Stripe Consulting Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07310744 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2020

for

Stripe Consulting Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Statement of Cash Flows

14

Notes to the Financial Statements

15

DIRECTORS:

H Kocak

S R Lefevre

REGISTERED OFFICE:

Bridge Farm

Meath Green Lane

Horley

Surrey

RH6 8JA

REGISTERED NUMBER:

07310744 (England and Wales)

AUDITORS:

Ledger Sparks Audit LLP (Statutory Auditors)

Airport House

Suite 43-45

Purley Way

Croydon

CR0 0XZ

The directors present their strategic report for the year ended 31 December 2020.

FAIR REVIEW OF BUSINESS

In March 2020 the World Health Organisation declared the outbreak of a coronavirus (COVID-19) a pandemic. However the directors remain confident that the company trading will not be adversely affected. The director is confident that they will be gain further contracts for construction of parking structures. As a result, the directors remain confident in the company's future performance.

The directors believe the effect of the UK leaving the EU, should have limited impact on company based on geographical diversity of its operations. However due to the current uncertainty and changes to UK businesses, the director will continue to review and adapt to the risk of potential changes as result of the UK's exit from the EU.

FINANCIAL KEY PERFORMANCE INDICATORS

The company's directors use a variety of financial performance indicators, including contracts gained, contact margins, overall gross profit performance, administrative expenses and aged debts. The directors review performance on a regular basis to ensure the company's meet its objectives.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal Risks

The principal risks and uncertainties facing the company are reviewed in detail by the directors and no material additional risk or uncertainty has been identified other than those detailed below. These risks are broadly accompanied with competitive and operational risks. The directors risk management objectives consist of identifying and monitoring those risks which could have an adverse impact on the company assets, profitability or cash flows.

Competitive risk

The company operates in the construction industry where the markets remain competitive. There is a low profit margin due to negative risk allocations in contracts. Since, the company is part of a group Ballast Nedam which has established a reputation as the construction company that is able to realise large-scale and complex constructions. So, This risk is mitigated by regular reviews of competitive offerings and market providers. Actions are taken immediately where possible. The company takes advantage of the operational excellence achieved by the group.

Operational risk

The main operational risk relating to the company's construction projects relate to agreements with the customers and associated party's entities. The company's ability to enter in projects with lower risk profile and healthier profit with customers will mitigate the overall operational risk.

Additionally, in March 2020 the World Health Organisation declared the outbreak of a coronavirus (COVID-19) a pandemic. Business in the UK has had to be suspend in parts across various operations because of the outbreak of a coronavirus (COVID-19) and lockdown measures enacted by the Local Government. However, the company holds and buys its stock based on confirmed contracts and directors consider the impact on operations and current shutdown, will be limited on the company's operational risks.

The company's operations expose it to a variety of financial risks that include the effect of changes in credit risk, liquidity risk and currency risk. The company has in place a risk management programme that seeks to limit the adverse effect of such risks on its financial performance.

It is and has been throughout the year under review, the company policy that no trading in financial instruments shall be undertaken.

Liquidity risk

The company maintains a balance of long term and short term committed facilities that are designed to ensure that it has adequate funds for operations and expansion plans.

Credit risk

The company's credit risk relates mainly to trade receivables. The amounts presented in the balance sheet are net of allowances for impairment, estimated by the company's management on the basis of prior experience, current trading and economic conditions. The company has no significant concentration of credit risk, as exposure is spread over a large number of customers.

Capital management

The company manages its capital by aiming to maintain a relevant financial position. The capital management initiative is consistent with the company’s commitment to capital management. This allows the company to maintain appropriate gearing levels and capital structure.

FUTURE DEVELOPMENTS

The directors remain optimistic for the future. The order book continues to grow and additional contracts are always being sourced. The directors aim to maintain strategy to continue to improve performance and drive the business through targeted growth opportunities.

ON BEHALF OF THE BOARD:

H Kocak - Director

31 December 2021

The directors present their report with the audited financial statements of the company for the period 1 January 2020 to 31 December 2020. The comparatives to the financial statement are for the period 1 August 2018 to 31 December 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of structural engineering and design.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2020.

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 January 2020 to the date of this report.

H Kocak

S R Lefevre

POLITICAL DONATIONS AND EXPENDITURE

During the year company hasn't made any political donations. However, the company has made charitable donations of £683 (2019- £5,579).

GOING CONCERN

During the period ended 31 December 2020, the World Health Organisation declared the outbreak of a coronavirus (COVID-19) a pandemic. The COVID-19 outbreak in the United Kingdom has resulted in the temporary lockdown and reduction of operations which have been government mandated. The directors have reviewed and factored potential delays and reassess cash flow forecasts and budgets, which show that the company would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

DISCLOSURE IN THE STRATEGIC REPORT

The company has not taken advantage of the exemption available under section 414B of the Companies Act 2006 to small companies forming part of the ineligible groups and has presented a strategic report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements inaccordance 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 International Financial Reporting Standards as adopted by the European Union. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

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

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Ledger Sparks Audit LLP (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report was approved by the board and signed on its behalf.

ON BEHALF OF THE BOARD:

H Kocak - Director

31 December 2021

Opinion

We have audited the financial statements of Stripe Consulting Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 International Financial Reporting Standards (IFRSs) as adopted by the European Union.

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with IFRSs as adopted by the European Union; and

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

- It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Bobby Gurdep Bhogal FCCA (Senior Statutory Auditor)

for and on behalf of Ledger Sparks Audit LLP (Statutory Auditors)

Airport House

Suite 43-45

Purley Way

Croydon

CR0 0XZ

31 December 2021

CONTINUING OPERATIONS

Revenue

2,539,280

3,894,546

Cost of sales

(1,450,793

)

(2,280,973

)

GROSS PROFIT

1,088,487

1,613,573

Administrative expenses

(314,460

)

(330,934

)

OPERATING PROFIT

774,027

1,282,639

Finance costs

5

(23,011

)

9

Finance income

5

1,838

813

PROFIT BEFORE INCOME TAX

6

752,854

1,283,461

Income tax

7

(146,749

)

(245,283

)

PROFIT FOR THE YEAR

606,105

1,038,178

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

606,105

1,038,178

ASSETS

NON-CURRENT ASSETS

Owned

Intangible assets

9

-

-

Property, plant and equipment

10

49,897

67,331

Right-of-use

49,897

67,331

CURRENT ASSETS

Trade and other receivables

11

2,634,008

580,396

Cash and cash equivalents

12

372,683

727,791

3,006,691

1,308,187

TOTAL ASSETS

3,056,588

1,375,518

EQUITY

SHAREHOLDERS' EQUITY

Called up share capital

13

100

100

Retained earnings

14

1,682,567

1,076,462

TOTAL EQUITY

1,682,667

1,076,562

LIABILITIES

NON-CURRENT LIABILITIES

Deferred tax

17

9,481

12,793

CURRENT LIABILITIES

Trade and other payables

15

951,676

46,470

Tax payable

412,764

239,693

1,364,440

286,163

TOTAL LIABILITIES

1,373,921

298,956

TOTAL EQUITY AND LIABILITIES

3,056,588

1,375,518

The financial statements were approved by the Board of Directors and authorised for issue on 31 December 2021 and were signed on its behalf by:

H Kocak - Director

S R Lefevre - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2018

100

297,152

297,252

Changes in equity

Dividends

-

(258,868

)

(258,868

)

Total comprehensive income

-

1,038,178

1,038,178

Balance at 31 December 2019

100

1,076,462

1,076,562

Changes in equity

Total comprehensive income

-

606,105

606,105

Balance at 31 December 2020

100

1,682,567

1,682,667

Cash flows from operating activities

Cash generated from operations

1

(339,679

)

992,474

Interest paid

(23,011

)

9

Tax paid

23,010

(119,076

)

Net cash from operating activities

(339,680

)

873,407

Cash flows from investing activities

Purchase of tangible fixed assets

(17,267

)

(45,351

)

Sale of tangible fixed assets

1

-

Interest received

1,838

813

Net cash from investing activities

(15,428

)

(44,538

)

Cash flows from financing activities

Amount introduced by directors

-

2,766

Equity dividends paid

-

(258,868

)

Net cash from financing activities

-

(256,102

)

(Decrease)/increase in cash and cash equivalents

(355,108

)

572,767

Cash and cash equivalents at beginning of year

2

727,791

155,024

Cash and cash equivalents at end of year

2

372,683

727,791

1.	RECONCILIATION OF PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Profit before income tax

752,854

1,283,461

Depreciation charges

12,527

15,951

Loss on disposal of fixed assets

22,173

-

Finance costs

23,011

(9

)

Finance income

(1,838

)

(813

)

808,727

1,298,590

Increase in trade and other receivables

(2,053,612

)

(270,046

)

Increase/(decrease) in trade and other payables

905,206

(36,070

)

Cash generated from operations

(339,679

)

992,474

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

372,683

727,791

Period ended 31 December 2019

31.12.19

1.8.18

£

£

Cash and cash equivalents

727,791

155,024

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

BASIS OF PREPARATION

This is the first set of financial statements prepared by Stripe Consulting Limited in accordance with the 'IFRS for Small and Medium-sized Entities' issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements have been prepared under the historical cost convention.

Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the company .

The following new standards, amendments and interpretations to existing standards have been published that are mandatory for later accounting periods but which were all effective from 1 January 2017:

There are no new standards or amendments that could have a material impact on the company's financial statements of which application was not mandatory at 1 January 2019.

None of these had a material impact on the company.

TURNOVER

Turnover represents amounts receivable for goods and services net of trade discounts.

INTANGIBLE FIXED ASSETS OTHER THAN GOODWILL

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

PROPERTY, PLANT AND EQUIPMENT

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

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

TAXATION

The tax expense represents the sum of the tax currently payable and deferred tax.

CURRENT TAX

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

HIRE PURCHASE AND LEASING COMMITMENTS

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease.

EMPLOYEE BENEFIT COSTS

Defined contribution pension plan

The company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

GOING CONCERN

At the time of approving the financial statements , the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The World Health Organisation declared the outbreak of a coronavirus (COVID-19) a pandemic. The COVID-19 outbreak in the United Kingdom has resulted in the temporary lockdown and reduction of operations which have been government mandated. The director's have reviewed and factored potential delays and reassess cash flow forecasts and budgets, which show that the company would have sufficient working capital for at least a year from the date these Financial Statements are approved. This is based on the assumptions that the budgeted forecasts are achievable,and governments continue to support construction industry. Given the above, the directors consider it appropriate to adopt a going concern basis in preparing the financial statements.

REPORTING PERIOD

The entity had extended the previous year end by 5 months to 31 December 2019 to make it in line with the ultimate parent company and therefore, the comparative amounts presented in the financial statements are not entirely comparable.

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Income and Retained earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance sheet.

TRADE RECEIVABLES

Trade and other receivables are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost less a provision for expected credit losses.

TRADE PAYABLES

On initial recognition, trade payables and other payable items are measured at fair value. After initial recognition, trade payables and other payable items are carried at amortised cost. The difference between the carrying amount of a financial liability (or part thereof) that is redeemed or is transferred to a third party and the amount paid, including any transfer of assets other than cash and cash equivalents or assumed liabilities, is recognised in profit or loss.

CASH AND CASH EQUIVALENTS

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

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

4.	EMPLOYEES AND DIRECTORS

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Wages and salaries

634,579

693,586

Social security costs

109,751

71,135

Other pension costs

23,435

16,309

767,765

781,030

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

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

Employees

16

14

Director

-

1

16

15

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Directors' remuneration

-

11,483

5.	NET FINANCE COSTS

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Finance income:

Bank interest receivable

1,838

813

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Finance costs:

Interest on overdue taxation

5,841

(9

)

Penalty on overdue taxation

17,170

-

23,011

(9

)

Net finance costs

21,173

(822

)

6.	PROFIT BEFORE INCOME TAX

The profit before income tax is stated after charging:

2020

2019

£

£

Cost of inventories recognised as expense

1,450,792

2,280,973

Other operating leases

17,562

23,628

Depreciation - owned assets

12,527

15,951

7.	INCOME TAX

Analysis of tax expense

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Current tax:

Corporation Tax

150,061

239,697

Deferred tax

(3,312

)

5,586

Total tax expense in statement of comprehensive income

146,749

245,283

FACTORS AFFECTING THE TAX EXPENSE

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

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Profit before income tax

752,854

1,283,461

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

143,042

243,858

Effects of:

Timing difference

123

(4,161

)

Deferred Tax

(3,312

)

5,586

Capital allowance in access of depreciation

(901

)

-

Expenses not allowable for tax purposes

7,797

-

Tax expense

146,749

245,283

8.

DIVIDENDS

Period

1.8.18

Year Ended

to

31.12.20

31.12.19

£

£

Ordinary shares of £1 each

Interim

-

258,868

9.	INTANGIBLE ASSETS

Development

costs

£

COST

At 1 January 2020

and 31 December 2020

5,105

AMORTISATION

At 1 January 2020

and 31 December 2020

5,105

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

-