Track Components Ltd
Track Components Ltd
Registered number: 04650681
Unaudited Financial Statements
For The Year Ended
30 November 2021
Elco Accounting Limited
Track Components Ltd
Unaudited Financial Statements
For The Year Ended
30 November 2021
Unaudited Financial Statements
Contents | |
Page | |
---|---|
Balance Sheet | 1—2 |
Notes to the Financial Statements | 3—7 |
Track Components Ltd
Balance Sheet
As at
30 November 2021
Balance Sheet
Registered number:
04650681
For the year ending 30 November 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
2021 | 2020 | ||||
---|---|---|---|---|---|
Notes | £ | £ | £ | £ | |
FIXED ASSETS | |||||
Tangible Assets | 3 |
|
|
||
|
|
||||
CURRENT ASSETS | |||||
Stocks | 4 |
|
|
||
Debtors | 5 |
|
|
||
Cash at bank and in hand |
|
|
|||
|
|
||||
Creditors: Amounts Falling Due Within One Year | 6 |
( |
( |
||
NET CURRENT ASSETS (LIABILITIES) |
|
|
|||
TOTAL ASSETS LESS CURRENT LIABILITIES |
|
|
|||
Creditors: Amounts Falling Due After More Than One Year | 7 |
|
( |
||
PROVISIONS FOR LIABILITIES | |||||
Deferred Taxation |
( |
( |
|||
NET ASSETS |
|
|
|||
CAPITAL AND RESERVES | |||||
Called up share capital | 9 |
|
|
||
Profit and Loss Account |
|
|
|||
SHAREHOLDERS' FUNDS | 8,044,452 | 6,326,631 | |||
Track Components Ltd
Balance Sheet (continued)
As at
30 November 2021
The company has taken advantage of section 444(1) of the Companies Act 2006 and opted not to deliver to the registrar a copy of the company's Profit and Loss Account.
On behalf of the board
Director
|
|
The notes on pages 3 to 7 form part of these financial statements.
Track Components Ltd
Notes to the Financial Statements
For The Year Ended
30 November 2021
Notes to the Financial Statements
1.
Accounting Policies
1.1.
Basis of Preparation of Financial Statements
The financial statements are prepared under the historical cost convention and in accordance with the FRS 102 Section 1A Small Entities - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
1.2.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
1.3.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold |
|
Plant & Machinery |
|
Motor Vehicles |
|
Fixtures & Fittings |
|
Computer Equipment |
|
1.4.
Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
Track Components Ltd
Notes to the Financial Statements (continued)
For The Year Ended
30 November 2021
1.5.
Financial Instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of
its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the
contractual provisions of the instrument.
Financial assets and 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 realised the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction
price including transaction costs and are subsequently carried at amortised costs using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the
present value of the future receipts discounted at a market rate of interest. Financial assets classified as
receivable within one year are not amortised.
Impairment of financial assets
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 asset's 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are
settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership
to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has
transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets
of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the
arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of
the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one
year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or
less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction
price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or
cancelled.
Track Components Ltd
Notes to the Financial Statements (continued)
For The Year Ended
30 November 2021
1.6.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
1.7.
Government Grant
During the year, the company received government grants in relation to Covid-19 measures. These are recognised on an accruals basis in the period to which it relates.
1.8.
Cash and cash equivalents
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and
other short-term highly liquid investments that mature in no more than three months from the date of acquisition
and that are readily convertible to known amounts of cash with insignificant risk of change in value.
2.
Average Number of Employees
Average number of employees, including directors, during the year was as follows: 44 (2020: 39)
3.
Tangible Assets
Land & Buildings | Plant & Machinery etc. | Total | |
---|---|---|---|
£ | £ | £ | |
Cost | |||
As at
|
|
|
|
Additions |
|
|
|
Disposals |
|
( |
( |
As at
|
|
|
|
Depreciation | |||
As at
|
|
|
|
Provided during the period |
|
|
|
Disposals |
|
( |
( |
As at
|
|
|
|
Net Book Value | |||
As at
|
|
|
|
As at
|
|
|
|
Track Components Ltd
Notes to the Financial Statements (continued)
For The Year Ended
30 November 2021
4.
Stocks
2021 | 2020 | ||
---|---|---|---|
£ | £ | ||
Stock - materials and work in progress | 114,671 | 75,418 | |
|
|
||
5.
Debtors
2021 | 2020 | ||
---|---|---|---|
£ | £ | ||
Due within one year | |||
Trade debtors |
|
|
|
Amounts owed by group undertakings | 2,680,105 | - | |
Amounts owed by participating interests | 31,835 | - | |
Other debtors | 237,606 | 77,946 | |
|
|
||
6.
Creditors: Amounts Falling Due Within One Year
2021 | 2020 | ||
---|---|---|---|
£ | £ | ||
Trade creditors |
|
|
|
Bank loans and overdrafts |
|
|
|
Other creditors | 48,019 | 71,580 | |
Taxation and social security | 759,329 | 308,060 | |
|
|
||
7.
Creditors: Amounts Falling Due After More Than One Year
2021 | 2020 | ||
---|---|---|---|
£ | £ | ||
Bank loans |
|
|
|
|
|
||
8.
Secured Creditors
The securities over the companies freehold land and buildings were discharged in the year on loan repayment and satisfied at Companies House on 22 Feb 2022. No further securities remain.
2021 | 2020 | ||
---|---|---|---|
£ | £ | ||
Bank loans and overdrafts | - | 898,483 |
Track Components Ltd
Notes to the Financial Statements (continued)
For The Year Ended
30 November 2021
10.
Related Party Transactions
Included in debtors are amounts due from related parties totalling £2,680,105. These amounts are interest free and repayable on demand. During the year the company made sales of £2,981,272 to related parties. All related parties are entities connected to Track Components Limited by virtue of being under common ownership within the group or under under common control.
Costs of £55,682 and recharges of £55,682 are included in the accounts and relate to a connected entity by virtue of the wider group having a significant influence over the entity, these transactions are also on an arm’s length basis. Included in other debtors is a loan of £31,820 which is interest free and repayable on demand.
On 9 February 2021 the share capital of the company was transferred to Track Group Holdings Limited, a company incorporated in England and Wales. There was no overall change in the controlling party as a result of this transaction.
11.
General Information
Track Components Ltd
is a private company, limited by shares, incorporated in England & Wales, registered number
04650681
. The registered office is 24 Church Street, Rickmansworth, Hertfordshire, WD3 1DD.
The presentational currency of the financial statements is the Pound Sterling (£).