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

REGISTERED NUMBER: 05355171 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 November 2019

for

Contrak Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTOR:

P J Cookson

SECRETARY:

Miss V C Hewitt

REGISTERED OFFICE:

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

REGISTERED NUMBER:

05355171 (England and Wales)

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

57,838

47,303

57,838

47,303

CURRENT ASSETS

Stocks

7

38,581

33,356

Debtors

8

125,135

193,369

Cash at bank and in hand

90

4,966

163,806

231,691

CREDITORS

Amounts falling due within one year

9

186,554

243,467

NET CURRENT LIABILITIES

(22,748

)

(11,776

)

TOTAL ASSETS LESS CURRENT LIABILITIES

35,090

35,527

CREDITORS

Amounts falling due after more than one year

10

(3,641

)

(7,586

)

PROVISIONS FOR LIABILITIES

(11,000

)

(5,200

)

NET ASSETS

20,449

22,741

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

20,349

22,641

SHAREHOLDERS' FUNDS

20,449

22,741

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved and authorised for issue by the director and authorised for issue on 3 July 2020 and were signed by:

P J Cookson - Director

1.	STATUTORY INFORMATION

Contrak 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements cover the company as an individual entity, have been prepared under the

historical cost convention and are presented in Pounds Sterling (£) being the functional currency.

The financial statements have been prepared on the assumption that the company is able to carry

on business as a going concern, which the director considers appropriate having regard to the

company's current and expected performance.

Particular consideration has been given to the impact of the Coronavirus on the company's ability to

operate for the foreseeable future. In arriving at this assessment of the going concern status of the

company the director has made key judgements about the ongoing availability of the Government's

Job Retention Scheme, the ability of the company to agree deferred payment terms on HMRC debts

and the returning level of demand for the services provided by the company.

Turnover

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

discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the the acquisition of a business in 2005, has

been amortised evenly over its estimated useful life of ten years.

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

-

15% on reducing balance

Computer equipment

-

25% on cost

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in

non-convertible preference and non-puttable ordinary shares which are measured at fair value, with

changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost

and thereafter at fair value with changes recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of

Income and Retained Earnings, 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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2018 - 6 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2018

and 30 November 2019

70,000

AMORTISATION

At 1 December 2018

and 30 November 2019

70,000

NET BOOK VALUE

At 30 November 2019

-

At 30 November 2018

-

6.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Computer

property

machinery

equipment

Totals

£

£

£

£

COST

At 1 December 2018

19,848

29,170

-

49,018

Additions

-

15,564

1,038

16,602

Disposals

-

-

(164

)

(164

)

At 30 November 2019

19,848

44,734

874

65,456

DEPRECIATION

At 1 December 2018

-

1,715

-

1,715

Charge for year

-

5,787

116

5,903

At 30 November 2019

-

7,502

116

7,618

NET BOOK VALUE

At 30 November 2019

19,848

37,232

758

57,838

At 30 November 2018

19,848

27,455

-

47,303

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

Plant and

machinery

£

COST

At 1 December 2018

and 30 November 2019

14,450

DEPRECIATION

At 1 December 2018

723

Charge for year

2,059

At 30 November 2019

2,782

NET BOOK VALUE

At 30 November 2019

11,668

At 30 November 2018

13,727

7.

STOCKS

2019

2018

£

£

Stocks

26,881

22,500

Work-in-progress

11,700

10,856

38,581

33,356

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

29,258

131,544

Amounts owed by group undertakings

95,382

61,289

Other debtors

495

536

125,135

193,369

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

17,395

24,309

Hire purchase contracts (see note 11)

4,335

4,335

Trade creditors

111,008

171,561

Taxation and social security

29,561

17,269

Other creditors

24,255

25,993

186,554

243,467

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts (see note 11)

3,641

7,586

11.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2019

2018

£

£

Net obligations repayable:

Within one year

4,335

4,335

Between one and five years

3,641

7,586

7,976

11,921

Non-cancellable

operating leases

2019

2018

£

£

Within one year

8,876

7,096

Between one and five years

9,834

6,327

18,710

13,423

Total lease payments recognised as an expense during the period amounted to £10,298 (2018 -

£7,091).

12.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank overdrafts

17,395

24,309

Hire purchase contracts

7,976

11,921

25,371

36,230

The bank overdraft is secured by way of a director's personal guarantee.

Obligations under finance lease and hire purchase contracts are secured on the assets held under

contract.

13.	POST BALANCE SHEET EVENTS

In March 2020 the UK was impacted by the outbreak of the Coronavirus. In order to manage the

spread of the virus the Government has imposed significant restrictions on the movement of people

and the ability of businesses to continue to trade. This event occurred after the company's reporting

period and so is considered to be a non-adjusting event.

The Coronavirus has resulted in a severe contraction of the UK economy and the imposition of social

distancing rules has meant that demand for the company's services has been impacted. The financial

impact on the company is that less sales income is expected to reduce for a period of around three

months, but likewise the introduction of the Job Retention Scheme has meant that eighty percent of

some employee costs have been mitigated.

The director is not able to make a reliable estimate of the financial impact of the Coronavirus

outbreak in the reporting period to 30 November 2020.

14.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held

separately from those of the Company in an independently administered fund. The pension cost

charge represents contributions payable by the Company to the fund and amounted to £2,540 (2018

- £1,968). Contributions totalling £893 (2018 - £696) were payable to the fund at the balance sheet

date and are included in creditors.