Special Piping Materials (Scotland) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06226957 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2020

for

SPECIAL PIPING MATERIALS (SCOTLAND)

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

P Buckley

M L Buckley

L Buckley

J Hutchinson

Secretary:

M L Buckley

Registered office:

3rd Floor Northern Assurance Building

9/21 Princess Street

Manchester

M2 4DN

Registered number:

06226957 (England and Wales)

Auditors:

Haines Watts Manchester Limited, Statutory Auditor

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

Fixed assets

Tangible assets

5

15,345

24,970

Current assets

Stocks

1,349,665

1,096,204

Debtors

6

1,166,959

2,253,978

Cash at bank and in hand

1,036,704

1,286,321

3,553,328

4,636,503

Creditors

Amounts falling due within one year

7

1,328,534

2,556,869

Net current assets

2,224,794

2,079,634

Total assets less current liabilities

2,240,139

2,104,604

Capital and reserves

Called up share capital

9

1,150

1,150

Share premium

29,885

29,885

Retained earnings

2,209,104

2,073,569

Shareholders' funds

2,240,139

2,104,604

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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2021 and were signed on its behalf by:

L Buckley - Director

1.	Statutory information

Special Piping Materials (Scotland) 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.	Statement of compliance

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.

3.	Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including latest management accounts. Turnover and profitability have not suffered since the year end as a result of the coronavirus pandemic and the company has sufficient reserves, including liquid assets, to continue trading until normality returns. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future event that are believed to be reasonable under the circumstances.

There are not considered to be any critical judgements in applying the company's accounting policies.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The only estimate and assumption which has a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year is the potential need for a stock provision. This is based on management's best estimate of the saleability of stock.

Turnover

Turnover represents net invoices sales of goods, excluding value added tax. Income is recognised when goods are despatched.

Tangible fixed assets

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

Plant and machinery

-

33% straight line and 15% straight line

Fixtures and fittings

-

15% straight line

Motor vehicles

-

25% straight line

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell.

Cost includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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

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 chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and loans to fellow group companies, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

4.	Employees and directors

The average number of employees during the year was 15 (2019 - 14 ) .

5.	Tangible fixed assets

Plant and

machinery

etc

£

Cost

At 1 January 2020

322,789

Additions

2,200

Disposals

(25,090

)

At 31 December 2020

299,899

Depreciation

At 1 January 2020

297,819

Charge for year

11,824

Eliminated on disposal

(25,089

)

At 31 December 2020

284,554

Net book value

At 31 December 2020

15,345

At 31 December 2019

24,970

6.

Debtors: amounts falling due within one year

2020

2019

£

£

Trade debtors

1,114,896

2,180,896

Amounts owed by group undertakings

21,759

-

Other debtors

30,304

73,082

1,166,959

2,253,978

7.

Creditors: amounts falling due within one year

2020

2019

£

£

Trade creditors

532,434

1,472,502

Amounts owed to group undertakings

680,003

954,558

Taxation and social security

14,133

80,001

Other creditors

101,964

49,808

1,328,534

2,556,869

The £1 (2019 - £1) preference share included in other creditors, which is held by a minority interest, is redeemable on certain trigger events by the parent company.

8.	Leasing agreements

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

2020

2019

£

£

Within one year

17,437

10,334

Between one and five years

28,768

18,772

46,205

29,106

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

1,035

'A' ordinary

£1

1,035

1,035

115

'B' ordinary

£1

115

115

1,150

1,150

All shares rank pari passu other than that they are entitled to dividends as declared for each class.

10.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Antony Sassen (Senior Statutory Auditor)

for and on behalf of Haines Watts Manchester Limited, Statutory Auditor

Matters to which the auditor drew attention by way of emphasis

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in the accounting policies.

11.	Related party disclosures

Owner holding a participating interest in Special Piping Materials (Scotland) Limited

2020

2019

£

£

Amounts owed to group undertakings

680,003

640,000

The above loans are interest free and repayable on demand.

Directors of Special Piping Materials (Scotland) Limited

2020

2019

£

£

Amounts due to related parties

64,299

42,076

Amounts due from related parties

-

-

The above loans are interest free and repayable on demand.

12.	Ultimate controlling party

The controlling party is Special Piping Materials (Holdings) Limited.

The ultimate parent undertaking and the smallest and largest group to consolidate these financial statements is Special Piping Materials (Holdings) Limited. Copies of the group accounts are available from 26 Globe Industrial Estate, Broadway, Dukinfield, Cheshire SK16 4UU.

The ultimate controlling party is L Buckley.