Armco Direct Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05646867 (England and Wales)

ARMCO DIRECT LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

8

Chartered Certified Accountants' Report

9

DIRECTORS:

D C Lallo

Mrs A L Lallo

SECRETARY:

Mrs A L Lallo

REGISTERED OFFICE:

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

BUSINESS ADDRESS:

The Old School House

Nottingham Road

Kegworth

Derbyshire

DE74 2EH

REGISTERED NUMBER:

05646867 (England and Wales)

ACCOUNTANTS:

Essex Abel Ltd

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

FIXED ASSETS

Tangible assets

4

89,967

54,894

CURRENT ASSETS

Stocks

218,611

209,076

Debtors

5

253,259

295,207

Cash at bank and in hand

201,574

105,640

673,444

609,923

CREDITORS

Amounts falling due within one year

6

369,171

286,901

NET CURRENT ASSETS

304,273

323,022

TOTAL ASSETS LESS CURRENT LIABILITIES

394,240

377,916

CREDITORS

Amounts falling due after more than one year

7

(16,791

)

(12,296

)

PROVISIONS FOR LIABILITIES

(14,365

)

(6,044

)

NET ASSETS

363,084

359,576

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

362,984

359,476

SHAREHOLDERS' FUNDS

363,084

359,576

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 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 Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 9 September 2020 and were signed on its behalf by:

D C Lallo - Director

1.	STATUTORY INFORMATION

Armco Direct Limited is a private limited company incorporated in England and Wales under the Companies Act.

The address of the registered office is given in the company information section and its principal place of business

is at Plot B Messenger Close Compounds, Messenger Close, Loughborough.

The financial statements are presented in 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.

Turnover

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.

Short leasehold

-

10% on cost

Plant and machinery

-

33% on cost

Motor vehicles

-

25% on reducing balance

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

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable and loans to/from related parties.

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of

the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that

are payable or receivable within one year, typically trade payables or receivables, are measured, initially and

subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a

trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in

case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and

subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt

instrument.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost

using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of

discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and

doubtful debts.

A provision for impairment of trade debtors is established when there is objective evidence that the company will

not be able to collect all amounts due according to the original terms of debtors. The amount of the provision is

determined as the difference between the asset's carrying amount and the present value of estimated future cash

flows, and is recognised in the profit & loss in operating expenses.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the

effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

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 tax

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 6 (2019 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

leasehold

machinery

vehicles

Totals

£

£

£

£

COST

At 1 April 2019

9,900

48,190

25,885

83,975

Additions

-

7,392

42,022

49,414

At 31 March 2020

9,900

55,582

67,907

133,389

DEPRECIATION

At 1 April 2019

482

11,789

16,810

29,081

Charge for year

990

7,359

5,992

14,341

At 31 March 2020

1,472

19,148

22,802

43,422

NET BOOK VALUE

At 31 March 2020

8,428

36,434

45,105

89,967

At 31 March 2019

9,418

36,401

9,075

54,894

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

179,562

225,707

Amounts owed by group undertakings

1,125

59

Payments on account

72,572

69,441

253,259

295,207

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 8)

17,355

6,700

Trade creditors

260,899

199,982

Taxation and social security

76,018

72,499

Other creditors

14,899

7,720

369,171

286,901

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 8)

16,791

12,296

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

17,355

6,700

Between one and five years

16,791

12,296

34,146

18,996

Non-cancellable operating

leases

2020

2019

£

£

Within one year

17,419

17,419

Between one and five years

69,676

69,676

In more than five years

58,027

75,446

145,122

162,541

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

34,146

18,996

10.	OTHER FINANCIAL COMMITMENTS

The company has provided a guarantee of £149,765 as security for borrowings held by the parent company. The

guarantee is in the form of a fixed and floating charge over all the property or undertaking of the company.

11.	CONTROLLING ENTITY

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a

Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial

statements of Armco Direct Limited for the year ended 31 March 2020 which comprise the Income Statement, Balance

Sheet and the related notes from the company's accounting records and from information and explanations you have given

us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook.

This report is made solely to the Board of Directors of Armco Direct Limited, as a body, in accordance with the terms of our engagement letter dated 30 August 2013. Our work has been undertaken solely to prepare for your approval the financial statements of Armco Direct Limited and state those matters that we have agreed to state to the Board of Directors of Armco Direct Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Armco Direct Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Armco Direct Limited. You consider that Armco Direct Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Armco Direct Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Essex Abel Ltd

4 Bank Court

Weldon Road

Loughborough

Leicestershire

LE11 5RF

11 September 2020