Northumbria Optical Coatings Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03005203 (England and Wales)

Audited Financial Statements

for the Year Ended 31 May 2021

for

Northumbria Optical Coatings Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

N J Gilland

A J Huntley

SECRETARY:

N J Gilland

REGISTERED OFFICE:

Unit 10 Burford Way

Boldon Business Park

Boldon

Tyne And Wear

NE35 9PZ

REGISTERED NUMBER:

03005203 (England and Wales)

AUDITORS:

TTR Barnes Limited

Chartered Accountants and Statutory Auditors

3-5 Grange Terrace

Stockton Road

Sunderland

Tyne & Wear

SR2 7DG

FIXED ASSETS

Intangible assets

4

50,000

50,000

Tangible assets

5

531,924

657,014

Investments

6

57,600

57,600

639,524

764,614

CURRENT ASSETS

Stocks

260,267

265,542

Debtors

7

519,715

487,306

Cash at bank and in hand

669,521

380,135

1,449,503

1,132,983

CREDITORS

Amounts falling due within one year

8

425,057

298,900

NET CURRENT ASSETS

1,024,446

834,083

TOTAL ASSETS LESS CURRENT LIABILITIES

1,663,970

1,598,697

CREDITORS

Amounts falling due after more than one year

9

(191,701

)

(111,394

)

PROVISIONS FOR LIABILITIES

(95,453

)

(117,988

)

ACCRUALS AND DEFERRED INCOME

(34,576

)

(40,758

)

NET ASSETS

1,342,240

1,328,557

CAPITAL AND RESERVES

Called up share capital

30

30

Share premium

5,970

5,970

Capital redemption reserve

70

70

Retained earnings

1,336,170

1,322,487

1,342,240

1,328,557

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 Statement of Income and Retained Earnings has not been delivered.

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

N J Gilland - Director

A J Huntley - Director

1.	STATUTORY INFORMATION

Northumbria Optical Coatings 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 financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future and meet its liabilities as they fall due.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Where there are contracts which are gradually performed over time, revenue is recognised by reference to an assessment of the fair value of the services provided as a proportion of the total fair value of the contract. Revenue on finished goods relating to orders expected to complete within 3 months of the year-end is recognised in full on completion of production. For finished goods in respect of orders not expected to complete until 3 months of the year-end, revenue is recognised at selling price less estimated margin.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, has now been fully amortised.

Intangible assets other than goodwill

Website development costs which will generate future economic benefits are capitalised in the balance sheet as an intangible fixed asset and are defined as having finite useful life. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired. Amortisation of website development costs will begin once the asset is brought into use.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

15% on cost

Plant and machinery

-

15% on cost

Fixtures and fittings

-

15% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks of raw material are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Total finished goods with no current customer order coverage are valued at 10% of sales value. This reflects the low demand for these products and accounts for the likelihood of a large proportion of these goods remaining unsold. Older reclaimed and overrun filters are valued at £15 per filter, being an estimate of the cost of bringing the filters to their present location and condition.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 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 realise the asset and settle the liability simultaneously.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and subsequently carried at amortised cost 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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

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.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systemic basis is more representative of the time pattern in which in which economic benefits from the leases asset are consumed.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2020 - 26 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 June 2020

and 31 May 2021

254,000

50,000

304,000

AMORTISATION

At 1 June 2020

and 31 May 2021

254,000

-

254,000

NET BOOK VALUE

At 31 May 2021

-

50,000

50,000

At 31 May 2020

-

50,000

50,000

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 June 2020

264,621

1,604,749

145,279

2,014,649

Additions

11,705

20,027

8,548

40,280

At 31 May 2021

276,326

1,624,776

153,827

2,054,929

DEPRECIATION

At 1 June 2020

236,243

1,030,959

90,433

1,357,635

Charge for year

6,657

145,028

13,685

165,370

At 31 May 2021

242,900

1,175,987

104,118

1,523,005

NET BOOK VALUE

At 31 May 2021

33,426

448,789

49,709

531,924

At 31 May 2020

28,378

573,790

54,846

657,014

6.	FIXED ASSET INVESTMENTS

Shares in

group

Other

undertakings

investments

Totals

£

£

£

COST

At 1 June 2020

and 31 May 2021

7,600

50,000

57,600

NET BOOK VALUE

At 31 May 2021

7,600

50,000

57,600

At 31 May 2020

7,600

50,000

57,600

Financial assets for which fair value cannot be measured reliably

Investments in non-puttable ordinary shares which are not publically traded for which the fair value cannot be measured reliably are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

The £50,000 investment is in Carlton (Thorpe Thewles) Ltd (residential development) via Growth Capital Ventures Nominees Limited. The investment is held at cost less impairment as it is not considered possible to reliably measure the fair value of the investment. The intended disposal of the investment will be upon completion of the residential development and sale of the completed homes.

7.

DEBTORS

2021

2020

£

£

Amounts falling due within one year:

Trade debtors

210,791

242,210

Amounts recoverable on contract

136,992

84,347

Other debtors

51,932

40,749

399,715

367,306

Amounts falling due after more than one year:

Amounts owed by group undertakings

120,000

120,000

Aggregate amounts

519,715

487,306

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

93,750

-

Trade creditors

110,877

113,034

Taxation and social security

32,624

11,840

Other creditors

187,806

174,026

425,057

298,900

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

156,250

-

Other creditors

35,451

111,394

191,701

111,394

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

55,166

48,187

Between one and five years

147,374

143,750

In more than five years

81,858

129,774

284,398

321,711

11.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

250,000

-

HSBC bank has a fixed and floating charge over all of the company's assets.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Allan Russell (Senior Statutory Auditor)

for and on behalf of TTR Barnes Limited

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

N J Gilland, director and shareholder, has given a personal guarantee to HSBC Bank Plc, dated 11 November 2013, for up to £130,000.

14.	RELATED PARTY DISCLOSURES

During the financial year of 2020, the company purchased 76% of the shares of NOC Engineering Ltd, which was incorporated on the 27th February 2020. During the year ending 31st May 2020, the company loaned NOC Engineering Ltd £120,000, the balance is still outstanding at the year end. The loan is interest free and has no fixed repayment date.

The directors for NOC Engineering Ltd are N. Gilland and A. Huntley.

15.	AUDITOR LIABILITY LIMITATION AGREEMENT

The limitation of liability in respect of this audit is 10 times the audit fee which was agreed in our terms of engagement letter.