Serrate Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01152062 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

FOR

SERRATE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S G Dixon

P J Knight

SECRETARY:

P J Knight

REGISTERED OFFICE:

286 Kings Road

Reading

Berkshire

RG1 4HP

REGISTERED NUMBER:

01152062 (England and Wales)

ACCOUNTANTS:

Wilkins Kennedy

Accountants

Griffins Court

24-32 London Road

NEWBURY

Berkshire

RG14 1JX

FIXED ASSETS

Intangible assets

4

134,568

156,996

Tangible assets

5

792,441

803,481

Investments

6

750

750

927,759

961,227

CURRENT ASSETS

Debtors

7

2,236,279

2,046,945

Cash at bank

82

2,368

2,236,361

2,049,313

CREDITORS

Amounts falling due within one year

8

2,820,282

2,715,477

NET CURRENT LIABILITIES

(583,921

)

(666,164

)

TOTAL ASSETS LESS CURRENT LIABILITIES

343,838

295,063

PROVISIONS FOR LIABILITIES

1,206

3,192

NET ASSETS

342,632

291,871

CAPITAL AND RESERVES

Called up share capital

10

100

100

Revaluation reserve

11

52,584

52,584

Retained earnings

11

289,948

239,187

SHAREHOLDERS' FUNDS

342,632

291,871

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 applicable to companies subject to the small companies regime.

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 24 September 2019 and were signed on its behalf by:

P J Knight - Director

1.	STATUTORY INFORMATION

Serrate 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 as modified by the revaluation of certain assets.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the

nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies

have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect

the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and

expenses during the period. However, the nature of estimation means that actual outcomes could differ from those

estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts

recognised in the financial statements.

Revenue recognition

The key judgement made by management in respect of revenue is the point at which that revenue should be recognised.

Management consider the underlying contract terms and conclude upon the most appropriate point of the cycle at which

to recognise revenue based upon these terms and in particular where the risks and rewards of ownership transfer.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The

actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual

value assessments consider issues such as the remaining life of the asset and projected disposal values.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts.

Turnover relates to the sales within the UK market. The policies adopted for the recognition of turnover are as follows:

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is recognised as the

service is performed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, is regarded by the directors as a long

term investment in the business. The goodwill will then be amortised evenly over the next 10 years.

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.

Tangible fixed assets

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

Plant and machinery

-

Straight line over 4 years

Fixtures and fittings

-

at varying rates on cost

Motor vehicles

-

25% on reducing balance

The directors consider that the freehold property does not require depreciation as company policy requires the condition

of the property to be constantly monitored and immediate repairs carried out as and when necessary. The directors

consider at the balance sheet date the current market value of the freehold property is not materially different to its cost.

Taxation

Taxation for the year 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.

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

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.

Fixed asset investment

The fixed asset investments represent an equity instrument in a natural resources company . This investment is designated

as an available-for-sale financial asset on the basis that the investment was not purchased in order to realise a quick gain.

The available-for-sale fixed asset investments are recognised originally at cost with adjustments being made to recognise

the investments at fair value at the year end with the gain or loss being taken to the statement of recognised gains and

losses.

Dividends on available-for-sale fixed asset investments are recognised in the profit and loss account when the entity's right

to receive payment is established.

Impairments

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet

date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and

compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is

recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation

decrease.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the report date as a result of a past

event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be

reliably estimated.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

Short-term employee benefits

Short-term employee benefits are recognised as an expense in the period in which they are incurred.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction

price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2017 - 13 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2018

and 31 December 2018

224,280

AMORTISATION

At 1 January 2018

67,284

Charge for year

22,428

At 31 December 2018

89,712

NET BOOK VALUE

At 31 December 2018

134,568

At 31 December 2017

156,996

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2018

782,685

27,000

68,385

17,390

895,460

Additions

-

-

1,713

-

1,713

At 31 December 2018

782,685

27,000

70,098

17,390

897,173

DEPRECIATION

At 1 January 2018

-

22,450

55,687

13,842

91,979

Charge for year

-

3,413

8,396

944

12,753

At 31 December 2018

-

25,863

64,083

14,786

104,732

NET BOOK VALUE

At 31 December 2018

782,685

1,137

6,015

2,604

792,441

At 31 December 2017

782,685

4,550

12,698

3,548

803,481

Cost or valuation at 31 December 2018 is represented by:

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2004

52,584

-

-

-

52,584

Cost

730,101

27,000

70,098

17,390

844,589

782,685

27,000

70,098

17,390

897,173

If freehold properties had not been revalued they would have been included at the following historical cost:

31/12/18

31/12/17

£

£

Cost

730,101

730,101

One freehold property was valued on an open market basis on 26 August 2004 by a firm of qualified Chartered Surveyors .

The freehold property that was the subject of the revaluation was that property situated at 192 Heath Road, Twickenham

and the directors are of the opinion that the current market value will not have materially changed. The remaining freehold

properties have not been revalued to date.

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 January 2018

and 31 December 2018

750

NET BOOK VALUE

At 31 December 2018

750

At 31 December 2017

750

7.

DEBTORS

31/12/18

31/12/17

£

£

Amounts falling due within one year:

Trade debtors

535,832

534,684

Other debtors

1,568,609

1,380,423

2,104,441

1,915,107

Amounts falling due after more than one year:

Other debtors

131,838

131,838

Aggregate amounts

2,236,279

2,046,945

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/18

31/12/17

£

£

Trade creditors

80,703

68,048

Taxation and social security

179,040

208,610

Other creditors

2,560,539

2,438,819

2,820,282

2,715,477

9.	SECURED DEBTS

The following secured debts are included within creditors:

31/12/18

31/12/17

£

£

Invoice discounting

2,489,088

2,392,643

The bank loan and confidential invoice discounting facility are both secured by a fixed and floating charge over the company

assets.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/18

31/12/17

value:

£

£

100

Ordinary

£1

100

100

11.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 January 2018

239,187

52,584

291,771

Profit for the year

50,761

50,761

At 31 December 2018

289,948

52,584

342,532

12.	CONTINGENT LIABILITIES

Contingent liabilities exist in the form of composite cross company guarantees and indemnities in respect of bank overdraft

and confidential invoice discounting facilities involving the following companies:

ITS (Holdings) Ltd, ITS (Aylesbury) Ltd, ITS (Chelmsford) Ltd, ITS (Croydon) Ltd, ITS (Plymouth) Ltd, ITS (Western) Ltd,

ITS (Exeter) Ltd, ITS (Asbestos) Ltd, ITS (Southampton) Ltd, ITS (Cymru) Ltd, ITS (Guildford) Ltd, ITS (Midlands) Ltd, ITS

(Technical Recruitment) Ltd, ITS (Engineering) Ltd, ITS (Bristol) Ltd, ITS (M&E) Ltd, ITS (Financial Services) Limited, ITS

(Cheltenham) Ltd and ITS (National) Ltd.

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2018 and

31 December 2017:

31/12/18

31/12/17

£

£

S G Dixon

Balance outstanding at start of year

165,060

157,507

Amounts advanced

82,610

7,553

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

247,670

165,060

P J Knight

Balance outstanding at start of year

134,345

122,702

Amounts advanced

75,529

11,643

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

209,874

134,345

G C Hanreck

Balance outstanding at start of year

-

-

Amounts advanced

167

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

167

-

14.	RELATED PARTY DISCLOSURES

At the year end the company owed the key management personnel £Nil (2017 - £37).