STARC Limited Filleted accounts for Companies House (small and micro)

8 false false false false false false false false false true false false false false false false false No description of principal activity 2018-10-01 Sage Accounts Production Advanced 2020 - FRS102_2014 706,300 560,949 145,351 706,300 145,351 175,876 2,255 10,785 167,346 144,920 6,081 7,899 143,102 24,244 30,956 xbrli:pure xbrli:shares iso4217:GBP 06884523 2018-10-01 2019-09-30 06884523 2019-09-30 06884523 2018-09-30 06884523 2017-10-01 2018-09-30 06884523 2018-09-30 06884523 core:NetGoodwill 2018-10-01 2019-09-30 06884523 core:PlantMachinery 2018-10-01 2019-09-30 06884523 bus:Director2 2018-10-01 2019-09-30 06884523 core:NetGoodwill 2018-09-30 06884523 core:NetGoodwill 2019-09-30 06884523 core:PlantMachinery 2018-09-30 06884523 core:PlantMachinery 2019-09-30 06884523 core:WithinOneYear 2019-09-30 06884523 core:WithinOneYear 2018-09-30 06884523 core:ShareCapital 2019-09-30 06884523 core:ShareCapital 2018-09-30 06884523 core:RetainedEarningsAccumulatedLosses 2019-09-30 06884523 core:RetainedEarningsAccumulatedLosses 2018-09-30 06884523 core:NetGoodwill 2018-09-30 06884523 core:PlantMachinery 2018-09-30 06884523 bus:SmallEntities 2018-10-01 2019-09-30 06884523 bus:Audited 2018-10-01 2019-09-30 06884523 bus:FullAccounts 2018-10-01 2019-09-30 06884523 bus:SmallCompaniesRegimeForAccounts 2018-10-01 2019-09-30 06884523 bus:PrivateLimitedCompanyLtd 2018-10-01 2019-09-30 06884523 core:AllSubsidiaries 2018-10-01 2019-09-30

COMPANY REGISTRATION NUMBER: 06884523

STARC Limited

Filleted Financial Statements

30 September 2019

STARC Limited

Statement of Financial Position

30 September 2019

	2019	2018
Note	£	£

Fixed assets

Intangible assets	5	–	145,351
Tangible assets	6	24,244	30,956
		--------	---------
		24,244	176,307

Current assets

Stocks		–	8,001
Debtors	7	258,589	907,917
Cash at bank and in hand		403,034	494,764
		---------	------------
		661,623	1,410,682

Creditors: amounts falling due within one year	8	( 215,202)	( 277,614)
		---------	------------
Net current assets		446,421	1,133,068
		---------	------------
Total assets less current liabilities		470,665	1,309,375

Provisions	( 4,689)	( 5,216)
	---------	------------
Net assets	465,976	1,304,159
	---------	------------

Capital and reserves

Called up share capital	100	100
Profit and loss account	465,876	1,304,059
	---------	------------
Shareholders funds	465,976	1,304,159
	---------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements were approved by the board of directors and authorised for issue on 22 October 2020 , and are signed on behalf of the board by:

M Gubbins

Director

Company registration number: 06884523

STARC Limited

Notes to the Financial Statements

Year ended 30 September 2019

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Hayvenhurst Fairway House, Links Business Park, St Mellons, Cardiff, CF3 0LT.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

In March 2020, the World Health Organisation declared the outbreak of a novel coronavirus (Covid-19) as a pandemic, which continues to spread throughout the world. Governments in affected countries are imposing travel bans, quarantines and other emergency public safety measures. Those measures, though temporary in nature, may continue and increase depending on developments in the virus' outbreak. The ultimate severity of the outbreak is uncertain at this time and therefore the extent of the impact of of Covid-19 on the company's operational and financial performance cannot be reasonably estimated and will depend on future developments, including the duration and spread of the outbreak. Notwithstanding the above uncertainty, the directors have made appropriate enquiries and considered the potential impact of Covid-19 and having reviewed the company's forecasts and projections, the directors believe that the company has adequate resources to continue in operational existence for the foreseeable future and to meet its obligations and settle its liabilities as they fall due for payment (at least 12 months from the date the accounts are approved and signed). The company therefore continues to adopt the going concern basis in preparing the company financial statements.

Revenue recognition

On a contract by contract basis, turnover represents the value of work done in the year, recognised by reference to the overall stage of completion. This is measured by a survey of valuation undertaken by a qualified quantity surveyor. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. Consulting and professional fees are recognised when the service is provided. All amounts are exclusive of Value Added Tax and are wholly derived from within the United Kingdom.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Plant and machinery	-	20% reducing balance

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.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

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 receivables are stated at cost less impairment for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and bank overdrafts.

Trade and other creditors

Trade and other creditors are initially recognised at the transaction price and are thereafter stated at amortised cost, using the effective interest method, unless the effect of discounting would be immaterial, in which cases they are stated at cost.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 8 (2018: 11 ).

5. Intangible assets

	Goodwill
	£
Cost
At 1 October 2018 and 30 September 2019	706,300
	---------
Amortisation
At 1 October 2018	560,949
Charge for the year	145,351
	---------
At 30 September 2019	706,300
	---------
Carrying amount
At 30 September 2019	–
	---------
At 30 September 2018	145,351
	---------

6. Tangible assets

	Plant and machinery
	£
Cost
At 1 October 2018	175,876
Additions	2,255
Disposals	( 10,785)
	---------
At 30 September 2019	167,346
	---------
Depreciation
At 1 October 2018	144,920
Charge for the year	6,081
Disposals	( 7,899)
	---------
At 30 September 2019	143,102
	---------
Carrying amount
At 30 September 2019	24,244
	---------
At 30 September 2018	30,956
	---------

7. Debtors

	2019	2018
	£	£
Trade debtors	78,081	261,395
Amounts owed by group undertakings and undertakings in which the company has a participating interest	104,763	567,445
Other debtors	75,745	79,077
	---------	---------
	258,589	907,917
	---------	---------

8. Creditors: amounts falling due within one year

	2019	2018
	£	£
Trade creditors	11,461	1,672
Amounts owed to group undertakings and undertakings in which the company has a participating interest	114,936	114,014
Corporation tax	–	58,082
Social security and other taxes	11,138	59,910
Other creditors	77,667	43,936
	---------	---------
	215,202	277,614
	---------	---------

9. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2019	2018
	£	£
Not later than 1 year	14,400	14,400
	--------	--------

10. Summary audit opinion

The auditor's report for the year dated 23 October 2020 was unqualified.

The senior statutory auditor was Stephen Foster , for and on behalf of Shipleys LLP .

11. Related party transactions

During the period the company made sales to a fellow subsidiary £238,892 (2018: £440,261) and had purchases of £13,395 (2018: £240,176) from the same subsidiary. In addition during the period, the fellow subsidiary paid expenses on behalf of the company totalling £922 (2018: £10,462) which was recharged to the company. The amount owing to the company at the end of the period from the subsidiary was £61,704 (2018: £201,623). In addition, at the year end the company owes the fellow subsidiary £100,000 (2018: £100,000).

12. Controlling party

The company's immediate parent undertaking is Starc Holdings Limited, a company incorporated in England and Wales, the registered office is Hayvenhursts Fairway House, Links Business Park, St Mellons, Cardiff, CF3 0LT. The ultimate parent undertaking is Lowery Group Limited, a company incorporated in England and Wales, registered at Unit 301 Bedfont Industrial Estate, Challenge Road, Ashford, Middlesex, England, TW15 1AX. The results of the company are included within the consolidated accounts of Lowery Group Limited.