John Sutcliffe & Son (Grimsby) Limited - Abbreviated accounts

JOHN SUTCLIFFE & SON (GRIMSBY) LIMITED - Company Information

Registered number

00317346

John Sutcliffe & Son (Grimsby) Limited

Abbreviated Accounts

30 September 2016

John Sutcliffe & Son (Grimsby) Limited
Registered number:	00317346
Abbreviated Balance Sheet
as at 30 September 2016
30th September					31st March
Notes				2016			2015
£					£
Fixed assets
Tangible assets		2		23,170			59,909
Investments		3		-			10,900
				23,170			70,809
Current assets
Debtors			397,753			729,840
Cash at bank and in hand			145,979			304,496
			543,732			1,034,336

Creditors: amounts falling due within one year			(421,153)			(774,516)

Net current assets				122,579			259,820

Total assets less current liabilities				145,749			330,629

Creditors: amounts falling due after more than one year				-			(8,222)

Net assets				145,749			322,407

Capital and reserves
Called up share capital		4		150,100			150,100
Profit and loss account				(4,351)			172,307

Shareholders' funds				145,749			322,407

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.


A Surfleet
Director
Approved by the board on 26 June 2017

John Sutcliffe & Son (Grimsby) Limited
Notes to the Abbreviated Accounts
for the period from 1 April 2015 to 30 September 2016

1	Accounting policies

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).

	Turnover
	Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

	Depreciation
	Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.

	Fixtures and equipment			10%, 20% and 25% per annum straight line
	Motor vehicles			20% and 25% per annum straight line

	Foreign currencies
	Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

	Leasing and hire purchase commitments
	Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of the rental obligations 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. Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

	Pensions
	The company operates a defined contribution pension scheme. The funds of the scheme are administered by Trustees and are separate from the company. Ordinarily, actuaries complete valuations every three years and, in accordance with their recommendations annual contributions are paid to the scheme so as to secure the benefits set out in the rules and the periodic augmentation of current pensions. The cost of these and any variations from regular cost arising from actuarial valuations are charges or credited to profits on a systematic basis over the remaining service life of the employees.

	Note 5 to the accounts details findings from a recent valuation by the scheme's actuaries.

2	Tangible fixed assets					£

	Cost
	At 1 April 2015					172,992
	Additions					19,752
	Disposals					(71,964)
	At 30 September 2016					120,780

	Depreciation
	At 1 April 2015					113,083
	Charge for the period					19,406
	On disposals					(34,879)
	At 30 September 2016					97,610

	Net book value
	At 30 September 2016					23,170
	At 31 March 2015					59,909


3	Investments					£

	Cost
	At 1 April 2015					10,900
	Disposals					(10,900)

	At 30 September 2016					-




4	Share capital	Nominal		2016		2016		2015
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		150,100		150,100		150,100


5	Pension commitments

	John Sutcliffe & Son (Grimsby) Limited (the Company) operates a defined benefit pension arrangement called the John Sutcliffe & Son (Holdings) Limited Staff Pension and Assurance Scheme (the Scheme). During the period to 30th September 2016 the other participating company to the Scheme, John Sutcliffe & Son (Holdings) Limited, was placed into Administration. Having contributed £115,000 into the Scheme during the period to January 2016, the company was unable to make further contributions into the Scheme.
	The principal assumptions used by the Scheme's actuaries to calculate Scheme liabilities as at 31st March 2016 are based on an actuarial valuation performed in 2013 and include:

31st March					31st March
				2016				2015

	Discount rate			3.45% pa	3.20% pa
	Inflation assumption (RPI)			2.90% pa	2.90% pa
	Inflation assumption (CPI)			1.90% pa	1.90% pa
	LPI5% pension increases (RPI)			2.80% pa	2.80% pa

	Mortality assumption	S1PA CMI_2012 (1.5%)				S1PA CMI_2012 (1.5%)


	Tax free cash	Members are assumed to				Members are assumed to
		take 20% of their pension as				take 20% of their pension as
		tax free cash				tax free cash

	Under the adopted mortality tables, the future life expectancy at age 65 is as follows:

31st March							31st March
	Life expectancy at age 65					2016		2015

	Male currently aged 45					25.2 years	25.1 years
	Female currently aged 45					27.7 years	27.6 years
	Male currently aged 65					22.9 years	22.8 years
	Female currently aged 65					25.3 years	25.2 years

31st March							31st March
						2016		2015

	Long term expected rate of return on the Scheme's					5.30% pa	6.50% pa
	assets for the previous accounting period


	The expected return on assets is a weighted average of the assumed long-term returns for the various asset classes. Equity returns are developed based on the selection of an appropriate risk premium above the risk free rate which is measured in accordance with the yield on government bonds. Bond returns are selected by reference to the yields on government and corporate debt as appropriate to the Scheme's holdings of these instruments.

	Amounts recognised in the Balance Sheet
31st March							31st March
						2016		2015
£							£

	Fair Value of Assets					3,260,000		3,322,000

	Present Value of Funded Obligations					(6,321,000)		(6,596,000)

	Surplus/(Deficit)*					(3,061,000)		(3,274,000)

	* Surplus/ (Deficit) shown prior to deferred taxation

	The above liability is the total for the John Sutcliffe & Son (Holdings) Limited Staff Pension Scheme. John Sutcliffe & Son (Grimsby) Limited is a contributory member of this scheme. The liability which attaches to John Sutcliffe & Son (Grimsby) Limited has been assessed by the pension scheme trustees at £1,406,000. This deficit is based on the last actuarial valuation performed in 2013 and the Scheme Actuary has indicated that given changes in market conditions since then, that deficit is likely to have increased considerably since 2013. There has not been an actuarial valuation performed since that carried out in 2013 as discussions are currently ongoing with the Scheme Trustees and the Pension Regulator regarding the level of support required. The above liability has not been provided for in the accounts as the directors are of the opinion that such provision would adversely affect the current balance sheet strength and show an annual deficit which would not represent the company's real trading position. In this respect, the financial statements have not been prepared in full compliance with FRS17.

	Amounts recognised in the Statement of Total Recognised Gains and Losses over the year

31st March							31st March
						2016		2015
£							£

	Actuarial Gain and (Loss) on assets					(159,000)		255,000
	Actuarial Gain and (Loss) due to change in basis					291,000		(1,011,000)
	Actuarial Gain and (Loss) due to experience					-		-

	Total amount recognised in Statement of Total Recognised
	Gains and Losses					132,000		(756,000)


	Amounts recognised in the Profit & Loss account over the year
31st March							31st March
						2016		2015

	Current service cost					-		-
	Interest cost					208,000		230,000
	Expected return on assets					(174,000)		(191,000)
	(Gains)/losses on settlements or curtailments					-		-
	Past service cost					-		-
	Total					34,000		39,000

	Reconciliation of Assets and Defined Benefit Obligation

	The change in assets over the period was:
31st March							31st March
						2016		2015
£							£

	Fair value of assets at the beginning of the period					3,322,000		2,997,000
	Expected return on assets					174,000		191,000
	Company contributions					115,000		115,000
	Contributions by Scheme participants					-		-
	Benefits paid					(192,000)		(236,000)
	Change due to settlements or curtailments					-		-
	Actuarial gain/(loss) on assets					(159,000)		255,000

	Fair value of assets at the end of the period					3,260,000		3,322,000

	The change in the Defined Benefit Obligation over the period was:
31st March							31st March
						2016		2015

	Defined Benefit Obligation at the beginning of the period					6,596,000		5,591,000
	Current service cost					-		-
	Contributions by Scheme participants					-		-
	Past service cost					-		-
	Interest cost					208,000		230,000
	Benefits paid					(192,000)		(236,000)
	Change due to settlements or curtailments					-		-
	Actuarial (gain)/loss due to experience					-		-
	Actuarial (gain)/loss due to change in basis					(291,000)		1,011,000

	Defined Benefit Obligation at the end of the period					6,321,000		6,596,000

	Summary of prior year amounts
31st March					31st March		31st March
				2016		2015		2014
£					£		£

	Present value of Defined Benefit Obligation			(6,321,000)		(6,596,000)		(5,591,000)
	Scheme Assets			3,260,000		3,322,000		2,997,000
	Surplus/(Deficit)			(3,061,000)		(3,274,000)		(2,594,000)
	Experience gains and (losses) on Scheme			-		-		40,000
	liabilities**
	Changes in assumptions used to value Scheme			291,000		(1,011,000)		188,000
	liabilities
	Experience adjustments on Scheme assets			(159,000)		255,000		(133,000)

	** Does not include allowance for changes in assumptions

	The cumulative loss to 31 March 2016 was £2,077,000.


	Cash Flow Information

	The following cashflow information was supplied by our administration team. The cashflows paid
	between 31 March 2015 and 31 March 2016 were as follows:
£

	Company contributions paid					115,000
	Total pensions paid					120,000
	Lump sum and transfer value payments					72,000

	Asset information

	The following asset information was supplied by Legal & General, BNY Mellon Fund Managers and
	the Scheme's administrators. At 31 March 2016 the bid value of the Scheme's assets was as
	follows:

	Asset Class					Bid Value		Asset split
£

	Equity/Real Return Funds					2,252,000	69%
	Gilt Funds					163,000	5%
	Bond Funds					805,000	25%
	Cash and other assets					40,000	1%
	Total					3,260,000	100%

	The actual return on the Scheme's assets over the year ending 31 March 2016 was a gain of £15,000.


6	Contingent liabilities

	The company, its parent and its fellow subsidiary companies have given unlimited cross guarantees in respect of each others bank accounts.


7	Ultimate controlling party

	The company is controlled by its parent company John Sutcliffe & Son (Holdings) Limited, a company incorporated in England & Wales. The parent company is currently in Administration.

8	Ultimate parent company

	The company's ultimate parent company is John Sutcliffe & Son (Holdings) Limited, a company incorporated in England & Wales. The parent company is currently in Administration.