Bridgford Interiors Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02949108 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2017

for

Bridgford Interiors Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Profit and Loss Account

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTORS:

N S Harrison

P J Cockle

S J Moore

A D Palmer

J D N Harrison

M Fahey

C Baggott

SECRETARY:

N S Harrison

REGISTERED OFFICE:

Bridgford Buildings

Wellington Crescent

Fradley Park

Lichfield

Staffordshire

WS13 8RZ

REGISTERED NUMBER:

02949108 (England and Wales)

AUDITORS:

Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

BANKERS:

Barclays Bank Plc

Maid Marian Way

Nottingham

NG1 6HG

The directors present their strategic report for the year ended 31 December 2017.

REVIEW OF BUSINESS

During the course of the period, the company's principal activity continued to be that of project management across the

UK, specialising in fit out and refurbishment projects in the retail, leisure and commercial sectors.

The results for the 12 month period, as set out on page 7, show a profit on ordinary activities of £1.91m (12 months to

31 December 2016 £1.27m). The total shareholders' funds have increased to £3.23m (31 December 2016 £2.03m).

The performance of the Company is extremely encouraging, considering the fact that it operates within an extremely

competitive environment and the resulting commercial pressures that this brings.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's principal financial instruments comprise bank balances, trade creditors, loans to the company and

finance lease agreements. The main purpose of these instruments is to raise funds for the company's operations and to

finance the company's operations.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to clients

and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is

managed by ensuring sufficient funds are available to meet amounts due.

The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The company

manages these risks by financing its operations through retained profits, supplemented by any bank borrowings where

necessary to fund expansion.

The management objectives are to retain sufficient liquid funds to enable it to meet its day to day requirements,

minimise the company's exposure to fluctuating interest rates, and match the repayment schedule of any external

borrowings or overdrafts with the future cash flows expected to arise' from the company's trading activities.

FINANCIAL KEY PERFORMANCE INDICATORS

The Company has established and recognised key performance indicators to measure progress in achieving its key

business objectives and strategies; these are reviewed on a regular basis.

Sales Turnover and Sales Margins

The company aims to increase turnover year-on-year whilst maintaining and improving its gross profit margin.

Working capital

The company closely monitors its working capital cycle and maintains a healthy cash balance, reducing the need to use

short term borrowing facilities.

FUTURE DEVELOPMENTS

The directors pride themselves on the strong relationships that have developed with its clients and supply chain. As a

result, the Company has strong commitments for future projects, and the directors feel that it is well placed to take

advantage of those opportunities during 2018.

ON BEHALF OF THE BOARD:

N S Harrison - Secretary

20 July 2018

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2017 was £320,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this

report.

N S Harrison

P J Cockle

S J Moore

A D Palmer

J D N Harrison

M Fahey

C Baggott

DISCLOSURE IN THE STRATEGIC REPORT

Matters required to be disclosed under SI (2008) 410 Sch 7 pertaining to the use of Financial Instruments are contained

within the Strategic Report in accordance with s414C(11) of the Companies Act 2006.

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.

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:

N S Harrison - Secretary

20 July 2018

Opinion

We have audited the financial statements of Bridgford Interiors Limited (the 'company') for the year ended

31 December 2017 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and

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 2017 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.

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 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, 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.

Opinion 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 page three, 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of 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.

Wayne Thomas ACA - Senior Statutory Auditor

for and on behalf of Bates Weston Audit Ltd

Statutory Auditors

Chartered Accountants

The Mills

Canal Street

Derby

DE1 2RJ

17 August 2018

TURNOVER

37,062,635

33,625,728

Cost of sales

31,109,296

28,901,951

GROSS PROFIT

5,953,339

4,723,777

Administrative expenses

4,043,667

3,451,435

1,909,672

1,272,342

Other operating income

3,100

385

OPERATING PROFIT

5

1,912,772

1,272,727

Interest receivable and similar income

10,167

5,031

1,922,939

1,277,758

Interest payable and similar expenses

6

9,611

16,566

PROFIT BEFORE TAXATION

1,913,328

1,261,192

Tax on profit

7

360,842

267,804

PROFIT FOR THE FINANCIAL YEAR

1,552,486

993,388

FIXED ASSETS

Tangible assets

9

75,390

-

CURRENT ASSETS

Debtors

10

10,154,034

8,538,321

Cash at bank and in hand

2,588,418

3,436,064

12,742,452

11,974,385

CREDITORS

Amounts falling due within one year

11

9,550,486

9,939,515

NET CURRENT ASSETS

3,191,966

2,034,870

TOTAL ASSETS LESS CURRENT LIABILITIES

3,267,356

2,034,870

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

3,267,256

2,034,770

SHAREHOLDERS' FUNDS

3,267,356

2,034,870

The financial statements were approved by the Board of Directors on 20 July 2018 and were signed on its behalf by:

N S Harrison - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2016

100

1,588,882

1,588,982

Changes in equity

Dividends

-

(547,500

)

(547,500

)

Total comprehensive income

-

993,388

993,388

Balance at 31 December 2016

100

2,034,770

2,034,870

Changes in equity

Dividends

-

(320,000

)

(320,000

)

Total comprehensive income

-

1,552,486

1,552,486

Balance at 31 December 2017

100

3,267,256

3,267,356

1.	STATUTORY INFORMATION

Bridgford Interiors 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by

including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is

calculated as that proportion of total contract value which costs to date bear to total expected costs for that

contract.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated

impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the

location and necessary condition for it to be capable of operating in the manner intended by management.

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:

Leasehold improvements

- 33% on cost

Motor vehicles

- 25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

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

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal

of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those

held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance

leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit or loss over the relevant period. The capital

element of future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Employee benefit trusts

Trusts have been established for the benefit of company employees and certain of their dependents. Monies

previously managed by these trusts are controlled by independent trustees and managed at their discretion.

Long term contract balances

For long term contracts, profit is recognised by reference to the stage of completion of each contract where

there is reasonable certainty that the contract will be profitable. Where the outcome of the contract cannot be

established with reasonable certainty, no profit is recognised. Foreseeable losses are provided for in full at the

point at which the loss is anticipated.

Where amounts invoiced exceed the value of work done, the excess is accounted for as payments received on

account and is included within creditors. Where the value of work done exceeds the amounts invoiced, the

excess is accounted for as amounts recoverable on contracts and is included within debtors.

Judgements in applying accounting policies and key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values

where appropriate. The actual lives of the assets and residual values are assessed annually and may vary

depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation,

product life cycles and maintenance programmes are taken in to account. Residual values consider such things

as future market conditions, the remaining life of the asset and projected disposal values.

Long term contracts are those extending in excess of 12 months and any of a shorter duration which are

material to the activity of the period. Attributable profit is recognised once the outcome of a long term contract

can be assessed with reasonable certainty. Attributable profit is recognised on the days percentage completion

method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

2,555,672

2,436,085

Social security costs

250,306

254,749

Other pension costs

378,121

42,813

3,184,099

2,733,647

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

2017

2016

Production staff

8

8

Administrative staff

47

45

55

53

4.	DIRECTORS' EMOLUMENTS

2017

2016

£

£

Directors' remuneration

766,353

705,746

Directors' pension contributions to money purchase schemes

366,152

26,586

Information regarding the highest paid director is as follows:

2017

2016

£

£

Emoluments etc

150,203

123,741

Pension contributions to money purchase schemes

14,736

370

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2017

2016

£

£

Depreciation - owned assets

26,440

24,577

Profit on disposal of fixed assets

-

(3,100

)

Auditors' remuneration

10,000

14,000

Auditors' remuneration for non audit work

5,500

7,500

Foreign exchange differences

(5,473

)

(368

)

Operating lease costs

196,894

233,421

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Interest payable

9,611

14,752

Hire purchase

-

1,814

9,611

16,566

7.

TAXATION

Analysis of the tax charge

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

2017

2016

£

£

Current tax:

UK corporation tax

348,438

267,804

Adjustment to prior year

12,404

-

Tax on profit

360,842

267,804

Reconciliation of total tax charge 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:

2017

2016

£

£

Profit before tax

1,913,328

1,261,192

Profit multiplied by the standard rate of corporation tax in the UK of 19.246% (2016 - 20%)

368,239

252,238

Effects of:

Expenses not deductible for tax purposes

(1,368

)

12,166

Capital allowances in excess of depreciation

(18,433

)

-

Depreciation in excess of capital allowances

-

3,400

Adjustments to tax charge in respect of previous periods

12,404

-

Total tax charge

360,842

267,804

8.

DIVIDENDS

2017

2016

£

£

Interim

320,000

547,500

9.	TANGIBLE FIXED ASSETS

Leasehold

Motor

improvements

vehicles

Totals

£

£

£

COST

At 1 January 2017

75,760

-

75,760

Additions

-

163,080

163,080

Disposals

-

(67,850

)

(67,850

)

At 31 December 2017

75,760

95,230

170,990

DEPRECIATION

At 1 January 2017

75,760

-

75,760

Charge for year

-

26,440

26,440

Eliminated on disposal

-

(6,600

)

(6,600

)

At 31 December 2017

75,760

19,840

95,600

NET BOOK VALUE

At 31 December 2017

-

75,390

75,390

At 31 December 2016

-

-

-

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

5,886,350

3,851,064

Amounts owed by group undertakings

743,030

743,030

Amounts recoverable on contracts

3,083,283

3,354,711

Other debtors

226,745

244,466

Directors' current accounts

27,729

57,222

Prepayments and accrued income

186,897

287,828

10,154,034

8,538,321

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

6,467,398

6,707,689

Tax

348,438

267,804

Social security and other taxes

551,249

992,398

Other creditors

25,503

18,067

Directors' current accounts

1,210

-

Accruals and deferred income

2,156,688

1,953,557

9,550,486

9,939,515

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2017

2016

£

£

Within one year

298,671

291,734

Between one and five years

354,372

469,853

653,043

761,587

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

100

Ordinary

£1

100

100

14.

RESERVES

Retained

earnings

£

At 1 January 2017

2,034,770

Profit for the year

1,552,486

Dividends

(320,000

)

At 31 December 2017

3,267,256

15.	ULTIMATE PARENT COMPANY

The ultimate parent company of Bridgford Interiors Limited is The Bridgford Group Limited, a company

incorporated in England and Wales. The financial statements of The Bridgford Group Limited can be obtained

from Companies House.