Potteries Power Transmission Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01189386 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2019

FOR

POTTERIES POWER TRANSMISSION LIMITED

Page

Statement of Financial Position

1

to

2

Notes to the Financial Statements

3

to

8

FIXED ASSETS

Tangible assets

4

159,505

158,160

Investments

5

2,798

2,494

162,303

160,654

CURRENT ASSETS

Stocks

76,381

71,150

Debtors

6

488,165

411,844

Cash at bank and in hand

64,686

86,547

629,232

569,541

CREDITORS

Amounts falling due within one year

7

(549,917

)

(487,389

)

NET CURRENT ASSETS

79,315

82,152

TOTAL ASSETS LESS CURRENT LIABILITIES

241,618

242,806

CREDITORS

Amounts falling due after more than one year

8

(67,019

)

(69,414

)

ACCRUALS AND DEFERRED INCOME

(2,152

)

(2,219

)

NET ASSETS

172,447

171,173

CAPITAL AND RESERVES

Called up share capital

5,000

5,000

Revaluation reserve

10

67,477

69,028

Fair value reserve

784

479

Retained earnings

99,186

96,666

172,447

171,173

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 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 Statement of Income and Retained Earnings 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:

D R Hodgson - Director

1.	STATUTORY INFORMATION

Potteries Power Transmission Limited is a private company, limited by shares , registered in England

and Wales. The company's registered number and registered office address are as below:

Registered number:

01189386

Registered office:

C/o DPC Accountants

Stone House

55 Stone Road Business Park

Stoke on Trent

Staffordshire

ST4 6SR

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported. These estimates and judgements are continually

reviewed and are based on experience and other factors, including expectations of future events that

are believed to be reasonable under the circumstances.

The judgements that management has made in the process of applying the entity's accounting policies

and that have the most significant effect on the amounts recognised in the financial statements are as

follows:

Estimated useful lives and residual values of fixed assets

As described in the notes to the financial statements, depreciation of tangible and intangible fixed

assets has been based on estimated useful lives and residual values deemed appropriate by the

directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate.

Revisions take into account estimated useful lives used by other companies operating in the sector

and actual asset lives and residual values, as evidenced by disposals during the current and prior

accounting periods.

Revenue recognition

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.

Freehold property

-

2% on cost

Plant and machinery

-

20% reducing balance

Motor vehicles

-

25% reducing balance

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not

recognised until there is reasonable assurance that the company will comply with the conditions

attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis

over the periods in which the company recognises the related costs for which the grant is intended to

compensate. Grants that are receivable as compensation for expenses or losses already incurred or

for the purpose of giving immediate financial support to the entity with no future related costs are

recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life

of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income

and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related

conditions on the recipient, it is recognised in income when the grant proceeds are received or

receivable. Where the grant does impose specified future performance-related conditions on the

recipient, it is recognised in income only when the performance-related conditions have been met.

Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a

liability.

Stocks

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

obsolete and slow moving items.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the

contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement

constitutes a financing transaction, where it is recognised at the present value of the future payments

discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of

impairment at the end of each reporting date. If there is objective evidence of impairment, an

impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually

significant, these are assessed individually for impairment. Other financial assets are either assessed

individually or grouped on the basis of similar credit risk characteristics.

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

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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount

being estimated where such indicators exist. Where the carrying value exceeds the recoverable

amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at

each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of

an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to

which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that

includes the asset and generates cash inflows that largely independent of the cash inflows from other

assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the

acquisition date, allocated to each of the cash-generating units that are expected to benefit from the

synergies of the combination, irrespective of whether other assets or liabilities of the company are

assigned to those units.

3.	EMPLOYEES AND DIRECTORS

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

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1 November 2018

156,000

49,273

17,562

222,835

Additions

-

-

17,234

17,234

Disposals

-

(49,273

)

(15,420

)

(64,693

)

At 31 October 2019

156,000

-

19,376

175,376

DEPRECIATION

At 1 November 2018

10,287

47,461

6,927

64,675

Charge for year

3,429

362

3,216

7,007

Eliminated on disposal

-

(47,823

)

(7,988

)

(55,811

)

At 31 October 2019

13,716

-

2,155

15,871

NET BOOK VALUE

At 31 October 2019

142,284

-

17,221

159,505

At 31 October 2018

145,713

1,812

10,635

158,160

The freehold land and buildings, including the adjoining land, were valued on an open market basis on

19th September 2016 by Butters John Bee, a firm of independent chartered surveyors, in the opinion

of the director's this is deemed to be a fair representation of the market value at 31 October 2019. The

historical cost at 1 November 2018 and at 31 October 2019 was £105,725.

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST OR VALUATION

At 1 November 2018

2,494

Revaluations

304

At 31 October 2019

2,798

NET BOOK VALUE

At 31 October 2019

2,798

At 31 October 2018

2,494

Fixed asset investments are made up of 922 Standard Life shares at an original cost of £2,015.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.19

31.10.18

£

£

Trade debtors

363,770

301,536

Other debtors

124,395

110,308

488,165

411,844

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.19

31.10.18

£

£

Bank loans and overdrafts

6,452

7,480

Hire purchase contracts (see note 9)

3,530

1,903

Trade creditors

311,784

267,525

Amounts owed to group undertakings

4,021

2,803

Taxation and social security

53,222

60,243

Other creditors

170,908

147,435

549,917

487,389

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.19

31.10.18

£

£

Bank loans

62,962

69,414

Hire purchase contracts (see note 9)

4,057

-

67,019

69,414

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.10.19

31.10.18

£

£

Net obligations repayable:

Within one year

3,530

1,903

Between one and five years

4,057

-

7,587

1,903

Non-cancellable

operating leases

31.10.19

31.10.18

£

£

Within one year

1,366

1,856

Between one and five years

1,707

3,073

3,073

4,929

10.

RESERVES

Revaluation

reserve

£

At 1 November 2018

69,028

Revaluation

(1,551

)

At 31 October 2019

67,477

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 October 2019

and 31 October 2018:

31.10.19

31.10.18

£

£

D R Hodgson

Balance outstanding at start of year

(96,978

)

(97,332

)

Amounts advanced

100,000

119,500

Amounts repaid

(119,320

)

(119,146

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(116,298

)

(96,978

)

The advance is unsecured, repayable on demand and interest free.