Spalding Pallets Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03295849 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 May 2021

for

Spalding Pallets Limited

Page

Company information

1

Chartered accountants' report

2

Statement of financial position

3

to

4

Notes to the financial statements

5

to

12

Director:

Mr J H Turner

Secretary:

Mrs P A Turner

Registered office:

Barr Farm

Main Road

Deeping St Nicholas

Spalding

Lincolnshire

PE11 3HA

Registered number:

03295849 (England and Wales)

Accountants:

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

The following reproduces the text of the report prepared for the director in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of financial position. Readers are cautioned that the Income statement and certain other primary statements and the Report of the director are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Spalding Pallets Limited for the year ended 31 May 2021 which comprise the Statement of income and retained earnings, Statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the director of Spalding Pallets Limited in accordance with the terms of our engagement letter dated 17 October 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Spalding Pallets Limited and state those matters that we have agreed to state to the director of Spalding Pallets Limited in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Spalding Pallets Limited and its director for our work or for this report.

It is your duty to ensure that Spalding Pallets Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Spalding Pallets Limited. You consider that Spalding Pallets Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Spalding Pallets Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

19 October 2021

Fixed assets

Intangible assets

5

-

-

Tangible assets

6

152,057

213,891

Investments

7

80

70

152,137

213,961

Current assets

Stocks

9,120

6,043

Debtors

8

488,571

423,127

Cash in hand

1,701

673

499,392

429,843

Creditors

Amounts falling due within one year

9

427,255

385,371

Net current assets

72,137

44,472

Total assets less current liabilities

224,274

258,433

Creditors

Amounts falling due after more than one year

10

(57,238

)

(26,055

)

Provisions for liabilities

(30,411

)

(42,778

)

Net assets

136,625

189,600

Capital and reserves

Called up share capital

12

100

100

Retained earnings

136,525

189,500

Shareholders' funds

136,625

189,600

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 director and authorised for issue on 19 October 2021 and were signed by:

Mr J H Turner - Director

1.	Statutory information

Spalding Pallets 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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 preparing the financial statements

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Government grants

Coronavirus Job Retention Scheme (CJRS)

Accrual model

Grant income received in relation to CJRS is recognised in the accounts on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill - straight line over 5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

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

Property improvement

-

Straight line over 7 years

Plant and machinery

-

20% on reducing balance

Recycling equipment

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Portacabins

-

Straight line over 7 years

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

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.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises

4.	Employees and directors

The average number of employees during the year was 8 (2020 - 8 ) .

5.	Intangible fixed assets

Goodwill

£

Cost

At 1 June 2020

and 31 May 2021

18,350

Amortisation

At 1 June 2020

and 31 May 2021

18,350

Net book value

At 31 May 2021

-

At 31 May 2020

-

6.	Tangible fixed assets

Property

Plant and

Recycling

improvement

machinery

equipment

£

£

£

Cost

At 1 June 2020

168,979

68,803

510,371

Disposals

-

(1,700

)

(53,609

)

At 31 May 2021

168,979

67,103

456,762

Depreciation

At 1 June 2020

168,979

57,550

376,287

Charge for year

-

2,180

23,062

Eliminated on disposal

-

(1,343

)

(34,833

)

At 31 May 2021

168,979

58,387

364,516

Net book value

At 31 May 2021

-

8,716

92,246

At 31 May 2020

-

11,253

134,084

Motor

vehicles

Portacabins

Totals

£

£

£

Cost

At 1 June 2020

291,455

52,457

1,092,065

Disposals

(56,900

)

-

(112,209

)

At 31 May 2021

234,555

52,457

979,856

Depreciation

At 1 June 2020

222,901

52,457

878,174

Charge for year

17,031

-

42,273

Eliminated on disposal

(56,472

)

-

(92,648

)

At 31 May 2021

183,460

52,457

827,799

Net book value

At 31 May 2021

51,095

-

152,057

At 31 May 2020

68,554

-

213,891

7.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 June 2020

70

Additions

10

At 31 May 2021

80

Net book value

At 31 May 2021

80

At 31 May 2020

70

Investment in subsidiary

The company owns 80 ordinary £1 shares (80% of the issued share capital) in Ray Turner Labour Limited.

2021

2020

£

£

Aggregate capital and reserves

Ray Turner Labour Limited

(28,488)

(8,036)

Profit and (Loss) for the period

Ray Turner Labour Limited

(20,452)

(48,103)

Ray Turner Labour Limited is registered in England and Wales and was formed and commenced trading as a supplier of HGV drivers to the haulage industry on 6th September 2004, preparing coterminous accounts.

Under the provision of section 248 of the Companies Act 1985 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.

8.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

110,699

33,610

Other debtors

358,433

291,689

Amounts owed by group undertakings

-

69,980

Prepayments and accrued income

19,439

27,848

488,571

423,127

9.

Creditors: amounts falling due within one year

2021

2020

£

£

Bank loans and overdrafts

105,347

117,996

Hire purchase contracts (see note 11)

17,370

18,445

Trade creditors

46,278

20,173

Amounts owed to group undertakings

167,434

-

Taxation and social security

18,479

46,295

Other creditors

72,347

182,462

427,255

385,371

Bank loans and overdrafts are secured on the company assets.

Hire purchase agreements are secured on the assets to which they relate.

10.

Creditors: amounts falling due after more than one year

2021

2020

£

£

Bank loans

50,000

-

Hire purchase contracts (see note 11)

7,238

26,055

57,238

26,055

Hire purchase agreements are secured on the assets to which they relate.

11.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts

2021

2020

£

£

Net obligations repayable:

Within one year

17,370

18,445

Between one and five years

7,238

26,055

24,608

44,500

Non-cancellable

operating leases

2021

2020

£

£

Within one year

5,630

5,630

12.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary shares

£1

100

100

13.	Directors' advances, credits and guarantees

As at the 31 May 2021 the company owed £Nil (2020 - £153,762) to the directors in respect of their directors loan accounts.

The company has provided a guarantee supported by a debenture over the bank loan of a company Ray Turner Energy Limited in which the directors have an interest. The balance on this loan account was £1,290,600 at 31 May 2021.

14.	Related party transactions

The company was under the control of one of the directors throughout the current and previous year.

One of the directors has given a personal guarantee to the company's bankers.

Ray Turner Labour Limited is a company under common control.

The accounts include management charges of £Nil (2020 - £12,000) receivable from Ray Turner Energy Limited. Management charges from Ray Turner Labour Limited to the company total £Nil (2020 - £62,000).

Ray Turner Labour Limited also recharged expenses to the company of £30,333 (2020 - £12,081) during the year.

Ray Turner Labour Limited charged the company £98,836 (2020 - £85,300) for labour costs in the year.

At 31st May 2021 the company owed £167,434 to Ray Turner Labour Limited and in 2020 the company was owed £69,980 by Ray Turner Labour Limited.

During the year the company both received and then provided interest free short term finance with Ray Turner Energy Limited, a company in which director has an interest. As at 31st May 2021, the company was owed £31,933 (2020 - £3,913) by Ray Turner Energy Limited.