Leca Dental Laboratory Limited Filleted accounts for Companies House (small and micro)

LECA DENTAL LABORATORY LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: SC436299

Leca Dental Laboratory Limited

Filleted Unaudited Financial Statements

31 December 2018

Leca Dental Laboratory Limited

Statement of Financial Position

31 December 2018

	2018		2017
Note	£	£	£

Fixed assets

Intangible assets	5	120,000	127,500
Tangible assets	6	294,582	293,788
		---------	---------
		414,582	421,288

Current assets

Stocks		84,054	64,622
Debtors	7	728,599	555,750
Cash at bank and in hand		6	8
		---------	---------
		812,659	620,380

Creditors: amounts falling due within one year	8	1,007,421		850,095
		------------		---------
Net current liabilities			194,762	229,715
			---------	---------
Total assets less current liabilities			219,820	191,573

Creditors: amounts falling due after more than one year	9		149,768	176,656

Provisions

Taxation including deferred tax	52,465	–
	---------	---------
Net assets	17,587	14,917
	---------	---------

Capital and reserves

Called up share capital	100	100
Profit and loss account	17,487	14,817
	--------	--------
Shareholders funds	17,587	14,917
	--------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Leca Dental Laboratory Limited

Statement of Financial Position (continued)

31 December 2018

These financial statements were approved by the board of directors and authorised for issue on 17 April 2019 , and are signed on behalf of the board by:

Mr N Leca

Director

Company registration number: SC436299

Leca Dental Laboratory Limited

Notes to the Financial Statements

Year ended 31 December 2018

1. General information

The company is a private company limited by shares, registered in Scotland. The address of the registered office is 5 Watt Road, Hillington Industrial Estate, Glasgow, G52 4RY.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. No significant judgements or estimates were necessary in the preparation of the amounts reported.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	5% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Leashold property improvements	-	25% reducing balance
Plant and machinery	-	25% reducing balance
Fixture and fittings	-	15% reducing balance
Equipment	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised using the performance model. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 67 (2017: 68 ).

5. Intangible assets

	Goodwill
	£
Cost
At 1 January 2018 and 31 December 2018	150,000
	---------
Amortisation
At 1 January 2018	22,500
Charge for the year	7,500
	---------
At 31 December 2018	30,000
	---------
Carrying amount
At 31 December 2018	120,000
	---------
At 31 December 2017	127,500
	---------

6. Tangible assets

	Land and buildings	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£	£
Cost
At 1 January 2018	31,195	222,171	169,860	38,184	461,410
Additions	–	53,157	3,186	1,543	57,886
	--------	---------	---------	--------	---------
At 31 December 2018	31,195	275,328	173,046	39,727	519,296
	--------	---------	---------	--------	---------
Depreciation
At 1 January 2018	9,486	90,153	48,981	19,002	167,622
Charge for the year	3,257	30,378	18,494	4,963	57,092
	--------	---------	---------	--------	---------
At 31 December 2018	12,743	120,531	67,475	23,965	224,714
	--------	---------	---------	--------	---------
Carrying amount
At 31 December 2018	18,452	154,797	105,571	15,762	294,582
	--------	---------	---------	--------	---------
At 31 December 2017	21,709	132,018	120,879	19,182	293,788
	--------	---------	---------	--------	---------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery
	£
At 31 December 2018	47,956
	--------
At 31 December 2017	36,264
	--------

7. Debtors

	2018	2017
	£	£
Trade debtors	448,249	434,559
Other debtors	280,350	121,191
	---------	---------
	728,599	555,750
	---------	---------

Included in other debtors is a provision for Research and Development credits from HMRC for the year ended 31st December 2018.

8. Creditors: amounts falling due within one year

	2018	2017
	£	£
Bank loans and overdrafts	74,456	93,445
Trade creditors	304,112	254,703
Accruals and deferred income	26,829	23,803
Corporation tax	29,410	30,499
Social security and other taxes	68,168	28,864
Obligations under finance leases and hire purchase contracts	14,022	7,781
Company credit cards	5,654	11,859
Other creditors	131,760	26,548
Other creditors	353,010	372,593
	------------	---------
	1,007,421	850,095
	------------	---------

The following liabilities disclosed under creditors falling due within one year are secured by the company:

Lloyds Bank Commercial Finance Limited £353,010 (2018: £372,593) Bank of Scotland PLC £16,667 (2018: £16,667)

9. Creditors: amounts falling due after more than one year

	2018	2017
	£	£
Bank loans and overdrafts	120,075	166,521
Obligations under finance leases and hire purchase contracts	29,693	10,135
	---------	---------
	149,768	176,656
	---------	---------

The following disclosed under creditors falling due after more than one year are secured by the company:

Bank of Scotland PLC: £62,360 (2018: £75,844)

10. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2018	2017
	£	£

Recognised in other operating income:

Government grants released to profit or loss	–	30,000
	----	--------

11. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2018	2017
	£	£
Not later than 1 year	55,750	84,091
Later than 1 year and not later than 5 years	223,000	208,992
	---------	---------
	278,750	293,083
	---------	---------

12. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2018
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr M Leca	25,299	58,667	( 25,299)	58,667
Mr N Leca	19,282	54,629	( 19,282)	54,629
	--------	---------	--------	---------
	44,581	113,296	( 44,581)	113,296
	--------	---------	--------	---------

	2017
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr M Leca	26,401	25,300	( 26,401)	25,300
Mr N Leca	20,663	19,282	( 20,663)	19,282
	--------	--------	--------	--------
	47,064	44,582	( 47,064)	44,582
	--------	--------	--------	--------

13. Related party transactions

The Company was under the control of Mr M Leca and Mr N Leca for the whole of the year. Mr N Leca and Mr M Leca are joint managing directors and majority shareholders. The loans in note 14 were repaid in full by the 30th September 2019. Interest is also charged at 4% on any loan balance owed by the directors, using the average method of calculation. Mr T Leca, who is related to Mr M Leca and Mr N Leca , owed the Company £44,669 (2018: £58,163). Interest is charged at 4% on the average method of calculation. This loan will be repaid in full by the 30th September 2019. No other transactions with related parties were undertaken such as are required to be disclosed under FRS102(1A).