Beyer Dynamic (G.B.) Limited - Limited company accounts 20.1
Beyer Dynamic (G.B.) Limited - Limited company accounts 20.1
| REGISTERED NUMBER: 06507574 (England and Wales) |
| Beyer Dynamic (G.B.) Limited |
| Group Strategic Report, Report of the Director and |
| Consolidated Financial Statements for the Year Ended 31 December 2020 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 December 2020 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Director | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Statement of Comprehensive Income | 10 |
| Consolidated Balance Sheet | 11 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Cash Flow Statement | 15 |
| Notes to the Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Financial Statements | 17 |
| Beyer Dynamic (G.B.) Limited |
| Company Information |
| for the Year Ended 31 December 2020 |
| DIRECTOR: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants |
| and Statutory Auditor |
| Atlantic House |
| 8 Bell Lane |
| Bellbrook Industrial Estate |
| Uckfield |
| East Sussex |
| TN22 1QL |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Group Strategic Report |
| for the Year Ended 31 December 2020 |
| The director presents his strategic report of the company and the group for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| The trading subsidiary is an established trade supplier of music equipment, audio visual products and solutions to a diverse market including retailers, professional audio companies and AV systems integrators, with a dedicated division to service each sector. |
| The group continues to perform well and has built relationships and secured exclusive UK distribution agreements with some of the world's leading manufacturers in these market sectors. |
| The equity of the group is growing year on year and the majority earnings are being retained in the group. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The principle risks and uncertainties are those facing any business in the UK currently, primarily the uncertainty of the Brexit effects and the continuing impact of the Covid-19 pandemic. Although these are causing a general slowing in sales in the group's core markets the group has taken steps to minimise the impact. |
| All such risks and uncertainties have been addressed by the director. |
| Financial risk management objectives and policies |
| The director continues to monitor the group's needs and objectives to ensure sufficient finance is in place. The group has a strong liquid position, which it seeks to maintain. |
| Price risk, credit risk, liquidity risk and cashflow risk |
| Forward foreign currency contracts are entered into to mitigate against potential foreign exchange rate losses. |
| FUTURE DEVELOPMENTS |
| The director is anticipating a 15% increase in turnover for the coming year. |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Group Strategic Report |
| for the Year Ended 31 December 2020 |
| DEVELOPMENT AND PERFORMANCE OF THE BUSINESS |
| Key performance indicators | 2020 | 2019 | 2018 | 2017 |
| Turnover | 13,797,295 | 15,646,858 | 13,783,080 | 11,975,721 |
| Turnover movement | (11.82% | 13.52% | 15.09% | 0.08% |
| Gross profit % | 20.70% | 23.20% | 25.37% | 27.80% |
| Gross profit % movement | (10.80% | (8.55% | (8.74% | (2.32% |
| Position of the group |
| At the end of the year, the net assets totalled £6,905,520 (2019 - £6,450,934). |
| ON BEHALF OF THE BOARD: |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Report of the Director |
| for the Year Ended 31 December 2020 |
| The director presents his report with the financial statements of the company and the group for the year ended 31 December 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of professional audio and video products on a B2B basis. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2020. |
| DIRECTOR |
| STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
| The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
| Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Report of the Director |
| for the Year Ended 31 December 2020 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Beyer Dynamic (G.B.) Limited |
| Opinion |
| We have audited the financial statements of Beyer Dynamic (G.B.) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Statement of 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 31 December 2020 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
| Report of the Independent Auditors to the Members of |
| Beyer Dynamic (G.B.) Limited |
| Other information |
| The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the 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 Director. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept 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 director's remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of director |
| As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Beyer Dynamic (G.B.) Limited |
| 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: |
| - | the group's internal controls have been discussed and understood prior to our audit testing. Internal controls have been tested through walkthrough testing, to assess whether controls are adequate, whether they are being followed, and whether irregularities and fraud are prevented. |
| - | deficiencies in internal controls have been highlighted and explained to management, along with recommendations as to how deficiencies can be improved and the risk of irregularity and fraud occurrence minimised. |
| - | representations have been provided by management that there were no identified cases of fraud or instances of non-compliance during or since the accounting period. |
| - | substantive testing has been carried out to test the validity of transactions, with entries in the accounting system vouched to corresponding third party documentation and evidence of appropriate authorisation. |
| Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
| 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. |
| Report of the Independent Auditors to the Members of |
| Beyer Dynamic (G.B.) Limited |
| 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 Statutory Auditor |
| Atlantic House |
| 8 Bell Lane |
| Bellbrook Industrial Estate |
| Uckfield |
| East Sussex |
| TN22 1QL |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Consolidated |
| Statement of Comprehensive |
| Income |
| for the Year Ended 31 December 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| TURNOVER | 3 | 13,797,295 | 15,646,858 |
| Cost of sales | 10,941,611 | 12,016,365 |
| GROSS PROFIT | 2,855,684 | 3,630,493 |
| Administrative expenses | 2,435,510 | 2,730,071 |
| 420,174 | 900,422 |
| Other operating income | 151,998 | - |
| OPERATING PROFIT | 5 | 572,172 | 900,422 |
| Interest receivable and similar income | 2,032 | 6,349 |
| PROFIT BEFORE TAXATION | 574,204 | 906,771 |
| Tax on profit | 7 | 119,618 | 186,150 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
454,586 |
720,621 |
| Profit attributable to: |
| Owners of the parent | 454,586 | 720,621 |
| Total comprehensive income attributable to: |
| Owners of the parent | 454,586 | 720,621 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Consolidated Balance Sheet |
| 31 December 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | 66,489 | 75,987 |
| Tangible assets | 11 | 117,965 | 173,064 |
| Investments | 12 | - | - |
| 184,454 | 249,051 |
| CURRENT ASSETS |
| Stocks | 13 | 3,533,130 | 3,341,589 |
| Debtors | 14 | 1,612,961 | 1,443,538 |
| Cash at bank and in hand | 3,036,243 | 2,902,931 |
| 8,182,334 | 7,688,058 |
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
15 |
1,461,268 |
1,486,175 |
| NET CURRENT ASSETS | 6,721,066 | 6,201,883 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
6,905,520 |
6,450,934 |
| CAPITAL AND RESERVES |
| Called up share capital | 17 | 1 | 1 |
| Retained earnings | 18 | 6,905,519 | 6,450,933 |
| SHAREHOLDERS' FUNDS | 6,905,520 | 6,450,934 |
| The financial statements were approved by the director and authorised for issue on 2 December 2021 and were signed by: |
| Mr J N Midgley - Director |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Company Balance Sheet |
| 31 December 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Debtors | 14 |
| Cash at bank |
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
15 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 500,000 | 1,635,000 |
| The financial statements were approved by the director and authorised for issue on |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 December 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2019 | 1 | 5,865,312 | 5,865,313 |
| Changes in equity |
| Dividends | - | (135,000 | ) | (135,000 | ) |
| Total comprehensive income | - | 720,621 | 720,621 |
| Balance at 31 December 2019 | 1 | 6,450,933 | 6,450,934 |
| Changes in equity |
| Total comprehensive income | - | 454,586 | 454,586 |
| Balance at 31 December 2020 | 1 | 6,905,519 | 6,905,520 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 December 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2019 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 December 2020 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 316,652 | 864,288 |
| Tax paid | (184,235 | ) | (227,090 | ) |
| Net cash from operating activities | 132,417 | 637,198 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (1,284 | ) | (73,385 | ) |
| Sale of tangible fixed assets | - | 9,250 |
| Interest received | 2,032 | 6,349 |
| Net cash from investing activities | 748 | (57,786 | ) |
| Cash flows from financing activities |
| Capital repayments in year | - | (6,870 | ) |
| Amount introduced by directors | 1,513 | 178 |
| Amount withdrawn by directors | (1,366 | ) | (68 | ) |
| Equity dividends paid | - | (135,000 | ) |
| Net cash from financing activities | 147 | (141,760 | ) |
| Increase in cash and cash equivalents | 133,312 | 437,652 |
| Cash and cash equivalents at beginning of year |
2 |
2,902,931 |
2,465,279 |
| Cash and cash equivalents at end of year |
2 |
3,036,243 |
2,902,931 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| Profit before taxation | 574,204 | 906,771 |
| Depreciation charges | 65,881 | 77,495 |
| Loss on disposal of fixed assets | - | 1,654 |
| Finance income | (2,032 | ) | (6,349 | ) |
| 638,053 | 979,571 |
| Increase in stocks | (191,541 | ) | (296,670 | ) |
| Increase in trade and other debtors | (169,423 | ) | (160,347 | ) |
| Increase in trade and other creditors | 39,563 | 341,734 |
| Cash generated from operations | 316,652 | 864,288 |
| 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 | 3,036,243 | 2,902,931 |
| Year ended 31 December 2019 |
| 31.12.19 | 1.1.19 |
| £ | £ |
| Cash and cash equivalents | 2,902,931 | 2,465,279 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1.1.20 | Cash flow | At 31.12.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 2,902,931 | 133,312 | 3,036,243 |
| 2,902,931 | 133,312 | 3,036,243 |
| Total | 2,902,931 | 133,312 | 3,036,243 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 December 2020 |
| 1. | STATUTORY INFORMATION |
| Beyer Dynamic (G.B.) Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertaking. |
| Subsidiaries are all entities over which the company has the power to govern the financial and operating policies generally accompanying a shareholding of more than one half of the voting rights. Subsidiaries are fully consolidated from the date on which this power is transferred to the company. |
| 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. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Goodwill |
| Goodwill arising from acquisition of subsidiaries is included in intangible assets, tested annually for impairment and carried at cost less accumulated amortisation and impairment losses. |
| The useful economic life of goodwill has been reliably estimated and it is being written off over a period of 20 years. |
| Tangible fixed assets |
| Short leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Government grants |
| Government grants in respect of capital expenditure are credited to a deferred income account and released to profit over the expected useful lives of the relevant assets in equal annual instalments. |
| Government grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The group contributes to a defined contribution pension scheme on behalf of directors and staff. Contributions payable to the scheme are charged to profit or loss in the period to which they relate. |
| Forward contracts |
| Forward contracts are initially measured at fair value on the contract date. Subsequent changes in fair value are recognised in profit or loss at each reporting date. |
| Going concern |
| The director has assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the group to continue as a going concern. This assessment has been required in the light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus. |
| At the time of approving the financial statements the director believes that all appropriate measures have been or will be taken to ensure that the group will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate. |
| 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: |
| 2020 | 2019 |
| £ | £ |
| United Kingdom | 13,688,246 | 14,267,754 |
| Europe | 40,013 | 992,581 |
| Rest of the World | 69,036 | 386,523 |
| 13,797,295 | 15,646,858 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 3. | TURNOVER - continued |
| Turnover excludes Amazon fees which are credited against sales for management accounting purposes. Amazon fees amounting to £432,462 (2019 - £nil) have been reposted from sales and included in marketing fees in preparation of the statutory accounts. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries | 1,370,861 | 1,541,826 |
| Social security costs | 153,135 | 174,628 |
| Other pension costs | 52,397 | 52,650 |
| 1,576,393 | 1,769,104 |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Sales and administration | 29 | 32 |
| Directors | 3 | 3 |
| 2020 | 2019 |
| £ | £ |
| Director's remuneration | 245,328 | 295,375 |
| Director's pension contributions to money purchase schemes | 27,000 | 27,000 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 3 | 3 |
| Information regarding the highest paid director is as follows: |
| 2020 | 2019 |
| £ | £ |
| Emoluments etc | 68,819 | 78,982 |
| All disclosures regarding employees and directors are in respect of the trading subsidiary, with the exception of the highest paid director disclosure which is in respect of the director of the group's parent company only. |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Other operating leases | 192,517 | 138,000 |
| Depreciation - owned assets | 56,383 | 67,997 |
| Loss on disposal of fixed assets | - | 1,654 |
| Goodwill amortisation | 9,498 | 9,498 |
| Foreign exchange (gains)/losses | 71,699 | (54,003 | ) |
| 6. | AUDITORS' REMUNERATION |
| 2020 | 2019 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
10,000 |
9,770 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2020 | 2019 |
| £ | £ |
| Current tax: |
| UK corporation tax | 119,618 | 186,150 |
| Tax on profit | 119,618 | 186,150 |
| 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: |
| 2020 | 2019 |
| £ | £ |
| Profit before tax | 574,204 | 906,771 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2019 - 19 %) |
109,099 |
172,286 |
| Effects of: |
| Expenses not deductible for tax purposes | 2,104 | 3,910 |
| Depreciation in excess of capital allowances | 8,415 | 9,954 |
| Total tax charge | 119,618 | 186,150 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the profit & loss of the parent company is not presented as part of these financial statements. |
| 9. | DIVIDENDS |
| 2020 | 2019 |
| £ | £ |
| Ordinary share of £1 |
| Interim | - | 135,000 |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 | 189,967 |
| AMORTISATION |
| At 1 January 2020 | 113,980 |
| Amortisation for year | 9,498 |
| At 31 December 2020 | 123,478 |
| NET BOOK VALUE |
| At 31 December 2020 | 66,489 |
| At 31 December 2019 | 75,987 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Short | Plant and | and | Motor |
| leasehold | machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ | £ |
| COST |
| At 1 January 2020 | 20,891 | 196,571 | 253,221 | 237,874 | 708,557 |
| Additions | - | - | 1,284 | - | 1,284 |
| At 31 December 2020 | 20,891 | 196,571 | 254,505 | 237,874 | 709,841 |
| DEPRECIATION |
| At 1 January 2020 | 10,445 | 176,441 | 226,788 | 121,819 | 535,493 |
| Charge for year | 2,089 | 12,362 | 12,918 | 29,014 | 56,383 |
| At 31 December 2020 | 12,534 | 188,803 | 239,706 | 150,833 | 591,876 |
| NET BOOK VALUE |
| At 31 December 2020 | 8,357 | 7,768 | 14,799 | 87,041 | 117,965 |
| At 31 December 2019 | 10,446 | 20,130 | 26,433 | 116,055 | 173,064 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 12. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: 19 Montpelier Avenue, Bexley, Kent, DA5 3AP |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2020 | 2019 |
| £ | £ |
| Aggregate capital and reserves |
| Profit for the year |
| 13. | STOCKS |
| Group |
| 2020 | 2019 |
| £ | £ |
| Stocks | 3,533,130 | 3,341,589 |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade debtors | 1,601,579 | 1,362,415 |
| Provision for bad debts | (19,543 | ) | - | - | - |
| Amounts owed by group undertakings | - | - |
| Prepayments and accrued income | 30,925 | 81,123 |
| 1,612,961 | 1,443,538 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2020 | 2019 | 2020 | 2019 |
| £ | £ | £ | £ |
| Trade creditors | 765,853 | 905,354 |
| Tax | 121,662 | 186,279 |
| Social security and other taxes | 13,783 | 101,909 |
| VAT | 368,160 | 185,812 | - | - |
| Other creditors | 4,564 | 4,564 |
| Wages and salaries control | 34,691 | 4,070 | - | - |
| Directors' current accounts | 9,466 | 9,319 | 9,071 | 9,071 |
| Accruals and deferred income | 143,089 | 88,868 |
| 1,461,268 | 1,486,175 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Non-cancellable | operating leases |
| 2020 | 2019 |
| £ | £ |
| Within one year | 153,000 | 131,000 |
| Between one and five years | 765,000 | 765,000 |
| In more than five years | 561,000 | 714,000 |
| 1,479,000 | 1,610,000 |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 1 | 1 |
| Beyer Dynamic (G.B.) Limited (Registered number: 06507574) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 18. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2020 | 6,450,933 |
| Profit for the year | 454,586 |
| At 31 December 2020 | 6,905,519 |
| 19. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to a director subsisted during the years ended 31 December 2020 and 31 December 2019: |
| 2020 | 2019 |
| £ | £ |
| Mr J N Midgley |
| Balance outstanding at start of year | (9,319 | ) | (9,209 | ) |
| Amounts advanced | 1,118 | 137,137 |
| Amounts repaid | (1,265 | ) | (137,247 | ) |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | (9,466 | ) | (9,319 | ) |
| The loan is unsercured, interest free and repayable on demand. |
| 20. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is Mr J N Midgley. |