Davies Woven Wire Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03472100 (England and Wales)

Financial Statements For The Year Ended 31 December 2020

for

Davies Woven Wire Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C R McGivney

Mrs J R Butkus

REGISTERED OFFICE:

13 Stourdale Road

Cradley Heath

West Midlands

B64 7BG

REGISTERED NUMBER:

03472100 (England and Wales)

AUDITORS:

Kreston Reeves LLP

Montague Place

Quayside

Chatham Maritime

Chatham

ME4 4QU

FIXED ASSETS

Tangible assets

4

86,311

105,427

Investments

5

275,496

275,496

361,807

380,923

CURRENT ASSETS

Stocks

584,275

638,318

Debtors

6

339,517

460,576

Cash at bank and in hand

398,522

413,965

1,322,314

1,512,859

CREDITORS

Amounts falling due within one year

7

498,762

698,637

NET CURRENT ASSETS

823,552

814,222

TOTAL ASSETS LESS CURRENT LIABILITIES

1,185,359

1,195,145

PROVISIONS FOR LIABILITIES

10

13,639

16,665

NET ASSETS

1,171,720

1,178,480

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Retained earnings

1,170,720

1,177,480

SHAREHOLDERS' FUNDS

1,171,720

1,178,480

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 7 July 2021 and were signed on its behalf by:

C R McGivney - Director

1.	STATUTORY INFORMATION

Davies Woven Wire Ltd 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.	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 Davies Woven Wire Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Wire Belt Company Limited, Castle Road, Eurolink Industrial Estate, Sittingbourne, Kent. ME10 3RF.

Significant judgements and estimates

Preparation of the financial statements requires management to make judgements and estimates based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances. The items in the financial statements where these estimates and judgements have been made are:

a) Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives are re-assessed annually. They are amended where necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

b) Stock and work in progress provisions

It is necessary to consider the recoverability of the cost of stocks and work in progress. When calculating any provision required, management consider the nature and condition of the items as well as assessing the saleability of finished goods and the future usage of raw materials.

c) Impairment of debtors

The company make a judgement of the recoverability of trade and other debtors. When assessing any potential impairment, factors such as the ageing profile and historical experience are considered.

Turnover

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

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the cost incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to leasehold property

-

20% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Tangible fixed assets are stated under the cost model at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating.

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within 'operating profit' in the income statement.

Stocks and work in progress

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

Cost is calculated using the first in, first out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

Work in progress and finished goods includes the cost of direct materials and labour, plus attributable overheads based on normal levels of activity.

Net realisable value is based on estimated selling price less any further costs expected to be incurred for completion and sale. Any impairment loss is recognised in the income statement.

Current and deferred tax

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 currency translation

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. 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.

The apportionment between the finance charge and the reduction of the outstanding liability uses the effective interest method.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the income statement when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plans are held separately from the company in independently administered funds.

Employee benefits

When employees have rendered services to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income in other administrative expenses.

Impairment

Assets not valued 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 the statement of comprehensive income.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, and it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. The provision is charged to the income statement in the year that the company becomes aware of the obligation taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value.

Going concern basis

The company meets its day to day working capital requirements through its bank facilities. The company's forecasts and projections show that the company should be able to operate within the level of its current facilities. In addition, the parent undertaking, Wire Belt Company Limited, has confirmed that it intends to continue to support the company should the need arise. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

Investment in subsidiary undertakings

Investments in wholly owned subsidiary undertakings are measured at cost less accumulated impairment losses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 28 (2019 - 28 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

to

Fixtures

leasehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2020

41,271

253,713

4,957

Additions

-

3,139

-

At 31 December 2020

41,271

256,852

4,957

DEPRECIATION

At 1 January 2020

39,074

176,731

3,965

Charge for year

2,197

12,021

992

At 31 December 2020

41,271

188,752

4,957

NET BOOK VALUE

At 31 December 2020

-

68,100

-

At 31 December 2019

2,197

76,982

992

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2020

48,130

43,968

392,039

Additions

-

-

3,139

At 31 December 2020

48,130

43,968

395,178

DEPRECIATION

At 1 January 2020

31,995

34,847

286,612

Charge for year

4,034

3,011

22,255

At 31 December 2020

36,029

37,858

308,867

NET BOOK VALUE

At 31 December 2020

12,101

6,110

86,311

At 31 December 2019

16,135

9,121

105,427

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

Motor

vehicles

£

COST

At 1 January 2020

25,538

Transfer to ownership

(25,538

)

At 31 December 2020

-

DEPRECIATION

At 1 January 2020

14,764

Transfer to ownership

(14,764

)

At 31 December 2020

-

NET BOOK VALUE

At 31 December 2020

-

At 31 December 2019

10,774

5.	FIXED ASSET INVESTMENTS

Interest

in

subsidiary

£

COST

At 1 January 2020

and 31 December 2020

275,496

NET BOOK VALUE

At 31 December 2020

275,496

At 31 December 2019

275,496

On 8 December 2003, Davies Woven Wire Limited acquired 100% of the share capital of Metwire Belts

Limited. This investment is stated at cost, and there has been no impairment in its value.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

296,701

373,521

Employee loan

52

-

Digwoods Limited loan account

23,152

47,160

Corporation tax recoverable

-

3,242

Prepayments

19,612

36,653

339,517

460,576

Trade debtors includes an amount of £(3,495) (2019 - £49,543) owed to Wire Belt Company Limited.

Trade debtors includes an amount of £241 (2019 - £(480)) owed by Wire Belt Company Osterloh Gmbh.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 8)

-

5,321

Trade creditors

111,635

285,345

Corporation tax

1,492

-

Social security and other taxes

60,675

45,175

Other creditors

3,300

2,785

Lindley Associates loan account

160,000

160,000

Metwire Belts Loan account

130,732

166,447

Accrued expenses

30,928

33,564

498,762

698,637

Trade creditors includes an amount of £3,735 (2019 - £24,295) owed to Wire Belt Company Limited.

The overall intercompany creditor is £7,230 (2019 - intercompany debtor £25,248).

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

-

5,321

Non-cancellable operating

leases

2020

2019

£

£

Within one year

59,905

45,062

Between one and five years

228,172

2,077

In more than five years

213,750

-

501,827

47,139

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

-

5,321

Hire purchase contracts are secured on the asset to which the contract relates.

10.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

13,639

16,665

Deferred

tax

£

Balance at 1 January 2020

16,665

Credit to Statement of Income and Retained Earnings during year

(3,026

)

Balance at 31 December 2020

13,639

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1,000

Ordinary

£1

1,000

1,000

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

The Report of the Auditors was unqualified.

Jonathan Timms BSc FCCA (Senior Statutory Auditor)

for and on behalf of Kreston Reeves LLP

13.	RELATED PARTY DISCLOSURES

14.	ULTIMATE CONTROLLING PARTY

The controlling party is Lindley Associates Limited.

The ultimate controlling party is Wire Belt Company of America.