K Steels Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02284684 (England and Wales)

K STEELS LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

S Kay

J D Sudworth

P A Clark

L Kewley

R J Howarth

REGISTERED OFFICE:

Jubilee Works

Holme Lane

Rawtenstall

Rossendale

Lancashire

BB4 6JF

REGISTERED NUMBER:

02284684 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

BANKERS:

Barclays Bank plc

St James' Street

Burnley

Lancashire

BB11 1NH

FIXED ASSETS

Property, plant and equipment

4

509,672

496,098

CURRENT ASSETS

Inventories

1,083,900

1,354,228

Debtors

5

1,490,040

1,907,209

Cash at bank and in hand

2,202,896

1,700,588

4,776,836

4,962,025

CREDITORS

Amounts falling due within one year

6

(2,423,757

)

(2,553,105

)

NET CURRENT ASSETS

2,353,079

2,408,920

TOTAL ASSETS LESS CURRENT LIABILITIES

2,862,751

2,905,018

PROVISIONS FOR LIABILITIES

(94,575

)

(87,736

)

NET ASSETS

2,768,176

2,817,282

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

2,768,174

2,817,280

SHAREHOLDERS' FUNDS

2,768,176

2,817,282

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 9 June 2021 and were signed on its behalf by:

R J Howarth - Director

1.	STATUTORY INFORMATION

K Steels Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 02284684 and its registered office address is Jubilee Works, Holme Lane, Rawtenstall, Rossendale, Lancashire, BB4 6JF.

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 directors have considered the impact of the global Covid-19 pandemic on the company and recognise that the future cannot be predicted with certainty. However, the directors expect that the company will continue trading, albeit at a reduced level for the moment. The company's key customers are still operational and profits will be generated from servicing their needs. Policies are in place to ensure all staff are working safely and in accordance with government guidelines. Should demand for the company's services fall, the company would introduce cost control measures but would be able to retain staff using cash reserves.

The company had net assets of £2.8m and cash reserves of £2.2m at the year end and has generated profits post year end. The directors believe that the company is well placed to manage the risks at these challenging times and therefore continue to adopt a going concern basis of accounting in preparing these financial statements.

Revenue

Revenue represents the aggregate of the fair value of the sale of goods, net of value added tax, rebates and discounts.

Revenues from sales of goods are recognised when the company has supplied/delivered products to the customer, the customer has accepted the goods and collection of the related receivables is anticipated.

Property, plant and equipment

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

Plant and machinery etc

-

33% on reducing balance, 25% on reducing balance, 15% on reducing balance and 10% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the year the company has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

The company has not directly benefitted from any other forms of government assistance.

Inventories

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

Cost is the actual value of goods purchased.

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 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.

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.

Leasing commitments

Rentals paid under operating leases are charged to the income statement as incurred.

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 third parties and loans to related parties.

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 the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key judgements in calculating an appropriate depreciation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Dividends

Equity dividends are recognised when they become payable and are no longer at the discretion of the company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 41 (2019 - 39 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 October 2019

1,418,534

Additions

151,155

Disposals

(92,060

)

At 30 September 2020

1,477,629

DEPRECIATION

At 1 October 2019

922,436

Charge for year

132,602

Eliminated on disposal

(87,081

)

At 30 September 2020

967,957

NET BOOK VALUE

At 30 September 2020

509,672

At 30 September 2019

496,098

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

1,396,175

1,825,782

Amounts owed by group undertakings

6,480

-

Other debtors

87,385

81,427

1,490,040

1,907,209

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

2,073,427

2,218,705

Taxation and social security

136,427

148,518

Other creditors

213,903

185,882

2,423,757

2,553,105

7.	LEASING AGREEMENTS

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

2020

2019

£

£

Within one year

4,382

4,382

Between one and five years

5,860

8,617

In more than five years

511

-

10,753

12,999

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Lesley Haresnape (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

9.	CAPITAL COMMITMENTS

2020

2019

£

£

Contracted but not provided for in the

financial statements

-

110,000