Shear Design Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 05262666 (England and Wales)

SHEAR DESIGN LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Miss K Lane

A Spencer

D Badham

SECRETARY:

Miss K Lane

REGISTERED OFFICE:

Fabri House

7 Ashtree Court

Woodsy Close

Cardiff

SOUTH GLAMORGAN

CF23 8RW

REGISTERED NUMBER:

05262666 (England and Wales)

FIXED ASSETS

Tangible assets

4

5,306

26,178

CURRENT ASSETS

Debtors

5

427,656

389,685

Cash at bank

728,598

589,875

1,156,254

979,560

CREDITORS

Amounts falling due within one year

6

253,630

216,176

NET CURRENT ASSETS

902,624

763,384

TOTAL ASSETS LESS CURRENT LIABILITIES

907,930

789,562

CREDITORS

Amounts falling due after more than one year

7

(37,814

)

(46,463

)

PROVISIONS FOR LIABILITIES

10

(730

)

(4,635

)

NET ASSETS

869,386

738,464

CAPITAL AND RESERVES

Called up share capital

11

200

200

Capital redemption reserve

12

(11,410

)

(11,410

)

Retained earnings

12

880,596

749,674

SHAREHOLDERS' FUNDS

869,386

738,464

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 April 2023 and were signed on its behalf by:

Miss K Lane - Director

1.	STATUTORY INFORMATION

Shear Design 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.	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 financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support.

At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.

Impairment of debtors

The company, makes an estimate of the recoverable value of trade and other debtors when assessing impairment of trade and other debtors, management considers factors including the credit worthiness of the debtor, the ageing profile of the debtor and historical experience.

Turnover

Turnover is measured at fair value of the consideration received or receivable net of VAT and discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services:

Turnover is recognised at the fair value of the consideration received or receivable for the services provided to the customer during the normal course of business. Turnover is recognised at the point when all benefits of the services provided are transferred to the customer.

Tangible fixed assets

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

Fixtures,fittings and equipment

-

25% on reducing balance

Office equipment

-

33% on reducing balance

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 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.

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.

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.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be reliable estimated.

Impairment

Assets not measured 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 assets 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 profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments".

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, loans to related companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

Employee Benefits

The company provides a wide range of benefits which includes; paid holidays and defined contribution pension plans. Short term employee benefit are recognised as an expense in the profit and loss account for the period in which the service is received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2021 - 16 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures,fittings

and

Office

equipment

equipment

Totals

£

£

£

COST

At 1 January 2022

and 31 December 2022

39,312

213,330

252,642

DEPRECIATION

At 1 January 2022

34,502

191,962

226,464

Charge for year

1,202

19,670

20,872

At 31 December 2022

35,704

211,632

247,336

NET BOOK VALUE

At 31 December 2022

3,608

1,698

5,306

At 31 December 2021

4,810

21,368

26,178

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

Office

equipment

£

COST

At 1 January 2022

23,037

Transfer to ownership

(23,037

)

At 31 December 2022

-

DEPRECIATION

At 1 January 2022

14,402

Transfer to ownership

(14,402

)

At 31 December 2022

-

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

8,635

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

359,072

354,118

Other debtors

20,000

-

Prepayments

48,584

35,567

427,656

389,685

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

4,827

1,667

Hire purchase contracts (see note 8)

-

3,776

Trade creditors

32,949

14,567

Taxation and social security

208,474

184,487

Other creditors

7,380

11,679

253,630

216,176

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

37,814

46,463

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

18,505

6,463

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2022

2021

£

£

Net obligations repayable:

Within one year

-

3,776

Non-cancellable

operating leases

2022

2021

£

£

Within one year

20,000

-

Between one and five years

56,667

40,000

76,667

40,000

9.	SECURED DEBTS

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

10.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

730

4,635

Deferred

tax

£

Balance at 1 January 2022

4,635

Accelerated capital allowances

(3,905

)

Balance at 31 December 2022

730

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

3

Ordinary A

£1

3

3

197

Ordinary B

£1

197

197

200

200

12.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 January 2022

749,674

(11,410

)

738,264

Profit for the year

566,205

566,205

Dividends

(435,283

)

(435,283

)

At 31 December 2022

880,596

(11,410

)

869,186

13.	RELATED PARTY DISCLOSURES

The company operates from a property which is owned by the pension schemes of two of the directors. During the year the company paid rent of £25,000 (2021 - £42,500) in respect of this property.