Formrite Precision Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05803087 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 June 2019

for

Formrite Precision Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

9

DIRECTORS:

G J Neale

Mrs M M Neale

REGISTERED OFFICE:

Westgate

Aldridge

West Midlands

WS9 8EN

REGISTERED NUMBER:

05803087 (England and Wales)

ACCOUNTANTS:

Tomkinson Teal Limited

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

FIXED ASSETS

Tangible assets

4

755,285

795,517

CURRENT ASSETS

Stocks

192,679

249,066

Debtors

5

476,432

552,429

Cash at bank and in hand

8,971

62,014

678,082

863,509

CREDITORS

Amounts falling due within one year

6

(596,797

)

(797,069

)

NET CURRENT ASSETS

81,285

66,440

TOTAL ASSETS LESS CURRENT LIABILITIES

836,570

861,957

CREDITORS

Amounts falling due after more than one year

7

(331,486

)

(320,839

)

PROVISIONS FOR LIABILITIES

8

(43,886

)

(63,384

)

NET ASSETS

461,198

477,734

CAPITAL AND RESERVES

Called up share capital

9

2

2

Retained earnings

10

461,196

477,732

SHAREHOLDERS' FUNDS

461,198

477,734

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2019 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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors on 5 September 2019 and were signed on its behalf by:

G J Neale - Director

1.	STATUTORY INFORMATION

Formrite Precision 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.

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 as modified by the revaluation of certain assets.

There are no material departures from the standard.

Turnover

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

value added tax and other sales taxes.

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.

Freehold property

-

50 years straight line

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Stocks

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

moving items.

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2018 - 29 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 July 2018

565,000

479,179

85,802

1,129,981

Additions

-

1,662

23,119

24,781

Disposals

-

(630

)

-

(630

)

At 30 June 2019

565,000

480,211

108,921

1,154,132

DEPRECIATION

At 1 July 2018

33,900

277,361

23,203

334,464

Charge for year

11,300

40,640

12,772

64,712

Eliminated on disposal

-

(329

)

-

(329

)

At 30 June 2019

45,200

317,672

35,975

398,847

NET BOOK VALUE

At 30 June 2019

519,800

162,539

72,946

755,285

At 30 June 2018

531,100

201,818

62,599

795,517

Freehold property was revalued on the basis of open market value on 3 September 2015 by Burley Browne,

Chartered Surveyors, and this valuation, after adjustment for depreciation has been included in these accounts

The historical cost of freehold land and buildings included above at a valuation of £565,000 was £458,960.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST OR VALUATION

At 1 July 2018

and 30 June 2019

129,534

DEPRECIATION

At 1 July 2018

37,924

Charge for year

18,323

At 30 June 2019

56,247

NET BOOK VALUE

At 30 June 2019

73,287

At 30 June 2018

91,610

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

365,354

446,754

Amounts owed by group undertakings

111,078

105,675

476,432

552,429

Of the total trade debtors £365,325 (2018 - £432,794) are subject to an invoice discounting agreement and

secured by a fixed charge of non vesting debts and a floating charge.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdraft

39,144

46,211

Hire purchase contracts

19,988

32,671

Factored debt advances

303,277

377,668

Trade creditors

151,826

225,701

Taxation and social security

60,688

53,212

Other creditors

21,874

61,606

596,797

797,069

The bank loan comprises a mortgage loan, the aggregate total of which is £272,981 and is repayable by monthly

installments over a fifteen year period commencing December 2014 and a bank loan, the aggregate total of which

is £40,068 repayable by monthly installments over a three year period commencing October 2018. The interest

rate charged on the mortgage loan is base rate plus 2.44% per annum and the bank loan is 4.62% per annum.

The bank loan is secured by a first legal charge over the company's freehold property, an unlimited debenture

and an all moneys guarantee from the director, G Neale, for a principle amount of £369,206 plus interest and

associated costs.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans

273,906

273,271

Hire purchase contracts

27,580

47,568

Other creditors

30,000

-

331,486

320,839

Amounts falling due in more than five years:

Repayable by instalments

Bank loans by instalments

152,931

187,270

8.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

43,886

63,384

Deferred

tax

£

Balance at 1 July 2018

63,384

Credit to Income Statement during year

(19,498

)

Balance at 30 June 2019

43,886

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

2

Ordinary

£1

2

2

10.

RESERVES

Retained

earnings

£

At 1 July 2018

477,732

Profit for the year

30,764

Dividends

(47,300

)

At 30 June 2019

461,196

11.	RELATED PARTY DISCLOSURES

The following reproduces the text of the report prepared for the directors 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 Directors 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 Formrite Precision Limited for the year ended 30 June 2019 which comprise the Profit and loss

account, 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 Board of Directors of Formrite Precision Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Formrite Precision Limited and state those matters that we have agreed to state to the Board of Directors of Formrite Precision Limited, as a body, 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 Formrite Precision Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Formrite Precision Limited 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 Formrite Precision Limited. You consider that Formrite Precision Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Formrite Precision Limited. 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.

Tomkinson Teal Limited

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

5 September 2019