BENTLEY_DESIGNS_(UK)_LIMI - Accounts
BENTLEY_DESIGNS_(UK)_LIMI - Accounts
Company Registration No. 02159353 (England and Wales)
DIRECTORS REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2015
COMPANY INFORMATION
Directors
Secretary
Company number
Registered office
Auditors
Hardy & Company
Chartered Accountants
860 - 862 Garratt Lane
London
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 5
Profit and loss account
6
Balance sheet
7
Cash flow statement
8
Notes to the financial statements
10 - 17
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 1 -
The directors present the strategic report and financial statements of Bentley Designs (UK) Limited ( 'the company' ) for the year ended 30 September 2015.
Review of the business
The principal activity of the company continued to be that of import and wholesale of furniture. The directors consider the company's performance to be satisfactory in a difficult and competitive trading environment. They continue to monitor the business pro-actively taking appropriate action when required without sacrificing its high business and ethical standards. The company continues its policy of providing quality goods and services to its customers.
The directors and management use the following financial KPIs to assess business performance and to monitor it:
Financial
Sales for the year £28.8m (2014: £26.4m)
Stock turnover period: 82 days (2014: 78 days)
Sales credit period: 41 days (2014: 55 days)
Purchase credit period: 113 days (2014: 121 days)
Non-financial
The company also uses the following non-financial indicators:
(1) Responding to customers' feedback and meeting their requirements is considered as critical for the growth of the business.
(2) Monitoring of customer complaints and reviewing the reasons for returns from customers is routinely undertaken. This information is broken down by range, by product and by customer for investigative purposes aimed at satisfactory resolution.
(3) Monitoring of product quality at production level and the securing of timely deliveries from the manufacturer aimed at customer satisfaction.
Principal Risks Facing the Business
The company is exposed to the exchange rate risk. It tries to mitigate against it by buying foreign currency as and when the rate seems favourable. The company is also reliant upon one main supplier with whom it has had excellent trading relationship for over 20 years, and that relationship continues to become stronger over time.
Future Developments
The company's objective is for its continued organic growth based on the quality of the product and service.
By order of the board
Secretary
28 April 2016
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 2 -
The directors present their report and financial statements of Bentley Designs (UK) Limited ( 'the company' ) for the year ended 30 September 2015.
Results and dividends
The results for the year are set out on page 6.
During the year the company paid dividends of £250,000.
Post balance sheet events
There were no post balance sheet events to report which would have a bearing upon the financial statements for the year.
Directors
The following directors have held office since 1 October 2014:
Financial instruments
Foreign currency risk
The company is exposed to the volatility in exchange rates as a large proportion of its purchases are made in a foreign currency. The directors forward purchase foreign currency when the exchange rates are favourable.
Debtors, credit risk and stock management
The company's principal financial assets are trade debtors and stock. In order to manage the risks, the directors diligently monitor stocks and debtors on a monthly basis and set appropriate credit limits for customers based on a combination of payment history and credit worthiness.
Auditors
Hardy & Company, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488(1) of the Companies Act 2006.
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 3 -
Statement of directors' responsibilities
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.
Statement of disclosure to auditors
By order of the board
Secretary
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF BENTLEY DESIGNS (UK) LIMITED
- 4 -
We have audited the financial statements of Bentley Designs (UK) Limited ( 'the company' ) for the year ended 30 September 2015 set out on pages 6 to 17. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 an auditors' report 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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on pages 2 - 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors' Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the company's affairs as at 30 September 2015 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF BENTLEY DESIGNS (UK) LIMITED
- 5 -
Matters on which we are required to report by exception
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.
for and on behalf of Hardy & Company
Chartered Accountants
Statutory Auditor
860 - 862 Garratt Lane
London
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 6 -
2015
2014
Notes
£
£
Turnover
2
Cost of sales
(23,714,130 )
(20,883,255 )
Gross profit
Distribution costs
(1,386,094 )
(1,487,951 )
Administrative expenses
(3,062,563 )
(3,190,661 )
Other operating income
(17,522 )
Operating profit
3
Other interest receivable and similar income
6
Interest payable and similar charges
7
(272 )
(1,115 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
8
(149,678 )
(195,788 )
Profit for the year
18
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
The notes to the financial statements are from page 10 to page 19.
BALANCE SHEET
AS AT
30 SEPTEMBER 2015
- 7 -
2015
2014
Notes
£
£
£
£
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one year
13
(8,018,751 )
(7,828,898 )
Net current assets
Total assets less current liabilities
Provisions for liabilities
14
(225,957 )
(207,452 )
Capital and reserves
Called up share capital
17
Profit and loss account
18
Shareholders' funds
19
Approved by the Board and authorised for issue on 28 April 2016
Director
Director
Company Registration No. 02159353
CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 8 -
2015
2014
Notes
£
£
£
£
Net cash inflow from operating activities
888,770
897,074
Returns on investments and servicing of finance
Interest received
1,015
608
Interest paid
(272)
(1,115)
Net cash inflow/(outflow) for returns on investments and servicing of finance
743
(507)
Taxation
(194,652 )
(32,126 )
Capital expenditure
Payments to acquire tangible assets
(99,297)
(114,978)
Receipts from sales of tangible assets
8,500
8,875
Net cash outflow for capital expenditure
(90,797)
(106,103)
Equity dividends paid
(250,000)
(250,000)
Net cash inflow before management of liquid resources and financing
Financing
Issue of ordinary share capital
-
200
Issue of shares
-
400
Net cash (outflow)/inflow from financing
-
400
Increase in cash in the year
508,738
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 9 -
1
Reconciliation of operating profit to net cash inflow from operating activities
2015
2014
£
£
Operating profit
Depreciation of tangible assets
150,020
147,830
Loss on disposal of tangible assets
Increase in stocks
(882,658)
(82,335)
Decrease/(increase) in debtors
670,688
(968,769)
Increase in creditors within one year
233,698
879,535
Other reserve movement
19,634
19,634
Net cash inflow from operating activities
888,770
897,074
2
Analysis of net funds
1 October 2014
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
354,063
-
Bank deposits
-
-
-
-
Net funds
354,063
-
3
Reconciliation of net cash flow to movement in net funds
2015
2014
£
£
Increase in cash in the year
Movement in net funds in the year
354,063
508,738
Opening net funds
185,060
Closing net funds
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 10 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Land and buildings Leasehold
Plant, Fixtures & Fittings
Motor vehicles
1.5
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Stock
Stock is valued at the lower of cost and net realisable value. The cost is determined using first-in, first-out (FIFO) method. The net realisable value is based upon the feedback from customers during the course of normal business and at the annual NEC Exhibition about the future demand for different ranges, the orders in the pipeline and the prevailing market conditions.
1.7
Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. The company also makes contributions to an approved self-administered pension scheme, the beneficiary of which is a director.
1.8
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.9
Foreign currency translation
Transactions during the year in foreign currency are translated at a fixed rate determined by the directors at the beginning of the year, with all the monetary assets and liabilities denominated in foreign currency retranslated into pound sterling at the balance sheet date. Any exchange gain or loss is taken to the profit and loss account.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 11 -
2
Turnover
Geographical market
Turnover
2015
2014
£
£
United Kingdom
28,871,436
26,408,129
3
Operating profit
2015
2014
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Loss on disposal of tangible assets
6,261
27,449
Loss on foreign exchange transactions
-
Operating lease rentals
- Plant and machinery
41,950
43,713
- Other assets
632,100
632,100
Auditor's remuneration
37,300
36,300
and after crediting:
Profit on foreign exchange transactions
-
(26,941 )
Auditors' remuneration
Fees payable to the company's auditor for the audit of the company's annual accounts
Tax advisory services
2,000
2,000
Other services
7,000
7,000
37,300
36,300
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 12 -
4
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2015
2014
Number
Number
Sales and Design
17
18
Finance and Admin
15
20
Warehouse and Transport
32
25
64
63
Employment costs
2015
2014
£
£
Wages and salaries
Social security costs
Other pension costs
The £65,390 pension costs include £61,805 in respect of a defined contribution scheme and £3,585 in respect of an approved self-administered pension scheme.
5
Directors' remuneration
2015
2014
£
£
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
155,711
285,100
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2014 - 2).
6
Investment income
2015
2014
£
£
Bank interest
1,015
608
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 13 -
7
Interest payable
2015
2014
£
£
On bank loans and overdrafts
8
Taxation
2015
2014
£
£
Domestic current year tax
U.K. corporation tax
Total current tax
Deferred tax
Origination and reversal of timing differences
(1,129)
1,136
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 20.50% (2014 - 23.00%)
Effects of:
Non-deductible expenses
Depreciation add back
30,004
34,001
Capital allowances
(21,929)
(35,286)
Chargeable disposals
1,252
6,313
Effect of change in tax rate from 23% to 21% (Effective 06 April 2014)
-
(9,009)
Marginal relief
(947)
(3,003)
8,974
(6,189)
Current tax charge for the year
9
Dividends
2015
2014
£
£
Ordinary final paid
250,000
250,000
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 14 -
10
Tangible fixed assets
Land and buildings Leasehold
Plant, Fixtures & Fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2014
Additions
-
Disposals
-
(45,302 )
-
(45,302 )
At 30 September 2015
Depreciation
At 1 October 2014
On disposals
-
(30,541 )
-
(30,541 )
Charge for the year
At 30 September 2015
Net book value
At 30 September 2015
At 30 September 2014
11
Stocks
2015
2014
£
£
Finished goods and goods for resale
12
Debtors
2015
2014
£
£
Trade debtors
Corporation tax
Called up share capital not paid
Other debtors
Prepayments and accrued income
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 15 -
13
Creditors: amounts falling due within one year
2015
2014
£
£
Trade creditors
Corporation tax
Other taxes and social security costs
Other creditors
Accruals and deferred income
The company has in place an overdraft facility of £1,000,000 and forward foreign currency deals limit of USD13m, secured in favour of Habib Bank AG Zurich by a fixed and floating charge over the book debts of the company.
14
Provisions for liabilities
Deferred tax liability
Property Provision
Total
£
£
£
Balance at 1 October 2014
207,452
Profit and loss account
(1,129 )
Balance at 30 September 2015
Property provisions comprise obligations for future rents and rates payable under onerous and vacant property leases and, additionally, provisions for dilapidations payable under property leases. The provisions are expected to be utilised over the period to September 2017.
The deferred tax liability is made up as follows:
2015
2014
£
£
Accelerated capital allowances
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 16 -
15
Financial commitments
At 30 September 2015 the company was committed to making the following payments under non-cancellable operating leases in the year to 30 September 2016:
Land and buildings
Other
2015
2014
2015
2014
£
£
£
£
Operating leases which expire:
Within one year
-
-
Between two and five years
-
-
In over five years
-
-
16
Retirement Benefits
Defined contribution scheme
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund.
2015
2014
£
£
Contributions payable by the company for the year
17
Share capital
2015
2014
£
£
Allotted, called up and fully paid
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2015
- 17 -
18
Statement of movements on profit and loss account
Profit
and loss
account
and loss
account
£
Balance at 1 October 2014
Profit for the year
Dividends paid
(250,000 )
Balance at 30 September 2015
19
Reconciliation of movements in Shareholders' funds
2015
2014
£
£
Profit for the financial year
Dividends
(250,000 )
(250,000 )
292,192
427,435
Proceeds from issue of shares
-
400
Net addition to shareholders' funds
Opening Shareholders' funds
Closing Shareholders' funds
20
Related party relationships and transactions
The bank facilities referred to under note 13 are additionally secured by a personal guarantee of Mr A Lalani, a director. There were no transactions during the year with the related parties.
21
Control
The company is majority owned by the director Arif Lalani who is the ultimate controlling party.