Serracon Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC425064 (Scotland)

Unaudited Financial Statements for the Year Ended 31 December 2021

for

Serracon Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

FIXED ASSETS

Intangible assets

4

39,878

73,511

Tangible assets

5

268,134

115,252

308,012

188,763

CURRENT ASSETS

Stocks

2,109,653

1,450,953

Debtors

6

1,378,319

1,231,921

Cash at bank

342,457

1,426,419

3,830,429

4,109,293

CREDITORS

Amounts falling due within one year

7

(2,180,276

)

(2,646,260

)

NET CURRENT ASSETS

1,650,153

1,463,033

TOTAL ASSETS LESS CURRENT LIABILITIES

1,958,165

1,651,796

CREDITORS

Amounts falling due after more than one year

8

(604,696

)

(615,228

)

PROVISIONS FOR LIABILITIES

(22,213

)

(6,795

)

NET ASSETS

1,331,256

1,029,773

CAPITAL AND RESERVES

Called up share capital

2,118

2,118

Share premium

6,690

6,690

Retained earnings

1,322,448

1,020,965

1,331,256

1,029,773

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 June 2022 and were signed on its behalf by:

Mr R Paterson - Director

1.	STATUTORY INFORMATION

Serracon Limited is a private company, limited by shares, domiciled in Scotland, registration number SC425064. The registered office is 1 Wheatfield Road, Dunnikier Business Park, Kirkcaldy, Fife, KY1 3PD.

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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods in respect of machine tool accessories and products, excluding value added tax. Sales are recognised at the point at which the goods are delivered.

Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over their fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Research and development are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets and depreciation

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.

Land and buildings

-

5% on cost

Plant and machinery etc

-

33% on reducing balance, 25% on reducing balance and 20% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

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.

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.

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.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 44 (2020 - 38 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 January 2021

and 31 December 2021

1,102,000

473,373

1,575,373

AMORTISATION

At 1 January 2021

1,102,000

399,862

1,501,862

Charge for year

-

33,633

33,633

At 31 December 2021

1,102,000

433,495

1,535,495

NET BOOK VALUE

At 31 December 2021

-

39,878

39,878

At 31 December 2020

-

73,511

73,511

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2021

64,339

131,956

196,295

Additions

-

213,878

213,878

Disposals

-

(41,019

)

(41,019

)

At 31 December 2021

64,339

304,815

369,154

DEPRECIATION

At 1 January 2021

7,898

73,145

81,043

Charge for year

12,868

33,427

46,295

Eliminated on disposal

-

(26,318

)

(26,318

)

At 31 December 2021

20,766

80,254

101,020

NET BOOK VALUE

At 31 December 2021

43,573

224,561

268,134

At 31 December 2020

56,441

58,811

115,252

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

Plant and

machinery

etc

£

COST

At 1 January 2021

98,464

Additions

129,329

Disposals

(29,677

)

At 31 December 2021

198,116

DEPRECIATION

At 1 January 2021

50,440

Charge for year

21,029

Eliminated on disposal

(21,473

)

At 31 December 2021

49,996

NET BOOK VALUE

At 31 December 2021

148,120

At 31 December 2020

48,024

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

1,332,994

1,193,597

Amounts owed by group undertakings

7,038

4,785

Other debtors

38,287

33,539

1,378,319

1,231,921

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans and overdrafts

59,080

208,378

Hire purchase contracts

51,838

21,605

Trade creditors

506,943

308,050

Amounts owed to group undertakings

970,817

1,276,269

Taxation and social security

124,689

449,089

Other creditors

466,909

382,869

2,180,276

2,646,260

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans

35,363

601,978

Hire purchase contracts

69,333

13,250

Amounts owed to group undertakings

500,000

-

604,696

615,228

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

3,283

59,545

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.21

31.12.20

£

£

Hire purchase contracts

121,171

34,855

Bank loans

93,205

810,356

214,376

845,211

Balances due under hire purchase/finance lease agreements are secured upon the assets to which they relate.

Personal guarantees have been extended by company shareholders in relation to the bank loans. There is also a security over the ground at Carberry Road Mitchelston Industrial Estate and 1 Wheatfield Road, Dunnikier Business Park.

The factoring creditor is secured over the debts to which the factoring facility relates to.

10.	ULTIMATE PARENT COMPANY

The ultimate parent company is Riverside (Global) Ltd. The registered office of this company is 1 Wheatfield Road, Dunnikier Business Park, Kirkcaldy, Fife, United Kingdom, KY1 3PD.