Power Cable Services Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05959476 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

POWER CABLE SERVICES LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G P Oakley

T G Marsh

C D Bagge

SECRETARY:

G P Oakley

REGISTERED OFFICE:

30-34 North Street

Hailsham

East Sussex

BN27 1DW

REGISTERED NUMBER:

05959476 (England and Wales)

ACCOUNTANTS:

Watson Associates (Professional Services) Limited

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

FIXED ASSETS

Tangible assets

4

11,988

11,182

CURRENT ASSETS

Stocks

123,450

49,404

Debtors

5

507,364

1,541,942

Cash at bank and in hand

2,395,527

788,198

3,026,341

2,379,544

CREDITORS

Amounts falling due within one year

6

(1,144,950

)

(741,588

)

NET CURRENT ASSETS

1,881,391

1,637,956

TOTAL ASSETS LESS CURRENT LIABILITIES

1,893,379

1,649,138

PROVISIONS FOR LIABILITIES

(2,347

)

(804

)

NET ASSETS

1,891,032

1,648,334

CAPITAL AND RESERVES

Called up share capital

7

1

1

Retained earnings

1,891,031

1,648,333

SHAREHOLDERS' FUNDS

1,891,032

1,648,334

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 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 Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 June 2021 and were signed on its behalf by:

G P Oakley - Director

1.	STATUTORY INFORMATION

Power Cable Services Ltd 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.

Critical accounting judgements and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.

There were no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Tools and equipment

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Fixtures & fittings

-

25% on reducing balance

Stocks

Work in progress is valued at the lower of cost and net realisable value.

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.

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, loans from banks and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments 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 reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 8 ) .

4.	TANGIBLE FIXED ASSETS

Tools and

Motor

Fixtures

equipment

vehicles

& fittings

Totals

£

£

£

£

COST

At 1 January 2020

52,380

21,600

30,133

104,113

Additions

-

-

3,525

3,525

At 31 December 2020

52,380

21,600

33,658

107,638

DEPRECIATION

At 1 January 2020

46,776

19,438

26,717

92,931

Charge for year

1,401

540

778

2,719

At 31 December 2020

48,177

19,978

27,495

95,650

NET BOOK VALUE

At 31 December 2020

4,203

1,622

6,163

11,988

At 31 December 2019

5,604

2,162

3,416

11,182

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

258,576

1,421,913

Amounts owed by group undertakings

233,637

64,066

Other debtors

15,151

55,963

507,364

1,541,942

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Payments on account

665,360

5,481

Trade creditors

101,762

385,272

Taxation and social security

360,351

330,874

Other creditors

17,477

19,961

1,144,950

741,588

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1

Ordinary

£1

1

1

8.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors Mr G Oakley, Mr T Marsh & Mr C Bagge who are also the directors of PCS Holdings (UK) Limited.

9.	REVIEW OF BUSINESS - IMPACT OF COVID-19

During 2020 the pandemic impacted upon operational efficiency with a number of staff working from home at various times, and the balance of staff working on a rota system in order to mitigate the possibility of transmission should an individual become infected. International travel restrictions prevented planned installation work of PCSL products at overseas subsea cable manufacturers and on offshore platforms, with a consequent reduction in sales revenue and net profit. It is estimated that the impact of these restrictions was a reduction in the net profit before tax in the order of 20% during the financial year.

Restrictions on site and external resources as a result of lockdown measures also impacted upon the rate of Company research and development activity , in particular the final qualification testing of a 220kV subsea cable repair joint product which will now be completed during 2021 rather than 2020. This delay will impact upon 2021 planned sales revenue arising from the new product. Initial sales for this product group are now forecast to occur in 2022 rather than 2021 financial year.