Flamefast (U.K.) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03280926 (England and Wales)

Unaudited Financial Statements

for the Period 1 December 2017 to 31 May 2019

for

Flamefast (U.K.) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Directors' Responsibilities Statement

12

Independent Chartered Accountants' Review Report

13

DIRECTORS:

Mr Steven Antony Swinden

Mrs Jane Warburton

Mrs Colleen Swinden

SECRETARY:

Mr Steven Antony Swinden

REGISTERED OFFICE:

1 Heaton Court

Risley Road

Birchwood

Warrington

Cheshire

WA3 6QU

REGISTERED NUMBER:

03280926 (England and Wales)

ACCOUNTANTS:

Nick Brajkovich Limited

29 Withers Avenue

Warrington

Cheshire

WA2 8EU

FIXED ASSETS

Tangible assets

4

172,980

102,797

CURRENT ASSETS

Stocks

5

660,660

525,617

Debtors

6

1,314,835

2,398,183

Cash at bank and in hand

156,823

150,233

2,132,318

3,074,033

CREDITORS

Amounts falling due within one year

7

1,641,004

2,433,947

NET CURRENT ASSETS

491,314

640,086

TOTAL ASSETS LESS CURRENT LIABILITIES

664,294

742,883

CREDITORS

Amounts falling due after more than one year

8

(117,973

)

(146,774

)

PROVISIONS FOR LIABILITIES

10

-

(1,141

)

NET ASSETS

546,321

594,968

CAPITAL AND RESERVES

Called up share capital

11

900

900

Capital redemption reserve

12

100

100

Retained earnings

12

545,321

593,968

SHAREHOLDERS' FUNDS

546,321

594,968

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 May 2019.

The members have not required the company to obtain an audit of its financial statements for the period ended 31 May 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 27 August 2019 and were signed on its behalf by:

Mr Steven Antony Swinden - Director

Mrs Jane Warburton - Director

1.	STATUTORY INFORMATION

Flamefast (U.K.) 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" 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. Monetary

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

The principal accounting policies adopted are set out below.

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.

Significant judgements and estimates

In the 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 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.

Turnover

Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

- the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is generally recognised when they are handed over to the transport firms which,

under the terms of current contracts, mark the time when the above risks and rewards are transferred.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue is stated net of discounts, allowances, rebates and returns, and does not include the proceeds from the

disposal of raw materials and scrap.

Revenue includes also minor cost connected with the sales process, such as certification ,recoveries of cost of

transport, packaging, insurances etc

Revenue for services rendered is recorded in the profit & loss when the service has been provided to the

customer.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of

depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their

useful lives on the following bases:

Plant and machinery

25% on cost

Fixtures and fittings

20-40% on cost

Motor vehicles

25% on Cost

Improvements to property

25% on Cost

The gain or loss arising on 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 and intangible assets

to determine whether there is any indication that those assets have suffered an 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 of an individual asset, the

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset for which

Stocks

Stocks 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 stocks to their present location and condition.

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete 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 an impairment loss in profit or loss.

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

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank,

other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

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 statement of financial position 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 enforcible right to set off the recognised amounts and there is an intention to settle on a net basis or to

realise the net 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 costs using the effective interest

method 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. Financial assets classified as

receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint

ventures, are initially measured at fair value, which is normally the transaction price. Such assets are

subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that

investments in equity instruments that are not publically traded and whose fair values cannot be measured

reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of

impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that

occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If

an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of

the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is

recognised in profit or loss.

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.

Derecognition of financial assets

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

Transactions in foreign currency are translated at exchange rates approximating to the rate ruling at the date of

the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are

translated at the foreign exchange rate ruling at that date. Foreign exchange differences are recognised in the

profit and loss account.

Employee benefits

The costs of short-term employee 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.

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.

Provisions

A provision is recognised in the balance sheet when the company has a constructive or legal obligation as a result

of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation.

Provisions are recognised at their discounted net present value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 39 (2017 - 36 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 December 2017

41,862

136,333

19,324

Additions

-

15,960

6,931

At 31 May 2019

41,862

152,293

26,255

DEPRECIATION

At 1 December 2017

20,921

107,052

9,542

Charge for period

6,280

17,487

7,086

Eliminated on disposal

-

-

-

At 31 May 2019

27,201

124,539

16,628

NET BOOK VALUE

At 31 May 2019

14,661

27,754

9,627

At 30 November 2017

20,941

29,281

9,782

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 December 2017

115,319

87,687

400,525

Additions

124,632

3,610

151,133

Disposals

(69,021

)

-

(69,021

)

At 31 May 2019

170,930

91,297

482,637

DEPRECIATION

At 1 December 2017

96,261

63,952

297,728

Charge for period

37,142

12,955

80,950

Eliminated on disposal

(69,021

)

-

(69,021

)

At 31 May 2019

64,382

76,907

309,657

NET BOOK VALUE

At 31 May 2019

106,548

14,390

172,980

At 30 November 2017

19,058

23,735

102,797

Fixed assets, included in the above, which are held under finance leases are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 December 2017

6,153

30,492

36,645

Additions

-

74,530

74,530

Transfer to ownership

(6,153

)

-

(6,153

)

At 31 May 2019

-

105,022

105,022

DEPRECIATION

At 1 December 2017

4,614

11,435

16,049

Charge for period

1,538

21,161

22,699

Transfer to ownership

(6,152

)

-

(6,152

)

At 31 May 2019

-

32,596

32,596

NET BOOK VALUE

At 31 May 2019

-

72,426

72,426

At 30 November 2017

1,539

19,057

20,596

5.

STOCKS

31.5.19

30.11.17

£

£

Stocks

531,337

465,852

Work-in-progress

129,323

59,765

660,660

525,617

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.19

30.11.17

£

£

Trade debtors

768,658

1,370,560

Amounts owed by group undertakings

375,140

979,364

Other debtors

17,728

10,958

Deferred tax asset

9,083

-

Prepayments and accrued income

81,210

-

Prepayments

63,016

37,301

1,314,835

2,398,183

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.19

30.11.17

£

£

Bank loans and overdrafts

44,696

68,060

Finance leases

12,900

9,913

Payments on account

97,453

-

Trade creditors

581,276

759,955

Tax

16,354

36,650

Social security and other taxes

23,017

33,170

VAT

75,884

62,603

Other creditors

4,501

12,017

Other loans

624,067

1,251,089

Accrued expenses

160,856

200,490

1,641,004

2,433,947

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.19

30.11.17

£

£

Bank loans - 1-2 years

29,706

53,801

Bank loans - 2-5 years

23,425

71,967

Finance leases

64,842

21,006

117,973

146,774

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.5.19

30.11.17

£

£

Bank loans

97,827

193,828

Finance leases

77,742

30,919

Other loans

624,067

993,810

799,636

1,218,557

The company's bank loans are secured by an a fixed and floating charge through a debenture and legal charge

over the assets of Flamefast( UK) Limited.

The company's hire purchase liabilities are secured against the individual assets held under such agreements.

The other loans are secured by a debenture held including a first fixed charge over book and other debts, chattels

and goodwill, both present and future, and first floating charge over all assets and undertaking both present and

future.

10.	PROVISIONS FOR LIABILITIES

30.11.17

£

Deferred tax

Accelerated capital allowances

1,141

Deferred

tax

£

Balance at 1 December 2017

1,141

Credit to Income Statement during period

(10,224

)

Balance at 31 May 2019

(9,083

)

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.5.19

30.11.17

value:

£

£

762

Ordinary 'A'

£1

762

762

138

Ordinary 'B'

£1

138

138

900

900

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 December 2017

593,968

100

594,068

Profit for the period

64,253

64,253

Dividends

(112,900

)

(112,900

)

At 31 May 2019

545,321

100

545,421

13.	ULTIMATE CONTROLLING PARTY

The controlling party is Mr Steven Antony Swinden.

14.	ULTIMATE PARENT COMPANY

Flamefast Holdings Limited is regarded by the directors as being the company's ultimate parent company.

The following reproduces the text of the report prepared for the directors and members 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.

We confirm that as directors we have met our duty in accordance with the Companies Act 2006 to:

-	ensure that the company has kept proper accounting records;

-	prepare financial statements which give a true and fair view of the state of affairs of the company as at 31 May 2019 and of its profit for that period in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	follow the applicable accounting policies, subject to any material departures disclosed and explained in the notes to the financial statements.

ON BEHALF OF THE BOARD:

Mr Steven Antony Swinden - Director

Mrs Jane Warburton - Director

27 August 2019

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.

We have reviewed the financial statements of Flamefast (U.K.) Limited for the period ended 31 May 2019, which comprise the Income Statement, Balance Sheet and the related notes 1 to 16. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

This report is made solely to the company's directors, as a body, in accordance with our terms of engagement. Our review has been undertaken so that we might state to the directors those matters that we have agreed with them in our engagement letter 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 directors as a body for our work, for this report or the conclusions we have formed.

Directors' responsibility for the financial statements

As explained more fully in the Directors' Responsibilities Statement set out on page fourteen, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Accountants' responsibility

Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review

in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), 'Engagements to review

historical financial statements' and ICAEW Technical Release TECH 09/13AAF 'Assurance review engagements on

historical financial statements'. ISRE 2400 also requires us to comply with the ICAEW Code of Ethics.

Scope of the assurance review

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have

performed additional procedures to those required under a compilation engagement. These primarily consist of making

enquiries of management and others within the entity, as appropriate, applying analytical procedures and evaluating the

evidence obtained. The procedures performed in a review are substantially less than those performed in an audit

conducted in accordance with International Standards on Auditing (UK and Ireland). Accordingly, we do not express an

audit opinion on these financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

-	so as to give a true and fair view of the state of the company's affairs as at 31 May 2019 and of its profit for the period then ended;

-	in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	in accordance with the requirements of the Companies Act 2006.

Nick Brajkovich Limited

29 Withers Avenue

Warrington

Cheshire

WA2 8EU

27 August 2019