Powdertech (Bicester) Limited - Period Ending 2021-08-31

Powdertech (Bicester) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Powdertech (Bicester) Limited

Company Information

Directors

Stuart Corstorphine James Alexander Grant Martyn Phillip Green

Company secretary

Harriet Lucy Duckworth

Registered office

34 High Street Long Crendon Aylesbury Buckinghamshire HP18 9AF

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

Powdertech (Bicester) Limited

(Registration number: 01809964)
Balance Sheet as at 31 August 2021

	Note	2021  £	2020  £
Fixed assets
Tangible assets	4	552,741	469,377
Current assets
Stocks		36,533	24,576
Debtors	5	1,484,378	1,644,111
Cash at bank and in hand		395,124	29,336
		1,916,035	1,698,023
Creditors: Amounts falling due within one year	6	(747,749)	(829,556)
Net current assets		1,168,286	868,467
Total assets less current liabilities		1,721,027	1,337,844
Creditors: Amounts falling due after more than one year	6	(254,545)	-
Deferred tax liabilities	8	(2,628)	-
Net assets		1,463,854	1,337,844
Capital and reserves
Called up share capital		2,350	2,350
Profit and loss account		1,461,504	1,335,494
Total equity		1,463,854	1,337,844

For the financial year ending 31 August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 11 April 2022 and signed on its behalf by:
 

 

Martyn Phillip Green
Director

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
34 High Street
Long Crendon
Aylesbury
Buckinghamshire
HP18 9AF

The principal place of business is:
27 Murdock Road
Bicester
Oxfordshire
OX26 4PP

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.The financial statements have been prepared under the historical cost convention and in accordance with FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when, the amount of revenue can be reliably measured it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives as follows:

Asset class	Depreciation method and rate
Leasehold improvements	10 years straight line
Plant and machinery	4-8 years straight line
Motor vehicles	4 years straight line

Trade debtors

Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2021  No.	2020  No.
Average number of employees	28	25

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

4

Tangible assets

	Leasehold improvements £	Plant and machinery £	Motor vehicles  £	Total £
Cost
At 1 September 2020	79,771	1,358,632	98,642	1,537,045
Additions	36,791	196,126	-	232,917
Disposals	-	(42,827)	-	(42,827)
At 31 August 2021	116,562	1,511,931	98,642	1,727,135
Depreciation
At 1 September 2020	53,774	954,816	59,078	1,067,668
Charge for the year	5,926	110,740	15,825	132,491
Eliminated on disposal	-	(25,765)	-	(25,765)
At 31 August 2021	59,700	1,039,791	74,903	1,174,394
Carrying amount
At 31 August 2021	56,862	472,140	23,739	552,741
At 31 August 2020	25,997	403,816	39,564	469,377

5

Debtors

	Note	2021  £	2020  £
Trade debtors		326,994	366,587
Amounts owed by related parties		978,880	1,113,519
Prepayments		142,831	85,735
Deferred tax assets	8	-	24,090
Corporation tax asset		35,673	54,180
		1,484,378	1,644,111

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

6

Creditors

	Note	2021  £	2020  £
Loans and borrowings	7	45,455	52,858
Trade creditors		190,311	143,884
Amounts due to related parties		348,206	471,096
Social security and other taxes		82,196	128,041
Outstanding defined contribution pension costs		805	804
Other creditors		8,763	6,646
Accrued expenses		72,013	26,227
		747,749	829,556

	Note	2021 £	2020 £
Loans and borrowings	7	254,545	-

7

Loans and borrowings

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	45,455	52,858

	2021 £	2020 £
Non-current loans and borrowings
Bank borrowings	254,545	-

Bank borrowings
The bank borrowings of the company have been secured by a fixed and floating charge over the assets of the company.

Powdertech (Bicester) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2021

8

Deferred tax

Deferred tax assets and liabilities

2021	Liability £
Accelerated capital allowances	93,738
Short term timing differences	(111)
Tax losses carried forward	(90,999)
	2,628

2020	Asset £
Accelerated capital allowances	(45,154)
Short term timing differences	85
Tax losses carried forward	69,159
	24,090

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £425,000 (2020 - £750,000). At 31 August 2021 the company had future minimum lease payments under non-cancellable operating leases as follows: commitments due under one year £152,500 (2020 - £150,000), commitments due between one and two years £152,500 (2020 - £150,000), commitments due in two to five years £120,000 (2020- £450,000).