Certwood Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02024404 (England and Wales)

Financial Statements for the Year Ended 30 November 2020

for

Certwood Limited

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

9

DIRECTORS:

Mr R Courtnell

Mr S H Rook

SECRETARY:

Mrs I E Courtnell

REGISTERED OFFICE:

4 Cromwell Court

New Street

Aylesbury

Buckinghamshire

HP20 2PB

REGISTERED NUMBER:

02024404 (England and Wales)

FIXED ASSETS

Intangible assets

4

371,980

402,789

Tangible assets

5

1,273,472

1,441,416

1,645,452

1,844,205

CURRENT ASSETS

Stocks

1,057,627

1,079,789

Debtors

6

907,039

994,971

Cash at bank and in hand

132,980

132,519

2,097,646

2,207,279

CREDITORS

Amounts falling due within one year

7

(1,289,500

)

(1,586,165

)

NET CURRENT ASSETS

808,146

621,114

TOTAL ASSETS LESS CURRENT LIABILITIES

2,453,598

2,465,319

CREDITORS

Amounts falling due after more than one year

8

(650,050

)

(655,520

)

PROVISIONS FOR LIABILITIES

(259,643

)

(286,392

)

NET ASSETS

1,543,905

1,523,407

CAPITAL AND RESERVES

Called up share capital

11

110,000

110,000

Retained earnings

1,433,905

1,413,407

SHAREHOLDERS' FUNDS

1,543,905

1,523,407

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 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 21 May 2021 and were signed on its behalf by:

Mr R Courtnell - Director

1.	STATUTORY INFORMATION

Certwood 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 company's principle place of business is:

Laporte Way

Luton

Beds

LU4 8EF

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.

A sale is recognised when revenue and associated costs can be measured reliably and future economic benefits are probable. Revenue is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, net of discounts and VAT.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their 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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

10% on cost

Improvements to property

-

10% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

15% 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.

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 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.

Research and development

Research and development expenditure is written off in the year in which it is incurred, except that development expenditure incurred on an individual project is carried forward when its future reconcilability can reasonably be regarded as assured. The expenditure carried forward is treated as an intangible fixed asset and amortised over its estimated economic life so as to match the expenditure with the anticipated sales from the related project.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Fixed assets

All fixed assets are initially recorded at cost.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 58 (2019 - 63 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 December 2019

565,922

Additions

27,174

At 30 November 2020

593,096

AMORTISATION

At 1 December 2019

163,133

Charge for year

57,983

At 30 November 2020

221,116

NET BOOK VALUE

At 30 November 2020

371,980

At 30 November 2019

402,789

£27,174 of development costs additions in the year relate to:

LIGHT DUTY FLOORING PANEL

This is a temporary venue flooring project. We have already designed and brought to market a heavy duty version. The requirements for this light duty option required considering new operational dynamics for performance and we started again on the concept and redesigned.

CLIP PAN AND VERGE TOOLS

These are all construction / roofing products. We took on the development & prototyping work for them bringing tooling and product to market.

CORNER DRAIN

Another construction / ground works product requiring development & prototyping work bringing tooling and product to market.

STORSYSTEM - A3 DIVIDERS

We have a healthcare customer who required some form of dividing up the inside space on our EW A3 single depth and double depth trays to store small items.The dividers were a solution the we developed, designed prototyped and are bringing to market by late summer.

STORSYSTEM - SINGLE DEPTH SW TRAY - LIGHTWEIGHT

We need to look at reducing weight in some of our trays and we went on to the design a lighter weight version of the existing tray. This design required rethinking the flow characteristics to fill the mould and achieve mouldable thin wall sections CAD design and MOLDFLOW investigation with prototyping achieved a thinner wall section product.

USA EDUCATION CUSTOMER

Design and bring to market a new style education storage tray incorporating existing Storsystem IP and patent designs along with the customers own styling features.

In 2019 £168,629 of development costs additions in the year relate to:

STADIUM VENUE PRODUCT

Design of stadium arena interlocking Ramp, Fixture caps and flooring panels, Prototyping, 3D CAD 3D printed modelling, testing.

EDUCATION STORAGE PRODUCT

Design of Bookstore tray and removable dividers, Prototyping, 3D CAD and 3D printed modelling testing.

EDUCATION STORAGE PRODUCT

Design of metal framework storage carts and storage racks - new feet inserts, prototyping 3D CAD and 3D modelling, testing.

EDUCATION TEACHING PRODUCT

Design of Reading table for Muslim mosque schools, 3D CAD and 3D modelling, testing.

EDUCATION STORAGE PRODUCT

Design of Tray stop corner moulding for under desk tray storage applications, 3D CAD and 3D printed modelling prototyping, testing.

CONSTRUCTION PRODUCT

Brick cap, new product design 3D CAD and 3D printed modelling, testing.

CONSTRUCTION PRODUCT

Design of Hip carrier tray modifying existing Vac forming designs, 3D CAD and 3D printed modelling and testing.

STADIUM VENUE PRODUCT

New product design of Light Duty Flooring panel, 3D CAD.

Other smaller projects.

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Short

to

Plant and

and

leasehold

property

machinery

fittings

Totals

£

£

£

£

£

COST

At 1 December 2019

25,454

89,034

3,269,243

70,686

3,454,417

Additions

-

-

2,433

2,524

4,957

Disposals

-

-

(92,927

)

-

(92,927

)

At 30 November 2020

25,454

89,034

3,178,749

73,210

3,366,447

DEPRECIATION

At 1 December 2019

1,061

82,371

1,860,785

68,784

2,013,001

Charge for year

2,545

1,766

137,989

663

142,963

Eliminated on disposal

-

-

(62,989

)

-

(62,989

)

At 30 November 2020

3,606

84,137

1,935,785

69,447

2,092,975

NET BOOK VALUE

At 30 November 2020

21,848

4,897

1,242,964

3,763

1,273,472

At 30 November 2019

24,393

6,663

1,408,458

1,902

1,441,416

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 December 2019

and 30 November 2020

1,565,242

DEPRECIATION

At 1 December 2019

808,591

Charge for year

69,112

At 30 November 2020

877,703

NET BOOK VALUE

At 30 November 2020

687,539

At 30 November 2019

756,651

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

836,774

954,921

Other debtors

70,265

40,050

907,039

994,971

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

27,778

6,111

Hire purchase contracts (see note 9)

219,243

243,766

Trade creditors

374,329

489,531

Taxation and social security

116,941

84,746

Other creditors

551,209

762,011

1,289,500

1,586,165

The company commenced an agreement on 23rd February 2010 to sell its existing and future trade debts to UK customers, to an invoice discounting company. The company continued to bear significant benefits and risks relating to them and ultimately the invoice discounting company could exercise recourse for debts not paid on time and any outstanding at the end of the agreement. The charges incurred in connection with the invoice discounting were as follows: £29,886 (2019 : £44,587). Included within other creditors is an amount of £337,047 (2019 - £555,179) due to the company in relation to the invoice discounting company.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

225,000

-

Hire purchase contracts (see note 9)

189,528

344,837

Other creditors

235,522

310,683

650,050

655,520

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

219,243

243,766

Between one and five years

189,528

344,837

408,771

588,603

Non-cancellable

operating leases

2020

2019

£

£

Within one year

5,890

4,149

Between one and five years

121,794

184,218

In more than five years

2,994,581

3,221,778

3,122,265

3,410,145

10.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

252,778

6,111

Other loans

310,660

380,013

Hire purchase contracts

408,771

588,603

Invoice discounting company

337,047

555,179

1,309,256

1,529,906

The bank loans and hire purchase contracts are secured on the assets concerned.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

110,000

Ordinary

£1

110,000

110,000

12.	GOVERNMENT GRANTS

During the year ended 30th November 2001 the company received a Government Enterprise Grant to help implement a project to purchase two moulding machines and two robots. Government Grants are included in the profit and loss for the year of £998 (2019 : £1,109). Deferred Government Grants of £8,983 (2019 : £9,981) will be included in future years profit and loss accounts.

During the year ended 30th November 2020 the company received Government Grants of £331,578 in relation to furloughed employees.