Special Piping Materials (Scotland) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06226957 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2018

for

SPECIAL PIPING MATERIALS (SCOTLAND)

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

P Buckley

M L Buckley

L Buckley

J Hutchinson

Secretary:

M L Buckley

Registered office:

Unit 26

Globe Industrial Estate

Cheshire

Dukinfield

Cheshire

SK16 4UU

Registered number:

06226957 (England and Wales)

Auditors:

Haines Watts Manchester Limited, Statutory Auditor

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

Fixed assets

Tangible assets

4

47,429

73,912

Current assets

Stocks

1,400,733

1,055,410

Debtors

5

1,695,370

1,313,922

Cash at bank and in hand

802,869

636,449

3,898,972

3,005,781

Creditors

Amounts falling due within one year

6

2,103,804

1,156,604

Net current assets

1,795,168

1,849,177

Total assets less current liabilities

1,842,597

1,923,089

Creditors

Amounts falling due after more than one year

7

-

26,080

Net assets

1,842,597

1,897,009

Capital and reserves

Called up share capital

10

1,150

1,150

Share premium

29,885

29,885

Retained earnings

1,811,562

1,865,974

Shareholders' funds

1,842,597

1,897,009

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 18 July 2019 and were signed on its behalf by:

L Buckley - Director

1.	Statement of compliance

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

2.	Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future event that are believed to be reasonable under the circumstances.

There are not considered to be any critical judgements in applying the company's accounting policies.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will,

by definition, seldom equal the related actual results. The only estimate and assumption which has a significant

risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year

is the potential need for a stock provision. This is based on management's best estimate of the saleability of

stock.

Turnover

Turnover represents net invoices sales of goods, excluding value added tax. Income is recognised when goods

are despatched.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33% straight line and 15% straight line

Fixtures and fittings

-

15% straight line

Motor vehicles

-

25% straight line

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete

and sell.

Cost includes all purchase, transport and handling costs in bringing stocks to their present location and

condition.

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 profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The 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.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at

transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured

at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies that

are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a

financing transaction, where the debt instrument is measured at the present value of the future receipts

discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

3.	Employees and directors

The average number of employees during the year was 12 (2017 - 10 ) .

4.	Tangible fixed assets

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

Cost

At 1 January 2018

100,872

105,640

151,723

358,235

Additions

-

14,715

23,122

37,837

Disposals

-

-

(73,283

)

(73,283

)

At 31 December 2018

100,872

120,355

101,562

322,789

Depreciation

At 1 January 2018

85,427

92,553

106,343

284,323

Charge for year

9,333

11,279

25,389

46,001

Eliminated on disposal

-

-

(54,964

)

(54,964

)

At 31 December 2018

94,760

103,832

76,768

275,360

Net book value

At 31 December 2018

6,112

16,523

24,794

47,429

At 31 December 2017

15,445

13,087

45,380

73,912

Included within the net book value of tangible fixed assets is £7,451 (2017 - £45,379) in respect of assets held

under finance lease agreements. Depreciation for the year on these assets was £13,721 (2017 - £37,931).

5.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

1,682,994

1,201,623

Amounts owed by group undertakings

1,156

36,655

Other debtors

11,220

75,644

1,695,370

1,313,922

Financial assets that are measured at amortised cost include trade debtors and other debtors.

6.

Creditors: amounts falling due within one year

2018

2017

£

£

Preference shares

1

1

Hire purchase contracts (see note 8)

26,080

50,002

Trade creditors

1,128,530

687,061

Amounts owed to group undertakings

766,304

260,758

Corporation tax

86,058

47,788

VAT

-

107,810

Other creditors

5,673

3,184

Directors' current accounts

43,333

-

Accruals and deferred income

47,825

-

2,103,804

1,156,604

Financial liabilities measured at amortised cost include trade creditors and other creditors.

The preference share, which is held by a minority interest, is redeemable on certain trigger events by the parent

company.

7.

Creditors: amounts falling due after more than one year

2018

2017

£

£

Hire purchase contracts (see note 8)

-

26,080

8.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

26,080

50,002

Between one and five years

-

26,080

26,080

76,082

Non-cancellable

operating leases

2018

2017

£

£

Within one year

6,303

9,437

Between one and five years

-

6,303

6,303

15,740

9.	Secured debts

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

26,080

76,082

Hire purchase contracts are secured on the assets to which they relate.

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

1,035

'A' ordinary

£1

1,035

1,035

115

'B' ordinary

£1

115

115

1,150

1,150

All shares rank pari passu other than that they are entitled to dividends as declared for each class.

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Antony Sassen (Senior Statutory Auditor)

for and on behalf of Haines Watts Manchester Limited, Statutory Auditor

12.	Related party disclosures

Owner holding a participating interest in Special Piping Materials (Scotland) Limited

2018

2017

£

£

Amounts owed to group undertakings

600,000

300,000

The above loans are interest free and repayable on demand.

Directors of Special Piping Materials (Scotland) Limited

2018

2017

£

£

Amounts due to related parties

43,333

-

The above loans are interest free and repayable on demand.

13.	Ultimate controlling party

The controlling party is Special Piping Materials (Holdings) Limited.

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is

Special Piping Materials (Holdings) Limited. Copies of the group accounts are available from 26 Globe Industrial

Estate, Broadway, Dukinfield, Cheshire SK16 4UU.

The ultimate controlling party is L Buckley.