Delapena Honing Equipment Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01879464 (England and Wales)

Unaudited Financial Statements

For The Year Ended 30 June 2019

for

Delapena Honing Equipment Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D R Arthur

M P Elliott

REGISTERED OFFICE:

The Runnings

Cheltenham

Gloucestershire

GL51 9NJ

REGISTERED NUMBER:

01879464 (England and Wales)

ACCOUNTANTS:

Kingscott Dix Limited

Chartered Accountants

Goodridge Court

Goodridge Avenue

Gloucester

Gloucestershire

GL2 5EN

FIXED ASSETS

Tangible assets

4

226,843

109,728

CURRENT ASSETS

Stocks

775,751

812,414

Debtors

603,343

746,811

Cash at bank and in hand

32,278

146,040

1,411,372

1,705,265

CREDITORS

Amounts falling due within one year

692,633

1,062,150

NET CURRENT ASSETS

718,739

643,115

TOTAL ASSETS LESS CURRENT LIABILITIES

945,582

752,843

CREDITORS

Amounts falling due after more than one year

51,063

22,204

NET ASSETS

894,519

730,639

CAPITAL AND RESERVES

Called up share capital

100

100

Revaluation reserve

50,057

75,086

Retained earnings

844,362

655,453

894,519

730,639

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 30 June 2019 in accordance with Section 444(2A) of the Companies Act 2006.

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 29 October 2019 and were signed on its behalf by:

D R Arthur - Director

M P Elliott - Director

1.	STATUTORY INFORMATION

Delapena Honing Equipment 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.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and

services provided in the normal course of business, and is shown net of VAT and other sales related

taxes. The fair value of consideration takes into account trade discounts, settlement discounts and

volume rebates.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of

the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be

measured reliably, it is probable that the economic benefits associated with the transaction will flow to

the entity and the costs incurred or to be incurred in respect of the transaction can be measured

reliably.

Tangible fixed assets

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

Improvements to property

-

33% on reducing balance and 20% on cost

Plant and machinery

-

20% on cost

Office equipment

-

33% on cost

Motor vehicles

-

25% on cost

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable

assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met.

Where a grant does not specify performance conditions it is recognised in income when the proceeds are

received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Stocks

Stocks 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 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.

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 balance sheet 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 enforceable right to set off the recognised amounts and there is an intention to

settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially

measured at transaction price including transaction costs and are subsequently carried at amortised

cost 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.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term

liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts

are shown within borrowings in current liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, and loans from fellow group

companies that are classified as debt, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction, where the debt instrument is measured at the present

value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently

carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Trade creditors are classified as current liabilities if payment is due

within one year. If not, they are presented as creditors falling due after more than one year. Trade creditors

are recognised initially at transaction price and subsequently measured at amortised cost using the

effective interest method.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 33 (2018 - 32 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST OR VALUATION

At 1 July 2018

1,001,564

Additions

176,399

Disposals

(9,778

)

At 30 June 2019

1,168,185

DEPRECIATION

At 1 July 2018

891,836

Charge for year

59,284

Eliminated on disposal

(9,778

)

At 30 June 2019

941,342

NET BOOK VALUE

At 30 June 2019

226,843

At 30 June 2018

109,728

Cost or valuation at 30 June 2019 is represented by:

Totals

£

Valuation in 2016

125,144

Cost

1,043,041

1,168,185

Certain plant and machinery were valued on an open market basis on 4 May 2016 by Asset Management

Services (UK) Limited.

5.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

30.6.19

30.6.18

£

£

Net obligations repayable:

Within one year

36,945

93,061

Between one and five years

49,063

20,204

86,008

113,265

Non-cancellable operating

leases

30.6.19

30.6.18

£

£

Within one year

11,172

115,657

Between one and five years

-

11,172

11,172

126,829

6.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.19

30.6.18

£

£

Bank loans

232,184

206,172

Hire purchase contracts

86,008

113,265

318,192

319,437

The bank facilities are secured by a fixed and floating charge over the company's assets.

7.	FINANCIAL GUARANTEES

As at 30th June 2019 the company had total guarantees of £1,500 (2018: £1,500).