KTH_Fabrications_Ltd - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.

Turnover is recognised on despatch of goods.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Stocks are stated at the lower of cost and net realisable value.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The average monthly number of persons (including directors) employed by the company during the year was 38 (2018 - 41).

The amount owed to group undertakings is secured.

The amount owed to group undertakings is secured.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The company is party to a cross guarantee and debenture between Abacus Properties Halifax No2 Limited dated 27 July 2018.

The company has taken advantage of the exemption available to small companies not to disclose transactions that are eliminated in the consolidated financial statements of the parent company.

The company paid rent to Abacus Properties Halifax No2 Limited amounting to £63,000 (2018 : £Nil). The directors J Sutcliffe and M Woodrow are directors and shareholders of Abacus Properties No2 Limited.

The ultimate parent undertaking is considered to be KTH Engineering Group Limited, a company incorporated in England and Wales whose registered office is situated at Gannex Park, Dewsbury Road, Elland, West Yorkshire, HX5 9AF. KTH Engineering Group Limited is the company which prepares consolidated accounts for the group.

The company confirms that, having considered their expectations and intentions for the next twelve months and the availability of working capital, the company is a going concern. Up to date management accounts have been prepared for the company together with a 12 month detailed cashflow forecast. The company has been affected by lockdown as a result of the COVID-19 pandemic and the issues facing the company going forward have been considered when preparing the detailed forecast.

KTH Fabrications Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Gannex Park, Dewsbury Road, Elland, West Yorkshire, HX5 9AF.