HTS Spares Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07843566 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2020

FOR

HTS SPARES LIMITED

Page

Company information

1

Balance sheet

2

Notes to the financial statements

4

Directors:

G Knappett

J Knappett

I Knappett

S C Knappett

M L Knappett

R D Knappett

Secretary:

I Knappett

Registered office:

Surrey House

Beacon Road

Hereford

HR2 6JF

Registered number:

07843566 (England and Wales)

Fixed assets

Intangible assets

4

289,478

494,217

Tangible assets

5

219,067

283,945

Investments

6

1,000

1,000

509,545

779,162

Current assets

Stocks

7

1,240,072

1,164,509

Debtors

8

2,278,222

2,018,908

Cash at bank and in hand

1,281,233

1,041,417

4,799,527

4,224,834

Creditors

Amounts falling due within one year

9

1,361,586

1,409,768

Net current assets

3,437,941

2,815,066

Total assets less current liabilities

3,947,486

3,594,228

Creditors

Amounts falling due after more than one year

10

(185,197

)

(239,045

)

Provisions for liabilities

13

(29,100

)

(32,200

)

Net assets

3,733,189

3,322,983

Capital and reserves

Called up share capital

14

1,000

1,000

Retained earnings

3,732,189

3,321,983

Shareholders' funds

3,733,189

3,322,983

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2020 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 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 28th July 2021 and were signed on its behalf by:

G Knappett - Director

1.	Statutory information

HTS Spares 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.

Preparation of consolidated financial statements

The financial statements contain information about HTS Spares Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill is shown in the balance sheet at cost less amortisation and is being amortised at 10% per annum as the directors consider that its useful life is 10 years.

The goodwill addition during 2018 is the cost of the investment of Commercial and Plant Limited and is being amortised at 20% per annum as the directors consider that its useful life is 5 years.

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.

Leasehold improvements

20% straight line

Plant & equipment

20% straight line

Motor vehicles

25% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 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 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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 receivables and cash and bank balances, are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at the cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group transfers the financial asset and substantially all of the risks and rewards of the 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 group after deducing all of its liabilities.

Basic financial liabilities, including trade and other payables are measured at the transaction price. Other financial liabilities, including bank loans, loans from fellow group companies and preference shares that are classified as debt, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

3.	Employees (including officers)

The average number of employees during the year was 43 (2019 - 44 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1st January 2020

and 31st December 2020

1,623,695

Amortisation

At 1st January 2020

1,129,478

Amortisation for year

204,739

At 31st December 2020

1,334,217

Net book value

At 31st December 2020

289,478

At 31st December 2019

494,217

5.	Tangible fixed assets

Leasehold

Plant and

Motor

improvements

machinery

vehicles

Totals

£

£

£

£

Cost

At 1st January 2020

113,118

471,416

224,013

808,547

Additions

4,322

47,834

44,311

96,467

Disposals

(14,371

)

(174,690

)

(96,563

)

(285,624

)

At 31st December 2020

103,069

344,560

171,761

619,390

Depreciation

At 1st January 2020

59,175

320,387

145,040

524,602

Charge for year

20,092

68,648

41,567

130,307

Eliminated on disposal

(14,371

)

(174,690

)

(65,525

)

(254,586

)

At 31st December 2020

64,896

214,345

121,082

400,323

Net book value

At 31st December 2020

38,173

130,215

50,679

219,067

At 31st December 2019

53,943

151,029

78,973

283,945

The net book value of tangible fixed assets includes £ 30,788 (2019 - £ 14,612 ) in respect of assets held under hire purchase contracts.

6.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1st January 2020

and 31st December 2020

1,000

Net book value

At 31st December 2020

1,000

At 31st December 2019

1,000

The company's investments at the Balance sheet date in the share capital of companies include the following:

Commercial and Plant Limited

Registered office: Surrey House Beacon Road, Rotherwas, Hereford, HR2 6JF

Nature of business: Wholesale of machine tools

%

Class of shares:

holding

Ordinary shares

100.00

31.12.20

31.12.19

£

£

Aggregate capital and reserves

1,000

1,000

7.

Stocks

31.12.20

31.12.19

£

£

Stocks

1,240,072

1,164,509

8.

Debtors: amounts falling due within one year

31.12.20

31.12.19

£

£

Trade debtors

1,759,462

1,713,482

Amounts owed by group undertakings

252,202

-

Other debtors

202,492

212,272

Prepayments

64,066

93,154

2,278,222

2,018,908

9.

Creditors: amounts falling due within one year

31.12.20

31.12.19

£

£

Bank loans & overdrafts

67,394

94,198

Hire purchase contracts (see note 11)

11,893

9,742

Trade creditors

575,984

423,583

Amounts owed to group undertakings

289

289

Corporation tax

203,700

199,000

Social security & other tax

82,936

104,435

Other loans

132,819

172,601

Directors' current accounts

204,973

376,006

Accruals & other creditors

81,598

29,914

1,361,586

1,409,768

10.

Creditors: amounts falling due after more than one year

31.12.20

31.12.19

£

£

Bank loans two to five years

168,624

235,798

Hire purchase contracts (see note 11)

16,573

3,247

185,197

239,045

11.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.12.20

31.12.19

£

£

Net obligations repayable:

Within one year

11,893

9,742

Between one and five years

16,573

3,247

28,466

12,989

Non-cancellable

operating leases

31.12.20

31.12.19

£

£

Within one year

70,919

49,173

Between one and five years

91,892

47,300

162,811

96,473

12.	Secured debts

The bank loan is secured against property owned by the directors.

13.	Provisions for liabilities

31.12.20

31.12.19

£

£

Deferred tax

29,100

32,200

Deferred tax

£

Balance at 1st January 2020

32,200

Provided during year

(3,100

)

Balance at 31st December 2020

29,100

14.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.20

31.12.19

value:

£

£

1,000

Ordinary shares

£1

1,000

1,000

100% of the share capital was acquired by Radial Group Holdings Limited in June 2020.

15.	Contingent liabilities

There were no contingent liabilities at 31st December 2020.

16.	Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

During the year, the directors used a current account with the company to record amounts due to them and amounts drawn by them. The amounts owed by the company at the end of the year was £204,973 (2019: £376,006).

During the year, the company was charged £90,500 for rent of premises owned by members of the Knappett family (2019: £90,000).

Included within other creditors are loans from members of the Knappett family totalling £132,819 (2019: £172.601).

During the year, interest was charged on director's and other family loans @ 5%, totalling £31,563, (2019: £43,989). All directors' and other family loans were repayable on demand.

ESC Trading Company Limited

The company is related to ESC Trading Company Limited, a company of which Mr G Knappett is also a director. The company conducted trade on normal commercial terms with HTS Spares Limited.

During the year, the amount sold to ESC Trading Company Limited totalled £29,087 (2019: £55,058) and the balance owed by ESC Trading Company as at 31st December 2020 was £402 (2019: £32,233).

During the year, the amount purchased from ESC Trading Company Limited totalled £11,040 (2019: £4,124) and the balance owed to ESC Trading Company Limited at 31st December 2020, was £360, (2019: £252).

There is a loan held with ESC Trading Company Limited. The balance owed to the company by ESC Trading Limited as at 31st December 2020 was £130,000 (2019: £150,000). Interest has been charged on the loan @ 5% totalling £7,333 (2019: £6,353).

17.	Ultimate controlling party

The company is controlled by the Knappett family.

The company is controlled by Radial Group Holdings Limited, which is the ultimate holding

company.

Company registration number: 12346702

Company registered office address: Surrey House Beacon Road

Rotherwas Industrial Estate

Hereford

HR2 6JF