United Bright Bar Co. Limited - Accounts to registrar (filleted) - small 18.2

UNITED BRIGHT BAR CO. LIMITED

Audited Financial Statements

for the Year Ended 31 March 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

C J Evans

P A Lavender

J G Russell

Secretary:

P A Lavender

Registered office:

Unit 4, Four Ashes Industrial Estate

Station Road

Four Ashes

Wolverhampton

West Midlands

WV10 7DG

Registered number:

01376360 (England and Wales)

Auditors:

Haines Watts

Chartered Accountants & Statutory Auditor

New Derwent House

69-73 Theobalds Road

London

WC1X 8TA

Bankers:

Lloyds

5 Market Square

Stafford

ST16 2JL

Fixed assets

Tangible assets

4

694,041

633,640

Current assets

Stocks

692,870

1,095,331

Debtors

5

2,567,856

2,535,074

Cash at bank and in hand

619,053

332,962

3,879,779

3,963,367

Creditors

Amounts falling due within one year

6

3,239,579

3,230,222

Net current assets

640,200

733,145

Total assets less current liabilities

1,334,241

1,366,785

Creditors

Amounts falling due after more than one year

7

-

62,646

Net assets

1,334,241

1,304,139

Capital and reserves

Called up share capital

9

68,667

68,667

Share premium

10

260,317

260,317

Retained earnings

10

1,005,257

975,155

Shareholders' funds

1,334,241

1,304,139

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 23 July 2020 and were signed on its behalf by:

P A Lavender - Director

1.	Statutory information

United Bright Bar Co. 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.

Significant judgements and estimates

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating bad debt provisions and a review of trade debtors is carried

regularly. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible,

there remains a risk that the provision do not match the level of debts which ultimately prove to be

uncollectable.

There is also estimation uncertainty in calculating stock provisions. Slow moving and obsolete stocks are

monitored during the year. Whilst every attempt is made to ensure that the stock provisions are as accurate as

possible, there remain a risk that the provisions do not match the ultimate unrealised value of stock held.

Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year for the

manufacture of bright drawn steel, exclusive of Value Added Tax.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates

calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their

expected useful lives on the following bases:

Leasehold property

-

Straight line over the term of the lease

Plant & machinery

-

5% - 10% on cost per annum

Fixtures & fittings

-

12.5% on cost per annum

Office equipment

-

33.3% on cost per annum

Stocks

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

slow-moving stocks.

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 balance sheet date.The company is the beneficiary of Research & Development

(R&D) tax relief from the UK Government in the form of reductions in its annual tax liability, as well as

repayable tax credits. Current tax assets or reductions in current tax liabilities for R&D claims are only

recognised when the amount can be reliably determined and the probability of HM Revenue & Customs

accepting the claim is considered high.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of

exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the income statement.

Hire purchase leases

Assets obtained under hire purchase contracts are capitalised in the balance sheet are depreciated over their

estimated useful lives.

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.

Pensions

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.

Financial instruments policy

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a

party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial

recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the

effective interest rate method. A provision is established when there is objective evidence that the company will

not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank

and bank overdrafts which are an integral part of the company's cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the

substance of the contractual arrangements entered into and the definitions of a financial liability and an equity

instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company

after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of direct issue costs.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and

considered relevant information, including the annual budget and future cash flows in making their assessment.

In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take

into account the impact on their business of possible scenarios brought on by the impact of Covid19 including

the measures that they can take to mitigate the impact. Mitigating actions include making use of PAYE and

VAT delayed payments, furloughing of underutilised staff and obtaining a loan under the Coronavirus Business

Interruption Loan Scheme.

Based on these assessments, given the measures that could be undertaken to mitigate the current adverse

conditions and the current resources available, the Directors have concluded that they can continue to adopt

the going concern basis in preparing the annual report and accounts.

3.	Employees and directors

The average number of employees during the year was 29 (2019 - 29 ) .

4.	Tangible fixed assets

Fixtures

Short

Plant and

and

Office

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 April 2019

72,290

3,503,804

162,299

136,175

3,874,568

Additions

-

151,839

-

1,250

153,089

Disposals

(58,487

)

(956,913

)

(157,832

)

(112,944

)

(1,286,176

)

At 31 March 2020

13,803

2,698,730

4,467

24,481

2,741,481

Depreciation

At 1 April 2019

59,866

2,886,697

160,439

133,926

3,240,928

Charge for year

1,381

89,060

557

1,690

92,688

Eliminated on disposal

(58,487

)

(956,913

)

(157,832

)

(112,944

)

(1,286,176

)

At 31 March 2020

2,760

2,018,844

3,164

22,672

2,047,440

Net book value

At 31 March 2020

11,043

679,886

1,303

1,809

694,041

At 31 March 2019

12,424

617,107

1,860

2,249

633,640

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

Cost

At 1 April 2019

and 31 March 2020

388,249

Depreciation

At 1 April 2019

77,650

Charge for year

38,825

At 31 March 2020

116,475

Net book value

At 31 March 2020

271,774

At 31 March 2019

310,599

5.

Debtors: amounts falling due within one year

2020

2019

£

£

Trade debtors

2,369,516

2,267,257

Other debtors

142,430

194,395

Tax

55,910

73,422

2,567,856

2,535,074

6.

Creditors: amounts falling due within one year

2020

2019

£

£

Hire purchase contracts (see note 8)

62,646

72,872

Trade creditors

1,933,471

2,176,507

Social security and other taxes

177,117

207,366

Other creditors

1,066,345

773,477

3,239,579

3,230,222

Hire purchase liabilities ( see note 11) are secured by a charge over the assets concerned.

The other creditors are secured by a fixed and floating charge over the assets of the company.

7.

Creditors: amounts falling due after more than one year

2020

2019

£

£

Hire purchase contracts (see note 8)

-

62,646

8.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

62,646

72,872

Between one and five years

-

62,646

62,646

135,518

Non-cancellable

operating leases

2020

2019

£

£

Within one year

240,835

234,355

Between one and five years

740,285

779,059

In more than five years

549,540

732,720

1,530,660

1,746,134

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

68,667

Ordinary

£1

68,667

68,667

10.

Reserves

Retained

Share

earnings

premium

Totals

£

£

£

At 1 April 2019

975,155

260,317

1,235,472

Profit for the year

30,102

30,102

At 31 March 2020

1,005,257

260,317

1,265,574

11.	Disclosure under Section 444(5B) of the Companies Act 2006

The Auditors' Report was qualified on the following basis:

Basis for qualified opinion

We were not able to observe the counting of the physical stock as at 31 March 2020 owing to the restrictions on

movements imposed as a result of Covid-19. We were unable to satisfy ourselves by alternative means

concerning the inventory quantities held at 31 March 2020, which are included in the balance sheet at

£692,870, by using other audit procedures. Consequently we were unable to determine whether any adjustment

to this amount was necessary.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities

for the audit of the financial statements section of our report. We are independent of the company in

accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,

including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with

these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to

provide a basis for our qualified opinion.

Jonathan Moughton (Senior Statutory Auditor)

for and on behalf of Haines Watts

12.	Related party disclosures

During the year the company paid £22,502 (2019: £21,118) to a company controlled by a director, in regards

to expenses and management fees. At the balance sheet date the company owed £1,875 (2019: £1,858) to that

company.

13.	Ultimate controlling party

The controlling parties are the families of P A Lavender and C J Evans. The day to day operations of the

company are run by the directors.