised gains and losses
|
|
Note of consolidated historical cost profits and losses
|
|
Consolidated balance sheet
|
|
|
|
|
Consolidated cash flow statement
|
|
Notes to the financial statements
|
|
Company detailed profit and loss account and summaries
|
|
|
|
ATKINSON NORTHERN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
The directors present their report and the financial statements for the year ended 31 December 2014.
DIRECTORS' RESPONSIBILITIES STATEMENT
|
The directors are responsible for preparing the group strategic report, the directors' 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 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 judgments and accounting estimates that are reasonable and prudent;
|
·state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
|
·prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group 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 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.
|
During 2014 the group was engaged in the trade of builders' merchants and in property investment.
|
|
The profit for the year, after taxation, amounted to £3,775,849 (2013 - £1,795,009).
|
Dividends of £366,295 were paid during the year (2013 - £189,931).
|
|
The directors who served during the year were:
|
Page 1
|
|
ATKINSON NORTHERN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
The Board continues to invest to acheive a stable and sustainable return for shareholders by improving the builders' merchanting business and acquiring good quality freehold property.
MATTERS COVERED IN THE STRATEGIC REPORT
|
The business review, principal risks and uncertainties and financial key performance indicators are included in the strategic report.
DISCLOSURE OF INFORMATION TO AUDITORS
|
Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
·so far as that director is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and
·that director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.
|
|
|
The auditors, Waltons Clark Whitehill Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
|
This report was approved by the board on 22 April 2015 and signed on its behalf.
Page 2
|
|
ATKINSON NORTHERN LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
BUSINESS REVIEW
Progress was continued in the builders’ merchant business and the group result was also improved by an exceptional profit on the sale of investment property in Penrith together with income and profits from investments.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties remain the level of demand in the repair, maintenance, improvements and construction markets in the North of England and the competitive pressures in those markets. The major risk for Northern General Properties Limited is the continuing ability of its tenants to service their leases.
FINANCIAL KEY PERFORMANCE INDICATORS
The board monitors company performance using a range of indicators, some of the most significant of which
are as follows:-
Key Performance Indicators 2014 2013 2012 2011
Sales growth 12.9% 14.3% 9.4% 9.4%
Gross margin growth 17.3% 19.5% 11.3% 6.6%
Gross profit % 29.7% 28.6% 27.4% 26.9%
Employee costs as a % of gross margin 50.9% 51.6% 57.0% 61.1%
This report was approved by the board on 22 April 2015 and signed on its behalf.
Page 3
|
|
ATKINSON NORTHERN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ATKINSON NORTHERN LIMITED
We have audited the financial statements of Atkinson Northern Limited for the year ended 31 December 2014, set out on pages 6 to 31. 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 shareholders, 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 shareholders 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 shareholders 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, 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 group's and the parent 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 group strategic report and the directors' 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.
BASIS FOR QUALIFIED OPINION ON FINANCIAL STATEMENTS
Included in the tangible fixed assets are land and buildings which, in order to comply with Financial Reporting Standard 15 Tangible Fixed Assets, must be revalued every five years by a qualified external valuer.
At 31 December 2014 a formal full external valuation had not been carried out but the directors completed an informal internal valuation with the assistance of a qualified external valuer. There were a total of six properties that should have had a formal external professional valuation completed at 31 December 2014 in accordance with Financial Reporting Standard 15. The value of these properties included in the financial statements at that date was £2,847,500, which was a decrease of £52,500 from the previous year's value, based on the directors' internal valuation.
In our opinion, the financial statements do not comply with the accounting standard Financial Reporting Standard 15 in that a full external five year valuation was not carried out on certain properties as required.
Page 4
|
|
ATKINSON NORTHERN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ATKINSON NORTHERN LIMITED
QUALIFIED OPINION ON FINANCIAL STATEMENTS ARISING FROM NON COMPLIANCE WITH ACCOUNTING STANDARDS
Except for the effects of the matter described in the Basis for Qualified Opinion paragraph, in our opinion the financial statements:
·give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2014 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.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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 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.
Paul Harrison MSc, BSc, FCA (senior statutory auditor)
for and on behalf of
Waltons Clark Whitehill Limited
Chartered Accountants
Statutory Auditors
Maritime House
Harbour Walk
The Marina
Hartlepool
TS24 0UX
28 April 2015
Page 5
|
|
ATKINSON NORTHERN LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exceptional administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total administrative expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST
|
|
|
|
|
Income from other fixed asset investments
|
|
|
|
|
Profit on disposal of investments
|
|
|
|
|
Interest receivable and similar income
|
|
|
|
|
Interest payable and similar charges
|
|
|
|
|
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
|
|
|
|
|
Tax on profit on ordinary activities
|
|
|
|
|
PROFIT FOR THE FINANCIAL YEAR
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 11 to 31 form part of these financial statements.
Page 6
|
|
ATKINSON NORTHERN LIMITED
CONSOLIDATED STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
PROFIT FOR THE FINANCIAL YEAR
|
|
|
|
Unrealised surplus on revaluation of investment properties
|
|
|
|
|
|
|
|
|
TOTAL RECOGNISED GAINS AND LOSSES RELATING TO THE YEAR
|
|
|
|
NOTE OF CONSOLIDATED HISTORICAL COST PROFITS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
REPORTED PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
|
|
|
Realisation of valuation gains of previous periods
|
|
|
Difference between a historical cost depreciation charge and the actual depreciation charge for the year calculated on the revalued amount
|
|
|
Reversal of previous impairment on revaluation during the year
|
|
|
HISTORICAL COST PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION
|
|
|
HISTORICAL PROFIT FOR THE YEAR AFTER TAXATION
|
|
|
The notes on pages 11 to 31 form part of these financial statements.
Page 7
|
|
ATKINSON NORTHERN LIMITED
REGISTERED NUMBER: 01536154
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDITORS: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS LESS CURRENT LIABILITIES
|
|
|
|
CREDITORS: amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital redemption reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 April 2015.
Page 8
|
|
ATKINSON NORTHERN LIMITED
REGISTERED NUMBER: 01536154
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CREDITORS: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital redemption reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 April 2015.
Page 9
|
|
ATKINSON NORTHERN LIMITED
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
Net cash flow from operating activities
|
|
|
|
Returns on investments and servicing of finance
|
|
|
|
|
|
|
|
|
Capital expenditure and financial investment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH INFLOW BEFORE FINANCING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE IN CASH IN THE YEAR
|
|
|
|
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS/DEBT
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
Increase in cash in the year
|
|
|
|
Cash inflow from decrease in debt and lease financing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MOVEMENT IN NET DEBT IN THE YEAR
|
|
|
|
Net funds/(debt) at 1 January 2014
|
|
|
|
|
|
|
|
|
NET FUNDS AT 31 DECEMBER 2014
|
|
|
|
The notes on pages 11 to 31 form part of these financial statements.
Page 10
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1.ACCOUNTING POLICIES
|
|
|
Basis of preparation of financial statements
|
|
|
|
The financial statements have been prepared under the historical cost convention as modified by the revaluation of investment properties and land and buildings and in accordance with applicable accounting standards, other than as disclosed below.
|
|
|
|
|
|
|
|
The directors, having made due and careful enquiry and preparing forecasts, are of the opinion that the group and company has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.
|
|
|
|
|
|
|
|
The financial statements consolidate the accounts of Atkinson Northern Limited and all of its subsidiary undertakings ('subsidiaries').
|
|
|
|
|
|
|
|
|
|
|
|
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
|
|
|
|
|
|
|
|
Subsidiary undertakings
Investments in subsidiaries are valued at cost less provision for impairment.
|
|
|
|
Other investments
Investments held as fixed assets are shown at cost less provision for impairment.
|
|
|
|
|
|
|
|
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
|
|
|
|
Deferred tax is not provided on timing differences arising from the revaluation of fixed assets in the financial statements.
|
|
|
|
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
|
Page 11
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1.ACCOUNTING POLICIES (continued)
|
|
|
|
|
|
|
Group use properties are used by group undertakings; investment properties are leased to lessees outside of the group.
Individual freehold and leasehold properties are carried at current year value at the balance sheet date. A full valuation is obtained from a qualified valuer for each property every five years, with an interim valuation three years after the previous full valuation, and in any year where it is likely that there has been a material change in value. The directors consider that the full external valuation due at 31 December 2014 in respect of six properties is not required and that this departure in the accounting policy results in the financial statements giving a true and fair view.
Revaluation gains and losses are recognised in the statement of total recognised gains and losses unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the losses are recognised in the profit and loss account.
|
|
|
|
Tangible fixed assets and depreciation
|
|
|
|
|
Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is not charged on freehold and leasehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost or valuation of those assets, less their estimated residual value, over their expected useful lives on the following bases:
|
|
|
|
|
|
|
|
|
|
|
|
over 50 years straight line
|
|
|
|
|
|
Long term leasehold buildings
|
|
over the period of the lease
|
|
|
|
|
|
Plant, equipment and vehicles
|
|
over 3 to 8 years straight line
|
|
|
|
Leasing and hire purchase
|
|
|
|
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account on a straight line basis over the period of the lease or hire purchase contract.
|
|
|
|
|
|
|
|
Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.
|
|
|
|
|
|
|
|
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
|
Page 12
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1.ACCOUNTING POLICIES (continued)
|
|
|
|
|
|
|
Investment properties are included in the balance sheet at their open market value in accordance with Statement of Standard Accounting Practice No.19 and are not depreciated. This treatment is contrary to the Companies Act 2006 which states that fixed assets should be depreciated but is, in the opinion of the directors, necessary in order to give a true and fair view of the financial position of the company and the group.
|
|
|
|
|
|
|
|
The company operates a defined benefits pension scheme and contributes to defined contribution schemes as follows:
 
|
|
|
|
Defined benefit scheme
The company operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 31 December 2014.
The defined benefit pension scheme is dealt with in accordance with the provisions of Financial Reporting Standard 17, Retirement Benefits, as follows:
Pension scheme assets are measured using market values. Pension scheme liabilities are measured using the projected unit actuarial method and are discounted at the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.
The expected return on the scheme's assets and the increase during the period in the present value of the scheme's liabilities arising from the passage of time are included in other finance income. Actuarial gains and losses are recognised in the consolidated statement of total recognised gains and losses. Pension scheme surpluses, to the extent that they are considered recoverable, or deficits are recognised in full and presented on the face of the balance sheet net of related deferred tax.
Defined contribution schemes
The pension costs charged against profits represent the amount of the contributions payable to the schemes in respect of the accounting period.
|
|
|
|
|
|
|
|
Investment income comprises dividends declared during the accounting period and interest receivable on listed and unlisted investments.
|
|
|
|
|
|
|
|
Provision is made for rebates receivable from suppliers on the basis of the group's purchases from its suppliers in the financial year.
|
Page 13
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1.ACCOUNTING POLICIES (continued)
|
|
|
|
|
|
|
Gross rental income comprises rents receivable for the year. Income received during the year in relation to dilapidations is recorded when the tenant's legal obligation to pay the dilapidations arises.
Rental income is recorded as other operating income.
|
|
|
|
|
|
|
|
Dividend distributions are recognised as a liability in the period in which they are approved by the company's shareholders.
|
2.TURNOVER
All turnover arose within the United Kingdom.
Turnover is attributable to the trade of builders merchants and income from property investment is included in other operating income. The profit before taxation relates to continuing activities .
3.OTHER OPERATING INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilapidation and sundry income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.OPERATING PROFIT
The operating profit is stated after charging:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible fixed assets:
|
|
|
|
|
|
|
|
|
|
|
|
- held under finance leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auditors fees for the company were £7,450 (2013 - £7,450)
Page 14
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
5.STAFF COSTS
Staff costs, including directors' remuneration, were as follows:
The average monthly number of employees, including the directors, during the year was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Administration and management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.DIRECTORS' REMUNERATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company pension contributions to defined contribution pension schemes
|
|
|
|
|
|
|
|
|
During the year retirement benefits were accruing to 3 directors (2013 - 3) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £107,797 (2013 - £106,765).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £50,413 (2013 - £7,650).
There were no share options exercised by the directors.
Page 15
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
7.INTEREST PAYABLE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On bank loans and overdrafts
|
|
|
|
|
|
On finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER FINANCE INCOME (see note 27)
|
|
|
|
|
|
|
|
Expected return on pension scheme assets
|
|
|
|
|
Effect of limit in paragraph 58c and 67c
|
|
|
|
|
Interest on pension scheme liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
9.EXCEPTIONAL ITEMS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on disposal of investment properties
|
|
|
|
|
|
Impairment on revaluation of land and buildings during the year
|
|
|
|
|
|
Reversal of depreciation charge on land and buildings valued during the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.TAXATION
|
|
|
Analysis of tax charge in the year
|
|
|
|
|
|
UK corporation tax charge on profit for the year
|
|
|
|
|
|
Adjustments in respect of prior periods
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities
|
|
|
Page 16
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
10.TAXATION (continued)
Factors affecting tax charge for the year
The tax assessed for the year is lower than (2013 - higher than) the standard rate of corporation tax in the UK of 21.5% (2013 - 23.25%). The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21.5% (2013 - 23.25%)
|
|
|
|
|
|
|
|
|
|
|
|
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
|
|
|
|
|
|
Capital allowances for year in excess of depreciation
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of prior periods
|
|
|
|
|
|
|
|
|
|
|
|
Dividends from UK companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax charge for the year (see note above)
|
|
|
No provision has been made in respect of accelerated capital allowances as the potential deferred tax liability would crystallise only in the event of the sale of the properties and is likely to be immaterial in the context of the financial statements. The potential deferred tax liability in respect of the properties has not been quantified as at present there is no intention to dispose of these assets.
Factors that may affect future tax charges
There were no factors that may affect future tax charges.
Page 17
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
11.TANGIBLE FIXED ASSETS
|
|
|
Plant, equipment & vehicles
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment losses written back
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The impairment losses written back are in respect of assets previously revalued to below cost which have now increased in value. It is the view of the directors that this reversal represents a permanent increase in value and can therefore be recognised in the profit and loss account.
The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plant, equipment & motor vehicles
|
|
|
Included in freehold and leasehold land and buildings is land amounting to £1,879,432 (2013: £1,884,697) which is not depreciated.
Page 18
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
11.TANGIBLE FIXED ASSETS (continued)
The freehold and leasehold land and buildings net book value consists of £5,687,930 in respect of freehold properties, £690,502 in respect of leasehold properties and £127,054 in resepct of leasehold improvements. The leasehold improvements remain at cost and are not depreciated.
At 31 December 2012 it was noted that six freehold and leasehold land and buildings were last professionally revalued at 31 December 2007, therefore a full external valuation should have been completed at 31 December 2012. The directors decided not to undertake a full external valuation and with advice from external professional valuers, undertook their own valuation. The directors consider the valuation of £2,847,500 for these properties at 31 December 2014 reflect their open market value.
At 31 December 2010 Knight Frank, RICS registered valuers, valued 3 properties at £1,700,000. These valuations have been reviewed by the directors and together with subsequent additons and depreciation the directors consider the total valuation of £1,698,003 equated to their open market value at 31 December 2014.
At 31 December 2012 Knight Frank valued 3 further properties amounting to £1,245,000, using a market value basis in accordance with RICS Valuations Standards (6th Edition). The directors consider that this valuation together with subsequent additons and depreciation equated to their open market value at 31 December 2014 of £1,236,211.
A new property was acquired during 2013 and together with additions of £34,760 and a property acquired in 2012, the total cost less depreciation at 31 December 2014 was £596,718. The directors consider that this equates to their open market value at 31 December 2014.
If the freehold land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
12.INVESTMENT PROPERTIES
|
|
Freehold investment properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 19
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
12.INVESTMENT PROPERTIES (continued)
The 2014 valuations were made by the directors on an open market value basis. These valuations were made after taking advice from an external professional valuer.
The historical cost of investment properties was £4,289,780 (2013: £5,306,137)
13.FIXED ASSET INVESTMENTS
Listed investments
The market value of the listed investments at 31 December 2014 was £732,904 (2013 - £21,000).
|
|
Investments in Subsidiary Companies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Listed investments
The market value of the listed investments at 31 December 2014 was £732,904 (2013 - £21,000).
Details of the subsidiaries can be found under note 26.
Page 20
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
14.STOCKS
15.DEBTORS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.CREDITORS:
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank loans and overdrafts
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 21
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
17.CREDITORS:
Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included within the above are amounts falling due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Between one and two years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors include amounts not wholly repayable within 5 years as follows:
 
Page 22
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
17.CREDITORS:
Amounts falling due after more than one year (continued)
Obligations under finance leases and hire purchase contracts, included above, are payable as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Between one and five years
|
|
|
The obligations under finance leases and hire purchase contacts are secured upon the assets to which they relate.
Security for bank loan and overdraft
The bank loan and overdraft are secured by legal mortgages over the majority of the group's freehold land and buildings and investment property and by mortgage debentures over assets and undertakings of the group not otherwise specifically charged.
The parent company bankers holds, as security against any overdraft or loan of the company or certain members of the group, a composite guarantee given by each of Northern General Properties Limited and J T Atkinson & Sons Limited in favour of Atkinson Northern Limited and a composite guarantee by Atkinson Northern Limited in favour of each of those two companies.
18.SHARE CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
9,830 'G' Ordinary shares of £10 each
|
|
|
|
|
|
17,303 'J' Ordinary shares of £10 each
|
|
|
|
|
|
35,000 'G' Founder shares of £0.01 each
|
|
|
|
|
|
35,000 'J' Founder shares of £0.01 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rights of shares
All shares carry equal voting rights but the Founder shares do not carry any right to a share in surplus assets in the event of the company being wound up, nor to any dividends. The Founder shares are regarded as non-equity shares.
Page 23
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
19.RESERVES
|
|
|
Capital redempt'n reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
|
|
Surplus on revaluation of properties
|
|
|
|
|
|
Transfer between revaluation reserve and profit & loss account
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The charge in the profit and loss account includes £nil (2013 - £nil) which is in respect of the remaining deficit on the pension scheme liabilities of the Group and Company pension scheme. Details of the pension scheme surplus at 31 December 2014 is included in note 27.
The revaluation reserve includes £1,648,183 in respect of surpluses on the revaluation of investment properties. The remaining balance relates to the revaluation of freehold and leasehold land and buildings used by group companies.
Goodwill of £575,000 has been eliminated on consolidation in previous years by writing it off against the profit and loss account. Negative goodwill of £418,151 has been credited to the profit and loss account in previous years.
Goodwill purchased by J T Atkinson & Sons Limited at a cost of £280,000 has previously been fully amortised to profit and loss account reserves.
|
|
|
Capital redempt'n reserve
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
|
Dividends: Equity capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 24
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
20.RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening shareholders' funds
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
|
|
|
|
|
|
|
|
Other recognised gains and losses during the year
|
|
|
|
|
|
Closing shareholders' funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening shareholders' funds
|
|
|
|
|
|
Profit for the financial year
|
|
|
|
|
|
|
|
|
|
|
|
Closing shareholders' funds
|
|
|
|
|
|
|
|
|
The company has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own profit and loss account.
The profit for the year dealt with in the accounts of the company was £1,974,143 (2013 - £963,908).
21.DIVIDENDS
|
|
|
Dividends paid on equity capital
|
|
|
Dividends were paid at £13.50 per share on 27,133 Ordinary shares (2013 - £7 per share).
Dividends totalling £213,309 were paid to directors during the year.
Page 25
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
22.NET CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of tangible fixed assets
|
|
|
|
|
|
Impairment of tangible fixed assets
|
|
|
|
|
|
Profit on disposal of tangible fixed assets
|
|
|
|
|
|
|
|
|
|
|
|
Decrease/(increase) in debtors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow from operating activities
|
|
|
23.ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN CASH FLOW STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Returns on investments and servicing of finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow/(outflow) from returns on investments and servicing of finance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure and financial investment
|
|
|
|
|
|
Purchase of tangible fixed assets
|
|
|
|
|
|
Sale of tangible fixed assets
|
|
|
|
|
|
Sale of investment properties
|
|
|
|
|
|
Purchase of listed investments
|
|
|
|
|
|
Sale of listed investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash inflow/(outflow) from capital expenditure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of finance leases
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash outflow from financing
|
|
|
Page 26
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
24.ANALYSIS OF CHANGES IN NET FUNDS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debts due within one year
|
|
|
|
|
|
|
|
Debts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25.OPERATING LEASE COMMITMENTS
At 31 December 2014 the group had annual commitments under non-cancellable operating leases as follows:
Page 27
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
26.SUBSIDIARIES
|
|
|
|
|
|
|
J T Atkinson & Sons Limited - Ordinary shares of £1 each
|
|
|
|
|
Northern General Properties Limited - Ordinary shares
of £1 each
|
|
|
27.PENSION COMMITMENTS
Defined contribution schemes
The group operates defined contribution pension schemes. The assets of the schemes are administered by trustees in funds independent from those of the group.
Defined benefit scheme
The group also operates a defined benefit pension scheme called the Atkinson Northern Limited Retirement Benefits Scheme (the "Scheme"). The assets of the Scheme are administered by trustees in a fund independent from those of the company. With effect from 1 March 2002 this scheme closed to future accrual of benefits, and regular employer contributions to the Scheme ceased, except that the running costs of the Scheme are paid for by the company. An independent qualified actuary carried out an actuarial valuation of the Scheme at 31 December 2014 in accordance with the requirements of Financial Reporting Standard No 17, the results of which are set out below.
|
|
|
|
|
|
|
|
The principal assumptions used by the actuary at the balance sheet date were:-
 
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected return on scheme assets*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PNA00 projected to calander year 2030 using the medium cohort method (min 1%) for retired directors and projected to calendar year 2030 plus 3 year using the medium cohort method (min 1%) for other members
|
PNA00 projected to calander year 2030 using the medium cohort method (min 1%) for retired directors and projected to calendar year 2030 plus 3 year using the medium cohort method (min 1%) for other members
|
|
* : this relates to the financial conditions at the start of the following year and the actuary has applied a discount rate to the expected return that willm apply to 2015 onwards which is used in the above disclosure.
Page 28
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
PENSION COMMITMENTS (Continued)
|
|
|
The assumption for the long-term rate of return on assets was based on a weighted average of rates-of-return on the investment sectors in which the assets are invested. The notional rate-of-return on bonds was based on the average of the yield over 15 year gilts and corporate bonds. An increase of 3.2% pa was made to derive the rates-of-return on equities. Cash was assumed to have a rate of return 0.5% lower than the rate-of-return available on bonds.
The major categories of Scheme assets as a percentage of total Scheme assets are as follows:-
 
|
|
|
None of these investments are assets owned by or used by the company.
|
|
|
|
|
|
|
|
|
Changes in the present value of the defined benefit obligation are as follows:-
 
|
|
|
|
|
|
|
|
Opening defined benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing defined benefit obligation
|
|
|
Page 29
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
PENSION COMMITMENTS (continued)
The amounts recognised in the balance sheet are as follows:-
 
|
|
|
|
|
|
|
|
|
|
Present value of funded obligations
|
|
|
|
|
|
|
Fair value of Scheme assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of limit in paragraph 58c and 67c - see below
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under paragraph 58c and 67c of FRS 17, a surplus can only be recognised on the balance sheet if the company can derive an economic benefit from it - primarily as a result of taking a contribution holiday in respect of contributions to meet future accrual. Pension schemes with no future accrual of benefit (which is the Scheme's position) are not able to recognise any surplus. The adjustment is shown in the above disclosure as "Effect of limit in paragraph 58c and 67c".
|
|
|
|
|
|
|
|
|
Analysis of the amount recognised in the profit and loss account are as follows:-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected return on Scheme assets
|
|
|
|
|
Effect of limit in paragraph 58c and 67c
|
|
|
|
|
Total other finance income/(cost) (note 8)
|
|
|
|
|
|
|
|
|
|
Actual return on Scheme assets
|
|
|
Page 30
|
|
ATKINSON NORTHERN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
PENSION COMMITMENTS (continued)
Changes in the fair value of the Scheme assets are as follows:-
 
|
|
|
|
|
|
|
|
Opening fair value of Scheme assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contributions by employer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing fair value of Scheme assets
|
|
|
|
|
The employer does not expect to contribute to its defined benefit pension scheme in the period 1 January 2015 to 31 December 2015.
|
|
|
|
|
|
Amounts for the current and previous four periods are as follows:-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defined benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Experience adjustment on liabilities
|
|
|
|
|
|
|
|
|
|
|
Experience adjustment on assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The cumulative amount of actuarial gains and losses recognised since 1 January 2002 in the statement of total recognised gains and losses is a net loss of £2,326,000 (2013: net loss of £2,326,000).
|
Page 31
|
|
ATKINSON NORTHERN LIMITED
COMPANY DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2014
The profit and loss account was approved by the board on 22/4/15 and signed on its behalf.
Mr J E Atkinson
Director
 
Page 32
|
|
ATKINSON NORTHERN LIMITED
SCHEDULE TO THE DETAILED ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors pension costs-money purchase schemes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recharge of directors wages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auditors remuneration- non audit fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft interest payable
|
|
|
Page 33
|
|
ATKINSON NORTHERN LIMITED
SCHEDULE TO THE DETAILED ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2014
|
|
|
|
|
|
|
|
|
|
|
|
Income from fixed asset investments
|
|
|
Profit on disposal of listed investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 34
|
