Kelvin Steels Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC205181 (Scotland)

Financial Statements for the Year Ended 30 November 2019

for

KELVIN STEELS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mrs C R P Nugent

H B Nugent

SECRETARY:

W T Nugent

REGISTERED OFFICE:

Caledonia House

Thornliebank Industrial Estate

Glasgow

G46 8JT

REGISTERED NUMBER:

SC205181 (Scotland)

SENIOR STATUTORY AUDITOR:

Robert Pollock BA CA

AUDITORS:

Sharles Audit Limited

Statutory Auditor

29 Brandon Street

Hamilton

ML3 6DA

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

241,002

270,038

241,002

270,038

CURRENT ASSETS

Stocks

570,927

763,841

Debtors

7

1,154,214

1,672,783

Cash at bank

814,092

129,785

2,539,233

2,566,409

CREDITORS

Amounts falling due within one year

8

908,761

1,049,657

NET CURRENT ASSETS

1,630,472

1,516,752

TOTAL ASSETS LESS CURRENT LIABILITIES

1,871,474

1,786,790

PROVISIONS FOR LIABILITIES

732,098

738,052

NET ASSETS

1,139,376

1,048,738

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Retained earnings

1,129,376

1,038,738

SHAREHOLDERS' FUNDS

1,139,376

1,048,738

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 1 September 2020 and were signed on its behalf by:

H B Nugent - Director

1.	STATUTORY INFORMATION

Kelvin Steels Limited is a private company, limited by shares , registered in Scotland. The company's registered

number and registered office address can be found on the Company Information page.

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

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. There were no material departures from the standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

In the application of the company's accounting policies, management is required to make judgements, estimates

and assumptions about the carrying values of assets and liabilities that are not readily apparent from other

sources. The estimates and underlying assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates. The estimates and underlying

assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in

which the estimate is revised if the revision affects only that period, or in the period of the revision and future

periods if the revision affects both current and future periods.

Turnover

Turnover is derived from sales of steel by the company.

Turnover is measured at the fair value of the sales of steel, net of discounts and excluding value added tax, and

is recognised at the point that the company obtains the right to consideration.

Goodwill

Goodwill arising on an acquisition of a trade is the difference between the fair value of the consideration paid

and the fair value of the assets and liabilities acquired. Positive goodwill is capitalised and amortised through the

profit & loss account over the directors estimate of its economic useful life which is 4 years. impairment tests on

the carrying value of goodwill are undertaken :-

- at the end of the first full financial year following acquisition;

- in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land and buildings

-

2% on cost

Plant and machinery etc

-

25% on cost, 10% on cost and at varying rates on cost

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and

accumulated impairment loss.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is

not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of

the cash-generating unit to which the asset belongs.

Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets

below this threshold is charged directly to the income statement in the period it is incurred.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable

value). Costs, which comprise direct production costs, are based on the method appropriate to the type of

inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as

incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling

costs. A provision for slow moving and obsolete stock is made based on historical experience and other relevant

factors.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the

related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of

stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any

reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an

expense in the period in which the reversal occurs.

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.

Deferred taxation

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet 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.

Pension costs and other post-retirement benefits

The company makes contributions to a defined contribution pension scheme and the pension charge represents

the amounts payable by the company to the fund in respect of the year.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2018 - 34 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2018

and 30 November 2019

68,252

AMORTISATION

At 1 December 2018

and 30 November 2019

68,252

NET BOOK VALUE

At 30 November 2019

-

At 30 November 2018

-

6.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 December 2018

170,591

717,038

887,629

Additions

-

25,846

25,846

Disposals

-

(75,418

)

(75,418

)

At 30 November 2019

170,591

667,466

838,057

DEPRECIATION

At 1 December 2018

56,300

561,291

617,591

Charge for year

3,919

38,140

42,059

Eliminated on disposal

-

(62,595

)

(62,595

)

At 30 November 2019

60,219

536,836

597,055

NET BOOK VALUE

At 30 November 2019

110,372

130,630

241,002

At 30 November 2018

114,291

155,747

270,038

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,031,595

1,279,820

Amounts owed by group undertakings

74,543

347,760

Other debtors

48,076

45,203

1,154,214

1,672,783

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

370,437

638,779

Taxation and social security

117,024

127,048

Other creditors

421,300

283,830

908,761

1,049,657

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Robert Pollock BA CA (Senior Statutory Auditor)

for and on behalf of Sharles Audit Limited

10.	RELATED PARTY DISCLOSURES

The company's related parties are considered to be Eaststrand Ltd, Arran Holdings limited, Weststrand Limited

and Kelvin Steels (England) Limited. Eaststrand Limited has a common director and beneficial shareholder and

Arran Holdings Limited is a subsidiary of Eaststrand Limited. Weststrand Limited is the company's ultimate

parent company, and Kelvin Steels (England) Limited is a fellow subsidiary.

The company leases its premises from Arran Holdings Limited. During the year rent of £150,000 (2018 -

£150,000) was paid to Arran Holdings Limited under the terms of the lease. £nil was due to this company at the

year end (2018 - £nil)

Exemption has been taken from disclosing related party transactions with Weststrand Limited and Kelvin Steels

(England) Limited on the basis that consolidated financial statements have been prepared for the group headed

by the company's parent, Weststrand Limited.

11.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns

to the tax authorities and assist with the preparation of the financial statements.

12.	ULTIMATE CONTROLLING PARTY

The company's ultimate parent company is Weststrand Limited, a company registered in Scotland and having its

registered office at Caledonia House, Thornliebank Industrial Estate, Thornliebank, Glasgow, G46 8JT.