Househam Sprayers Limited - Limited company accounts 20.1
Househam Sprayers Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| HOUSEHAM SPRAYERS LIMITED |
| STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 | to | 3 |
| Report of the Directors | 4 | to | 5 |
| Report of the Independent Auditors | 6 | to | 9 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Statement of Financial Position | 12 |
| Statement of Changes in Equity | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Statement of Cash Flows | 15 | to | 16 |
| Notes to the Financial Statements | 17 | to | 31 |
| HOUSEHAM SPRAYERS LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 27-29 Lumley Avenue |
| Skegness |
| Lincolnshire |
| PE25 2AT |
| BANKERS: |
| 1 Exchange Arcade |
| Cornhill |
| Lincoln |
| Lincolnshire |
| LN5 7HJ |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors present their strategic report for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| The headline results for the year and two preceding years are as follows: |
| Year to | Year to | Year to | Year to |
| 31 December 2020 | 31 December 2019 | 31 December 2018 | 31 December 2017 |
| £ | £ | £ | £ |
| Turnover | 9,298,118 | 10,776,055 | 11,011,842 | 12,019,508 |
| Gross profit | 784,199 | 1,307,511 | 1,092,332 | 1,880,526 |
| Gross profit margin | 8.43% | 12.13% | 9.92% | 15.7% |
| Operatingprofit/(loss) | (267,097 | ) | 164,960 | (292,305 | ) | 390,870 |
| Operating profit margin |
(2.87% |
) |
1.53% |
(2.65% |
) |
3.3% |
| Despite increasingly tough trading continuing in the Agricultural sector, the newly designed self-propelled sprayers continued to sell well but total turnover has decreased in 2020 compared to 2019. |
| The directors have considered the key performance indicators and the current economic conditions in the country and are pleased with the progress made in an increasingly difficult market. |
| The statement of financial position remains strong and the company is in a positive position to manage the variable demand that is forecast in the Agricultural sector for 2021. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The company is affected by a number of factors, the principal ones of which are: |
| - The company is exposed to the risk of negative developments in global and regional economies and financial markets, either directly or through the impact on the company's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, currency fluctuations, restrictions in the availability of credit, business failures in the customer or supplier base, or increases in financing costs, and in the cost of utilities, raw materials and finished products. Such developments might increase operating costs, reduce revenues, lower asset values or result in the business being unable to meet in full its strategic objectives. |
| - The company operates in a competitive market, and failure to compete effectively in terms of price, product specification or levels of service can have an adverse effect on demand and / or margins. |
| The company mitigates risk in several ways: |
| - The company has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting for risk management; for information and reporting systems; for systems of operational and financial internal control; and for monitoring operations and performance. |
| - Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication. |
| - The company operates a recruitment, training and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the company's corporate objectives. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| The key financial performance indicators used by the company are turnover, gross profit and operating profit. The primary statement of financial position indicators are solvency and the working capital position. |
| DEVELOPMENT AND PERFORMANCE |
| The directors are satisfied with the company's financial position and see the current range and the investment in further designs as a good platform for further growth. The directors are focused on a 3 to 5 year strategy of growth that can flex with market conditions. |
| The company actively develops relationships with customers to help grow export activity from within the UK. During the year it has focused greater attention and staff in this area, especially in the new EEC countries and Ukraine, along with further development of the business in Australia and New Zealand. |
| PENSIONS |
| The company operates both a defined contribution pension scheme and a Auto-enrolment scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
| ON BEHALF OF THE BOARD: |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
| PRINCIPAL ACTIVITIES |
| The principal activities of the company in the year under review were those of the manufacture of crop sprayers and the sale of new and used crop spraying machines along with spare parts and service. |
| DIVIDENDS |
| An interim dividend of £ |
| The total distribution of dividends for the year ended 31 December 2020 will be £ |
| RESEARCH AND DEVELOPMENT |
| The company has an in-house research and development activity which is designed to ensure the company remains at the forefront of sprayer technology. Househam Sprayers Limited will continue to develop new products and maximise tax gains by using R&D tax incentives. |
| FUTURE DEVELOPMENTS |
| Market and credit conditions remain challenging for the company, its customers and suppliers. The company has responded by undergoing a process of reorganisation, which has proved to be a positive move for the business and its staff. |
| The company remains a responsive, innovative and flexible operator with a highly motivated and well trained workforce, and is operating successfully despite prevailing headwinds. |
| The directors continue to develop the company both in the UK and overseas in order to ensure a more robust and stronger business, and look forward to the future of the company and the industry sector with cautious optimism. |
| DIRECTORS |
| Other changes in directors holding office are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOUSEHAM SPRAYERS LIMITED |
| Opinion |
| We have audited the financial statements of Househam Sprayers Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOUSEHAM SPRAYERS LIMITED |
| 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 page four, 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| HOUSEHAM SPRAYERS 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. |
| We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
| The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. |
| Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws. |
| Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the health and safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
| Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
| 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 |
| HOUSEHAM SPRAYERS 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 |
| 27-29 Lumley Avenue |
| Skegness |
| Lincolnshire |
| PE25 2AT |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| INCOME STATEMENT |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| REVENUE | 4 |
| Cost of sales |
| GROSS PROFIT |
| Administrative expenses |
| (112,731 | ) | 160,160 |
| Other operating income |
| OPERATING (LOSS)/PROFIT | 6 | ( |
) |
| Interest payable and similar expenses | 7 |
| (LOSS)/PROFIT BEFORE TAXATION | ( |
) |
| Tax on (loss)/profit | 8 | ( |
) | ( |
) |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| (LOSS)/PROFIT FOR THE YEAR | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( |
) |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| STATEMENT OF FINANCIAL POSITION |
| 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Property, plant and equipment | 11 |
| Investments | 12 |
| Investment property | 13 |
| CURRENT ASSETS |
| Inventories | 14 |
| Debtors | 15 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 16 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 17 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Revaluation reserve | 23 |
| Capital redemption reserve | 23 |
| Retained earnings | 23 |
| SHAREHOLDERS' FUNDS | 26 |
| The financial statements were approved the Board of Directors and authorised for issue on |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| Called up | Capital |
| share | Retained | Revaluation | redemption | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2019 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2019 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | ( |
) | ( |
) | ( |
) |
| Balance at 31 December 2020 |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2020 | 2019 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | ( |
) |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid |
| Net cash from operating activities | ( |
) |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Net cash from investing activities | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Other Loan repayments in year | (144,314 | ) | - |
| New HP loans in year | - | 124,723 |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 310,231 | 70,000 |
| Amount withdrawn by directors | (94,659 | ) | (72,063 | ) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year | 2 | (591,393 | ) | (454,958 | ) |
| Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2020 | 2019 |
| £ | £ |
| (Loss)/profit before taxation | ( |
) |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Finance costs | 196,808 | 128,950 |
| (33,002 | ) | 263,924 |
| (Increase)/decrease in inventories | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations | ( |
) |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the 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 | 216,105 | 332,007 |
| Bank overdrafts | ( |
) | ( |
) |
| (666,249 | ) | (591,393 | ) |
| Year ended 31 December 2019 |
| 31.12.19 | 1.1.19 |
| £ | £ |
| Cash and cash equivalents | 332,007 | 903 |
| Bank overdrafts | ( |
) | ( |
) |
| (591,393 | ) | (454,958 | ) |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE STATEMENT OF CASH FLOWS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.20 | Cash flow | At 31.12.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 332,007 | (115,902 | ) | 216,105 |
| Bank overdrafts | (923,400 | ) | 41,046 | (882,354 | ) |
| (591,393 | ) | ( |
) | (666,249 | ) |
| Debt |
| Finance leases | (170,802 | ) | 86,791 | (84,011 | ) |
| Debts falling due within 1 year | (629,157 | ) | 124,663 | (504,494 | ) |
| Debts falling due after 1 year | (100,000 | ) | (282,500 | ) | (382,500 | ) |
| (899,959 | ) | (71,046 | ) | (971,005 | ) |
| Total | (1,491,352 | ) | (145,902 | ) | (1,637,254 | ) |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 1. | GENERAL INFORMATION |
| Househam Sprayers Limited is a company incorporated in England and Wales. The address of the registered offices is given in the company information on page one of these financial statements. The nature of the company's operations and principal activities are detailed in the report of the director's on pages four and five. |
| The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £. |
| The significant accounting policies applied in the preparation of these financial statement's are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Preparation of consolidated financial statements |
| The financial statements contain information about Househam Sprayers Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
| SALE OF GOODS |
| Turnover from the sale of crop sprayers is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
| RENDERING OF SERVICES |
| When the outcome of a transaction can be estimated reliably, turnover from servicing is recognised by reference to the stage of completion at the reporting date. |
| Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
| AMOUNTS RECOVERABLE ON CONTRACTS |
| Revenue is recognised on contracts in accordance with Financial Reporting Standard 102 where the company has obtained a right to consideration. Turnover recognised in this manner is based on an assessment of the fair value of the goods and services provided at the financial reporting date as a proportion of the total value of the contract. Provision is made against unbilled amounts on those contracts where the right to receive payment is contingent on factors outside the control of the company. Unbilled revenue is included in debtors. |
| INTEREST RECEIVABLE |
| Interest income is recognised using the effective interest method. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amorisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Short leasehold | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Tangible Fixed Assets are held at cost less depreciation. |
| Investments in subsidiaries |
| Investments in subsidiary undertakings are recognised at cost. |
| Investment property |
| Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised on the income statement. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
| Taxation |
| Taxation for the year comprises current and deferred tax recognised in the Income Statement, 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 statement of financial position 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. |
| Research and development |
| Expenditure on research and development is written off in the year in which it is incurred. |
| Foreign currencies |
| Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. |
| Monetary assets and liabilities denominated in a foreign currency at the financial reporting date are translated using the closing rate. |
| Hire purchase and leasing commitments |
| Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. |
| Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. |
| Rentals payable and receivable under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Employee benefits |
| When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
| The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
| Provisions |
| Provisions are recognised when the company has an obligation at the financial reporting date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
| Government Grants |
| The company has been in receipt of the Coronavirus Job Retention Scheme grant in the period and this has been recognised in the same period as the relevant wage expenditure. |
| Impairment |
| Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each financial reporting date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the income statement unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
| Financial Instruments |
| The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
| At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Assets held for leasing and leasing income |
| Tangible assets constructed and held for leasing are included within the relevant fixed asset category at cost and depreciated over their estimated useful lives. |
| Second hand machines held for resale, but which may be rented out pending sale, are included as stock. |
| Income from the hiring out of machines is accounted for in the period to which it relates. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
| Stock provisioning |
| The company has products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisions required. When calculating the stock provision, management considers the nature, age and condition of the stock, as well as applying assumptions around the saleability/useability of the stock. |
| Useful economic lives of tangible assets |
| The annual depreciation charge for tangible assets is sensitive to changes in the estimate useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. See note 11 for the carrying amount of the property, plant and equipment and note 2 for the useful economic lives for each class of asset. |
| Impairment of debtors |
| The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for the net carrying amount of trade debtors. |
| 4. | REVENUE |
| The revenue and loss (2019 - profit) before taxation are attributable to the principal activities of the company. |
| An analysis of revenue by geographical market is given below: |
| 2020 | 2019 |
| £ | £ |
| United Kingdom | 8,419,241 | 7,858,901 |
| European Countries | 541,273 | 921,378 |
| Non European Countries | 337,604 | 1,995,776 |
| 5. | EMPLOYEES AND DIRECTORS |
| 2020 | 2019 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 5. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2020 | 2019 |
| Production | 36 | 44 |
| Sales | 5 | 8 |
| Administration | 16 | 23 |
| 2020 | 2019 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| 6. | OPERATING (LOSS)/PROFIT |
| The operating loss (2019 - operating profit) is stated after charging/(crediting): |
| 2020 | 2019 |
| £ | £ |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| Operating lease rentals |
| Research and development |
| Net (gains)/losses on foreign exchange | ( |
) |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2020 | 2019 |
| £ | £ |
| Bank interest |
| Hire purchase interest |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 8. | TAXATION |
| Analysis of the tax credit |
| The tax credit on the loss for the year was as follows: |
| 2020 | 2019 |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) |
| Adjustment re previous years | (28,168 | ) | (58,133 | ) |
| Total current tax | ( |
) | ( |
) |
| Deferred tax: |
| Tax losses carried forward | (16,005 | ) | (1,095 | ) |
| Capital allowances movement | (11,726 | ) | 3,695 |
| Other timing differences | 12,407 | (670 | ) |
| Total deferred tax | ( |
) |
| Tax on (loss)/profit | ( |
) | ( |
) |
| Reconciliation of total tax credit included in profit and loss |
| The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2020 | 2019 |
| £ | £ |
| (Loss)/profit before tax | ( |
) |
| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
( |
) |
| Effects of: |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Adjustments to tax charge in respect of previous periods | ( |
) |
| tax purposes |
| Timing difference | 205 | 2,599 |
| Research and development | (73,257 | ) | (60,848 | ) |
| Losses carried forward | 69,680 | - |
| Total tax credit | (85,578 | ) | (56,203 | ) |
| 9. | DIVIDENDS |
| 2020 | 2019 |
| £ | £ |
| Ordinary share shares of £ 1 each |
| Interim |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 10. | INTANGIBLE FIXED ASSETS |
| Patents |
| and |
| Goodwill | licences | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| AMORTISATION |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| 11. | PROPERTY, PLANT AND EQUIPMENT |
| Short | Plant and | Motor |
| leasehold | machinery | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2020 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 December 2020 |
| DEPRECIATION |
| At 1 January 2020 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The net book value of property, plant and equipment includes £ 59,655 (2019 - £ 187,415 ) in respect of assets held under hire purchase contracts. |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 12. | FIXED ASSET INVESTMENTS |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Registered office: United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2020 | 2019 |
| £ | £ |
| Aggregate capital and reserves |
| 13. | INVESTMENT PROPERTY |
| Total |
| £ |
| FAIR VALUE |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| Fair value at 31 December 2020 is represented by: |
| £ |
| Valuation in 2016 | 160,000 |
| If investment property had not been revalued it would have been included at the following historical cost: |
| 2020 | 2019 |
| £ | £ |
| Cost | 98,224 | 98,224 |
| Investment property was valued on an open market basis on 1 May 2016 by Robert Bell and Company . |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 14. | INVENTORIES |
| 2020 | 2019 |
| £ | £ |
| Raw materials |
| New machines |
| Second hand machines | 1,011,815 | 1,245,576 |
| 15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Trade debtors |
| Amounts recoverable on contracts | 2,862,485 | 2,032,283 |
| Other debtors |
| Tax |
| Deferred tax asset |
| Prepayments and accrued income |
| Deferred tax asset |
| 2020 | 2019 |
| £ | £ |
| Accelerated capital allowances | ( |
) | ( |
) |
| Tax losses carried forward |
| Other timing differences | (11,737 | ) | - |
| 16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans and overdrafts (see note 18) |
| Other loans (see note 18) |
| Hire purchase contracts (see note 19) |
| Trade creditors |
| Amounts owed to group undertakings |
| Other taxes and social security |
| Other creditors |
| Directors' current accounts | 311,486 | 95,914 |
| Accruals and deferred income |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans (see note 18) |
| Hire purchase contracts (see note 19) |
| 18. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2020 | 2019 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Other loan | 367,209 | 511,522 |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 42,500 | - |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments under hire purchase fall due as follows: |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Gross obligations repayable: |
| Within one year |
| Between one and five years |
| Finance charges repayable: |
| Within one year |
| Between one and five years |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Total future minimum lease payments under non-cancellable operating leases are as follows: |
| 2020 | 2019 |
| £ | £ |
| Not later than one year | 76,250 | 95,000 |
| Later than one and not later than five years | 203,750 | 261,250 |
| Later than five years | - | - |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2020 | 2019 |
| £ | £ |
| Bank overdrafts |
| Bank loans |
| Hire purchase contracts | 84,011 | 170,802 |
| Other creditor | 1,276,128 | 1,802,366 |
| Amounts owed to directors | 311,485 | 140,414 |
| The bank overdraft and loan are secured by a charge over all company assets. |
| All monies owed by the company to RJ Willey are secured by a fixed and floating charge over all of the company's assets. |
| Hire purchase and finance lease balances are secured on the assets to which they relate. |
| The other creditor is secured on the stock to which it relates. |
| 21. | DEFERRED TAX |
| £ |
| Balance at 1 January 2020 | ( |
) |
| Movement in year | (15,324 | ) |
| Balance at 31 December 2020 | ( |
) |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary share | £ 1 | 500 | 500 |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 23. | RESERVES |
| Capital |
| Retained | Revaluation | redemption |
| earnings | reserve | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2020 | 1,696,862 |
| Deficit for the year | ( |
) | ( |
) |
| Dividends | ( |
) | ( |
) |
| Tax on property revaluation | 11,737 | (11,737 | ) | - | - |
| At 31 December 2020 | 1,445,343 |
| Retained earnings |
| Includes all current and prior period retained profits and losses less dividends paid. All amounts are distributable. |
| Revaluation reserve |
| The revaluation reserve represents amounts revalued in prior period in relation to the investment property. |
| Capital redemption reserve |
| The statutory, non distributable reserve into which amounts were transferred following the redemption of the company's own shares. |
| 24. | PENSION COMMITMENTS |
| The company pays into a defined contribution scheme for eligible employees. The assets are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions paid by the company to the fund and amounts to £101,944 (2019 £128,385).The balance owed at the year end was £-760 (Debtor) (2019 £3,526). |
| 25. | RELATED PARTY DISCLOSURES |
| 2020 | 2019 |
| £ | £ |
| Sales |
| Purchases |
| Amount due from related party |
| Amount due to related party |
| 2020 | 2019 |
| £ | £ |
| Amount due to related party |
| During the year, a total of key management personnel compensation of £ |
| HOUSEHAM SPRAYERS LIMITED (REGISTERED NUMBER: 02651880) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2020 |
| 26. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
| 2020 | 2019 |
| £ | £ |
| (Loss)/profit for the financial year | ( |
) |
| Dividends | ( |
) | ( |
) |
| Net (reduction)/addition to shareholders' funds | (251,519 | ) | 22,213 |
| Opening shareholders' funds | 1,697,362 | 1,675,149 |
| Closing shareholders' funds | 1,445,843 | 1,697,362 |
| 27. | CONTROLLING PARTY |
| The company is controlled by R J Willey, a director and the majority shareholder. |
| 28. | GOING CONCERN |
| The company has experienced significant supply chain difficulties due to COVID which has resulted in the company suffering losses. The company has a strong balance sheet and guaranteed machine sales in excess of previous years. Following the year end the company has obtained bank financing totalling £450,000. There is therefore no material uncertainty and the accounts have been prepared on the going concern basis. |