Shear Design Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05262666 (England and Wales)

SHEAR DESIGN LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Miss K Lane

A Spencer

D Badham

SECRETARY:

Miss K Lane

REGISTERED OFFICE:

Fabri House

7 Ashtree Court

Woodsy Close

Cardiff

SOUTH GLAMORGAN

CF23 8RW

REGISTERED NUMBER:

05262666 (England and Wales)

FIXED ASSETS

Tangible assets

4

26,178

36,937

CURRENT ASSETS

Debtors

5

389,685

277,980

Cash at bank

589,875

759,677

979,560

1,037,657

CREDITORS

Amounts falling due within one year

6

216,176

254,198

NET CURRENT ASSETS

763,384

783,459

TOTAL ASSETS LESS CURRENT LIABILITIES

789,562

820,396

CREDITORS

Amounts falling due after more than one year

7

(46,463

)

(52,109

)

PROVISIONS FOR LIABILITIES

10

(4,635

)

(9,867

)

NET ASSETS

738,464

758,420

CAPITAL AND RESERVES

Called up share capital

11

200

178

Capital redemption reserve

12

(11,410

)

(11,410

)

Retained earnings

12

749,674

769,652

SHAREHOLDERS' FUNDS

738,464

758,420

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 13 April 2022 and were signed on its behalf by:

Miss K Lane - Director

1.	STATUTORY INFORMATION

Shear Design 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 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.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support.

The directors have considered the ongoing impact of Covid-19 on the operations of the entity and the entities ability to continue as a going concern. The directors have and continue to take a number of actions to financially safeguard the company and minimise the effects of the Covid 19.

At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Impairment of debtors

The company, makes an estimate of the recoverable value of trade and other debtors when assessing impairment of trade and other debtors, management considers factors including the credit worthiness of the debtor, the aging profile of the debtor and historical experience.

Turnover

Turnover is measured at fair value of the consideration received or receivable net of VAT and discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services:

Turnover is recognised at the fair value of the consideration received or receivable for the services provided to the customer during the normal course of business. Turnover is recognised at the point when all benefits of the services provided are transferred to the customer.

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.

Fixtures,fittings and equipment

-

25% on reducing balance

Office equipment

-

33% on reducing balance

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions are recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised with deferred income.

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.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliable estimated.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments".

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, loans to related companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Employee Benefits

The company provides a wide range of benefits which includes; paid holidays and defined contribution pension plans. Short term employee benefit are recognised as an expense in the profit and loss account for the period in which the service is received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2020 - 21 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures,fittings

and

Office

equipment

equipment

Totals

£

£

£

COST

At 1 January 2021

39,312

212,330

251,642

Additions

-

1,000

1,000

At 31 December 2021

39,312

213,330

252,642

DEPRECIATION

At 1 January 2021

32,898

181,807

214,705

Charge for year

1,604

10,155

11,759

At 31 December 2021

34,502

191,962

226,464

NET BOOK VALUE

At 31 December 2021

4,810

21,368

26,178

At 31 December 2020

6,414

30,523

36,937

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

Office

equipment

£

COST

At 1 January 2021

and 31 December 2021

23,037

DEPRECIATION

At 1 January 2021

10,149

Charge for year

4,253

At 31 December 2021

14,402

NET BOOK VALUE

At 31 December 2021

8,635

At 31 December 2020

12,888

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

354,118

257,821

Prepayments

35,567

20,159

389,685

277,980

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans and overdrafts

1,667

1,667

Hire purchase contracts (see note 8)

3,776

7,552

Trade creditors

14,567

12,992

Tax

82,764

81,426

Social security and other taxes

20,975

27,485

VAT

80,748

120,616

Accrued expenses

11,679

2,460

216,176

254,198

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans - 1-2 years

10,000

10,000

Bank loans - 2-5 years

30,000

30,000

Bank loans more 5 yr by instal

6,463

8,333

Hire purchase contracts (see note 8)

-

3,776

46,463

52,109

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

6,463

8,333

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.21

31.12.20

£

£

Net obligations repayable:

Within one year

3,776

7,552

Between one and five years

-

3,776

3,776

11,328

Non-cancellable

operating leases

31.12.21

31.12.20

£

£

Between one and five years

40,000

52,281

9.	SECURED DEBTS

Hire purchase debts are secured on the assets to which they relate.

10.	PROVISIONS FOR LIABILITIES

31.12.21

31.12.20

£

£

Deferred tax

4,635

9,867

Deferred

tax

£

Balance at 1 January 2021

9,867

Accelerated capital allowances

(5,232

)

Balance at 31 December 2021

4,635

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

£

£

3

Ordinary A

£1

3

3

197

Ordinary B

£1

197

175

(31.12.20 - 175 )

200

178

The following shares were issued during the year for cash at par :

37 Ordinary B shares of £1

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 January 2021

769,652

(11,410

)

758,242

Profit for the year

347,191

347,191

Dividends

(367,169

)

(367,169

)

At 31 December 2021

749,674

(11,410

)

738,264

13.	RELATED PARTY DISCLOSURES