J.C. Peacock & Co., Limited - Limited company accounts 22.3

REGISTERED NUMBER: SC025860 (Scotland)

J.C. PEACOCK & CO., LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2022

Milne Craig

Chartered accountants

Statutory auditor

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

to

5

Report of the Independent Auditors

6

to

9

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

18

to

37

DIRECTORS:

Anne Lane

Susan Victoria Marshall

Harley Hamilton Marshall

Gregorie Charles Marshall

Andrew Campbell Sutherland

Gregory Malcolm Waters

Gillian Cooke

SECRETARY:

Susan Victoria Marshall

REGISTERED OFFICE:

North Harbour

Ayr

KA8 8AE

REGISTERED NUMBER:

SC025860 (Scotland)

AUDITORS:

Milne Craig

Chartered accountants

Statutory auditor

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

The directors present their strategic report of the company and the group for the year ended 30 April 2022.

REVIEW OF BUSINESS

The Directors report that the company's overall trading was not markedly affected by factors faced in the aftermath of Brexit and Covid-19. The board consider that trading in the year under review was positive despite these external factors the country continues to face.

The Directors continue to carefully control working capital and stock levels and continue to monitor and manage the ever-changing economic factors brought by Brexit and the global pandemic, and latterly the position between Russia and Ukraine. We frequently undertake due diligence on any potential impact on our trading. An appropriate and effective bank facility remains accessible to cover periods of re-stocking if required.

We regularly assess, report on, and monitor recognised KPI's to ensure an early indicator is offered if any anomalies occur.

PRINCIPAL RISKS AND UNCERTAINTIES

The main product supplied by the group continues to be salt. A proportion of this goes to the de-icing market which has had slightly reduced demand this season due to mild weather conditions. The group continue to monitor long and short-term weather forecasts carefully, to accurately evaluate demand and the timely requirement of stock. Other salts are supplied to the food, water softening, gourmet, pharmaceutical and animal feed industries. The market for all products remains extremely competitive and the company maintains a satisfactory share by focusing on excellent service to its customers whilst offering competitive prices.

Financial risk management

Some salt is imported and as a result the group is exposed to current volatile movements in exchange and freight rates. Foreign exchange markets are continuously monitored, and forward contracts entered as and when required.

The group's main credit risk relates to debtors. Customers are subject to credit checks on a regular basis and their payment patterns are closely supervised.

The group monitors cash flow as part of its day-to-day control procedures and considers cash flow projections monthly to ensure suitable availability, or that facilities can be drawn upon as necessary.

EXTERNAL FACTORS OF CONCERN

At the date of signing the accounts, the UK economy continues to be severely impacted by factors surrounding Brexit, the recent global pandemic and the war between Russia and Ukraine. Concern is being given to exchange rates and inflation costs, both of which pose significant concern. The group and company, in line with many businesses in numerous industries, has been impacted by the continued rising costs, currency fluctuations, and governmental uncertainties. However, the impact to the business continues to be mitigated through continuous consideration of the implications of these external factors and assessment of our operational capability, market-based demand and structural finance.

Normal trading has resumed post COVID-19 and the company continues its strong trading pattern. Our most recent acquisition of the turf company last year has continued to assist with diversification of the group from winter trading. However, it is acknowledged that these external factors continue to represent an inherent economic uncertainty, which may affect the group and company's future performance, and financial results depend on the relative strength of the customer end-markets. The directors continuously assess any negative impact and have undertaken scenario planning to enable swift response should the current status quo change once again.

The group and company continue to hold significant cash resources with invoice discounting utilised when working capital is required.

GOING CONCERN

The directors have considered the capital structure and liquidity of the company and worked several scenarios in relation to cashflow forecasts and trading projections over 2022/23 which may be impacted by the aforementioned. Although events can be fluid surrounding the current external factors, the stress testing and previous continued trading demonstrate the group and company's financial resilience and operating flexibility. The directors have assessed that the actions, strategies, and facilities available to them to mitigate business threats under stress testing and the forecasts demonstrated that the company could operate within its available funding arrangements. The directors consider the going concern basis to be appropriate following their assessment of the company's financial position and its ability to meet its obligations as and when they fall due. Based on the analysis and in the scenarios assessed, the directors have a reasonable expectation that the company will be able to continue to operate for a period of at least 12 months from the approval of the financial statements. As a result, the financial statements have been prepared on a going concern basis.

ON BEHALF OF THE BOARD:

Gregorie Charles Marshall - Director

3 November 2022

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2022.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of importation, production and distribution of salt and related chemicals and equipment.

DIVIDENDS

An interim dividend of £3 per share on the Ordinary £1 shares was paid on 30 April 2022. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Preference £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 30 April 2022 will be £ 714,000 .

FUTURE DEVELOPMENTS

The board continue to actively encourage and grow innovative products and ideas, with continuous monitoring of projects to ensure suitability, sustainability and focus. There are numerous developments underway in various stages of completion that will ensure further progress and future growth.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2021 to the date of this report.

Anne Lane

Susan Victoria Marshall

Harley Hamilton Marshall

Gregorie Charles Marshall

Andrew Campbell Sutherland

Gregory Malcolm Waters

Gillian Cooke

CHARITABLE DONATIONS

During the year the group made charitable donations of £5,709 (2021 - £2,530).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Gregorie Charles Marshall - Director

3 November 2022

Opinion

We have audited the financial statements of J.C. Peacock & Co., Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 April 2022 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 group's and the parent 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 Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:

- the nature of the industry and sector, control environment and business performance including the key drivers for Directors' remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any

instances of non-compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual,

suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and

regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the cut-off of revenue recognition due to fact that products are shipped to a large number of countries and there are significant amounts of goods in transit. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and Health and Safety legislation.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meeting of those charged with governance;

- in addressing the fraud risk in revenue recognition, we have reviewed sales around the year end and agreed to goods despatch notes to assess whether recorded in correct period, and we have assessed the accuracy and completeness of sales rebates/discounts by comparing balances with prior year and agreeing calculations to signed customer agreements; and

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

Kirsty Mackie BAcc CA (Senior Statutory Auditor)

for and on behalf of Milne Craig

Chartered accountants

Statutory auditor

Abercorn House

79 Renfrew Road

Paisley

Renfrewshire

PA3 4DA

3 November 2022

TURNOVER

3

32,475,258

30,495,091

Cost of sales

(24,336,033

)

(22,677,214

)

GROSS PROFIT

8,139,225

7,817,877

Administrative expenses

(7,068,709

)

(6,065,366

)

1,070,516

1,752,511

Other operating income

4

174,720

241,596

OPERATING PROFIT

1,245,236

1,994,107

Interest receivable and similar income

6

156

33

1,245,392

1,994,140

Interest payable and similar expenses

7

(111,585

)

(90,895

)

PROFIT BEFORE TAXATION

8

1,133,807

1,903,245

Tax on profit

9

(221,786

)

(458,518

)

PROFIT FOR THE FINANCIAL YEAR

912,021

1,444,727

Profit attributable to:

Owners of the parent

912,021

1,444,727

PROFIT FOR THE YEAR

912,021

1,444,727

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

912,021

1,444,727

Total comprehensive income attributable to:

Owners of the parent

912,021

1,444,727

FIXED ASSETS

Intangible assets

12

816,956

914,991

Tangible assets

13

3,014,277

3,338,691

Investments

14

-

Investment property

15

299,595

4,130,828

4,553,277

CURRENT ASSETS

Stocks

16

5,198,253

5,692,469

Debtors

17

4,993,203

3,838,170

Cash at bank and in hand

1,573,164

500,320

11,764,620

10,030,959

CREDITORS

Amounts falling due within one year

18

6,034,906

4,376,745

NET CURRENT ASSETS

5,729,714

5,654,214

TOTAL ASSETS LESS CURRENT
LIABILITIES

9,860,542

10,207,491

CREDITORS

Amounts falling due after more than one
year

19

(1,907,485

)

(2,049,272

)

PROVISIONS FOR LIABILITIES

23

(299,950

)

(303,133

)

NET ASSETS

7,653,107

7,855,086

CAPITAL AND RESERVES

Called up share capital

24

265,198

278,797

Share premium

25

132,000

Capital redemption reserve

25

80,039

66,440

Retained earnings

25

7,175,870

7,377,849

SHAREHOLDERS' FUNDS

7,653,107

7,855,086

The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2022 and were signed on its behalf by:

Gregorie Charles Marshall - Director

FIXED ASSETS

Intangible assets

12

-

Tangible assets

13

2,498,064

2,543,563

Investments

14

2,565,019

Investment property

15

299,595

5,362,678

5,408,177

CURRENT ASSETS

Stocks

16

4,258,531

4,905,517

Debtors

17

3,869,870

3,363,130

Cash at bank

1,198,326

258,080

9,326,727

8,526,727

CREDITORS

Amounts falling due within one year

18

5,293,106

4,213,868

NET CURRENT ASSETS

4,033,621

4,312,859

TOTAL ASSETS LESS CURRENT
LIABILITIES

9,396,299

9,721,036

CREDITORS

Amounts falling due after more than one
year

19

(1,829,604

)

(1,924,652

)

PROVISIONS FOR LIABILITIES

23

(198,171

)

(173,686

)

NET ASSETS

7,368,524

7,622,698

CAPITAL AND RESERVES

Called up share capital

24

265,198

278,797

Share premium

25

132,000

Capital redemption reserve

25

80,039

66,440

Retained earnings

25

6,891,287

7,145,461

SHAREHOLDERS' FUNDS

7,368,524

7,622,698

Company's profit for the financial year

859,826

1,022,052

The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2022 and were signed on its behalf by:

Gregorie Charles Marshall - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

Balance at 1 May 2020

292,396

7,047,122

132,000

52,841

7,524,359

Changes in equity

Reduction in share capital

(13,599

)

(400,000

)

-

13,599

(400,000

)

Dividends

-

(714,000

)

-

(714,000

)

Total comprehensive income

-

1,444,727

-

1,444,727

Balance at 30 April 2021

278,797

7,377,849

132,000

66,440

7,855,086

Changes in equity

Reduction in share capital

(13,599

)

(400,000

)

-

13,599

(400,000

)

Dividends

-

(714,000

)

-

(714,000

)

Total comprehensive income

-

912,021

-

912,021

Balance at 30 April 2022

265,198

7,175,870

132,000

80,039

7,653,107

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

Balance at 1 May 2020

292,396

7,237,409

132,000

52,841

7,714,646

Changes in equity

Reduction in share capital

(13,599

)

(400,000

)

-

13,599

(400,000

)

Dividends

-

(714,000

)

-

(714,000

)

Total comprehensive income

-

1,022,052

-

1,022,052

Balance at 30 April 2021

278,797

7,145,461

132,000

66,440

7,622,698

Changes in equity

Reduction in share capital

(13,599

)

(400,000

)

-

13,599

(400,000

)

Dividends

-

(714,000

)

-

(714,000

)

Total comprehensive income

-

859,826

-

859,826

Balance at 30 April 2022

265,198

6,891,287

132,000

80,039

7,368,524

Cash flows from operating activities

Cash generated from operations

1

2,017,250

1,364,400

Interest paid

(23,842

)

(14,950

)

Interest element of hire purchase payments
paid

(42,243

)

(30,445

)

Finance costs paid

(45,500

)

(45,500

)

Tax paid

(306,796

)

(189,304

)

Net cash from operating activities

1,598,869

1,084,201

Cash flows from investing activities

Purchase of tangible fixed assets

(620,857

)

(782,195

)

Sale of tangible fixed assets

131,003

94,033

Acquisition of subsidiaries

-

(1,393,814

)

Interest received

156

33

Net cash from investing activities

(489,698

)

(2,081,943

)

Cash flows from financing activities

New loans in year

-

1,110,000

Loan repayments in year

(66,425

)

(48,694

)

Capital repayments in year

(105,286

)

(105,753

)

Amount introduced by directors

634,750

612,000

Amount withdrawn by directors

(612,000

)

-

Share buyback

(400,000

)

(400,000

)

Equity dividends paid

(714,000

)

(714,000

)

Net cash from financing activities

(1,262,961

)

453,553

Decrease in cash and cash equivalents

(153,790

)

(544,189

)

Cash and cash equivalents at beginning of
year

2

500,320

1,044,509

Cash and cash equivalents at end of year

2

346,530

500,320

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30/4/22

30/4/21

£

Profit before taxation

1,133,807

1,903,245

Depreciation charges

945,294

799,611

Profit on disposal of fixed assets

(31,144

)

(39,520

)

Finance costs

111,585

90,895

Finance income

(156

)

(33

)

2,159,386

2,754,198

Decrease/(increase) in stocks

494,216

(1,039,975

)

Increase in trade and other debtors

(1,155,033

)

(1,107,184

)

Increase in trade and other creditors

518,681

757,361

Cash generated from operations

2,017,250

1,364,400

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 30 April 2022

30/4/22

1/5/21

£

Cash and cash equivalents

1,573,164

500,320

Bank overdrafts

(1,226,634

)

-

346,530

500,320

Year ended 30 April 2021

30/4/21

1/5/20

£

Cash and cash equivalents

500,320

1,044,509

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/5/21

Cash flow

At 30/4/22

£

Net cash

Cash at bank and in hand

500,320

1,072,844

1,573,164

Bank overdrafts

-

(1,226,634

)

(1,226,634

)

500,320

(153,790

)

346,530

Debt

Finance leases

(725,124

)

105,286

(619,838

)

Debts falling due within 1 year

(66,425

)

(5,257

)

(71,682

)

Debts falling due after 1 year

(1,658,876

)

71,682

(1,587,194

)

(2,450,425

)

171,711

(2,278,714

)

Total

(1,950,105

)

17,921

(1,932,184

)

1.	STATUTORY INFORMATION

J.C. Peacock & Co., Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

The nature of the Company's operations and its principal activities are set out in the Directors Report.

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.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The directors have considered the capital structure and liquidity of the company and worked several scenarios in relation to cashflow forecasts and trading projections over 2022/23 which may be impacted by the aforementioned. Although events can be fluid surrounding the current external factors, the stress testing and previous continued trading demonstrate the group and company's financial resilience and operating flexibility. The directors have assessed that the actions, strategies, and facilities available to them to mitigate business threats under stress testing and the forecasts demonstrated that the company could operate within its available funding arrangements. The directors consider the going concern basis to be appropriate following their assessment of the company's financial position and its ability to meet its obligations as and when they fall due. Based on the analysis and in the scenarios assessed, the directors have a reasonable expectation that the company will be able to continue to operate for a period of at least 12 months from the approval of the financial statements. As a result, the financial statements have been prepared on a going concern basis.

Basis of consolidation

The consolidated financial statements present the results of J.C. Peacock & Co., Limited and its subsidiaries ("the group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using he purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account 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 asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists.

There is an element of estimation required in measuring the quantity of the group's stock. Due to the nature of bulk stock and the fact that it is stored where it is exposed to the elements, there is natural wastage. The group provides for a percentage of the value of bulk stock each month in order to compensate for wastage. These estimates are based on the directors' significant prior experience and knowledge of the stock.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measure as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sales of goods is recognised when all of the following conditions are satisfied:

- the group has transferred the significant risks and rewards of ownership to the buyer;

- the group retains neither continuing managerial involvement to the degree usual associated with ownership nor effective control over the goods sold;

- the amount fo turnover can be measured reliably;

- it is probably that the group will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of turnover can be measured reliably;

- it is probable that the group will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest int he fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the consolidated statement of comprehensive income over its useful economic life.

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

Tangible fixed assets under the cost model 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 condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

Depreciation is provided on the following basis:

Freehold property - over 50 years

Leasehold improvements - over the term of the lease

Plant and machinery - over 1 to 7 years

Motor vehicles - over 1 to 5 years

Computer and office equipment - over 3 to 5 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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of comprehensive income.

Investment property

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. When a property is a mixed use property, an allocation is performed based on approximate floor space.

Subsequent to initial recognition

i. investment properties whose fair value can be measured reliably without undue cost or effort are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise; and

ii. no depreciation is provided in respect of investment properties applying the fair value model.

If a reliable measure is not available without undue cost or effort for an item of investment property, this item is thereafter accounted for as tangible fixed assets in accordance with section 17 until a reliable measure of fair value becomes available.

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 has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

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

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Research and development

Expenditure on research activities is recognised in the income statement as an expense as incurred.

Expenditure on development activities is capitalised if the product or process is technically and commercially feasible and the Company intends to and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during its development. Development activities improve a plan or design for the production of new or substantially improved products or processes. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads and capitalised borrowing costs. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and less accumulated impairment losses

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.

Leases

Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets

An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets

For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.

An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

30/4/22

30/4/21

£

United Kingdom

32,475,258

30,495,091

32,475,258

30,495,091

4.	OTHER OPERATING INCOME

30/4/22

30/4/21

£

Rents received

134,251

82,598

Sundry receipts

7,635

5,347

Government grants

32,834

153,651

174,720

241,596

5.	EMPLOYEES AND DIRECTORS

30/4/22

30/4/21

£

Wages and salaries

3,495,447

3,129,543

Social security costs

311,466

298,703

Other pension costs

90,125

77,764

3,897,038

3,506,010

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

30/4/22

30/4/21

Administration

30

27

Production

60

57

90

84

30/4/22

30/4/21

£

Directors' remuneration

630,811

605,447

Directors' pension contributions to money purchase schemes

22,074

17,873

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

Information regarding the highest paid director is as follows:

30/4/22

30/4/21

£

Emoluments etc

154,638

145,833

Pension contributions to money purchase schemes

6,727

3,722

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

30/4/22

30/4/21

£

Deposit account interest

137

33

Interest on tax

19

-

156

33

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

30/4/22

30/4/21

£

Bank interest

1,155

99

Bank loan interest

21,885

14,851

Interest on tax

802

-

Hire purchase

42,243

30,445

Pref dividend - share type 3

45,500

111,585

90,895

8.	PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

30/4/22

30/4/21

£

Hire of plant and machinery

73,230

65,996

Other operating leases

26,760

24,847

Depreciation - owned assets

450,549

452,332

Depreciation - assets on hire purchase contracts

394,863

281,922

Profit on disposal of fixed assets

(31,144

)

(39,520

)

Goodwill amortisation

98,035

65,356

Auditors' remuneration

22,814

25,827

Foreign exchange differences

(14,653

)

27,242

Research and development

26,893

7,874

9.

TAXATION

Analysis of the tax charge

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

30/4/22

30/4/21

£

Current tax:

UK corporation tax

244,705

386,635

Adjustment in respect of prior year

(19,736

)

2,317

Total current tax

224,969

388,952

Deferred tax

(3,183

)

69,566

Tax on profit

221,786

458,518

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:

30/4/22

30/4/21

£

Profit before tax

1,133,807

1,903,245

Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2021 - 19 %)

215,423

361,617

Effects of:

Expenses not deductible for tax purposes

8,867

97,493

Adjustments to tax charge in respect of previous periods

(19,736

)

2,317

Adjustments to deferred tax in respect of previous periods

(61,919

)

(2,537

)

Changes in tax rates

71,615

(372

)

Movement in unprovided deferred tax

7,536

-

Total tax charge

221,786

458,518

10.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

11.

DIVIDENDS

30/4/22

30/4/21

£

Ordinary shares of £1 each

Interim

714,000

12.	INTANGIBLE FIXED ASSETS

Group

Purchased

Goodwill

goodwill

Totals

£

COST

At 1 May 2021

and 30 April 2022

1,589,720

455,814

2,045,534

AMORTISATION

At 1 May 2021

674,729

455,814

1,130,543

Amortisation for year

98,035

-

98,035

At 30 April 2022

772,764

455,814

1,228,578

NET BOOK VALUE

At 30 April 2022

816,956

-

816,956

At 30 April 2021

914,991

-

914,991

Company

Goodwill

£

COST

At 1 May 2021

and 30 April 2022

455,814

AMORTISATION

At 1 May 2021

and 30 April 2022

455,814

NET BOOK VALUE

At 30 April 2022

-

At 30 April 2021

-

13.	TANGIBLE FIXED ASSETS

Group

Improvements

Freehold

to

Plant and

property

machinery

£

COST

At 1 May 2021

1,773,600

100,506

5,117,308

Additions

775

45,923

250,580

Disposals

-

(46,047

)

Reclassification/transfer

-

12,194

At 30 April 2022

1,774,375

146,429

5,334,035

DEPRECIATION

At 1 May 2021

297,424

-

3,970,557

Charge for year

29,814

4,101

520,147

Eliminated on disposal

-

(35,104

)

Reclassification/transfer

-

30,105

At 30 April 2022

327,238

4,101

4,485,705

NET BOOK VALUE

At 30 April 2022

1,447,137

142,328

848,330

At 30 April 2021

1,476,176

100,506

1,146,751

Fixtures

and

Motor

fittings

vehicles

Totals

£

COST

At 1 May 2021

911,413

912,012

8,814,839

Additions

72,170

251,409

620,857

Disposals

-

(233,566

)

(279,613

)

Reclassification/transfer

-

(12,194

)

-

At 30 April 2022

983,583

917,661

9,156,083

DEPRECIATION

At 1 May 2021

767,705

440,462

5,476,148

Charge for year

70,234

221,116

845,412

Eliminated on disposal

-

(144,650

)

(179,754

)

Reclassification/transfer

-

(30,105

)

-

At 30 April 2022

837,939

486,823

6,141,806

NET BOOK VALUE

At 30 April 2022

145,644

430,838

3,014,277

At 30 April 2021

143,708

471,550

3,338,691

In the directors opinion there is no material difference between the fair value of investment properties at 30 April 2022 (2021 - no difference) and the historic cost of those investment properties held by the group and company. The directors have determined the fair value of the property having regard to current market rents, pries and yields. In line with amendments to FRS102 the company now reflects the group regarding investment properties.

Depreciation charged for the year on assets held under finance leases was £394,863 (2021 - £283,480).

The net book value of tangible fixed assets includes £ 617,921 (2021 - £ 842,713 ) in respect of assets held under hire purchase contracts.

Company

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

COST

At 1 May 2021

1,773,600

3,751,950

899,159

682,088

7,106,797

Additions

775

238,238

64,817

251,409

555,239

Disposals

-

(28,047

)

-

(108,170

)

(136,217

)

At 30 April 2022

1,774,375

3,962,141

963,976

825,327

7,525,819

DEPRECIATION

At 1 May 2021

297,424

3,222,556

759,080

284,174

4,563,234

Charge for year

29,814

283,720

68,717

182,792

565,043

Eliminated on disposal

-

(28,046

)

-

(72,476

)

(100,522

)

At 30 April 2022

327,238

3,478,230

827,797

394,490

5,027,755

NET BOOK VALUE

At 30 April 2022

1,447,137

483,911

136,179

430,837

2,498,064

At 30 April 2021

1,476,176

529,394

140,079

397,914

2,543,563

The net book value of tangible fixed assets includes £ 446,096 (2021 - £ 470,296 ) in respect of assets held under hire purchase contracts.

14.	FIXED ASSET INVESTMENTS

Company

Unlisted

investments

£

COST

At 1 May 2021

and 30 April 2022

2,565,019

NET BOOK VALUE

At 30 April 2022

2,565,019

At 30 April 2021

2,565,019

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Peacock Oilfield Services

Registered office: North Harbour, Ayr, Ayrshire, KA8 8AE

Nature of business: Production and sale of brine

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

1,217,002

928,730

Profit for the year

288,275

76,633

Peacock Salt Limited

Registered office: North Harbour, Ayr, Ayrshire, KA8 8AE

Nature of business: Non-trading

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

100

J C Peacock & Company (Astmoor) Limited

Registered office: 93-94 Chadwick Road, Astmoor Industrial Estate, Runcorn, WA7 1PW

Nature of business: Non-trading

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

4,000

Salt and Grit Solutions Limited

Registered office: Abercorn House, 79 Renfrew Road, Paisley, Renfrewshire, PA3 4DA

Nature of business: supply of de-icing salt and other winter products

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

758,752

871,838

(Loss)/profit for the year

(113,086

)

424,049

UK Turf Limited

Registered office: Abercorn House, 79 Renfrew Road, Paisley, Renfrewshire, PA3 4DA

Nature of business: supply of turf

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

25,556

50,513

Loss for the year

(24,957

)

(12,650

)

Rukeri Limited

Registered office: Abercorn House, 79 Renfrew Road, Paisley, Renfrewshire, PA3 4DA

Nature of business: Non-trading

%

Class of shares:

holding

Ordinary

100.00

30/4/22

30/4/21

£

Aggregate capital and reserves

2

Peacock Salt Limited, J C Peacock & Company (Astmoor) Limited and Rukeri Limited are exempt from audit under s479A of the Companies Act.

15.	INVESTMENT PROPERTY

Group

Total

£

FAIR VALUE

At 1 May 2021

and 30 April 2022

299,595

NET BOOK VALUE

At 30 April 2022

299,595

At 30 April 2021

299,595

Company

Total

£

FAIR VALUE

At 1 May 2021

and 30 April 2022

299,595

NET BOOK VALUE

At 30 April 2022

299,595

At 30 April 2021

299,595

16.

STOCKS

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Finished goods

5,198,253

5,692,469

4,258,531

4,905,517

The difference between purchase price or production cost of stocks and their replacement cost is not material.

17.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Trade debtors

4,318,242

3,405,278

3,288,120

2,927,641

Amounts owed by group undertakings

-

122,449

53,846

Other debtors

199,953

83,191

84,333

42,233

VAT

-

57,585

-

79,891

Prepayments and accrued income

475,008

292,116

374,968

259,519

4,993,203

3,838,170

3,869,870

3,363,130

18.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Bank loans and overdrafts (see note 20)

1,298,316

66,425

1,298,316

589,009

Hire purchase contracts (see note 21)

299,547

334,728

236,788

243,324

Trade creditors

2,715,085

2,100,437

1,953,333

1,757,361

Amounts owed to group undertakings

-

334,410

110,823

Tax

170,300

252,127

78,520

112,823

Social security and other taxes

84,844

146,142

67,372

69,882

VAT

186,795

-

88,941

-

Other creditors

114,552

173,266

114,552

139,609

Directors' loan accounts

634,750

612,000

634,750

612,000

Accruals and deferred income

530,717

691,620

486,124

579,037

6,034,906

4,376,745

5,293,106

4,213,868

19.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Bank loans (see note 20)

937,194

1,008,876

937,194

1,008,876

Preference shares (see note 20)

650,000

Hire purchase contracts (see note 21)

320,291

390,396

242,410

265,776

1,907,485

2,049,272

1,829,604

1,924,652

Hire purchase creditors are secured over the assets to which they relate.

The bank hold a floating charge over the group and companies assets and charges on certain properties. The bank also hold security over the debtors ledger against any drawn down facilities (£Nil at the year end).

The convertible preference shares are convertible at the option of the holder at any time by giving an undertaking that they will not be converted within twelve months of the balance sheet date.

The convertible preference shares carry a dividend of 7% per annum from the date of issue, payable six months in arrears on 30 April and 31 October each year. The dividend rights are cumulative.

The convertible preference shares carry no votes at meetings unless the dividend thereon is six months or more in arrears or any redemption monies have not been paid on the due date. In either event, each holder will be entitled to one vote per share.

On winding up of the company the preference shareholders have a right to receive, in preference to payments to ordinary shareholders, £1 per share plus any accrued dividends.

20.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Amounts falling due within one year or on

demand:

Bank overdrafts

1,226,634

-

1,226,634

522,584

Bank loans

71,682

66,425

71,682

66,425

1,298,316

66,425

1,298,316

589,009

Amounts falling due between one and two

years:

Bank loans - 1-2 years

937,194

1,008,876

937,194

1,008,876

Preference shares

650,000

1,587,194

1,658,876

1,587,194

1,658,876

Details of shares shown as liabilities are as follows:

Allotted, issued and fully paid:

Number:

Class:

Nominal

30/4/22

30/4/21

value:

£

650,000

Preference

£1

650,000

21.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

30/4/22

30/4/21

£

Net obligations repayable:

Within one year

299,547

334,728

Between one and five years

320,291

390,396

619,838

725,124

Company

Hire purchase contracts

30/4/22

30/4/21

£

Net obligations repayable:

Within one year

236,788

243,324

Between one and five years

242,410

265,776

479,198

509,100

Group

Non-cancellable operating

leases

30/4/22

30/4/21

£

Within one year

62,621

138,707

Between one and five years

2,210

3,900

64,831

142,607

The group and company have a financial commitment to Associated British Ports PLC in respect of the facilities utilised. at Ayr Harbour. A facility fee is payable that is dependent on the tonnage of the company's product handled by the port but subject to a minimum annual charge of £125,000. This commitment expires in 2023 and is currently under re-negotiation.

Company

Non-cancellable operating

leases

30/4/22

30/4/21

£

Within one year

62,621

138,707

Between one and five years

2,210

3,900

64,831

142,607

The company has a financial commitment to Associated British Ports PLC in respect of the facilities utilised at Ayr Harbour. A facility fee is payable that is dependent on the tonnage of the company's product handled by the port but subject to a minimum annual charge of £125,000. This commitment expires in 2023 and is currently under re-negotiation.

22.	FINANCIAL INSTRUMENTS

Group

Company

2022

2021

2022

2021

£

Financial assets

Cash and cash equivalents

500,320

258,080

Financial assets that are debt

instruments measured at amortised cost

3,840,603

3,363,130

4,340,923

3,621,210

Financial liabilities

Financial liabilities measured at amortised

cost

(5,698,508

)

(5,698,508

)

(5,424,520

)

(5,424,520

)

(5,698,508

)

(5,698,508

)

(5,424,520

)

(5,424,520

)

23.	PROVISIONS FOR LIABILITIES

Group

Company

30/4/22

30/4/21

30/4/22

30/4/21

£

Deferred tax

299,950

303,133

198,171

173,686

Group

Deferred

tax

£

Balance at 1 May 2021

303,133

Credit to Income Statement during year

(3,183

)

Balance at 30 April 2022

299,950

Company

Deferred

tax

£

Balance at 1 May 2021

173,686

Origination and reversal of

timing differences

24,485

Balance at 30 April 2022

198,171

Group

Company

2022

2021

2022

2021

£

Accelerated capital allowances

301,353

303,113

199,574

173,686

Other timing difference

(1,403

)

-

(1,403

)

-

299,950

303,113

198,171

173,686

24.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30/4/22

30/4/21

value:

£

269,732

Ordinary

£1

253,866

261,799

22,664

Ordinary B

£1

11,332

16,998

265,198

278,797

The 'B' ordinary shares rank pari passu in all respects and have the same rights as the ordinary shares, except that the 'B' ordinary shares do not confer any votes in a general meeting of the company.

The company has 650,000 convertible preference shares of £1 each in issue which are classified within other creditors in the balance sheet. Details of these shares are included in note 16 of the financial statements.

During the year 7,933 ordinary shares with a nominal value of £1 each were bought back by the company.

During the year 5,666 ordinary B shares with a nominal value of £1 each were bought back by the company.

25.

RESERVES

Group

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

At 1 May 2021

7,377,849

132,000

66,440

7,576,289

Profit for the year

912,021

Dividends

(714,000

)

(714,000

)

Share buy back

(400,000

)

-

13,599

(386,401

)

At 30 April 2022

7,175,870

132,000

80,039

7,387,909

Company

Capital

Retained

Share

redemption

earnings

premium

reserve

Totals

£

At 1 May 2021

7,145,461

132,000

66,440

7,343,901

Profit for the year

859,826

Dividends

(714,000

)

(714,000

)

Share buy back

(400,000

)

-

13,599

(386,401

)

At 30 April 2022

6,891,287

132,000

80,039

7,103,326

The company's capital and reserves are as follows:

Called up share capital

Called up share capital represents the nominal value of the shares issued

Share premium account

The share premium account includes the premium on issue of equity shares, net of any issue costs.

Capital redemption reserve

The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

26.	CONTINGENT LIABILITIES

The company has guaranteed the bank borrowings of JC Peacock group of companies. At the year end, the liabilities covered by these guarantees totalled £2,235,510 (2021 - £1,075,301).

The company has undertaken to purchase 15,866 ordinary shares and 11,332 ordinary B shares in equal instalments over the next 2 years at a cost of £800,000.

27.	PENSION COMMITMENTS

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension charge amounted to £90,125 (2021 - £77,764). Contributions totalling £12,552 (2021 - £11,152) were payable to the fund at the reporting date and are included in creditors.

28.	RELATED PARTY DISCLOSURES

Key management personnel include all directors and a number of senior managers who together have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the group was £938,757 (2021 - £705,531).

During the year the company acquired shares from a former director of £400,000 (2021 - £400,000).

29.	POST BALANCE SHEET EVENTS

There have been no post balance sheet events.

30.	ULTIMATE CONTROLLING PARTY

The controlling party is by the directors.

The ultimate controlling party is Harley Hamilton Marshall.