Special Piping Materials Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 02307592 (England and Wales)

Financial Statements

for the Year Ended 31 December 2022

for

SPECIAL PIPING MATERIALS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

M L Buckley

L Buckley

P Buckley

A Forth

Secretary:

M L Buckley

Registered office:

Broadway

Globe Industrial Estate

Dukinfield

Cheshire

SK16 4UU

Registered number:

02307592 (England and Wales)

Auditors:

Haines Watts, Statutory Auditor

Northern Assurance Buildings

9-21 Princess Street

Manchester

M2 4DN

Fixed assets

Tangible assets

5

301,572

253,036

Investments

6

52,043

52,043

353,615

305,079

Current assets

Stocks

4,479,768

4,606,200

Debtors

7

7,996,311

5,585,259

Cash at bank and in hand

847,681

1,665,925

13,323,760

11,857,384

Creditors

Amounts falling due within one year

8

3,122,274

2,104,248

Net current assets

10,201,486

9,753,136

Total assets less current liabilities

10,555,101

10,058,215

Creditors

Amounts falling due after more than one year

9

-

3,680

Net assets

10,555,101

10,054,535

Capital and reserves

Called up share capital

11

13,320

13,320

Retained earnings

10,541,781

10,041,215

Shareholders' funds

10,555,101

10,054,535

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 29 September 2023 and were signed on its behalf by:

L Buckley - Director

1.	Statutory information

Special Piping Materials 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 preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about Special Piping Materials Limited 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 undertakings are included by full consolidation in the consolidated financial statements of its parent, Special Piping Materials (Holdings) Limited, a company registered in England and Wales.

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 stock provision. This is based on management's best estimate of the saleability of stock.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of piping and related fittings to customers. Turnover is recognised when goods leave the premises.

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

-

15% straight line

Fixtures and fittings

-

at varying rates on cost

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.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress 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.

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, hire purchase loans and 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.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

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 payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

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.

Fixed asset investments

Fixed asset investments are stated at cost less provisions for permanent diminutions in value.

4.	Employees and directors

The average number of employees during the year was 21 (2021 - 25 ) .

5.	Tangible fixed assets

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Cost

At 1 January 2022

126,128

603,226

729,354

Additions

28,050

71,792

99,842

At 31 December 2022

154,178

675,018

829,196

Depreciation

At 1 January 2022

2,523

473,795

476,318

Charge for year

3,084

48,222

51,306

At 31 December 2022

5,607

522,017

527,624

Net book value

At 31 December 2022

148,571

153,001

301,572

At 31 December 2021

123,605

129,431

253,036

Included within the net book value of tangible fixed assets is £10,524 (2021 - £21,048) in respect of assets held under hire purchase agreements. Depreciation for the year on these assets was £10,524 (2021 - £10,524).

6.	Fixed asset investments

Shares in

group

undertakings

£

Cost

At 1 January 2022

and 31 December 2022

52,043

Net book value

At 31 December 2022

52,043

At 31 December 2021

52,043

7.

Debtors

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

4,718,981

1,778,458

Amounts owed by group undertakings

2,025,032

2,408,830

Other debtors

696,580

498,373

7,440,593

4,685,661

2022

2021

£

£

Amounts falling due after more than one year:

Amounts owed by group undertakings

398,081

398,081

Other debtors

157,637

501,517

555,718

899,598

Aggregate amounts

7,996,311

5,585,259

Trade debtors are stated after provisions for impairment of £20,522 (2021 - £106,522).

8.

Creditors: amounts falling due within one year

2022

2021

£

£

Hire purchase contracts

2,209

13,570

Trade creditors

2,941,169

1,919,418

Amounts owed to group undertakings

44,522

36,701

Corporation tax

(82,118

)

-

Social security and other taxes

97,420

61,628

VAT

4,769

-

Other creditors

2,699

15,761

Accruals and deferred income

111,604

57,170

3,122,274

2,104,248

9.

Creditors: amounts falling due after more than one year

2022

2021

£

£

Hire purchase contracts

-

3,680

10.	Secured debts

The following secured debts are included within creditors:

2022

2021

£

£

Hire purchase contracts

2,209

17,250

Hire purchase creditors are secured on the relevant assets.

11.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

5,000

Ordinary

£1

5,000

5,000

4,800

A Ordinary

£1

4,800

4,800

5

B Ordinary

£1

5

5

3,515

C Ordinary

£1

3,515

3,515

13,320

13,320

Ordinary and A Ordinary shares rank pari passu. B and C Ordinary shares are not entitled to vote and have no right to share in any surplus. All shares are entitled to dividends as declared for each class.

12.	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, Statutory Auditor

13.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ended 31 December 2022 and 31 December 2021:

2022

2021

£

£

Balance outstanding at the start of year

204,274

293,766

Amounts advanced

331,457

81,706

Repaid

(308,750

)

(171,188

)

Balance outstanding at the end of the year

226,981

204,274

The above loans are interest free and repayable on demand.

14.	Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

15.	Ultimate controlling party

The ultimate controlling party is L Buckley.