Adreco Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01312605 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2019

FOR

ADRECO LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

Mr S T Hill

Mrs P J Hill

Mr R Hill

Ms K A Hughes

Mr L Wang

Mr F Gao

REGISTERED OFFICE:

17-19 Avant Business Centre

Third Avenue Bletchley

Milton Keynes

Buckinghamshire

MK1 1DR

REGISTERED NUMBER:

01312605 (England and Wales)

ACCOUNTANTS:

Haines Watts

Chartered Accountants

10 Stadium Business Court

Millennium Way

Pride Park

Derby

DE24 8HP

FIXED ASSETS

Tangible assets

4

365,486

398,310

CURRENT ASSETS

Stocks

465,860

401,598

Debtors

5

1,165,583

1,083,110

Cash at bank

23

23

1,631,466

1,484,731

CREDITORS

Amounts falling due within one year

6

640,009

577,680

NET CURRENT ASSETS

991,457

907,051

TOTAL ASSETS LESS CURRENT LIABILITIES

1,356,943

1,305,361

CREDITORS

Amounts falling due after more than one year

7

(801,751

)

(716,376

)

PROVISIONS FOR LIABILITIES

(65,029

)

(70,296

)

NET ASSETS

490,163

518,689

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

489,163

517,689

SHAREHOLDERS' FUNDS

490,163

518,689

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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.

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 and authorised for issue on 29 June 2020 and were signed on its behalf by:

Mr S T Hill - Director

1.	STATUTORY INFORMATION

Adreco 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.

TURNOVER

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

value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Equipment

-

10% on reducing balance

STOCKS

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of

activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the

valuation of work in progress.

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.

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 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 21 (2018 - 26 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Equipment

Totals

£

£

£

£

COST

At 1 October 2018

1,546,712

19,880

207,805

1,774,397

Additions

8,458

-

-

8,458

At 30 September 2019

1,555,170

19,880

207,805

1,782,855

DEPRECIATION

At 1 October 2018

1,234,985

11,495

129,607

1,376,087

Charge for year

31,356

2,097

7,829

41,282

At 30 September 2019

1,266,341

13,592

137,436

1,417,369

NET BOOK VALUE

At 30 September 2019

288,829

6,288

70,369

365,486

At 30 September 2018

311,727

8,385

78,198

398,310

Included within the net book value of £365,486 is £70,236 (2018 - £79,438) relating to assets held under hire

purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets

amounted to £9,202 (2018- £10,738).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

160,245

176,101

Amounts owed by group undertakings

793,954

797,854

Other debtors

-

400

Tax

135,122

63,704

Prepayments and accrued income

76,262

45,051

1,165,583

1,083,110

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

382,763

280,608

Other loans

12,746

11,769

Hire purchase contracts (see note 8)

23,555

21,158

Trade creditors

176,874

223,646

Social security and other taxes

9,608

16,871

VAT

30,400

19,814

Other creditors

2,063

1,814

Accruals and deferred income

2,000

2,000

640,009

577,680

Creditors hold a fixed charge over book debts and floating charges over all other company assets.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans amounts due between

1-2 years

573,694

432,721

Other loans amounts due

between 2-5 years

30,799

44,522

Hire purchase contracts (see note 8)

36,517

37,090

Directors' loan accounts

160,741

202,043

801,751

716,376

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2019

2018

£

£

Net obligations repayable:

Within one year

23,555

21,158

Between one and five years

36,517

37,090

60,072

58,248

Non-cancellable

operating leases

2019

2018

£

£

Within one year

10,584

10,584

Between one and five years

20,286

30,870

30,870

41,454

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Hire purchase contracts

60,072

58,248

Bank loans

749,447

562,748

809,519

620,996

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 September 2019 and

30 September 2018:

2019

2018

£

£

Mr S T Hill

Balance outstanding at start of year

(202,043

)

(328,796

)

Amounts advanced

112,667

173,106

Amounts repaid

(71,365

)

(46,353

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(160,741

)

(202,043

)

12.	RELATED PARTY DISCLOSURES

The company was under the control of STH Plastics Limited throughout the current year. STH Plastics Limited is

the majority shareholder. Mr S Hill, who is a director of this Company, was the ultimate controlling party of STH

Plastics Limited.

The Directors are the key management personnel.

During the year the management charges from STH Plastics Limited amounting to £5,000 (2018: £11,000).

13.	ULTIMATE PARENT COMPANY

The Company is a wholly owned subsidiary of STH Plastics Limited.