ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number:
Unaudited
Information for filing with the registrar
For the 9 months Ended
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Loadtec Engineered Systems Limited
Chartered Accountants' Report to the Board of Directors on the preparation of the Unaudited Statutory Financial Statements of Loadtec Engineered Systems Limited for the 9 months Ended 31 January 2019
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Loadtec Engineered Systems Limited for the 9 months ended 31 January 2019 which comprise the Balance Sheet and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/ members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of Loadtec Engineered Systems Limited, as a body, in accordance with the terms of our engagement letter dated 18 March 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Loadtec Engineered Systems Limited and state those matters that we have agreed to state to the Board of Directors of Loadtec Engineered Systems Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Loadtec Engineered Systems Limited and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Loadtec Engineered Systems Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Loadtec Engineered Systems Limited. You consider that Loadtec Engineered Systems Limited is exempt from the statutory audit requirement for the 9 months.
Chartered Accountants
37 St Margaret's Street
Kent
CT1 2TU
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Loadtec Engineered Systems Limited
Registered number: 03291720
Balance Sheet
As at
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Loadtec Engineered Systems Limited
Registered number: 03291720
Balance Sheet (continued)
As at 31 January 2019
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 4 to 12 form part of these financial statements.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
Loadtec Engineered Systems Limited is a private company limited by shares which was incorporated in England and Wales with registered number 03291720.
The company's registered office is 37 St. Margaret's Street, Canterbury, Kent, CT1 2TU. The financial statements are presented in Pounds Sterling, and rounded to the nearest pound.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Notwithstanding the negative net assets disclosed in the company’s balance sheet, the directors have prepared the financial statements using the going concern assumption which assumes that the company will be in operational existence for the foreseeable future. This is because there is £150,000 of loans owing to the directors which, although payable on demand, will not be required to be repaid unless the company has the resources to do so. Furthermore, the directors have rationalised operations by disposing of its loss-making subsidiary, In Control Projects Limited, and in the post balance sheet period have disposed of Loadtec Marine (Arms) Limited. The directors have also embarked on a cost cutting exercise and have recorded a profit in the post balance sheet period which they have no reason to believe will not continue and with the effects of the disposals mentioned above, the directors believe that the company will now continue to be profitable.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
2.Accounting policies (continued)
Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the 9 months in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
2.Accounting policies (continued)
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
2.Accounting policies (continued)
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Profit and loss account so as to produce a constant periodic rate of charge on the net obgligation outstanding in each period.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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 insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
2.Accounting policies (continued)
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
4.Tangible fixed assets (continued)
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
The company utilises an invoice discounting facility. The discounted debtor balances and the invoice financing creditor are disclosed separately as the company retains the risks associated with the discounted balances. The financing charges are charged to the profit and loss account as they arise.
The gross factored debts outstanding at the year end were £290,958 (2018: £453,277).
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
The bank loan facility has an interest rate at 4.9% per annum and is wholly repayable within two years.
The invoice discounting facility is secured on the trade debtors of the company.
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Loadtec Engineered Systems Limited
Notes to the Financial Statements
For the 9 months Ended 31 January 2019
Page 12
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