HCA Coating Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04599565 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

HCA COATING LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr A J Poyser

Mrs T Poyser

SECRETARY:

Mrs T Poyser

REGISTERED OFFICE:

Kingsgate House

Newbury Road

Andover

Hampshire

SP10 4DU

BUSINESS ADDRESS:

Unit 6 Kingsway

Walworth Business Park

Andover

Hampshire

SP10 5LQ

REGISTERED NUMBER:

04599565 (England and Wales)

FIXED ASSETS

Intangible assets

5

-

-

Tangible assets

6

94,987

97,685

94,987

97,685

CURRENT ASSETS

Stocks

210,400

156,080

Debtors

7

905,618

782,522

Cash at bank

202,827

543,362

1,318,845

1,481,964

CREDITORS

Amounts falling due within one year

8

993,894

1,128,611

NET CURRENT ASSETS

324,951

353,353

TOTAL ASSETS LESS CURRENT LIABILITIES

419,938

451,038

CREDITORS

Amounts falling due after more than one year

9

(143,940

)

(189,738

)

PROVISIONS FOR LIABILITIES

(17,728

)

(18,170

)

NET ASSETS

258,270

243,130

CAPITAL AND RESERVES

Called up share capital

11

150

150

Retained earnings

258,120

242,980

SHAREHOLDERS' FUNDS

258,270

243,130

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 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 27 September 2022 and were signed on its behalf by:

Mr A J Poyser - Director

1.	STATUTORY INFORMATION

HCA Coating 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.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the value of services net of VAT provided under contracts to the extent that there is a right to consideration and is recorded at the value of consideration due. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Revenue from the sale of goods is recognised when goods are delivered and legal title has passed.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2003, has been amortised evenly over its estimated useful life of four years.

Tangible fixed assets

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

Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on a reducing balance basis at rates of 20% and 25% per annum and on a straight line basis at the rate of 25% per annum.

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 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Overheads are charged to the income statement as incurred.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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.

Taxation

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 and finance leases are capitalised as tangible assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the income statement on a straight line basis.

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.

Debt factoring

The gross amount of trade debtors has been shown on the balance sheet within current assets and the corresponding liability in respect of the proceeds received from the factor has been shown within current liabilities.

The interest element of the factor's charges and other factoring costs are recognised as they accrue and are charged to the income statement.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Grants

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 40 (2021 - 43 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2021

and 31 March 2022

97,500

AMORTISATION

At 1 April 2021

and 31 March 2022

97,500

NET BOOK VALUE

At 31 March 2022

-

At 31 March 2021

-

6.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 April 2021

412,332

93,320

50,487

6,235

562,374

Additions

24,929

-

-

-

24,929

Disposals

(5,199

)

-

-

-

(5,199

)

At 31 March 2022

432,062

93,320

50,487

6,235

582,104

DEPRECIATION

At 1 April 2021

339,315

78,649

40,558

6,167

464,689

Charge for year

21,947

2,934

2,483

62

27,426

Eliminated on disposal

(4,998

)

-

-

-

(4,998

)

At 31 March 2022

356,264

81,583

43,041

6,229

487,117

NET BOOK VALUE

At 31 March 2022

75,798

11,737

7,446

6

94,987

At 31 March 2021

73,017

14,671

9,929

68

97,685

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

Plant and

machinery

£

COST

At 1 April 2021

48,255

Transfer to ownership

(28,800

)

At 31 March 2022

19,455

DEPRECIATION

At 1 April 2021

32,071

Charge for year

4,046

Transfer to ownership

(22,818

)

At 31 March 2022

13,299

NET BOOK VALUE

At 31 March 2022

6,156

At 31 March 2021

16,184

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

276,147

339,981

Amounts owed by group undertakings

554,373

428,091

Other debtors

75,098

14,450

905,618

782,522

Included in other debtors is £74,552 (2021: £10,114) in relation to prepayments and accrued income.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

45,455

45,455

Hire purchase contracts

343

7,138

Trade creditors

520,062

466,089

Amounts owed to group undertakings

11

107,723

Taxation and social security

115,147

181,545

Other creditors

312,876

320,661

993,894

1,128,611

Included in other creditors is £41,934 (2021: £22,497) in relation to accruals and deferred income.

A bank loan was received during the prior year under the Coronavirus Business Interruption Loan Scheme (80% of which is guaranteed by HM Government).

The first 12 months interest was paid by HM Government and no repayments were required to be made by the company in the first 6 month period.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

143,940

189,395

Hire purchase contracts

-

343

143,940

189,738

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

7,576

10.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

189,395

234,850

Close Invoice Finance Limited

226,884

245,338

Hire purchase & finance leases

343

7,481

416,622

487,669

Close Invoice Finance Limited have a fixed and floating charge dated 2 June 2003 over the company's trade debtors.

Hire purchase and finance lease liabilities are secured on the assets acquired.

The bank loan is secured by a fixed and floating charge over all of the assets of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

150

Ordinary

£1

150

150

12.	OTHER FINANCIAL COMMITMENTS

Total future financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £104,495 (2021:£135,083).

This amount is in relation to operating lease commitments which are payable over the next one to four years.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group companies where any subsidiary that is a party to the transaction is wholly owned within the group or where transactions have been undertaken under normal market conditions.