Spalding Pallets Limited Filleted accounts for Companies House (small and micro)

SPALDING PALLETS LIMITED - Company Information

false false false false false false false false false true false false false false false false false No description of principal activity 2018-06-01 Sage Accounts Production Advanced 2018 Update 1 - FRS 18,350 18,350 70 70 70 xbrli:pure xbrli:shares iso4217:GBP 03295849 2018-06-01 2019-05-31 03295849 2019-05-31 03295849 2018-05-31 03295849 2017-06-01 2018-05-31 03295849 2018-05-31 03295849 bus:OrdinaryShareClass1 2018-06-01 2019-05-31 03295849 bus:LeadAgentIfApplicable 2018-06-01 2019-05-31 03295849 bus:Director1 2018-06-01 2019-05-31 03295849 core:WithinOneYear 2019-05-31 03295849 core:WithinOneYear 2018-05-31 03295849 core:NetGoodwill 2019-05-31 03295849 core:LandBuildings 2018-05-31 03295849 core:PlantMachinery 2018-05-31 03295849 core:FurnitureFittings 2018-05-31 03295849 core:MotorVehicles 2018-05-31 03295849 core:LandBuildings 2019-05-31 03295849 core:PlantMachinery 2019-05-31 03295849 core:FurnitureFittings 2019-05-31 03295849 core:MotorVehicles 2019-05-31 03295849 core:LandBuildings 2018-06-01 2019-05-31 03295849 core:PlantMachinery 2018-06-01 2019-05-31 03295849 core:FurnitureFittings 2018-06-01 2019-05-31 03295849 core:MotorVehicles 2018-06-01 2019-05-31 03295849 core:AfterOneYear 2019-05-31 03295849 core:AfterOneYear 2018-05-31 03295849 core:ShareCapital 2019-05-31 03295849 core:ShareCapital 2018-05-31 03295849 core:RetainedEarningsAccumulatedLosses 2019-05-31 03295849 core:RetainedEarningsAccumulatedLosses 2018-05-31 03295849 core:CostValuation core:Non-currentFinancialInstruments 2019-05-31 03295849 core:Non-currentFinancialInstruments 2019-05-31 03295849 core:Non-currentFinancialInstruments 2018-05-31 03295849 core:LandBuildings 2018-05-31 03295849 core:PlantMachinery 2018-05-31 03295849 core:FurnitureFittings 2018-05-31 03295849 core:MotorVehicles 2018-05-31 03295849 bus:SmallEntities 2018-06-01 2019-05-31 03295849 bus:AuditExemptWithAccountantsReport 2018-06-01 2019-05-31 03295849 bus:FullAccounts 2018-06-01 2019-05-31 03295849 bus:SmallCompaniesRegimeForAccounts 2018-06-01 2019-05-31 03295849 bus:PrivateLimitedCompanyLtd 2018-06-01 2019-05-31 03295849 bus:OrdinaryShareClass1 2019-05-31 03295849 bus:OrdinaryShareClass1 2018-05-31 03295849 core:LandBuildings core:OwnedOrFreeholdAssets 2018-06-01 2019-05-31 03295849 core:NetGoodwill 2018-06-01 2019-05-31 03295849 core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment 2018-05-31 03295849 core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment 2019-05-31 03295849 core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment 2018-06-01 2019-05-31 03295849 core:AfterOneYear 2018-06-01 2019-05-31

COMPANY REGISTRATION NUMBER: 03295849

Spalding Pallets Limited

Filleted Unaudited Financial Statements

for the year ended

31 May 2019

Spalding Pallets Limited

Financial Statements

for the year ended 31st May 2019

Contents	Pages

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements	1

Statement of financial position	2 to 3

Notes to the financial statements	4 to 10

Spalding Pallets Limited

Chartered Accountant's Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of Spalding Pallets Limited

for the year ended 31st May 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 Spalding Pallets Limited for the year ended 31st May 2019, which comprise the statement of financial position 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 www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Spalding Pallets Limited, as a body, in accordance with the terms of our engagement letter dated 17th October 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Spalding Pallets Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Spalding Pallets Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Spalding Pallets 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 Spalding Pallets Limited. You consider that Spalding Pallets Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Spalding Pallets Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

MOORE THOMPSON Chartered Accountants

Bank House Broad Street Spalding PE11 1TB

Dated: 25 February 2020

Spalding Pallets Limited

Statement of Financial Position

as at 31 May 2019

	2019		2018
Note	£	£	£	£

Fixed assets

Tangible assets	6	290,477	367,700
Investments	7	70	70
		-------------	-------------
		290,547	367,770

Current assets

Stocks		8,692	18,625
Debtors	8	449,814	420,615
Cash at bank and in hand		1	655
		-------------	-------------
		458,507	439,895

Creditors: amounts falling due within one year	9	428,117		432,913
		-------------		-------------
Net current assets			30,390		6,982
			-------------		-------------
Total assets less current liabilities			320,937		374,752

Creditors: amounts falling due after more than one year	10		43,052		98,251

Provisions

Taxation including deferred tax	57,949	54,808
	-------------	-------------
Net assets	219,936	221,693
	-------------	-------------

Capital and reserves

Called up share capital	11	100	100
Profit and loss account		219,836	221,593
		-------------	-------------
Shareholders funds		219,936	221,693
		-------------	-------------

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 income and retained earnings has not been delivered.

For the year ending 31st May 2019 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 .

Spalding Pallets Limited

Statement of Financial Position (continued)

as at 31 May 2019

These financial statements were approved by the board of directors and authorised for issue on 25 February 2020 , and are signed on behalf of the board by:

Ray Turner
Director

Company registration number: 03295849

Spalding Pallets Limited

Notes to the Financial Statements

for the year ended 31st May 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Barr Farm, Deeping St Nicholas, Spalding, Lincolnshire, PE11 3HA.

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.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership 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.

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	-	straight line over 5 years

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:

Property improvement	-	straight line over 5 years
Plant and machinery	-	20% reducing balance
Recycling equipment	-	20% reducing balance
Motor vehicles	-	25% reducing balance
Portacabins	-	straight line over 5 years

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

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. 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.

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.

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.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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 11 (2018: 13 ).

5. Intangible assets

	Goodwill
	£

Cost
At 1 06 18 and 31 05 19	18,350
	-----------
Amortisation
At 1 06 18 and 31 05 19	18,350
	-----------
Carrying amount
At 31 05 19	–
	-----------
At 31 05 18	–
	-----------

6. Tangible assets

Property improvement	Plant and machinery	Recycling equipment	Motor vehicles	Portacabins	Total
£	£	£	£	£	£

Cost
At 1 06 18	168,979	69,201	484,707	343,355	52,457	1,118,699
Additions	–	–	28,664	–	–	28,664
Disposals	–	( 398)	–	( 9,650)	–	( 10,048)
	-------------	-----------	-------------	-------------	-----------	--------------
At 31 05 19	168,979	68,803	513,371	333,705	52,457	1,137,315
	-------------	-----------	-------------	-------------	-----------	--------------
Depreciation
At 1 06 18	144,444	51,436	303,077	199,585	52,457	750,999
Charge for the year	21,133	3,515	42,059	34,925	–	101,632
Disposals	–	( 214)	–	( 5,579)	–	( 5,793)
	-------------	-----------	-------------	-------------	-----------	--------------
At 31 05 19	165,577	54,737	345,136	228,931	52,457	846,838
	-------------	-----------	-------------	-------------	-----------	--------------
Carrying amount
At 31 05 19	3,402	14,066	168,235	104,774	–	290,477
	-------------	-----------	-------------	-------------	-----------	--------------
At 31 05 18	24,535	17,765	181,630	143,770	–	367,700
	-------------	-----------	-------------	-------------	-----------	--------------

7. Investments

	Subsidiary
	£

Cost
At 1 06 18 and 31 05 19	70
	-----------
Impairment
At 1 06 18 and 31 05 19	–
	-----------

Carrying amount
At 31 05 19	70
	-----------
At 31 05 18	70
	-----------

Investment in subsidiary

The company owns 70 ordinary £1 shares (70% of the issued share capital) in Ray Turner Labour Limited.

	2019	2018
	£	£
Aggregate capital and reserves
Ray Turner Labour Limited	(97,396)	(43,152)

Profit and (loss) for the period
Ray Turner Labour Limited	(54,244)	(136,263)

Ray Turner Labour Limited is registered in England and Wales and was formed and commenced trading as a supplier of HGV drivers to the haulage industry on 6th September 2004, preparing coterminous accounts.

Under the provision of section 248 of the Companies Act 1985 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.

8. Debtors

	2019	2018
	£	£

Trade debtors	68,298	121,041
Amounts owed from related parties	134,578	159,148
Prepayments and accrued income	18,088	35,426
Other debtors	228,850	105,000
	-------------	-------------
	449,814	420,615
	-------------	-------------

9. Creditors: amounts falling due within one year

	2019	2018
	£	£

Bank loans and overdrafts	124,204	67,355
Trade creditors	61,561	37,715
Amounts owed to group undertakings	73,768	105,711
Accruals and deferred income	21,264	35,431
Social security and other taxes	22,372	41,071
Hire purchase agreements	69,172	98,252
Director loan accounts	54,059	47,378
Other creditors	1,717	–
	-------------	-------------
	428,117	432,913
	-------------	-------------

Bank loans and overdrafts are secured on the company assets. Hire purchase agreements are secured on the assets to which they relate .

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

	2019	2018
	£	£

Hire purchase agreements	43,052	98,251
	-----------	-----------

Hire purchase agreements are secured on the assets to which they relate.

11. Called up share capital

Issued, called up and fully paid

2019		2018
No.	£	No.	£

Ordinary shares of £ 1 each	100	100.00	100	100.00
	-----------	-----------	-----------	-----------

12. Operating leases

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

	2019	2018
	£	£

Not later than 1 year	5,630	5,630
	-----------	-----------

13. Directors' advances, credits and guarantees

As at the 31 May 2019 the company owed £54,059 (2018 - £47,378) to the directors in respect of their directors loan accounts . The company has provided a guarantee supported by a debenture over the bank loan of a company Ray Turner Energy Limited in which the directors have an interest. The balance on this loan account was £1,360,615 at 31 May 2019.

14. Related party transactions

The company was under the control of one of the directors throughout the current and previous year. One of the directors has given a personal guarantee to the company's bankers. Ray Turner Labour Limited is a company under common control. The accounts include management charges of £13,500 (2018 - £54,000) receivable from Ray Turner Labour Limited. Management charges from Ray Turner Labour Limited to the company total £62,500 (2018 - £nil). Ray Turner Labour Limited also recharged expenses to the company of £51,690 (2018 - £24,614) during the year. Ray Turner Labour Limited charged the company £88,989 (2018 - £78,645) for labour costs in the year. At 31st May 2019 the company was owed £197,078 (2018 - £159,148) by Ray Turner Labour Limited. During the year the company both received and then provided interest free short term finance with Ray Turner Energy Limited, a company in which both directors have an interest. As at 31st May 2019, the company owed £73,768 (2018 - £105,711) to Ray Turner Energy Limited.