Suresafe Protection Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC132827 (Scotland)

Financial Statements

For The Year Ended 31 August 2021

for

Suresafe Protection Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

Trevor Johnston Lang

SECRETARY:

Trevor Johnston Lang

REGISTERED OFFICE:

8 Kelvin Road

Lenziemill Industrial Estate

Cumbernauld

G67 2BA

REGISTERED NUMBER:

SC132827 (Scotland)

ACCOUNTANTS:

Cahill Jack Associates Limited

91 Alexander Street

Airdrie

North Lanarkshire

ML6 0BD

FIXED ASSETS

Tangible assets

4

1,356,230

1,222,478

CURRENT ASSETS

Stocks

348,743

502,866

Debtors

5

417,299

848,023

Cash at bank

382,081

139,011

1,148,123

1,489,900

CREDITORS

Amounts falling due within one year

6

1,000,988

1,453,622

NET CURRENT ASSETS

147,135

36,278

TOTAL ASSETS LESS CURRENT LIABILITIES

1,503,365

1,258,756

CREDITORS

Amounts falling due after more than one year

7

(418,094

)

(141,854

)

PROVISIONS FOR LIABILITIES

(86,913

)

(83,571

)

NET ASSETS

998,358

1,033,331

CAPITAL AND RESERVES

Called up share capital

6,600

6,600

Revaluation reserve

9

209,169

209,169

Retained earnings

782,589

817,562

SHAREHOLDERS' FUNDS

998,358

1,033,331

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 24 May 2022 and were signed by:

Trevor Johnston Lang - Director

1.	STATUTORY INFORMATION

Suresafe Protection Limited is a private company, limited by shares , registered in Scotland. 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 as modified by the revaluation of certain assets.

The company's presentational currency is pounds sterling.

Information on the impact of first time adoption of FRS 102 is given in the notes to the accounts.

Significant judgements and estimates

The preparation of financial information in compliance with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The directors have identified the following areas which give rise to estimation uncertainty:

1) Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and any residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account.

2) Valuation of stocks uses estimations for provisions against old and obsolete items of stock.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Turnover

Turnover is derived from the supply and embroidery of protective clothing and the supply of PPE excluding VAT.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding value added tax and any other sales taxes The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from sale of goods is recognised when all of the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.

Improvements to property

-

10% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

10% on reducing balance

Computer equipment

-

10% on reducing balance

The company's freehold property was revalued at the open market value and subsequently reduced by depreciation at 2% on that value less estimated residual value.

It is the company's policy to maintain these assets in a continual state of sound repair and extend and make improvements thereto from time to time and accordingly the Director considers the useful lives of these assets and residual values (based on prices prevailing at the time of the acquisition or subsequent valuation) as a basis to calculate the depreciation charge. Freehold property at 2-6 Kelvin Road and 8 Kelvin Road were recently valued on an open market basis on 30 October 2017 and 30 April 2018 by DM Hall at an open market value of £350,000 and £510,000 respectively. Any permanent diminution in the value of such properties is charged to the profit and loss account as appropriate.

Asset residual values, useful lives and depreciation methods of all relevant assets are reviewed, and adjusted prospectively if appropriate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and recognised in the profit and loss during the year of disposal. The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the

company. Any carrying amount of the replaced part is written off. Repairs and maintenance are charged to

the profit and loss during the year in which they are incurred except for any parts unused at the year end.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Government grants

Grants considered to be revenue in nature are credited to the profit and loss account in the same period as the related expenditure.

Stocks

Stocks are stated at the lower of cost and net realisable value being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

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

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.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, bank loans, directors' loans and forward currency contracts (derivatives).

Bank loans are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Forward currency contracts are derivative financial instruments. They are measured at fair value. Gains and losses arising from changes in the fair value of derivative financial instruments are included in the profit or loss in the period in which they arise.

Financial assets that are measured at 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 profit and loss.

Other items

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Holiday pay

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 29 (2020 - 28 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST OR VALUATION

At 1 September 2020

792,500

396,589

308,419

Additions

128,959

22,968

46,999

At 31 August 2021

921,459

419,557

355,418

DEPRECIATION

At 1 September 2020

49,953

183,705

83,169

Charge for year

14,851

41,955

27,225

At 31 August 2021

64,804

225,660

110,394

NET BOOK VALUE

At 31 August 2021

856,655

193,897

245,024

At 31 August 2020

742,547

212,884

225,250

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 September 2020

58,379

19,995

64,634

1,640,516

Additions

5,547

17,713

2,336

224,522

At 31 August 2021

63,926

37,708

66,970

1,865,038

DEPRECIATION

At 1 September 2020

50,243

1,999

48,969

418,038

Charge for year

1,368

3,571

1,800

90,770

At 31 August 2021

51,611

5,570

50,769

508,808

NET BOOK VALUE

At 31 August 2021

12,315

32,138

16,201

1,356,230

At 31 August 2020

8,136

17,996

15,665

1,222,478

Cost or valuation at 31 August 2021 is represented by:

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

Valuation in 2004

50,000

-

-

Valuation in 2005

(15,000

)

-

-

Valuation in 2006

(35,000

)

-

-

Valuation in 2007

192,520

-

-

Valuation in 2008

30,000

-

-

Cost

698,939

419,557

355,418

921,459

419,557

355,418

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2004

-

-

-

50,000

Valuation in 2005

-

-

-

(15,000

)

Valuation in 2006

-

-

-

(35,000

)

Valuation in 2007

-

-

-

192,520

Valuation in 2008

-

-

-

30,000

Cost

63,926

37,708

66,970

1,642,518

63,926

37,708

66,970

1,865,038

If freehold property had not been revalued it would have been included at the following historical cost:

2021

2020

£

£

Cost

698,939

569,980

Freehold property was valued on an open market basis on 30 April 2018 by DM Hall .

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 September 2020

61,415

19,995

81,410

Additions

-

17,713

17,713

At 31 August 2021

61,415

37,708

99,123

DEPRECIATION

At 1 September 2020

38,323

1,999

40,322

Charge for year

2,309

3,570

5,879

At 31 August 2021

40,632

5,569

46,201

NET BOOK VALUE

At 31 August 2021

20,783

32,139

52,922

At 31 August 2020

23,092

17,996

41,088

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

350,309

724,053

JRS grant

-

8,469

VAT

-

55,188

Prepayments

66,990

60,313

417,299

848,023

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

103,854

162,532

Hire purchase contracts

8,205

11,852

Trade creditors

311,072

225,975

Taxation and social security

87,841

84,400

Other creditors

490,016

968,863

1,000,988

1,453,622

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

399,300

116,005

Hire purchase contracts

18,794

25,849

418,094

141,854

Amounts falling due in more than five years:

Repayable by instalments

Loan-DSL

20,833

30,833

8.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank overdrafts

80,521

112,532

Bank loans

422,633

166,005

Hire purchase contracts

26,999

37,701

530,153

316,238

HSBC plc holds a bond and floating charge over the whole of the assets and undertakings of the company and standard securities over the company's freehold property.

Hire purchase creditors are secured on the assets concerned.

The CBIL loan is supported by a 80% guarantee from the UK Government.

9.

RESERVES

Revaluation

reserve

£

At 1 September 2020

and 31 August 2021

209,169

10.	ULTIMATE CONTROLLING PARTY

The controlling party is Trevor Johnston Lang.