Flamefast (U.K.) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03280926 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 May 2020

for

Flamefast (U.K.) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Directors' Responsibilities Statement

12

Independent Chartered Accountants' Review Report

13

DIRECTORS:

Mr Steven Antony Swinden

Mrs Jane Warburton

Mrs Colleen Swinden

SECRETARY:

Mr Steven Antony Swinden

REGISTERED OFFICE:

1 Heaton Court

Risley Road

Birchwood

Warrington

Cheshire

WA3 6QU

REGISTERED NUMBER:

03280926 (England and Wales)

ACCOUNTANTS:

Nick Brajkovich Limited

Chartered Accountants

29 Withers Avenue

Warrington

Cheshire

WA2 8EU

FIXED ASSETS

Tangible assets

4

124,896

172,980

CURRENT ASSETS

Stocks

5

789,573

660,660

Debtors

6

1,653,781

1,314,835

Cash at bank and in hand

454,548

156,823

2,897,902

2,132,318

CREDITORS

Amounts falling due within one year

7

1,802,974

1,641,004

NET CURRENT ASSETS

1,094,928

491,314

TOTAL ASSETS LESS CURRENT LIABILITIES

1,219,824

664,294

CREDITORS

Amounts falling due after more than one year

8

(380,357

)

(117,973

)

PROVISIONS FOR LIABILITIES

10

(3,362

)

-

NET ASSETS

836,105

546,321

CAPITAL AND RESERVES

Called up share capital

11

900

900

Capital redemption reserve

12

100

100

Retained earnings

12

835,105

545,321

SHAREHOLDERS' FUNDS

836,105

546,321

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 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 by the Board of Directors and authorised for issue on 22 October 2020 and were signed on its behalf by:

Mr Steven Antony Swinden - Director

Mrs Jane Warburton - Director

1.	STATUTORY INFORMATION

Flamefast (U.K.) 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.	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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies adopted are set out below.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Turnover

Revenue from the sale of goods shall be recognised when all the following conditions have been satisfied:

- the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the sale of goods is generally recognised when they are handed over to the transport firms which, under the terms of current contracts, mark the time when the above risks and rewards are transferred.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue is stated net of discounts, allowances, rebates and returns, and does not include the proceeds from the disposal of raw materials and scrap.

Revenue includes also minor cost connected with the sales process, such as certification ,recoveries of cost of transport, packaging, insurances etc

Revenue for services rendered is recorded in the profit & loss when the service has been provided to the customer.

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery

25% on cost

Fixtures and fittings

20-40% on cost

Motor vehicles

25% on Cost

Improvements to property

25% on Cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforcible right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the net asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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.

Derecognition of financial assets

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Transactions in foreign currency are translated at exchange rates approximating to the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the foreign exchange rate ruling at that date. Foreign exchange differences are recognised in the profit and loss account.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

Provisions

A provision is recognised in the balance sheet when the company has a constructive or legal obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are recognised at their discounted net present value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 37 (2019 - 39 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 June 2019

41,862

152,293

26,255

Additions

-

847

8,008

Disposals

-

-

-

At 31 May 2020

41,862

153,140

34,263

DEPRECIATION

At 1 June 2019

27,201

124,539

16,628

Charge for year

6,279

12,933

8,258

Eliminated on disposal

-

-

-

At 31 May 2020

33,480

137,472

24,886

NET BOOK VALUE

At 31 May 2020

8,382

15,668

9,377

At 31 May 2019

14,661

27,754

9,627

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2019

170,930

91,297

482,637

Additions

-

23,185

32,040

Disposals

(49,302

)

-

(49,302

)

At 31 May 2020

121,628

114,482

465,375

DEPRECIATION

At 1 June 2019

64,382

76,907

309,657

Charge for year

25,334

10,538

63,342

Eliminated on disposal

(32,520

)

-

(32,520

)

At 31 May 2020

57,196

87,445

340,479

NET BOOK VALUE

At 31 May 2020

64,432

27,037

124,896

At 31 May 2019

106,548

14,390

172,980

Fixed assets, included in the above, which are held under finance leases are as follows:

Motor

vehicles

£

COST

At 1 June 2019

and 31 May 2020

105,022

DEPRECIATION

At 1 June 2019

32,596

Charge for year

14,210

At 31 May 2020

46,806

NET BOOK VALUE

At 31 May 2020

58,216

At 31 May 2019

72,426

5.

STOCKS

31.5.20

31.5.19

£

£

Stocks

763,091

531,337

Work-in-progress

26,482

129,323

789,573

660,660

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.20

31.5.19

£

£

Trade debtors

921,525

768,658

Amounts owed by group undertakings

636,077

375,140

Other debtors

7,395

17,728

Deferred tax asset

-

9,083

Prepayments

88,784

144,226

1,653,781

1,314,835

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.20

31.5.19

£

£

Bank loans and overdrafts

21,675

44,696

Finance leases

21,101

12,900

Payments on account

-

97,453

Trade creditors

507,055

581,276

Tax

-

16,354

Social security and other taxes

26,394

23,017

VAT

192,038

75,884

Other creditors

5,008

4,501

Other loans

849,609

624,067

Accrued expenses

180,094

160,856

1,802,974

1,641,004

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.20

31.5.19

£

£

Bank loans - 1-2 years

328,980

29,706

Bank loans - 2-5 years

7,644

23,425

Finance leases

43,733

64,842

380,357

117,973

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.5.20

31.5.19

£

£

Bank loans

358,299

97,827

Finance leases

64,834

77,742

Other loans

-

624,067

423,133

799,636

The company's bank loans are secured by an a fixed and floating charge through a debenture and legal charge over the assets of Flamefast( UK) Limited.

The company's hire purchase liabilities are secured against the individual assets held under such agreements.

The other loans are secured by a debenture held including a first fixed charge over book and other debts, chattels and goodwill, both present and future, and first floating charge over all assets and undertaking both present and future.

10.	PROVISIONS FOR LIABILITIES

31.5.20

£

Deferred tax

Accelerated capital allowances

11,831

Tax losses carried forward

(8,469

)

3,362

Deferred

tax

£

Balance at 1 June 2019

(9,083

)

Provided during year

12,445

Balance at 31 May 2020

3,362

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.5.20

31.5.19

value:

£

£

762

Ordinary 'A'

£1

762

762

138

Ordinary 'B'

£1

138

138

900

900

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 June 2019

545,321

100

545,421

Profit for the year

402,824

402,824

Dividends

(113,040

)

(113,040

)

At 31 May 2020

835,105

100

835,205

13.	ULTIMATE CONTROLLING PARTY

The controlling party is Mr Steven Antony Swinden.

14.	ULTIMATE PARENT COMPANY

Flamefast Holdings Limited is regarded by the directors as being the company's ultimate parent company.

The following reproduces the text of the report prepared for the directors and members 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.

We confirm that as directors we have met our duty in accordance with the Companies Act 2006 to:

-	ensure that the company has kept proper accounting records;

-	prepare financial statements which give a true and fair view of the state of affairs of the company as at 31 May 2020 and of its profit for that period in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	follow the applicable accounting policies, subject to any material departures disclosed and explained in the notes to the financial statements.

ON BEHALF OF THE BOARD:

Mr Steven Antony Swinden - Director

Mrs Jane Warburton - Director

22 October 2020

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.

We have reviewed the financial statements of Flamefast (U.K.) Limited for the year ended 31 May 2020, which comprise the Income Statement, Balance Sheet and the related notes 1 to 17. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

This report is made solely to the company's directors, as a body, in accordance with our terms of engagement. Our review has been undertaken so that we might state to the directors those matters that we have agreed with them in our engagement letter and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's directors as a body for our work, for this report or the conclusions we have formed.

Directors' responsibility for the financial statements

As explained more fully in the Directors' Responsibilities Statement set out on page sixteen, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Accountants' responsibility

Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), 'Engagements to review historical financial statements' and ICAEW Technical Release TECH 09/13AAF 'Assurance review engagements on historical financial statements'. ISRE 2400 also requires us to comply with the ICAEW Code of Ethics.

Scope of the assurance review

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have performed additional procedures to those required under a compilation engagement. These primarily consist of making enquiries of management and others within the entity, as appropriate, applying analytical procedures and evaluating the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (UK and Ireland). Accordingly, we do not express an audit opinion on these financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

-	so as to give a true and fair view of the state of the company's affairs as at 31 May 2020 and of its profit for the year then ended;

-	in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	in accordance with the requirements of the Companies Act 2006.

Nick Brajkovich Limited

Chartered Accountants

29 Withers Avenue

Warrington

Cheshire

WA2 8EU

22 October 2020