Tate Security Technology Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04119865 (England and Wales)

TATE SECURITY TECHNOLOGY LIMITED

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

J L Strickland

I Shields

SECRETARY:

J L Strickland

REGISTERED OFFICE:

Systems House

Little Lane

Goose Green

Wigan

Lancashire

WN3 6PX

REGISTERED NUMBER:

04119865 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

BANKERS:

Barclays Bank plc

6 Market Place

Wigan

Lancashire

WN1 1QS

FIXED ASSETS

Property, plant and equipment

4

77,390

41,969

CURRENT ASSETS

Inventories

15,000

13,439

Debtors

5

1,502,450

2,278,038

Cash at bank and in hand

874,576

1,021,535

2,392,026

3,313,012

CREDITORS

Amounts falling due within one year

6

(580,647

)

(1,713,843

)

NET CURRENT ASSETS

1,811,379

1,599,169

TOTAL ASSETS LESS CURRENT LIABILITIES

1,888,769

1,641,138

PROVISIONS FOR LIABILITIES

-

(7,579

)

NET ASSETS

1,888,769

1,633,559

CAPITAL AND RESERVES

Called up share capital

1

1

Capital redemption reserve

1

1

Retained earnings

1,888,767

1,633,557

SHAREHOLDERS' FUNDS

1,888,769

1,633,559

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 4 August 2021 and were signed on its behalf by:

J L Strickland - Director

1.	STATUTORY INFORMATION

Tate Security Technology Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 04119865 and its registered office is Systems House, Little Lane, Goose Green, Wigan, Lancashire, WN3 6PX.

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.

Going concern

The directors have considered the impact of the global Covid-19 pandemic on the company and recognise that the future cannot be predicted with certainty.

The company has taken necessary steps to control costs and has made use of the Government's Job Retention Scheme to ensure staff can be retained accordingly.

Despite the challenging trading conditions, post year end management accounts indicate that the company remains profitable and continues to maintain a strong cash position. The company also has a high value of secured future contract work as well as a number of outstanding tenders which are expected to be successful.

Having taken all relevant factors into account, the directors are confident that the company is well placed to manage all current business risks and has sufficient reserves to continue as a going concern.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:-

- Determining the expected outcome of long-term contracts prior to their conclusion and calculating the attributable profit that should be recognised in a manner appropriate to the stage of completion.

Revenue

Revenue is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performed. The revenue recognised is valued at the fair value of consideration expected to be received on contracts. Retentions on contracts are recognised in accordance with Financial Reporting Standard 102 and are included in revenue upon completion of the work. Revenue is not recognised where the right to receive payment is contingent on events outside the control of the company.

Unbilled revenue is included in debtors as 'Amounts recoverable on contracts'.

Property, plant and equipment

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

Demonstration room

-

33% on cost

Leasehold property improvements

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102.

During the year the company has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

The company has not directly benefitted from any other forms of government assistance.

Inventories

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

Cost is defined as the actual purchase price and includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

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 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 period in which it is incurred.

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 the income statement in the period to which they relate.

Leasing commitments

Rentals paid under operating leases are charged to the income statement as incurred.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2019 - 24 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Leasehold

Demonstration

property

Plant and

room

improvements

machinery

£

£

£

COST

At 1 September 2019

26,584

14,465

24,144

Additions

-

514

-

At 31 August 2020

26,584

14,979

24,144

DEPRECIATION

At 1 September 2019

17,722

2,005

21,123

Charge for year

8,862

294

755

At 31 August 2020

26,584

2,299

21,878

NET BOOK VALUE

At 31 August 2020

-

12,680

2,266

At 31 August 2019

8,862

12,460

3,021

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 September 2019

49,172

-

42,747

157,112

Additions

-

54,657

154

55,325

At 31 August 2020

49,172

54,657

42,901

212,437

DEPRECIATION

At 1 September 2019

32,881

-

41,412

115,143

Charge for year

2,443

6,832

718

19,904

At 31 August 2020

35,324

6,832

42,130

135,047

NET BOOK VALUE

At 31 August 2020

13,848

47,825

771

77,390

At 31 August 2019

16,291

-

1,335

41,969

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

480,927

1,597,439

Amounts recoverable on contracts

168,984

484,575

Other debtors

852,539

196,024

1,502,450

2,278,038

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

93,624

581,319

Taxation and social security

288,129

492,395

Other creditors

198,894

640,129

580,647

1,713,843

7.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Invoice discounting creditor

24,504

381,224

The invoice discounting liability is secured by way of a fixed and floating charge on all property of the company.

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

The Report of the Auditors was unqualified.

Fiona O'Loughlin (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included within debtors falling due within one year is a director's current account balance of £550,177 (2019 - £131,406) owed by J L Strickland. This advance is unsecured, interest free and repayable upon demand. The maximum overdrawn balance in the year amounted to £550,177 (2019 - £145,290).

During the year there was a material withdrawal of £313,403 which was paid on 20 January 2020.