Safety Choice Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03301687 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

FOR

SAFETY CHOICE LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

N P Morton

J S Dearlove

R J Curl

I Seabridge

REGISTERED OFFICE:

Unit 1

Langham Grange

Langham

Bury St Edmunds

Suffolk

IP31 3EE

REGISTERED NUMBER:

03301687 (England and Wales)

FIXED ASSETS

Intangible assets

4

21,000

24,600

Tangible assets

5

20,805

22,117

41,805

46,717

CURRENT ASSETS

Debtors

6

464,025

442,249

Cash at bank and in hand

5,645

7,094

469,670

449,343

CREDITORS

Amounts falling due within one year

7

710,365

568,073

NET CURRENT LIABILITIES

(240,695

)

(118,730

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(198,890

)

(72,013

)

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

(198,990

)

(72,113

)

(198,890

)

(72,013

)

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2021 and were signed on its behalf by:

J S Dearlove - Director

1.	STATUTORY INFORMATION

Safety Choice 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.

The presentation currency of the financial statements is the Pound 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.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from the provision of gas and electrical safety services is recognised by reference to the stage of completion at the statement of financial position date.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Plant and machinery

-

with consideration to useful life

Office equipment

-

15% on cost

Computer equipment

-

33% on cost

Government grants

Grants are accounted for using the accrual model.

Grants relating to revenue are recognised in the Statement of Income and Retained Earnings in the same period as the related costs for which the grant is intended to compensate. Where there are no related costs the grant is recognised in the period in which it becomes receivable.

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 with related parties.

Debt instruments that are payable or receivable within one year, such as trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Debt instruments that are repayable or receivable after one year are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each financial year for evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Income Statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Going concern

The company made a loss for the year of £126,877 and at 31 March 2020 had net liabilities of £198,890. However recent management accounts indicate that the company is now trading profitably, with turnover rising significantly as a result of the introduction of the new 'Electrical Safety Standard Regulations 2020' generating increased demand for electrical safety inspections and remedial works. Since the other group companies have also indicated that they will continue to support the company as necessary, the directors consider the company a going concern.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 39 (2019 - 34 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2019

and 31 March 2020

36,000

AMORTISATION

At 1 April 2019

11,400

Amortisation for year

3,600

At 31 March 2020

15,000

NET BOOK VALUE

At 31 March 2020

21,000

At 31 March 2019

24,600

5.	TANGIBLE FIXED ASSETS

Plant and

Office

Computer

machinery

equipment

equipment

Totals

£

£

£

£

COST

At 1 April 2019

21,528

15,196

6,485

43,209

Additions

8,176

-

1,577

9,753

At 31 March 2020

29,704

15,196

8,062

52,962

DEPRECIATION

At 1 April 2019

3,896

14,800

2,396

21,092

Charge for year

8,673

60

2,332

11,065

At 31 March 2020

12,569

14,860

4,728

32,157

NET BOOK VALUE

At 31 March 2020

17,135

336

3,334

20,805

At 31 March 2019

17,632

396

4,089

22,117

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

391,064

371,196

Amounts owed by group undertakings

-

30,672

Other debtors

72,961

40,381

464,025

442,249

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

351,312

339,034

Amounts owed to group undertakings

94,767

63,350

Taxation and social security

245,002

145,921

Other creditors

19,284

19,768

710,365

568,073

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

Within one year

75,017

68,009

Between one and five years

35,273

84,321

110,290

152,330

9.	OTHER FINANCIAL COMMITMENTS

The company has entered into a cross guarantee and debenture with its fellow group companies namely Hillingdon (Mansfield) Limited, Gas-Elec Holdings Limited and Gas-Elec Safety (UK) Limited. This relates to a fixed and floating charge over the assets and undertakings of the companies and is held by Barclays Bank PLC.

The company has also provided a fixed and floating charge over its assets in an agreement with Aldermore Bank PLC.

10.	THE IMPACT OF COVID-19 ON THE BUSINESS

The COVID-19 pandemic has caused disruption to the business due to the numerous lockdowns and the need to take precautionary measures both in the work place and with engineers on the road. However, due to a proactive and professional approach of the business's management team in response to the unprecedented situation, the business maintained a largely normal service throughout the country and across the range of services the business offers.