Teddington Engineered Solutions Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04688666 (England and Wales)

TEDDINGTON ENGINEERED SOLUTIONS LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 26 AUGUST 2017 TO 31 AUGUST 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

12

DIRECTOR:

P A Greenwood

SECRETARY:

P A Greenwood

REGISTERED OFFICE:

Unit 1

Heol Cropin

Dafen Park

Llanelli

Carmarthenshire

SA14 8QW

REGISTERED NUMBER:

04688666 (England and Wales)

ACCOUNTANTS:

Bevan Buckland LLP

Langdon House

Langdon Road

SA1 Swansea Waterfront

Swansea

SA1 8QY

BANKERS:

Barclays Bank plc

16 Vaughan Street

Llanelli

Carmarthenshire

SA15 3UE

FIXED ASSETS

Intangible assets

4

-

-

Property, plant and equipment

5

233,746

202,350

Investments

6

9

9

233,755

202,359

CURRENT ASSETS

Inventories

663,425

874,108

Debtors

7

3,788,904

3,649,141

Cash at bank and in hand

159,410

274,969

4,611,739

4,798,218

CREDITORS

Amounts falling due within one year

8

1,884,459

1,878,297

NET CURRENT ASSETS

2,727,280

2,919,921

TOTAL ASSETS LESS CURRENT LIABILITIES

2,961,035

3,122,280

CREDITORS

Amounts falling due after more than one year

9

(4,926

)

(190,093

)

PROVISIONS FOR LIABILITIES

(6,109

)

(6,109

)

NET ASSETS

2,950,000

2,926,078

CAPITAL AND RESERVES

Called up share capital

100,200

100,200

Capital redemption reserve

25,000

25,000

Retained earnings

2,824,800

2,800,878

SHAREHOLDERS' FUNDS

2,950,000

2,926,078

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

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

The director acknowledges his 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 director on 28 May 2019 and were signed by:

P A Greenwood - Director

1.	STATUTORY INFORMATION

Teddington Engineered Solutions 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The financial statements are prepared in sterling, which is the functional currency of the company. All

monetary amounts in these financial statements are rounded to the nearest £.

Going Concern

After reviewing the Company's forecasts and projections, the directors have a reasonable expectation

that the Company has adequate resources to continue in operational existence for the foreseeable

future. The Company therefore continues to adopt the going concern basis in preparing its financial

statements.

Significant judgements and estimates

In application of the company's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amount of assets and liabilities that are not readily

apparent from other sources. The estimates and associated assumptions are based on historical

experience and other factors that are considered to be relevant. Actual results may differ from these

estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to

accounting estimates are recognised in the period in which the the estimate is revised where the

revision affects only that period, or in the period of the revision and future periods where the revision

affects both current and future periods.

Useful economic lives of tangible assets

The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful

economic lives and residual values of the assets. The useful economic lives and residual values are

reassessed annually. They are amended when necessary to reflect current estimates, based on

technological advancement, future investments, economic utilisation and the physical condition of the

assets. See accounting policy for Tangible Assets for the useful economic lives of each class of asset.

Impairment of debtors

The company makes an estimate of the recoverable value of the trade and other debtors. when

assessing impairment of trade and other debtors, management considers factors including the ageing

profile of the debtors and historical experience.

Stock provisioning

When considering the recoverability of the cost of stock and the associated provision required,

management considers the nature and condition of the stock, as well as applying assumption around

anticipated saleability of finished goods and usage of raw materials.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

Sales are not recognised until all goods are dispatched and full certification documentation is issued

and accepted by the customer. This is in line with contractual obligation. Where contracts allow part

shipments then the sale is recognised.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Brand Names are being amortised evenly over their estimated useful life of nil years.

Intellectual Property Rights are being amortised evenly over their estimated useful life of nil years.

Intangible assets

Intangible assets are held at cost and are depreciated in line with their deemed useful life.

Tangible fixed assets

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

Improvements to property

-

in accordance with the property lease

Plant and machinery

-

40% on reducing balance and 10% on cost

Fixtures and fittings

-

10%, 33% and 50% on cost

Motor vehicles

-

33% on cost

Computer equipment

-

50% on cost and 33% on cost

The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each

statement of financial position date. Where the carrying amount of an asset is greater than its

estimated recoverable amount, it is written down immediately to its recoverable amount. Gains and

losses on disposals are determined by comparing proceeds with carrying amounts. These are

included in the income statement.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that

those assets have suffered an impairment loss. If there is an indication of possible impairment, the

recoverable amount of any affected asset is estimated and compared with its carrying amount. If

estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable

amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised

estimate of its recoverable amount, but not in excess of the amount that would have been determined

had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss

is recognised immediately in profit or loss.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks and work in progress

Inventories and work in progress are valued at the lower of cost and net realisable value, after making

due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing inventories to their present location and condition.

Net realisable value is based on estimated selling, price less future costs to completion and selling

costs. Cost is determined on a first in first out basis.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at transaction price.

Provisions

A provision is recognised in the statement of financial position when the company has a legal or

constructive obligation as a result of a past event, where it is more likely than not that an outflow of

resources will be required to settle that obligation, and a reliable estimate of the amount can be made.

Where there are a number of similar obligations, the likelihood that an outflow will be required in

settlement is determined by considering the class of obligation as a whole. A provision is recognised

even if the likelihood of an outflow with respect to any one item included in the same class of obligation

may be small.

Taxation

Taxation for the period comprises current and deferred tax. Tax is 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 balance sheet date.

Taxation

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 period 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

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 an average

estimated rate for the accounting period, this varies from the FRS 102 requirements of a "spot rate" for

each transaction, however the effect of this daccounting in accouting policy is not deemed material to

the financial statements. Exchange differences are taken into account in arriving at the operating

result.

Hire purchase and leasing commitments

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.

Invoice discounting

Amounts due in respect of invoice discounting are separately disclosed as current liabilities. The

company can use these facilities to draw down a percentage of the value of certain sales invoices.

The management and collection of trade receivables remains with the company.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the

contractual provisions of the relevant instrument. Financial assets are derecognised when the rights to

receive benefits have expired or been transferred, and the company has transferred substantially all

risks and rewards of ownership. Financial liabilities are derecognised when the obligation is

extinguished.

Non-derivative financial assets are classified as either loans and receivables or cash and cash

equivalents. They are stated at amortised cost using the effective interest method, subject to reduction

for allowances for estimated irrecoverable amounts. A provision for impairment of trade receivables is

established when there is objective evidence that the company will not be able to collect all amounts

due according to the original terms of those receivables. The amount of the provision is the difference

between the asset's carrying amount and the present value of estimated future cash flows, and is

recognised in the income statement. For interest-bearing assets, their carrying value includes accrued

interest receivable.

Cash and cash equivalents include cash in hand and deposits held on call, together with other

short-term highly liquid investments. Non-derivative financial liabilities (classified as other payables)

are stated at amortised cost using the effective interest method. For borrowings, their carrying value

includes accrued interest payable, as well as any unamortised issue costs.

The company transacts derivative financial instruments to manage the underlying exposure to foreign

exchange and interest rate risks. The company does not transact derivative financial instruments for

trading purposes. However, as the company has decided not to hedge account for its derivative

financial instruments as permitted under lAS 39, they are accounted for through the income statement.

Derivative financial assets and liabilities are stated at fair value, which includes accrued interest

receivable and payable where relevant. Changes in fair values are recognised in the income statement

in the period in which they arise.

Government grants

Government grants are recorded initially as deferred income and recognised in the income statement

in line with the expense to which they contribute. For grants in respect of the purchase of property,

plant and equipment, the deferred income is released over the life of the related assets. For grants in

respect of staff costs, the deferred income is released over the monitoring period of the grant offer.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 87 (2017 - 80 ) .

4.	INTANGIBLE FIXED ASSETS

Intellectual

Brand

Property

Names

Rights

Totals

£

£

£

COST

At 26 August 2017

and 31 August 2018

20,000

20,000

40,000

AMORTISATION

At 26 August 2017

and 31 August 2018

20,000

20,000

40,000

NET BOOK VALUE

At 31 August 2018

-

-

-

At 25 August 2017

-

-

-

5.	PROPERTY, PLANT AND EQUIPMENT

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 26 August 2017

512,851

1,109,505

35,785

Additions

-

70,673

-

Disposals

-

(24,732

)

-

At 31 August 2018

512,851

1,155,446

35,785

DEPRECIATION

At 26 August 2017

512,851

923,594

31,717

Charge for period

-

38,571

1,411

Eliminated on disposal

-

(24,732

)

-

At 31 August 2018

512,851

937,433

33,128

NET BOOK VALUE

At 31 August 2018

-

218,013

2,657

At 25 August 2017

-

185,911

4,068

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 26 August 2017

18,020

243,560

1,919,721

Additions

-

7,607

78,280

Disposals

-

-

(24,732

)

At 31 August 2018

18,020

251,167

1,973,269

DEPRECIATION

At 26 August 2017

18,020

231,189

1,717,371

Charge for period

-

6,902

46,884

Eliminated on disposal

-

-

(24,732

)

At 31 August 2018

18,020

238,091

1,739,523

NET BOOK VALUE

At 31 August 2018

-

13,076

233,746

At 25 August 2017

-

12,371

202,350

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 26 August 2017

and 31 August 2018

9

NET BOOK VALUE

At 31 August 2018

9

At 25 August 2017

9

The company holds 100% shareholding of the issued ordinary £1 shares in the following companies:

Teddington Group International Limited

Teddington Hydroflex Limited

Brockington Group International Limited

Genflex Limited

Alpha Bellows Limited

Brockington Bellows Limited

Brockington Engineered Solutions Limited

Teddington Components Limited

All the companies were dormant for the period ended 31 August 2018 and are all registered in England

and Wales.

The net assets of each subsidiary companies at 31 August 2018 (with the exception of Teddington

Components Limited) was £1.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

The company has entered into a contract that provides invoiced discounting facilities in respect of its

trade debtors.

The invoice discounting facility is secured against the company's trade debtors.

Included in other debtors is the amount of £2,029,535 (2017: £2,064,818) owed to Teddington

Engineered Solutions Ltd from it's parent company Teddington Holding Company Ltd. There is also

£112,840 (2017: £219,840) of debt held in Teddington Holding Company Ltd which is secured against

the assets held within Teddington Engineered Solutions Ltd.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

185,167

287,987

Payments on account

-

3,460

Trade creditors

1,320,028

1,315,102

Taxation and social security

39,969

39,690

Other creditors

339,295

232,058

1,884,459

1,878,297

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans

-

185,167

Other creditors

4,926

4,926

4,926

190,093

10.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdraft

-

85,987

Bank loans

185,167

387,167

185,167

473,154

The company's banker Barclays Bank Plc hold the following securities:-

Fixed and floating charges over all the property or undertaking of the company, dated 25/07/2014 and

17/07/2014; and

Deed of charge over credit balances by a chargor for own liabilities, dated 30/03/2015.

Finance Wales Investments (6) Limited hold the following securities:-

Fixed and floating charges over all the property or undertaking of the company, dated 17/07/2014.

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

The company has entered into a contract that provides invoiced discounting facilities in respect of its

trade debtors.

The invoice discounting facility is secured against the company's trade debtors.

11.	RELATED PARTY DISCLOSURES

Included in other debtors is the amount of £2,029,535 (2017: £2,064,818) owed to Teddington

Engineered Solutions Ltd from it's parent company Teddington Holding Company Ltd. There is also

£112,840 (2017: £219,260) of debt held in Teddington Holding Company Ltd which is secured against

the assets held within Teddington Engineered Solutions Ltd.

12.	ULTIMATE CONTROLLING PARTY

The controlling party is P A Greenwood.

The following reproduces the text of the report prepared for the director in respect of the company's

annual unaudited financial statements. In accordance with the Companies Act 2006, the company is

only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain

other primary statements and the Report of the Director are not required to be filed with the Registrar

of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval

the financial statements of Teddington Engineered Solutions Ltd for the period ended 31 August 2018 which

comprise the Income Statement, Balance Sheet and the related notes from the company's accounting

records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of Teddington Engineered Solutions Ltd in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Teddington Engineered Solutions Ltd and state those matters that we have agreed to state to the director of Teddington Engineered Solutions Ltd in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Teddington Engineered Solutions Ltd and its director for our work or for this report.

It is your duty to ensure that Teddington Engineered Solutions Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Teddington Engineered Solutions Ltd. You consider that Teddington Engineered Solutions Ltd is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Teddington Engineered Solutions Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Bevan Buckland LLP

Langdon House

Langdon Road

SA1 Swansea Waterfront

Swansea

SA1 8QY

28 May 2019