Quality Component Engineering Limited - Period Ending 2019-10-31

Quality Component Engineering Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 October 2019

Registration number: 03654531

Quality Component Engineering Limited

Contents

Balance Sheet	1 to 2
Notes to the Financial Statements	3 to 9

Quality Component Engineering Limited

Balance Sheet

31 October 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	133,853	152,612
Current assets
Stocks		74,977	51,913
Debtors	5	246,203	262,589
Cash at bank and in hand		10,494	12,265
		331,674	326,767
Creditors: Amounts falling due within one year	6	(273,979)	(257,802)
Net current assets		57,695	68,965
Total assets less current liabilities		191,548	221,577
Creditors: Amounts falling due after more than one year	6	(103,885)	(148,026)
Provisions for liabilities		(18,190)	(24,324)
Net assets		69,473	49,227
Capital and reserves
Called up share capital		30	30
Profit and loss account		69,443	49,197
Total equity		69,473	49,227

The notes on pages 3 to 9 form an integral part of these financial statements.

Page 1

Quality Component Engineering Limited

Balance Sheet

31 October 2019

For the financial year ending 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 17 June 2020
 

......................................... Mr T Russell Director

Company Registration Number: 03654531

The notes on pages 3 to 9 form an integral part of these financial statements.

Page 2

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Francis Clark LLP
North Quay House
Sutton Harbour
Plymouth
Devon
PL4 0RA

The principal place of business is:
Quality Component Engineering Limited
19 Wolseley Close
Plymouth
Devon
PL2 3BY
England

These financial statements were authorised for issue by the director on 17 June 2020.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Page 3

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	15% reducing balance
Motor vehicles	25% reducing balance
Fixtures and fittings	15% reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Page 4

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 5

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 22 (2018 - 20).

Page 6

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

4	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 November 2018	35,910	18,915	654,151	708,976
Additions	2,923	4,017	-	6,940
At 31 October 2019	38,833	22,932	654,151	715,916
Depreciation
At 1 November 2018	28,627	7,729	520,008	556,364
Charge for the year	1,514	4,270	19,915	25,699
At 31 October 2019	30,141	11,999	539,923	582,063
Carrying amount
At 31 October 2019	8,692	10,933	114,228	133,853
At 31 October 2018	7,283	11,186	134,143	152,612

5

Debtors

	2019 £	2018 £
Trade debtors	233,071	255,193
Other debtors	10,000	3,894
Prepayments	3,132	3,502
	246,203	262,589

Page 7

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

6

Creditors

Creditors: amounts falling due within one year

	Note	2019  £	2018  £
Due within one year
Loans and borrowings	7	85,918	76,766
Trade creditors		90,463	86,774
Amounts due to group undertakings		18,006	15,983
Social security and other taxes		40,742	19,708
Other creditors		32,531	53,622
Accrued expenses		5,837	4,697
Deferred income		482	252
		273,979	257,802
Due after one year
Loans and borrowings	7	101,154	146,598
Deferred income		2,731	1,428
		103,885	148,026

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	7	101,154	146,598
Deferred income		2,731	1,428
		103,885	148,026

7	Loans and borrowings

	2019 £	2018 £
Loans and borrowings due after one year
Finance lease liabilities	18,740	8,394
Other borrowings	82,414	138,204
	101,154	146,598

Page 8

Quality Component Engineering Limited

Notes to the Financial Statements

Year Ended 31 October 2019

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	1,240	8,792
Bank overdrafts	16,691	-
Finance lease liabilities	12,198	12,185
Other borrowings	55,789	55,789
	85,918	76,766

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary A shares of £1 each	15	15	15	15
Ordinary B shares of £1 each	15	15	15	15
	30	30	30	30

9	Parent and ultimate parent undertaking

The company's immediate parent is QC Engineering Group Limited, incorporated in England and Wales.

  These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ

 

Page 9