Aico Limited - Limited company accounts 20.1
Aico Limited - Limited company accounts 20.1
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2020 |
for |
Aico Limited |
Aico Limited (Registered number: 02544399) |
Contents of the Financial Statements |
for the Year Ended 31 December 2020 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Aico Limited |
Company Information |
for the Year Ended 31 December 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Registered Auditors |
2 Bridge Avenue |
Maidenhead |
Berkshire |
SL6 1RR |
Aico Limited (Registered number: 02544399) |
Strategic Report |
for the Year Ended 31 December 2020 |
The directors present their strategic report for the year ended 31 December 2020. |
REVIEW OF BUSINESS |
The business continues to grow with sales exceeding the target for the year. Turnover surpassed £145m in 2020 increasing by 12% compared with that of 2019. Our market-leading position has been maintained through the quality of our product, the strength of specification our high levels of customer service and technical support. |
With technological advancements and changes to standards and legislation, the company's continued focus on education remains key. The coronavirus (COVID-19) pandemic saw the postponement and cancellation of many industry events. Our own events due to be hosted at our recently constructed state-of-the-art Centre of Excellence we also postponed, and our extended fleet of mobile exhibition units was unable to be deployed due to COVID-19 restrictions. |
Aico quickly adapted to providing our customers with a series of live webinars and the subsequent development of an online training platform that would enable us to continue to provide our award-winning CPD training to thousands of installers in 2020. Further development saw Aico host a series of virtual events enabling us to directly engage with our client base. |
Principal risks and uncertainties |
The directors consider the principal risks and uncertainties to be: |
* Price erosion |
* Rising cost base |
* A cutback in public sector spend |
* Sterling / Euro exchange rate |
* Brexit Transition |
* COVID-19 Global Pandemic |
The directors believe that these risks are effectively managed through a strict focus on customer profitability and product margins. |
Brexit Transition |
Aico Ltd have substantial stockholdings at our distribution centre based in Oswestry, UK. Our stocks of finished goods are replenished daily and directly shipped on dedicated vehicles from the EU to the UK. We have worked closely with our freight companies to ensure the correct customs arrangements are in place. |
Aico is a wholly owned subsidiary of E.I. Electronics, uniquely, our products are manufactured and supplied directly by E.I. Electronics from their factory in Shannon, Republic of Ireland. |
Aico Ltd are in a very strong financial position and any potential negative impact on our financial performance will be mitigated by this strength. |
Aico Ltd do not foresee any issues relating to the receipt and supply of goods post-Brexit |
COVID-19 Global Pandemic |
Aico Ltd is committed to providing a safe environment for our employees, our clients, and their families. Throughout this coronavirus (COVID-19) pandemic Aico has taken practical steps and implemented robust measures to ensure the welfare of all. |
Those at-risk were immediately sent home on full pay while the remainder of colleagues started flexible working, limiting the number of people in the building. This was reviewed continuously, taking note of colleague's thoughts, opinions and needs. |
Daily temperature checks, sanitisation stations, increased cleaning and social distancing were swiftly implemented ensuring the safety of employees and maintenance of our protected environment. |
Communication with our team has been vital throughout. Colleagues were assured that their livelihoods would be safe, taking away any potential anxieties and communicating that their health, safety, and wellbeing were paramount. |
Throughout the pandemic everyone has been paid in full, with no colleagues being furloughed or made redundant. |
We have a duty to ensure the supply of life safety devices. With an increasing number of people at home and a heightened risk of fire, it was therefore essential that we remained open, providing a vital service whilst ensuring the safety and wellbeing of all stakeholders. |
We continue to monitor the situation daily and are keeping up to date with the latest government and public health advice. |
Aico Limited (Registered number: 02544399) |
Strategic Report |
for the Year Ended 31 December 2020 |
Key performance indicators |
Key performance indicators that are focussed on by management include: |
* Sales volume |
* Sales price |
* Product margin |
* Profitability by customer |
Each of these indicators is monitored by management against budget and prior periods. |
Performance and year-end position |
Following a successful 2019 and Q1 of 2020, COVID-19 national lockdowns and restrictions saw a contraction of business, and in Q2 of 2020, our sales represented just 6% of 2020s total output. |
As restrictions eased and the construction/maintenance industries regained momentum, Q3 and Q4 of 2020 were both record-breaking for the business. Sales that would have usually transacted in Q2, were advanced into the latter half of the year. |
Turnover for the year has increased by 12%, gross profit for the year increased by 4%, again we have made a satisfactory profit for the year. We continue to maintain a liquid balance sheet which will enable us to invest for continued growth and the future. |
Environmental matters |
We are aware of the scale of the impact our operation has on the environment. As such, we are committed to the protection and preservation of the environment through the implementation and utilisation of responsible operation and management practices. |
We have recently invested heavily in the sustainable build of our new premises in Oswestry and 2/3rds of the company fleet are now plug-in hybrid electric (PHEV) vehicles. |
We continue to explore ways of reducing the impact of what we do. We take a responsible attitude and lead the way in developing initiatives to further improve our environmental footprint. |
Streamlined Energy and Carbon Reporting (SECR) |
The baseline year for Aico is the most recent financial year following the commencement of this legislation on 1st April 2019. Aico's total CO2e emissions for the year as seen below amounts to 260.88 tonnes of CO2e. |
Aico has elected to use scope 1 and 2 and commuting fleet scope 3* CO2e (tonnes) by annual turnover for 2020. We have chosen the metric as this is a common business metric for the industry sector. |
Tonnes of scope 1, scope 2 and 3* CO2e per £ of turnover x0.0000017 tonnes or 0.0017kg |
Source |
Total (tCO2e |
) |
CO2 (tonnes |
) |
CH4 (tonnes |
) |
N2O (tonnes |
) |
HFCs (tonnes |
) |
PFCs (tonnes |
) |
SF6 (tonnes |
) |
Emissions from combustion of gas (Scope 1) | 30.87 | 30.81 | 0.04 | 0.02 | N/A | N/A | N/A |
Fugitive emissions (Scope 1) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Emissions from combustion of fuel for transport purposes (Scope 1) |
116.2 |
0.00 |
0.00 |
0.00 |
N/A |
N/A |
N/A |
Emissions from purchased electricity (Scope 2 location based) |
81.00 |
80.36 |
0.21 |
0.43 |
N/A |
N/A |
N/A |
Renewables (Solar PV) | 2.26 | 2.24 | 0.01 | 0.01 | N/A | N/A | N/A |
Commuting (Scope 3) | 30.55 | 0.00 | 0.00 | 0.00 | N/A | N/A | N/A |
Direct CO2 emissions from Biogenic |
Not used |
Not used |
Not used |
Not used |
Not used |
Not used |
Not used |
Total gross tCO2e based on above | 260.88 | 249.00 | 0.52 | 1.26 | 0.00 | 0.00 | 0.00 |
Aico Limited (Registered number: 02544399) |
Strategic Report |
for the Year Ended 31 December 2020 |
Energy Consumed | Scope | kWh | Tonnes CO2e | % CO2e |
Mains Gas | 1 | 167,356 | 30.87 | 11.8 |
Transport Fuel | 1 | 490,556 | 116.20 | 44.5 |
Electricity | 2 | 316,915 | 81.00 | 31.0 |
Commuting | 3 | 140,235 | 30.55 | 11.7 |
Renewables | 1 | 8,829 | 2.26 | 0.9 |
Fugitive Emissions | 1 | 0 | 0.00 | 0.0 |
Total | 1,123,890 | 260.88 | 100.0 |
Scope |
kWh |
Tonnes CO2e |
% CO2e |
% Split kWh |
Scope 1 | 666,741 | 149.33 | 57.0 | 59.0 |
Scope 2 | 316,915 | 81.00 | 31.0 | 28.0 |
Scope 3 | 140,235 | 30.55 | 12.0 | 12.0 |
Total | 1,123,890 | 260.88 | 100.0 | 100.0 |
Social Matters |
Aico is dedicated to integrating Ethical, Social and Environmental factors within our business strategies aiming to constantly improve our Corporate Social Responsibility (CSR) performance. We believe that CSR is integral to the long-term sustainability of our business, and we try to be responsible in all our interactions with customers, suppliers, our employees, and the wider Community. |
We work hard to be good Corporate Citizens; we work to support the sustainability of the local and wider communities in which we operate and actively encourage our stakeholders to consider the needs of all others and to take part in the local and public environment. |
Anti-Bribery & Corruption |
It is our policy to conduct all our business honestly and ethically. We take a zero-tolerance approach to bribery and corruption and are committed to acting professionally, fairly and with integrity in all our business dealings and relationships. We will uphold all relevant laws relevant to countering bribery and corruption. |
Any employee who breaches this policy will face disciplinary action, which could result in dismissal for misconduct or gross misconduct. |
We may terminate our relationship with other individuals and organisations working on our behalf if they breach this policy. |
Employees |
We recognise that discrimination in the workplace in any form is unacceptable and, in most cases, unlawful. We have therefore adopted an Equal Opportunities Policy to ensure that no job applicant or employee receives less favourable treatment on the grounds of the following protected characteristics: age, disability, gender reassignment, marriage or civil partnership, pregnancy or maternity, sex, sexual orientation, race, religion, or belief. |
We endeavour to ensure all job applicants and employees are treated fairly and without favour or prejudice. Selection for employment, promotion, training, or any other benefit will be based on aptitude and ability. All employees will be helped and encouraged to develop their full potential and the talents and resources of the workforce will be fully utilised to maximise the efficiency of the company. |
The gender balance of employees in the company is as follows: |
Male | Female |
Directors | 3 | 0 |
Other employees | 47 | 19 |
50 | 19 |
Aico Limited (Registered number: 02544399) |
Strategic Report |
for the Year Ended 31 December 2020 |
A safe and hygienic working environment is provided with access to clean toilet facilities, clean water, and appropriate facilities for food storage. Aico takes the necessary steps to prevent accidents and injury to health occurring in the course of work. |
Aico will not tolerate or condone Human Trafficking or Slavery in any part of our organisation. Aico have a zero-tolerance approach to Modern Slavery and Human Trafficking and are committed to acting ethically and with integrity in all activities and business relationships and we expect our supply chain, contractors, employees, and all other business partners to commit to the same, including implementing and enforcing effective systems and controls to detect and prevent Modern Slavery. |
ON BEHALF OF THE BOARD: |
Aico Limited (Registered number: 02544399) |
Report of the Directors |
for the Year Ended 31 December 2020 |
The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
PRINCIPAL ACTIVITY |
The company`s principal activity is the sale of fire detection, CO detection and fire protection equipment. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2020. |
FUTURE DEVELOPMENTS |
Research into new products and technical innovations continues to feature in 2019 and beyond in order to enable us to further enhance our ranges in support of our customers' ever increasing requirements for high performance fire detection and fire protection products. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
Other changes in directors holding office are as follows: |
MP Guinee, M Byrne, JA Duignan and B Barry are also directors of the company's parent, The EI Company. |
CHARITABLE DONATIONS AND EXPENDITURE |
During the year the company made charitable donations totalling £185,392 (2019 - £131,255. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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). 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; |
- | state whether applicable 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 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. |
Aico Limited (Registered number: 02544399) |
Report of the Directors |
for the Year Ended 31 December 2020 |
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 company's auditors are unaware, and each director 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: |
Report of the Independent Auditors to the Members of |
Aico Limited |
Opinion |
We have audited the financial statements of Aico Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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, 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors 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 Directors 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 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, 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. |
Report of the Independent Auditors to the Members of |
Aico Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We exercise professional judgement and maintain professional scepticism throughout the audit. It is our responsibility to identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, to design and perform audit procedures responsive to those risks and to obtain evidence that is sufficient and appropriate to provide a basis for our opinion. |
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 |
Chartered Accountants |
and Registered Auditors |
2 Bridge Avenue |
Maidenhead |
Berkshire |
SL6 1RR |
Aico Limited (Registered number: 02544399) |
Statement of Comprehensive Income |
for the Year Ended 31 December 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
12,374,610 | 10,430,632 |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Aico Limited (Registered number: 02544399) |
Balance Sheet |
31 December 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Capital redemption reserve | 14 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Aico Limited (Registered number: 02544399) |
Statement of Changes in Equity |
for the Year Ended 31 December 2020 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2019 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2020 |
Aico Limited (Registered number: 02544399) |
Cash Flow Statement |
for the Year Ended 31 December 2020 |
31.12.20 | 31.12.19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 25,782,046 |
Cash and cash equivalents at end of year | 2 | 24,742,459 | 19,113,163 |
Aico Limited (Registered number: 02544399) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2020 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.20 | 31.12.19 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance income | (158,891 | ) | (125,536 | ) |
9,813,816 | 9,961,729 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 24,742,459 | 19,113,163 |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 19,113,163 | 25,782,046 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.20 | Cash flow | At 31.12.20 |
£ | £ | £ |
Net cash |
Cash at bank | 19,113,163 | 5,629,296 | 24,742,459 |
19,113,163 | 24,742,459 |
Total | 19,113,163 | 5,629,296 | 24,742,459 |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements |
for the Year Ended 31 December 2020 |
1. | STATUTORY INFORMATION |
Aico Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with applicable Accounting Standards and include the results of the company's operations which are described in the Directors' Report. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported in the financial statements. Actual outcomes could differ from amounts estimated. Significant judgements affecting the financial statements include the useful life of fixed assets assumed for calculating depreciation and future sales discounts taken by customers for calculating trade debtor provisions |
Turnover |
Turnover comprises the invoiced value of goods supplied by the company, exclusive of Value Added Tax, trade discounts and rebates. |
Investment Income |
Interest receivable on long term deposits is recognised when it is probable that the economic benefits associated with the transaction will flow to the entity, and the amount of revenue can be measured reliably. |
Tangible fixed assets and depreciation |
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
Freehold land and buildings | - | 2% | straight line |
Buildings under construction | - 0% | no provision made |
Plant and machinery | - | 10% | straight line |
Motor vehicles | - | 25% | reducing balance |
Fixtures and fittings | - | 25% | straight line |
Computer equipment | - | 20% or 50% | straight line |
Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company only has financial assets and liabilities of a kind that qualify as basic financial instruments, which are initially recognised at transaction value and subsequently measured at their settlement value. |
Debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently less any impairment losses for bad and doubtful debts. |
Creditors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial liabilities are initially recognised at transaction price including any transaction costs and subsequently less any impairment losses for bad and doubtful debts. |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
All turnover arose within the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
31.12.20 | 31.12.19 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.20 | 31.12.19 |
Administration | 8 | 9 |
Selling and distribution | 61 | 56 |
Key management personnel are the directors of the company. Total compensation for the year was £1,598,825 (2019: £1,202,673). |
31.12.20 | 31.12.19 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
31.12.20 | 31.12.19 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.20 | 31.12.19 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.20 | 31.12.19 |
£ | £ |
Deposit account interest |
Other income |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.20 | 31.12.19 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment for prior years | (3,147 | ) | 4,004 |
Total current tax |
Deferred tax |
Tax on profit |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
7. | TAXATION - continued |
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: |
31.12.20 | 31.12.19 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax movement | 172,093 | 499,508 |
Underprovision in previous year | 3,147 | 4,004 |
Enhanced expenditure | 93 | 15,711 |
Total tax charge | 1,726,777 | 2,118,642 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2020 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2020 |
DEPRECIATION |
At 1 January 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2020 |
NET BOOK VALUE |
At 31 December 2020 |
At 31 December 2019 |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
8. | TANGIBLE FIXED ASSETS - continued |
Office & |
Motor | sundry |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2020 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2020 |
DEPRECIATION |
At 1 January 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2020 |
NET BOOK VALUE |
At 31 December 2020 |
At 31 December 2019 |
Included in the cost of freehold property is freehold land of £1,695,553 (2019 £1,865.553) which is not depreciated. |
9. | STOCKS |
31.12.20 | 31.12.19 |
£ | £ |
Goods for resale |
The difference between purchase price or production cost of stocks and their replacement cost is not material. |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.20 | 31.12.19 |
£ | £ |
Trade creditors |
Corporation tax | 877,821 | 915,229 |
Social security and other taxes |
Accruals and deferred income |
Trade creditors include £9,114,505 (2019: £6,620,057 owed to group companies. |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
12. | PROVISIONS FOR LIABILITIES |
31.12.20 | 31.12.19 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 729,702 | 557,609 |
Deferred |
tax |
£ |
Balance at 1 January 2020 |
Provided during year |
Balance at 31 December 2020 |
Capital losses of £82,411 are not expected to be used in the foreseeable future and therefore have not been included in the deferred tax calculation. |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
value: | £ | £ |
Ordinary | £1 | 18,000 | 18,000 |
14. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2020 | 45,045,489 |
Profit for the year | - |
At 31 December 2020 | 51,709,243 |
15. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to this fund and other private funds and amounted to £126,296 (2019 £107,010). |
16. | PARENT COMPANY AND ULTIMATE CONTROLLING PARTY |
Aico Limited is a wholly owned subsidiary of the EI Unlimited Company, a company incorporated in the Republic of Ireland. The company is controlled by MP Guinee by virtue of his interest in the EI Unlimited Company. |
17. | CAPITAL COMMITMENTS |
31.12.20 | 31.12.19 |
£ | £ |
Contracted but not provided for in the |
financial statements |
These mainly relate to work commitments on Sage X3 system. |
Aico Limited (Registered number: 02544399) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2020 |
18. | RELATED PARTY DISCLOSURES |
Aico Limited's parent, The EI Unlimited Company, is a major supplier of goods and services to Aico Limited. During the year ended 31 December 2020 Aico purchased goods totalling £124,355,155 (2019: £114,147,425) from, and had trade creditors at 31 December 2020 which included £9,114,505 (2019: £6,620,057) relating to, The EI Unlimited Company. These transactions represented 99.8% (2019: 99.8%) of total purchases for the year and the balance represented 96.6.% (2019: 95.0%) of trade creditors at the year end. |
During the year The EI Unlimited Company charged Aico Limited a management fee of £566,534 (2019: £445,106) and £Nil (2019: £Nil) for other expenses. |
Aico Limited also sold goods totalling £99,943 (2019: £17,140) to The EI Unlimited Company during the year, and the balance on the sales ledger of Aico Limited at 31 December 2020 relating to The EI Unlimited Company was £576.96 (2019: £Nil). |