Compact Instruments Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04795150 (England and Wales)

COMPACT INSTRUMENTS LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTOR:

B Jones

REGISTERED OFFICE:

61-65 Lever Street

Bolton

Lancashire

BL3 2AB

REGISTERED NUMBER:

04795150 (England and Wales)

ACCOUNTANTS:

DTE Business Advisers Limited

Chartered Accountants

The Exchange

5 Bank Street

Bury

BL9 0DN

BANKERS:

Handelsbanken

6 The Courtyard

Calvin Street

Bolton

BL1 8PB

FIXED ASSETS

Property, plant and equipment

4

26,593

33,464

CURRENT ASSETS

Inventories

111,214

133,053

Debtors

5

106,157

90,195

Cash at bank and in hand

638,757

576,741

856,128

799,989

CREDITORS

Amounts falling due within one year

6

(56,151

)

(51,885

)

NET CURRENT ASSETS

799,977

748,104

TOTAL ASSETS LESS CURRENT LIABILITIES

826,570

781,568

PROVISIONS FOR LIABILITIES

(5,052

)

(6,077

)

NET ASSETS

821,518

775,491

CAPITAL AND RESERVES

Called up share capital

1

1

Other reserves

34,286

34,286

Retained earnings

787,231

741,204

821,518

775,491

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 26 May 2020 and were signed by:

B Jones - Director

1.	STATUTORY INFORMATION

Compact Instruments Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number is 04795150 and registered office address is 61-65 Lever Street, Bolton,

Lancashire, BL3 2AB.

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.

The director has considered the impact of the global Covid-19 pandemic on the company and recognises that the

future cannot be predicted with certainty. However, the director expects that the company will continue trading,

albeit at a reduced level for the moment. The company's key customers are still operational and profits will be

generated from servicing their needs. Policies are in place to ensure all staff are working safely and in

accordance with government guidelines. Should demand for the company's goods fall, the company would

introduce cost control measures but would be able to retain staff using cash reserves.

The company had net assets of £821,518 and cash reserves of £638,757 at the year end and has generated profits

post year end. The director believes that the company is well placed to manage the risks at these challenging

times and therefore continues to adopt the going concern basis in preparing these financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the director is required to make estimates and

judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ

from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which

the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying

amount of assets and liabilities are outlined below.

Making judgement based on historical experience on the level of provision required for impairment of inventory.

Further information received after the statement of financial position date may impact on the level of provision

required.

The directors use judgement to provide against bad debts using knowledge of customers and experience. The

provisions are revisited after the statement of financial position date to ensure appropriate.

Revenue

Revenue is measured at the fair value of consideration received or receivable, excluding discounts, rebates, value

added tax and other sales taxes.

Sale of goods are recognised when the company has delivered products to the customer, the customer has

accepted the products and collectability of the related receivables is fairly stated.

Property, plant and equipment

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

Leasehold improvements

-

Straight line over 3 years

Plant and machinery etc

-

25% on cost and 20% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are

reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision

are recognised in the income statement when the change arises.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Cost is the purchase price of the materials. Net realisable value is based on estimated selling price, less further

costs expected to be incurred to completion and disposal.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position 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

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position 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.

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 the income statement in the period to which they relate.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for

objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised

in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost,

being the transaction price less any amounts settled.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period

of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2018 - 14 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Leasehold

machinery

improvements

etc

Totals

£

£

£

COST

At 1 January 2019

9,430

315,310

324,740

Additions

-

8,691

8,691

At 31 December 2019

9,430

324,001

333,431

DEPRECIATION

At 1 January 2019

9,430

281,846

291,276

Charge for year

-

15,562

15,562

At 31 December 2019

9,430

297,408

306,838

NET BOOK VALUE

At 31 December 2019

-

26,593

26,593

At 31 December 2018

-

33,464

33,464

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

61,093

42,654

Other debtors

45,064

47,541

106,157

90,195

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

3,134

3,365

Taxation and social security

33,602

26,385

Other creditors

19,415

22,135

56,151

51,885

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019

2018

£

£

Within one year

45,744

45,744

Between one and five years

1,860

2,604

47,604

48,348

8.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2019 and

31 December 2018:

2019

2018

£

£

B Jones

Balance outstanding at start of year

40,980

99,531

Amounts advanced

47,336

41,449

Amounts repaid

(50,000

)

(100,000

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

38,316

40,980

The above advance is unsecured, interest free and repayable on demand. The maximum overdrawn balance

during the year was £99,223 (2018 : £106,882).

9.	POST BALANCE SHEET EVENTS

Post year end saw the outbreak of Covid-19 in China which has become a global pandemic. The director has

considered the impact of the global Covid-19 pandemic on the company and recognises that the future cannot be

predicted with certainty. However, the director expects the company to continue trading, albeit at a reduced level

for the moment. The company's key customers are still operational and profits will be generated from servicing

their needs. Policies are in place to ensure all staff are working safely and in accordance with government

guidelines. Should demand for the company's goods fall, the company would introduce cost control measures but

would be able to retain staff using cash reserves.

A dividend of £40,000 was declared after the year end.