Wychem Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00956213 (England and Wales)

Director's Report and

Audited Financial Statements

for the Year Ended 31 December 2020

for

Wychem Limited

Page

Company Information

1

Director's Report

2

to

3

Independent Auditors' Report

4

to

7

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

to

20

DIRECTOR:

Mr D Bush

REGISTERED OFFICE:

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

BUSINESS ADDRESS:

Bury Road

Stradishall

Suffolk

CB8 8YN

REGISTERED NUMBER:

00956213 (England and Wales)

SENIOR STATUTORY AUDITOR:

J Knights ACA BSc

INDEPENDENT AUDITORS:

Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The director presents his report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principle activity of the company in the year under review was the manufacture of chemicals.

DIVIDENDS

During the year, no dividends have been paid and the directors recommend that no final dividend is paid.

RESEARCH AND DEVELOPMENT

The company undertakes, and will continue to undertake various forms of research and development of chemical processes.

FUTURE DEVELOPMENTS

The directors expect the company continue to trade in its current form for the foreseeable future.

DIRECTORS

The directors who have held office during the period from 1 January 2020 to the date of this report are as follows:

Mr G Engleder - resigned 1 August 2020

Mr D Bush - appointed 1 August 2020

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr D Bush - Director

22 February 2021

Opinion

We have audited the financial statements of Wychem Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note twenty to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Director's Report, but does not include the financial statements and our Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Director's Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page two, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the companies operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC, relevant regulators including the Environment Agency and the company's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

J Knights ACA BSc (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Chartered Accountants

and Statutory Auditors

Eldo House, Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

3 March 2021

TURNOVER

6,493,193

6,584,124

Cost of sales

4,415,138

4,066,935

GROSS PROFIT

2,078,055

2,517,189

Distribution costs

196,551

202,787

Administrative expenses

390,278

320,261

586,829

523,048

1,491,226

1,994,141

Other operating income

24,041

21,914

OPERATING PROFIT

1,515,267

2,016,055

Interest receivable and similar income

1,242

3,841

1,516,509

2,019,896

Interest payable and similar expenses

4

9,898

16,414

PROFIT BEFORE TAXATION

5

1,506,611

2,003,482

Tax on profit

6

181,377

382,057

PROFIT FOR THE FINANCIAL YEAR

1,325,234

1,621,425

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,325,234

1,621,425

FIXED ASSETS

Owned

Tangible assets

7

2,472,275

1,700,494

Right-of-use

Tangible assets

7

-

-

2,472,275

1,700,494

CURRENT ASSETS

Stocks

8

1,834,373

1,877,317

Debtors

9

1,091,631

707,302

Cash at bank and in hand

1,423,163

910,797

4,349,167

3,495,416

CREDITORS

Amounts falling due within one year

10

879,019

565,850

NET CURRENT ASSETS

3,470,148

2,929,566

TOTAL ASSETS LESS CURRENT LIABILITIES

5,942,423

4,630,060

PROVISIONS FOR LIABILITIES

13

79,753

92,624

NET ASSETS

5,862,670

4,537,436

CAPITAL AND RESERVES

Called up share capital

14

800,000

800,000

Share premium

559,930

559,930

Retained earnings

4,502,740

3,177,506

SHAREHOLDERS' FUNDS

5,862,670

4,537,436

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the director and authorised for issue on 22 February 2021 and were signed by:

Mr D Bush - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2019

800,000

1,556,081

559,930

2,916,011

Changes in equity

Total comprehensive income

-

1,621,425

-

1,621,425

Balance at 31 December 2019

800,000

3,177,506

559,930

4,537,436

Changes in equity

Total comprehensive income

-

1,325,234

-

1,325,234

Balance at 31 December 2020

800,000

4,502,740

559,930

5,862,670

1.	STATUTORY INFORMATION

Wychem 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 preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

COVID-19

The effects of the global COVID-19 pandemic have been carefully considered when preparing these financial statements. The effects of this pandemic are not considered to have a significant effect on the financial information presented in these financial statements. These financial statements continue to be prepared on a going concern basis.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral Resources;

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases;

the requirements of paragraph 58 of IFRS 16;

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraph 79(a)(iv) of IAS 1; and

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

•

the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements;

•

the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.

The company has also taken advantage of the disclosure exemptions available in relation to 'IFRS 15 Revenue from Contracts with Customers' and 'IFRS 16 Leases' as permitted by FRS101 "Reduced disclosure framework" for accounts periods commencing on or after 1 January 2018.

Significant judgements and estimates

In the application of the Company's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on, company standard procedures, historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements and key sources of estimation uncertainty in applying the Company's accounting policies

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets

Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on, standard company policy and the directors knowledge of the reduction in the residual value of plant and machinery and other fixed assets on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to the residual value of nil at the end of the economic lives of those assets.

Stock obsolescence provision

A provision is made against slow moving stock in accordance with company policy and, where relevant based on the condition or expected future usage of individual stock lines. The charge is calculated as described below such that stock holding value represents stock that can reasonably be expected to be realised within the succeeding two financial periods at or above the holding value.

Turnover and revenue recognition

Turnover represents the sale of goods net of discounts and excluding value added tax.

The major part of the company's business is the manufacture of chemicals to its customers' precise specifications and usually under customers prescribed terms and conditions (with the exception of pricing which is decided largely by the Company). Sales orders are received and normal sales credit terms of 30 days net or more are extended. It is not practice nor is it appropriate given the nature of the business to request stage payments. Legal title to purchased and processed materials and all risks associated with the holding and manufacture of materials remains wholly with Wychem Ltd until such point that quality control procedures are satisfactorily completed and processed chemicals are accepted by customers usually at the time of delivery or collection. There is no contractual or financial penalty levied on customers if sales orders are cancelled or varied at any stage before completion. It is therefore the acceptance of stock by customers that is the trigger point for the recognition of revenue under this element of the company's business.

Tangible fixed assets

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

Freehold property

-

2% straight line on buildings

Plant and machinery

-

10 years straight line

Fixtures and fittings

-

3 years straight line and 10 years straight line

Motor vehicles

-

6 years straight line

The company does not capitalise the cost of replacement parts of significant equipment such as reactors and replacement components that form part of the factory unless such equipment is individually recognised and the asset is replaced in its entirety or being substantially added to or improved. Other expenditure is capitalised where the underlying asset has a useful life of over two years.

Stocks

Stock and work in progress are valued at the lower of cost and net realisable value. Cost is calculated on a standard mark down from selling price, being currently 50%. Net realisable value for finished goods is the company set selling price and for raw materials would be the resale value if the company was to sell this stock on to a third party. Work in progress comprises materials, labour and overheads incurred appropriate to the stage of manufacture. Net realisable value is the expected selling price of the work in progress and costs are constantly monitored against this. If costs exceed net realisable value the stock value will be written down.

Provision is made against slow moving and obsolete stock so as to fully provide after stock lines are held for more than two years.

Stocks of machine component parts are held at cost. Provision is made to the extent the condition and potential life of such components has deteriorated as at the accounting date.Net realisable value for these machine components is the expected resale value if these items were to be sold on to a third party.

Taxation

Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Research and development

Expenditure on research and development is written off to revenue in the year in which it is incurred.

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.

Leases

Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

Employee benefit costs - pension scheme

The pension cost charge in the financial statements represents the contributions payable by the company during the year to a company sponsored group personal pension scheme. The assets of the scheme are held independently from those of the company.

Related party transactions

On an annual basis, group entities, directors, key management, their close families and other entities in which those parties have significant control are identified as parties related to the company and an assessment is made of the potential type of transactions, if any that may be had with those parties. A review is then made of company transactions material to each party identified and such are disclosed in the notes to the financial statements together with the name of the relevant related party, the relationship to the company and the amount owing or owed to the related party at the accounting date.

Financial liabilities - bank loans

The company's term loans are accounted for at cost which is not materially different to the treatment required by IAS 39 which stipulates amortised cost.

Other working capital elements

Trade debtors and other debtors

Trade debtors, which generally have 30-60 day terms, are recognised and carried at the lower of their original invoiced value and recoverable amount. Balances expressed in foreign currencies are converted to Sterling at the exchange rates prevailing at the balance sheet date. Provision for impairment is made through profit or loss when there is objective evidence that the Company will not be able to recover balances in full. Balances are written off when the probability of recovery is assessed as being remote.

Trade creditors

Trade creditors, which generally have 30 day credit terms, are recognised and carried at the lower of their original invoiced value and the payable amount. Balances expressed in foreign currencies are converted to Sterling at the exchange rates prevailing at the balance sheet date.

3.	EMPLOYEES AND DIRECTORS

2020

2019

£

£

Gross pay (including benefits in kind)

1,045,416

993,949

Social security

110,787

106,482

Pension contributions

49,707

43,658

Total staff costs (including pensions benefits and social security)

1,205,910

1,144,089

The average number employed during the year was as follows:

2020

2019

Manufacturing and distribution

23

22

Administration

3

3

26

25

2020

2019

£

£

Director's remuneration

96,674

-

4.

INTEREST PAYABLE AND SIMILAR EXPENSES

2020

2019

£

£

Bank interest

341

6,832

Bank charges

9,557

9,582

9,898

16,414

5.	PROFIT BEFORE TAXATION

The profit before taxation is stated after charging:

2020

2019

£

£

Cost of inventories recognised as expense

2,211,107

1,993,809

Depreciation - owned assets

181,672

144,742

Audit fee - Company

18,500

16,450

Auditor's non-audit fees

5,178

7,597

Foreign exchange differences

23,935

43,040

Research and development

399,369

396,681

6.

TAXATION

Analysis of tax expense

2020

2019

£

£

Current tax:

Tax on profit for the year

304,394

389,438

Prior period tax adjustments

(110,146

)

(11,575

)

Total current tax

194,248

377,863

Deferred tax

(12,871

)

4,194

Total tax expense in statement of comprehensive income

181,377

382,057

Factors affecting the tax expense

The tax assessed for the year is lower (2019 - higher) than the standard rate of corporation tax in the UK. The difference is explained below:

2020

2019

£

£

Profit before income tax

1,506,611

2,003,482

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

286,256

380,662

Effects of:

Depreciation (less)/greater than capital allowances

17,624

8,014

Non-deductible expenses

514

762

credit

Prior year adjustments - group relief

(110,146

)

(11,575

)

Deferred tax

(12,871

)

4,194

Tax expense

181,377

382,057

7.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2020

1,614,771

2,860,354

448,394

12,389

4,935,908

Additions

912,707

18,397

22,349

-

953,453

Disposals

(1,900

)

(1,571,733

)

(164,755

)

-

(1,738,388

)

At 31 December 2020

2,525,578

1,307,018

305,988

12,389

4,150,973

DEPRECIATION

At 1 January 2020

584,231

2,324,970

317,139

9,074

3,235,414

Charge for year

55,212

94,083

29,557

2,820

181,672

Eliminated on disposal

(1,900

)

(1,571,733

)

(164,755

)

-

(1,738,388

)

At 31 December 2020

637,543

847,320

181,941

11,894

1,678,698

NET BOOK VALUE

At 31 December 2020

1,888,035

459,698

124,047

495

2,472,275

At 31 December 2019

1,030,540

535,384

131,255

3,315

1,700,494

There are no right-of-use tangible fixed assets to be disclosed.

8.

STOCKS

2020

2019

£

£

Raw materials

364,728

379,897

Work-in-progress

386,396

327,147

Finished goods

889,015

974,747

Fuel / toner stocks

7,324

4,457

Engineering stocks

186,910

191,069

1,834,373

1,877,317

Stock recognised as an expense during the year through the Statement of Comprehensive Income totalled £2,211,107 (2019: £1,993,809). This includes raw material purchase costs of £1,832,859 (2019: £1,724,021), labour costs of £336,596 (2019: £286,459), and a net change in the stock balance of £41,652 (2019: (£16,671)).

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

626,039

511,618

VAT

308,636

142,887

Prepayments

156,956

52,797

1,091,631

707,302

At the balance sheet date no trade debts were overdue and the directors consider that no provision for doubtful or irrecoverable debts is required.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts (see note 11)

-

47,340

Trade creditors

579,517

250,162

Corporation tax

106,605

177,524

Social security and other taxes

57,092

53,468

Accruals and deferred income

135,805

37,356

879,019

565,850

11.

FINANCIAL LIABILITIES - BORROWINGS

2020

2019

£

£

Current:

Bank loans

-

47,340

12.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

-

47,340

The bank hold a fixed and floating charge over the companys assets, however at 31 December 2020 there is no outstanding borrowing in place.

13.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax - accelerated

capital allowances

79,753

92,624

79,753

92,624

Deferred

tax

£

Balance at 1 January 2020

92,624

Provided during year

(12,871

)

Balance at 31 December 2020

79,753