South Yorkshire Ducting Supplies Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02671387 (England and Wales)

Financial Statements for the Year Ended 31 December 2021

for

SOUTH YORKSHIRE DUCTING SUPPLIES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

J Reynolds

REGISTERED OFFICE:

80 Burton Road

Sheffield

South Yorkshire

S3 8BX

REGISTERED NUMBER:

02671387 (England and Wales)

ACCOUNTANTS:

S Burgess & Co Ltd

11 Slayleigh Avenue

Sheffield

South Yorkshire

S10 3RA

FIXED ASSETS

Tangible assets

4

120,618

100,023

CURRENT ASSETS

Stocks

438,655

401,605

Debtors

5

557,030

468,981

Cash at bank and in hand

24,912

20,021

1,020,597

890,607

CREDITORS

Amounts falling due within one year

6

677,466

580,981

NET CURRENT ASSETS

343,131

309,626

TOTAL ASSETS LESS CURRENT LIABILITIES

463,749

409,649

CREDITORS

Amounts falling due after more than one year

7

(66,673

)

(73,796

)

PROVISIONS FOR LIABILITIES

9

(21,672

)

(17,570

)

PENSION LIABILITY

12

(219,000

)

(220,000

)

NET ASSETS

156,404

98,283

CAPITAL AND RESERVES

Called up share capital

10

2

2

Fair value reserve

11

(53,000

)

(57,000

)

Retained earnings

209,402

155,281

SHAREHOLDER FUNDS

156,404

98,283

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 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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 20 September 2022 and were signed by:

J Reynolds - Director

1.	STATUTORY INFORMATION

South Yorkshire Ducting Supplies 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 significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover

Turnover comprises the invoiced value of the supply of coiled ductwork and ancillary products, excluding valued added tax. Turnover is recognised on delivery 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.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Government grants

Grants toward revenue expenditure are credited to the profit and loss account as the related expenditure is incurred.

Stocks

Stocks, which comprise coiled ductwork, steel coil, and ancillary products, are valued at purchase cost. Cost is calculated using the first in, first out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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 the profit and loss account as incurred.

Pension costs and other post-retirement benefits

The company operates both a defined contribution pension scheme, and a defined benefit pension scheme.

Contributions payable to the company's defined contribution pension scheme are charged to profit or loss in the period to which they relate

For the defined benefit pension scheme, the liability recorded in the balance sheet is the present value of the defined obligation at that date. The defined benefit obligation is calculated on an annual basis by independent actuaries. Actuarial gains and losses are recognised in full in the period in which they occur and are shown in Other Comprehensive Income. Current and past service costs, along with settlements or curtailments, are charged to the Income statement. Interest on pension plan liabilities are recognised within finance expenses.

Debtors and creditors due within one year

Debtors and creditors with no stated interest rate, which are due within one year, are stated at the transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income within administrative expenses.

Impairment

At each balance sheet date, assets are reviewed to determine whether there is any indication that any of the individual assets have suffered an impairment. 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 the statement of comprehensive income.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation, taking into account the risks and uncertainties surrounding the obligation.

3.	EMPLOYEES AND DIRECTORS

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

4.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2021

302,104

21,413

46,350

22,559

392,426

Additions

18,590

13,947

30,020

1,198

63,755

Disposals

-

-

(28,750

)

-

(28,750

)

At 31 December 2021

320,694

35,360

47,620

23,757

427,431

DEPRECIATION

At 1 January 2021

234,791

11,112

24,536

21,964

292,403

Charge for year

17,181

3,637

12,214

448

33,480

Eliminated on disposal

-

-

(19,070

)

-

(19,070

)

At 31 December 2021

251,972

14,749

17,680

22,412

306,813

NET BOOK VALUE

At 31 December 2021

68,722

20,611

29,940

1,345

120,618

At 31 December 2020

67,313

10,301

21,814

595

100,023

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

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 January 2021

100,732

-

46,350

147,082

Additions

16,500

10,881

30,020

57,401

Disposals

-

-

(28,750

)

(28,750

)

At 31 December 2021

117,232

10,881

47,620

175,733

DEPRECIATION

At 1 January 2021

50,885

-

24,536

75,421

Charge for year

13,270

1,632

12,214

27,116

Eliminated on disposal

-

-

(19,070

)

(19,070

)

At 31 December 2021

64,155

1,632

17,680

83,467

NET BOOK VALUE

At 31 December 2021

53,077

9,249

29,940

92,266

At 31 December 2020

49,847

-

21,814

71,661

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

365,890

352,802

Other debtors

5,390

9,359

Directors' current accounts

185,750

105,987

Prepayments

-

833

557,030

468,981

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans and overdrafts

9,617

5,000

Hire purchase contracts (see note 8)

38,293

29,356

Trade creditors

257,702

223,490

Corporation tax

59,482

64,639

Social security and other taxes

4,213

9,341

VAT

38,269

47,740

Other creditors

5,654

4,663

RBS invoice discounting

252,735

167,866

Accruals & deferred income

11,501

28,886

677,466

580,981

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Bank loans due between 1

and 2 years

9,872

10,000

Bank loans due between 2

and 5 years

25,797

35,000

Hire purchase contracts (see note 8)

31,004

28,796

66,673

73,796

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

38,293

29,356

Between one and five years

31,004

28,796

69,297

58,152

Non-cancellable

operating leases

31.12.21

31.12.20

£

£

Within one year

50,830

50,830

9.	PROVISIONS FOR LIABILITIES

31.12.21

31.12.20

£

£

Deferred tax

21,672

17,570

Deferred

tax

£

Balance at 1 January 2021

17,570

Accelerated capital allowances

4,102

Balance at 31 December 2021

21,672

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

£

£

4

Ordinary

10p

-

-

16

A Ordinary

10p

2

2

2

2

11.

RESERVES

Fair

value

reserve

£

At 1 January 2021

(57,000

)

Actuarial Loss / Gain

4,000

At 31 December 2021

(53,000

)

12.	EMPLOYEE BENEFIT OBLIGATIONS

The company has agreed to fund a defined benefit pension scheme in respect of key employees. The most recent actuarial valuation of the obligations of £219,000 (2020 £220,000) was on 31 December 2021. During the year the expense incurred was £3,000 (2020 £3,000).

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Present value of funded obligations

-

-

Fair value of plan assets

-

-

-

-

Present value of unfunded obligations

(219,000

)

(220,000

)

Deficit

(219,000

)

(220,000

)

Net liability

(219,000

)

(220,000

)

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Current service cost

-

-

Net interest from net defined benefit asset/liability

3,000

3,000

Past service cost

-

-

3,000

3,000

Actual return on plan assets

-

-

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Opening defined benefit obligation

220,000

174,000

Interest cost

3,000

3,000

Actuarial losses/(gains)

(4,000

)

43,000

219,000

220,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

-

-

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Actuarial gain /(losses)

4,000

(43,000

)

4,000

(43,000

)

The major categories of scheme assets as amounts of total scheme assets are as follows:

31.12.21

31.12.20

£

£

-

-

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

31.12.21

31.12.20

Discount rate

1.80%

1.30%

Inflation RPI

3.60%

3.00%

Inflation CPI

2.70%

2.10%

Pre and post retirement mortality - S3PA tables with improvements in the CMI 2019 model and a long term rate of improvement of 1%.

Defined contribution scheme

There were no amounts owing to the defined contribution pension scheme at the year end.

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

At the beginning of the year, the director's current account of J Reynolds was overdrawn in the sum of £105,987. The sum was repaid to the company via a dividend on 6 April 2021. Interest has been charged by the company in the sum of £690 on the director's overdrawn balance.

The director's current account of J Reynolds also became overdrawn later on in the year from 4 May 2021, with a loan of £120,750 and a further loan of £65,000 on 10 June 2021. At 31 December 2021, the overdrawn balance on the director's current account was £185,750 and this was the maximum amount owing to the company. No interest has been charged by the company on these two loans arising in the year.