S.C. Drylining Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05597243 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2018

FOR

S.C. DRYLINING LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S Christian

Mrs C Christian

SECRETARY:

Mrs C Christian

REGISTERED OFFICE:

Unit 4 Shelley Farm

Shelley Lane

Ower

Romsey

Hampshire

SO51 6AS

REGISTERED NUMBER:

05597243 (England and Wales)

ACCOUNTANTS:

AvantEdge Limited

Unit 4 Shelley Farm

Shelley Lane

Ower

Romsey

Hampshire

SO51 6AS

FIXED ASSETS

Tangible assets

4

26,721

35,826

CURRENT ASSETS

Stocks

180,000

-

Debtors

5

558,254

700,678

Cash at bank and in hand

129,550

75,187

867,804

775,865

CREDITORS

Amounts falling due within one year

6

806,728

705,364

NET CURRENT ASSETS

61,076

70,501

TOTAL ASSETS LESS CURRENT LIABILITIES

87,797

106,327

CREDITORS

Amounts falling due after more than one year

7

(63,889

)

(80,556

)

PROVISIONS FOR LIABILITIES

(6,807

)

(6,807

)

NET ASSETS

17,101

18,964

CAPITAL AND RESERVES

Called up share capital

10

10

Retained earnings

17,091

18,954

17,101

18,964

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 31 July 2019 and were signed on its behalf by:

S Christian - Director

Mrs C Christian - Director

1.	STATUTORY INFORMATION

S.C. Drylining Ltd 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Revenue is recognised when ownership of goods is transferred.

Tangible fixed assets

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or

valuation, net of depreciation and any impairment losses.

The gain or loss arising of the disposal of an asset is determined as the difference between

the sale proceeds and the carrying value of the asset, and is credited or charged to profit or

loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible

assets to determine whether there is any indication that those assets have suffered and

impairment loss. If any such indication exists, the recoverable amount of the asset is

estimated in order to determine the extent of the impairment loss (if any). Where it is not

possible to estimate the recoverable amount if an individual asset, the company estimates

the recoverable amount of cash-generating unit to which the asset belongs.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Stocks are stated at the lower of cost and estimated selling price less costs to compete and

sell. Cost comprises direct materials and, where applicable, direct labour costs and those

overheads that have been incurred in bringing the stocks to their present location and

condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying

amount of stocks over its estimated selling price less costs to complete and sell is recognised

as and impairment loss in profit or loss. Reversals of impairment losses are also recognised

in profit or loss.

Taxation

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

Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from

net profit as reported in the profit and loss account because it excludes items of income or

expense that are taxable or deductible in other years and it further excludes items that are

never taxable or deductible. The company's liability for current tax is calculated using tax

rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax

assets are recognised to the extent that it is probable that they will be recovered against the

reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities

are not recognised if the timing differences arises from goodwill or from the initial

recognition of assets and liabilities in a transaction that affects neither the tax profit nor the

accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and

reduced to the extent that it is no longer probable that sufficient taxable profits will be

available to allow all or part of the asset to be recovered. Deferred tax is calculated at the

tax rates that are expected to apply in the period when the liability is settles or the asset is

realised. Deferred tax is charged or credited in the profit and loss account, except when it

relates to items charged or credited directly to equity, in which case the deferred tax is also

dealt with in equity. Deferred tax assets and liabilities are offset when the company has a

legally enforceable right to offset current tax assets and liabilities and deferred tax assets

and liabilities relate to taxes levied by the same tax authority.

Employee

The cost of short-term benefits are recognised as a liability and an expense, unless those

costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the

employee's services are received.

Termination benefits are recognised immediately as an expense when the company is

demonstrably committed to terminate the employment of an employee or to provide

termination benefits.

Provisions

Provisions are recognised when the Company has a present legal or constructive obligation

arising as a result of a past event, it is probable that an outflow of economic benefits will be

required to settle the obligation and a reliable estimate can be made. Provisions are

measured at the present value of the expenditures expected to be required to settle the

obligations taking into account the risks and uncertainties surrounding the obligation.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits

held at call with banks, other short term liquid investments with original maturities of three

months or less and bank overdrafts. Bank overdrafts are shown within borrowings in

current liabilities.

Financial Instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments'

and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial

instruments. Financial instruments are recognised in the company's balance sheet when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial

statements, when there is a legally enforceable right to set off the recognised amounts and

there is an intention to settle on a net basis or to realise the asset and settle the liability

simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially

measured at transaction price including transaction costs and are subsequently carried at

amortised cost using the effective interest method unless the arrangement constitutes a

financial transaction, where the transaction is measured at the present value of the future

receipts discounted at a market rate of interest. Financial assets classified as receivable

within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the

contractual arrangements entered into. An equity instrument is any contract that evidences

a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group

companies and preference share 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 payments discounted at a

market rate of interest. Financial liabilities classified as payable within one year are not

amortised.

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. Amounts payable are classified as current

liabilities if payment is due within one year or less. If not, they are present as non-current

liabilities. Trade creditors are recognised initially at transaction price and subsequently

measured at amortised cost using the effective interest method.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of

direct issue costs. Dividends payable on equity instruments are recognised as liabilities

once they are no longer at the discretion of the company.

Pensions

For a defined benefit scheme, the liability recorded in the balance sheet is the present value

of the defined obligation at that date. The defined benefit obligation is calculated on an

annual basis by independent actuaries. Actuarial gains and losses are recognised in full in

the period in which they occur and are shown in Other Comprehensive Income. Current and

past service costs, along with settlements or curtailments, are charged to the Income

Statement. Interest on pension plan liabilities are recognised within finance expense.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2017 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 November 2017

and 31 October 2018

71,909

DEPRECIATION

At 1 November 2017

36,083

Charge for year

9,105

At 31 October 2018

45,188

NET BOOK VALUE

At 31 October 2018

26,721

At 31 October 2017

35,826

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.18

31.10.17

£

£

Trade debtors

420,525

614,094

Other debtors

137,729

86,584

558,254

700,678

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.18

31.10.17

£

£

Hire purchase contracts

6,667

6,667

Trade creditors

248,325

336,471

Taxation and social security

33,407

24,728

Other creditors

518,329

337,498

806,728

705,364

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.18

31.10.17

£

£

Hire purchase contracts

3,889

10,556

Other creditors

60,000

70,000

63,889

80,556

8.	ULTIMATE CONTROLLING PARTY

During the year and comparative year, there was no single controlling party, but through

collaboration the shareholders control the company.

9.	EMPLOYER PENSION OBLIGATIONS

The Company has agreed to fund a defined benefit pension scheme in respect of key

employees. The most recent actuarial valuation of the obligations of £385,000 was on 31

October 2018. During the year the expense incurred was £383,000.

The principal assumptions used are:

- Discount rate - 2.8%

- Inflation RPI - 3.2%

- Inflation CPI - 2.1%

- Pre and Post Retirement mortality - S2PA tables with improvements in the CMI

2016 model and a long term rate of improvement of 1.25%

2018

Present value of defined benefit obligations

£385,000

Fair value of scheme assets

£0

Liability recognised in the balance sheet

£385,000

Movements in the present value of the defined benefit obligations were as follows:

2018

At the beginning of the year

£0

Current Service Cost

£380,000

Interest cost

£3,000

Actuarial losses / (gains)

£2,000

At the end of the year

£385,000