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Registered number: 02170592
Industrial Door Systems Limited
Unaudited
Financial statements
Information for filing with the registrar
For the year ended 30 September 2020
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Industrial Door Systems Limited
Registered number: 02170592
Balance Sheet
As at 30 September 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
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Industrial Door Systems Limited
Registered number: 02170592
Balance Sheet (continued)
As at 30 September 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 11 form part of these financial statements.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
Industrial Door Systems Limited is a private company limited by share capital. The company is incorporated in England, company number 02170592. The address of the registered office and principal place of business is Unit B Focal Point, Second Avenue, Trafford Park, Manchester, M17 1FG.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. The following paragraphs set out the basis of which the directors have reached their conclusion.
The Company has total net assets less current liabilities of £1,115,745 (2019: £733,588), and net assets of £386,878. (2019: £444,088) at 30 September 2020.
The Covid-19 virus outbreak has had a significant impact on the majority of UK businesses. During the lockdown period, the directors carried out a variety of immediate actions, including applying for the Coronavirus Business Loan Scheme (CBILS) as well as taking advantage of the Furlough Grant Scheme, to ensure the company continued to be a going concern and the ability to continue trading profitably in future years. Despite this, the year proved to be the most successful trading year both in terms of turnover and profitability
The Company currently meets its working capital requirements through its cash balances and bank funding, the directors believe they have sufficient facilities to trade through the next 12 month period.
Therefore, the directors believe it is appropriate to prepare the accounts to 30 September 2020 on a going concern basis and there will be no adverse effect on solvency for more than 12 months after the date of approval of the financial statements.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company 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 Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 October 2018 to continue to be charged over the period to the first market rent review rather than the term of the lease.
Rental income from operating leases (net of any incentives given to the lessees) is recognised on a straight line basis over the lease term.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the statement of income and retained earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the statement of income and retained earnings in the same period as the related expenditure.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
2.Accounting policies (continued)
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the statement of income and retained earnings in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.
Depreciation is provided on the following basis:
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Long-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of income and retained earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted averagebasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders.
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The average monthly number of employees, including directors, during the year was 112 (2019 - 98).
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
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Charge for the year on owned assets
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Charge for the year on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Industrial Door Systems (Midlands) Limited
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Industrial Door Systems (Yorkshire) Limited
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Industrial Door Systems (Northern) Limited
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Each subsidiary's registered office is Unit B Focal Point, Second Avenue, Trafford Park, Manchester, M17 1FG
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The company has an invoice discounting agreement with Lloyds TSB Commercial Finance Limited. The contract is of recourse transaction nature and therefore debtors are included at their gross value in the balance sheet, with appropriate provisions for bad and doubtful debts, while the liability in respect of net advances received from the invoice discounting company is included in current liabilities.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Included within bank loans and overdrafts is £nil (2019: £46,677) relating to amounts due under invoice discounting. The current year balance for invoice discounting is held in bank and cash balances and amounts to £757,347 due to the facility not being drawn down.
The bank loan is a government backed CBIL loan, there is no interest charged for the first 12 months and the loan is not secured over any assets.
The finance lease and hire purchase liabilities are secured against the assets which they relate to.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The finance lease and hire purchase liabilities are secured against the assets which they relate to.
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Industrial Door Systems Limited
Notes to the Financial Statements
For the year ended 30 September 2020
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £73,336 (2019 - £69,403) . Contributions totalling £13,795 (2019 - £14,431) were payable to the fund at the balance sheet date and are included in creditors.
The company is under the ultimate control of J W Barnett by virtue of his 89% holding in the voting share capital.
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