Quality Metal Products Limited - Limited company accounts 18.2
Quality Metal Products Limited - Limited company accounts 18.2
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31st January 2019 |
for |
QUALITY METAL PRODUCTS LIMITED |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Contents of the Financial Statements |
for the year ended 31st January 2019 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
QUALITY METAL PRODUCTS LIMITED |
Company Information |
for the year ended 31st January 2019 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
(The practising name of |
Baker (Midlands) Limited) |
Arbor House |
Broadway North |
Walsall |
WS1 2AN |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Strategic Report |
for the year ended 31st January 2019 |
The directors present their strategic report for the year ended 31st January 2019. |
The principal activity of the company during the year was the manufacture of industrial furniture. |
The directors are of the opinion that the company has achieved its expected goals and that the entity's performance is |
satisfactory. The directors consider the key performance indicators are those that communicate the financial |
performance and strength of the company as a whole, being turnover, gross margin and net assets. |
The turnover of the company has increased in the year from £6,937,433 for the year ended 31st January 2018 to |
£7,130,562 in the current year, an increase of 2.8%. The increase related to balanced and managed growth. |
The gross margin for the year is 33.7% (2018: 36.7%). Overall profit before tax decreased to £179,162 from £294,405. |
The decrease related to a change in product mix at lower margins. |
As as result of the healthy profit the financial position also continues to be healthy, with the company's balance sheet |
showing total net assets of £1,609,945 (2018: £1,522,703). |
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors, invoice finance |
and loans to the business. The main purpose of these instruments is to finance day to day operations. |
Liquidity risk is managed by maintaining a balance between cash in the current bank account and the funding flexibility |
offered by the use of invoice discounting. The business manages the liquidity risk by ensuring there are sufficient funds |
to meet upcoming payments. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to |
customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented |
in the balance sheet are net of allowances for doubtful debtors. |
Trade creditors are managed by ensuring sufficient funds are available to meet amounts due. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As for many businesses of our size and nature the business environment in which we operate continues to be |
challenging. The market in which we operate is highly competitive and often volatile and margins are continually under |
pressure. However, as stated above, with our strong management team and continuing research into new production |
methods, products and markets we consider that the company is in a strong position to maintain its leading position in |
the market. |
However, we remain aware that all plans and projections are subject to unforeseen national and international events |
outside of our control but we are confident that we have the management team in place with the expertise to adapt to |
the prevailing conditions. |
ON BEHALF OF THE BOARD: |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Report of the Directors |
for the year ended 31st January 2019 |
The directors present their report with the financial statements of the company for the year ended 31st January 2019. |
DIVIDENDS |
Interim dividends of £25,400 per share were paid during the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st February 2018 to the date of this |
report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted |
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors |
must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of |
affairs of the company and of the profit or loss of the company for that period. In preparing these financial |
statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company and |
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible |
for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of |
fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies |
Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to |
have taken as a director in order to make himself aware of any relevant audit information and to establish that the |
company's auditors are aware of that information. |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Report of the Directors |
for the year ended 31st January 2019 |
AUDITORS |
The auditors, Bakers, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Quality Metal Products Limited |
Opinion |
We have audited the financial statements of Quality Metal Products Limited (the 'company') for the year ended |
31st January 2019 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of |
Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, |
including a summary of significant accounting policies. The financial reporting framework that has been applied in their |
preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted |
Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st January 2019 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, |
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the |
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the |
Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in |
doing so, consider whether the other information is materially inconsistent with the financial statements or our |
knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material |
inconsistencies or apparent material misstatements, we are required to determine whether there is a material |
misstatement in the financial statements or a material misstatement of the other information. If, based on the work |
we have performed, we conclude that there is a material misstatement of this other information, we are required to |
report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Quality Metal Products Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the |
audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to |
you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, |
and for such internal control as the directors determine necessary to enable the preparation of financial statements |
that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a |
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of |
accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic |
alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. |
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with |
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and |
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the |
economic decisions of users taken on the basis of these financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the |
Auditors. |
Other matters which we are required to address |
The financial statements of Quality Metal Products Limited for the year ended 31 January 2018 were not audited due |
to the company qualifying as a small company. |
Report of the Independent Auditors to the Members of |
Quality Metal Products Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in a Report of the Auditors 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 |
members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
(The practising name of |
Baker (Midlands) Limited) |
Arbor House |
Broadway North |
Walsall |
WS1 2AN |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Income Statement |
for the year ended 31st January 2019 |
2019 | 2018 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
140,127 | 252,067 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
235,322 | 344,708 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Other Comprehensive Income |
for the year ended 31st January 2019 |
2019 | 2018 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Balance Sheet |
31st January 2019 |
2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors on by: |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Statement of Changes in Equity |
for the year ended 31st January 2019 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st February 2017 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31st January 2018 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31st January 2019 |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Cash Flow Statement |
for the year ended 31st January 2019 |
2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Government grant received |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments on HP contracts | ( |
) | ( |
) |
Increase in invoice discounting facility |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
258,001 |
291,307 |
Cash and cash equivalents at end of year | 2 | 76,435 | 258,001 |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Cash Flow Statement |
for the year ended 31st January 2019 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) | ( |
) |
Finance costs | 56,160 | 50,303 |
Finance income | - | (882 | ) |
471,610 | 585,605 |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of |
these Balance Sheet amounts: |
Year ended 31st January 2019 |
31.1.19 | 1.2.18 |
£ | £ |
Cash and cash equivalents | 76,435 | 258,001 |
Year ended 31st January 2018 |
31.1.18 | 1.2.17 |
£ | £ |
Cash and cash equivalents | 258,001 | 291,307 |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements |
for the year ended 31st January 2019 |
1. | STATUTORY INFORMATION |
Quality Metal Products Limited is a |
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 |
The financial statements are prepared in £ Sterling which is the functional currency of the company and |
rounded to the nearest £1. |
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 the financial statements requires management to make judgements, estimates and |
assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the |
amounts reported for revenues and expenses during the year. However the nature of estimation means that |
actual outcomes could differ from those estimates. |
Cash and cash equivalents |
Cash comprise cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments |
that mature in no more than three months from the date of acquisition and that are readily convertible to |
known amounts of cash with an insignificant risk of change in value. |
Impairment |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, |
value added tax and other sales taxes. |
Sale of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods |
have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the |
economic benefits associated with the transaction will flow to the company and the costs incurred or to be |
incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Rental income |
Rental income arising from operating leases is accounted for on a straight line basis over the lease term. |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Negative goodwill, being the difference between the fair value of assets acquired and the consideration paid on |
the purchase of a business in 2012 was capitalised and amortised over its estimated useful life of five years. |
Intangible assets |
Intangible assets acquired separately from a business are capitalised at cost. Intangible assets acquired on |
business combinations are capitalised separately from goodwill if the fair value can be measured reliably on |
initial recognition. |
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development |
expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be |
demonstrated. |
Intangible assets are amortised on a straight line basis over their useful lives. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost or valuation less accumulated depreciation and any |
accumulated impairment losses. Historical cost includes any expenditure that is directly attributable to bringing |
the asset to the location and condition necessary for it to be capable of operating in the manner intended by |
management. |
Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset on |
a systematic basis over its expected useful life or, if held under a finance lease, over the term of the lease, |
whichever is shorter. |
Depreciation is provided on the following basis: |
Freehold property - 2% on cost |
Plant & machinery - 20% reducing balance |
Motor vehicles - 20% on cost |
Freehold land is not depreciated. |
The carrying values of tangible fixed assets are reviewed for impairment when events or changes in |
circumstances indicate the carrying value may not be recoverable. |
Stocks |
Stocks are stated 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 stock to its present location and |
condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and |
slow-moving stock where appropriate. |
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. |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
2. | ACCOUNTING POLICIES - continued |
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 |
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 the profit and loss account on a straight line basis over the |
period of the lease. Lease incentives are recognised over the lease term on a straight line basis. |
Employee benefits |
When employees have rendered service to the company, short-term employee benefits to which the |
employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that |
service. |
The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed |
as they become payable. |
Debts |
The company's debts are factored with the company retaining the benefits and the risks of the debts. Separate |
presentation has been included with the debts disclosed in current assets and the amounts due to or from the |
factoring company shown in current assets or liabilities. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable |
assurance that the company will comply with conditions attaching to them and the grants will be received using |
the accrual model. |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
2. | ACCOUNTING POLICIES - continued |
Short-term debtors and creditors |
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 income statement in other |
operating expenses. |
Impairment |
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 an obligation at the balance sheet date as a result of a past |
event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be |
reliably estimated. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. |
Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
If an arrangement constitutes a finance transaction it is measured at present value. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2019 | 2018 |
£ | £ |
United Kingdom |
Europe |
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2019 | 2018 |
Production | 60 | 60 |
Office | 29 | 25 |
2019 | 2018 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Cost of stock recognised as an expense |
Government grants |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Loan interest |
Interest on corporation tax |
Hire purchase |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
Over provision in prior years | (3,217 | ) | 11,347 |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 19% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
2019 | 2018 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2018 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Additional deduction for research and development expenditure | (24,590 | ) | (30,185 | ) |
Effect of changes of tax rate on deferred tax opening position | - | (5,091 | ) |
Total tax charge | 15,720 | 44,937 |
8. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Ordinary shares of £1 each |
Interim |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1st February 2018 |
and 31st January 2019 | ( |
) |
AMORTISATION |
At 1st February 2018 |
and 31st January 2019 | ( |
) |
NET BOOK VALUE |
At 31st January 2019 |
At 31st January 2018 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1st February 2018 |
Additions |
At 31st January 2019 |
DEPRECIATION |
At 1st February 2018 |
Charge for year |
At 31st January 2019 |
NET BOOK VALUE |
At 31st January 2019 |
At 31st January 2018 |
Included in cost or valuation of land and buildings is freehold land of £ 712,500 (2018 - £ 712,500 ) which is not |
depreciated. |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
10. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31st January 2019 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2012 | - | 221,554 | - | - | 221,554 |
Cost | 2,773,128 | 1,692,753 | 178,936 | 52,411 | 4,697,228 |
2,773,128 | 1,914,307 | 178,936 | 52,411 | 4,918,782 |
If plant and machinery had not been revalued they would have been included at the following historical cost: |
2019 | 2018 |
£ | £ |
Cost | 1,692,753 | 1,690,743 |
Aggregate depreciation | 1,068,586 | 788,368 |
Plant and machinery was valued on an open market value basis on 1st July 2012 by the directors . |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1st February 2018 |
Transfer to ownership | (259,750 | ) |
At 31st January 2019 |
DEPRECIATION |
At 1st February 2018 |
Charge for year |
Transfer to ownership | (181,356 | ) |
At 31st January 2019 |
NET BOOK VALUE |
At 31st January 2019 |
At 31st January 2018 |
11. | STOCKS |
2019 | 2018 |
£ | £ |
Stocks |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
Other debtors | 45,336 | 42,401 |
Amount due from invoice |
discounter | - | 161,636 |
Directors' current accounts | 6,862 | 6,862 |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Advances from invoice |
discounter |
Trade creditors |
Corporation Tax | 41,037 | 44,152 |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Deferred government grants |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Deferred government grants |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
15. | LOANS - continued |
2019 | 2018 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Other loans - 1-2 years | 482,885 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 539,495 | 592,271 |
Interest is payable on the bank loan at 2.45%. |
Interest is payable on other loans at 2.5%. Other loans are loans from related parties. |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating |
leases |
2019 | 2018 |
£ | £ |
Within one year |
Between one and five years |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2019 | 2018 |
£ | £ |
Bank loans |
Hire purchase contracts | 342,865 | 473,601 |
Loan from Lones (UK) Limited | 482,885 | 482,885 |
The loan of £482,885 from Lones (UK) Limited is secured by a debenture over certain assets. |
Any advances from RBS Invoice Finance Limited under an invoice discounting arrangement are secured by an all |
assets debenture. |
Bank loans are secured by way of fixed and floating charges over the undertaking and all assets of the company. |
18. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax | 80,900 | 103,000 |
Deferred |
tax |
£ |
Balance at 1st February 2018 |
Accelerated capital allowances | (22,100 | ) |
Balance at 31st January 2019 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
Ordinary | £1 | 3 | 3 |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
20. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st February 2018 | 1,522,700 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation amortisation | 9,783 | (9,783 | ) | - |
At 31st January 2019 | 1,609,942 |
Retained earnings represents cumulative profits and losses net of dividends and other adjustments. |
The revaluation reserve represents the cumulate effect of revaluations of tangible fixed assets where a policy of |
revaluation has been adopted |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31st January 2019 and |
31st January 2018: |
2019 | 2018 |
£ | £ |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
22. | RELATED PARTY DISCLOSURES |
QUALITY METAL PRODUCTS LIMITED (REGISTERED NUMBER: 08109449) |
Notes to the Financial Statements - continued |
for the year ended 31st January 2019 |
22. | RELATED PARTY DISCLOSURES - continued |
2019 | 2018 |
£ | £ |
Amount due from related party |
2019 | 2018 |
£ | £ |
Sales |
Purchases |
Amount due from related party |
Amount due to related party |