Cardiff Galvanizers (1969) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00964827 (England and Wales)

CARDIFF GALVANIZERS (1969) LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH SEPTEMBER 2020

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

R Evans

G Evans

A H John

REGISTERED OFFICE:

Cambria House

East Moors Road

Cardiff

CF24 5EG

REGISTERED NUMBER:

00964827 (England and Wales)

ACCOUNTANTS:

Carston Chartered Accountants

Tudor House

16 Cathedral Road

Cardiff

CF11 9LJ

FIXED ASSETS

Tangible assets

4

246,708

423,595

CURRENT ASSETS

Stocks

275,740

207,943

Debtors

5

2,143,055

1,861,947

Cash at bank and in hand

757,970

441,081

3,176,765

2,510,971

CREDITORS

Amounts falling due within one year

6

3,218,976

2,552,121

NET CURRENT LIABILITIES

(42,211

)

(41,150

)

TOTAL ASSETS LESS CURRENT LIABILITIES

204,497

382,445

CREDITORS

Amounts falling due after more than one year

7

(8,689

)

(36,577

)

PROVISIONS FOR LIABILITIES

(22,828

)

(51,795

)

NET ASSETS

172,980

294,073

CAPITAL AND RESERVES

Called up share capital

15,000

15,000

Retained earnings

9

157,980

279,073

172,980

294,073

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30th September 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 23rd June 2021 and were signed on its behalf by:

R Evans - Director

1.	STATUTORY INFORMATION

Cardiff Galvanizers (1969) 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.

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 COVID-19 pandemic has had a significant negative impact on the UK economy.

Given the rapidly evolving nature of the situation and lockdowns, it is difficult to quantify the impact of Covid-19, and the directors recognise that in the longer term its effect may be more significant.

At this time, any long-term effect on the company is unknown, but the company has benefitted from changes in working practices, and the directors remain confident of the financial position of the company.

The directors believe that the company has sufficient reserves and is continuing to generate additional cash reserves to withstand any further economic downturns caused by the pandemic.

Given the above, the directors are confident that it is correct to prepare the accounts on a going concern basis.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33.33% straight line on cost, Over 20 years and Straight line over 7 years

Motor vehicles

-

25% straight line on cost

Government grants

Government grants are recognised over the period for which the grant is intended to compensate.

Grants that are receivable as compensation for expenses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which the grant is receivable.

Grants in respect of capital expenditure are released to the profit and loss account in line with the estimated useful life of the asset to which it relates.

Stocks

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

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.

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

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 87 (2019 - 92 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1st October 2019

2,361,904

879,546

3,241,450

Additions

36,027

-

36,027

At 30th September 2020

2,397,931

879,546

3,277,477

DEPRECIATION

At 1st October 2019

2,046,010

771,845

2,817,855

Charge for year

149,121

63,793

212,914

At 30th September 2020

2,195,131

835,638

3,030,769

NET BOOK VALUE

At 30th September 2020

202,800

43,908

246,708

At 30th September 2019

315,894

107,701

423,595

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1st October 2019

19,000

315,817

334,817

Additions

2,861

-

2,861

At 30th September 2020

21,861

315,817

337,678

DEPRECIATION

At 1st October 2019

6,333

217,016

223,349

Charge for year

7,287

57,868

65,155

At 30th September 2020

13,620

274,884

288,504

NET BOOK VALUE

At 30th September 2020

8,241

40,933

49,174

At 30th September 2019

12,667

98,801

111,468

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

753,186

806,544

Amounts owed by group undertakings

1,352,435

917,967

Other debtors

37,434

137,436

2,143,055

1,861,947

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

5,148

6,864

Hire purchase contracts

24,974

35,152

Trade creditors

200,910

179,956

Amounts owed to group undertakings

2,647,999

2,045,128

Taxation and social security

255,298

186,164

Other creditors

84,647

98,857

3,218,976

2,552,121

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

-

5,148

Hire purchase contracts

8,689

31,429

8,689

36,577

8.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

33,663

66,581

The loans in respect of hire purchase agreements are secured against the assets to which they relate.

9.

RESERVES

Retained

earnings

£

At 1st October 2019

279,073

Profit for the year

97,907

Dividends

(219,000

)

At 30th September 2020

157,980

10.	RELATED PARTY DISCLOSURES

The company was under the control of the directors as disclosed on Page 1 throughout the current and

previous year.

The company undertook the following material transactions with group companies during the year:

Cardiff Galvanizers (1969) Limited charged Galvablast Limited:

- Management charges - £120,000 (2019 - £120,000)

- Direct costs & Operating expense recharges - £892,568 (2019 - £1,012,113)

Galvablast Limited charged the company:

- Direct costs - £1,178,355 (2019 - £1,069,450)

Cardiff Galvanizers Holdings Limited charged the company:

- Management charges & Rent of Premises & Equipment - £90,000 (2019 - £90,000)

As at the year end the company was owed £1,352,435 (2019 - £917,967) from Galvablast Limited in respect

of sundry and trade balances; and owed Galvablast Limited £1,029,770 (2019 - £563,844) in respect of

sundry and trade balances.

As at the year end the company owed £1,618,229 (2019 - £1,481,284) to Cardiff Galvanizers Holdings

Limited.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Cardiff Galvanizers HoldingsLimited.

Cardiff Galvanizers Holdings Limited, incorporated in Great Britain, is the beneficial holder of the entire issued share capital in the company. The group is exempt from the preparation of consolidated accounts since the group qualifies as a small group for Company Law purposes.