Davies Woven Wire Ltd - Accounts to registrar - small 17.1.1

REGISTERED NUMBER: 03472100 (England and Wales)

Financial Statements For The Year Ended 31 December 2016

for

Davies Woven Wire Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P L Davies

M Davies

C R McGivney

REGISTERED OFFICE:

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

REGISTERED NUMBER:

03472100 (England and Wales)

AUDITORS:

Howell Dunn & Co Limited

Statutory Auditors

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

FIXED ASSETS

Tangible assets

4

114,283

94,633

Investments

5

275,496

275,496

389,779

370,129

CURRENT ASSETS

Stocks

319,860

333,617

Debtors

6

404,538

435,520

Cash at bank and in hand

697,271

581,188

1,421,669

1,350,325

CREDITORS

Amounts falling due within one year

7

768,683

843,377

NET CURRENT ASSETS

652,986

506,948

TOTAL ASSETS LESS CURRENT LIABILITIES

1,042,765

877,077

PROVISIONS FOR LIABILITIES

9

37,199

12,795

NET ASSETS

1,005,566

864,282

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

11

1,004,566

863,282

SHAREHOLDERS' FUNDS

1,005,566

864,282

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 9 June 2017 and were signed on its behalf by:

C R McGivney - Director

1.	STATUTORY INFORMATION

Davies Woven Wire Ltd 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "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.

These financial statements for the year ended 31 December 2016 are the first financial statements prepared in

accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The

date of transition to FRS 102 was 1 January 2015. The reported financial position and financial performance for

the previous period are not affected by the transition to FRS 102.

Preparation of consolidated financial statements

The financial statements contain information about Davies Woven Wire Ltd 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 undertaking are included by full consolidation in the consolidated financial statements of its parent,

Wire Belt Company Limited, Castle Road, Eurolink Industrial Estate, Sittingbourne, Kent. ME10 3RF.

Significant judgements and estimates

Preparation of the financial statements requires management to make judgements and estimates based on

historical experience and other factors, including expectation of future events that are believed to be reasonable

under the circumstances. The items in the financial statements where these estimates and judgements have been

made are:

a) Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic

lives and residual values of the assets. The useful economic lives are re-assessed annually. They are amended

where necessary to reflect current estimates based on technological advancement, future investments, economic

utilisation and the physical condition of the assets.

b) Stock and work in progress provisions

It is necessary to consider the recoverability of the cost of stocks and work in progress. When calculating any

provision required, management consider the nature and condition of the items as well as assessing the

saleability of finished goods and the future usage of raw materials.

c) Impairment of debtors

The company make a judgement of the recoverability of trade and other debtors. When assessing any potential

impairment, factors such as the ageing profile and historical experience are considered.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods

have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic

benefits associated with the transaction will flow to the company and the cost incurred or to be incurred in

respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Tangible fixed assets

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

Improvements to leasehold property

-

20% on cost

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Tangible fixed assets are stated under the cost model at historical cost less accumulated depreciation and any

accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the

asset to the location and condition necessary for it to be capable of operating.

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are

recognised within 'operating profit' in the income statement.

Stocks and work in progress

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to

complete and sell. The cost of stock items are based on the purchase cost on a first in first out basis. Work in

progress and finished goods include the cost of direct materials and labour plus attributable overheads based on

normal levels of activity.

At each balance sheet date, stocks are assessed for any impairment. If there is an impairment, the stock is

reduced to its net realisable value is based on estimated selling price less any further costs expected to be

incurred for completion and sale. The impairment loss is recognised in the income statement.

Current and deferred tax

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 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.

Foreign currency translation

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of

transaction. Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling

at the balance sheet date. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Operating leases

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period

of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been

paid the company has no further payment obligations.

The contributions are recognised as an expense in the income statement when they fall due. Amounts not paid

are shown in accruals as a liability in the balance sheet. The assets of the plans are held separately from the

company in independently administered funds.

Employee benefits

When employees have rendered services to the company, short term employee benefits to which the employees

are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are

received.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income

in other administrative expenses.

Impairment

Assets not valued 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 asset's 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 the statement of comprehensive income.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past

event, and it is probable that an outflow of economic benefits will be required in settlement and the amount can

be reliably estimated. The provision is charged to the income statement in the year that the company becomes

aware of the obligation taking into account relevant risks and uncertainties. When payments are eventually

made, they are charged to the provision carried in the balance sheet.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of

the future payments and subsequently at amortised cost using the effective interest method; Debt instruments

that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and

subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a

trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in

case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and

subsequently, at the present value.

Investment in subsidiary undertakings

Investments in wholly owned subsidiary undertakings are measured at cost less accumulated impairment losses.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2015 - 29 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

to

Fixtures

leasehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2016

30,284

176,874

-

Additions

10,987

14,429

4,957

At 31 December 2016

41,271

191,303

4,957

DEPRECIATION

At 1 January 2016

6,057

132,754

-

Charge for year

8,253

8,788

992

At 31 December 2016

14,310

141,542

992

NET BOOK VALUE

At 31 December 2016

26,961

49,761

3,965

At 31 December 2015

24,227

44,120

-

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2016

46,724

16,007

269,889

Additions

-

20,926

51,299

At 31 December 2016

46,724

36,933

321,188

DEPRECIATION

At 1 January 2016

22,144

14,301

175,256

Charge for year

6,146

7,470

31,649

At 31 December 2016

28,290

21,771

206,905

NET BOOK VALUE

At 31 December 2016

18,434

15,162

114,283

At 31 December 2015

24,580

1,706

94,633

5.	FIXED ASSET INVESTMENTS

Interest

in

subsidiary

£

COST

At 1 January 2016

and 31 December 2016

275,496

NET BOOK VALUE

At 31 December 2016

275,496

At 31 December 2015

275,496

On 8 December 2003, Davies Woven Wire Limited acquired 100% of the share capital of Metwire Belts

Limited. This investment is stated at cost, and there has been no impairment in its value.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade debtors

355,641

374,025

Digwoods Limited loan account

20,283

-

Corporation tax recoverable

-

27,618

Prepayments

28,614

33,877

404,538

435,520

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade creditors

221,168

282,980

Corporation tax

34,246

-

Social security and other taxes

74,508

28,267

Other creditors

4,100

2,470

Lindley Associates loan account

160,000

160,000

Metwire Belts Loan account

256,105

311,833

Directors' current accounts

5,614

5,881

Accrued expenses

12,942

51,946

768,683

843,377

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2016

2015

£

£

Within one year

58,282

59,053

Between one and five years

143,012

200,781

201,294

259,834

9.	PROVISIONS FOR LIABILITIES

2016

2015

£

£

Deferred tax

11,558

12,795

Warranty provisions

25,641

-

37,199

12,795

Deferred

Warranty

tax

provisions

£

£

Balance at 1 January 2016

12,795

-

Provided during year

-

25,641

Credit to Statement of Comprehensive Income during year

(1,237

)

-

Balance at 31 December 2016

11,558

25,641

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.

RESERVES

Retained

earnings

£

At 1 January 2016

863,282

Profit for the year

141,284

At 31 December 2016

1,004,566

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

A J Chatwin FCCA (Senior Statutory Auditor)

for and on behalf of Howell Dunn & Co Limited

13.	RELATED PARTY DISCLOSURES

Digwoods Limited is a wholly owned subsidiary of Metwire Belts Limited. * From date of acquisition.

Wire Belt Company Limited owns 100% of the share capital of Lindley Associates Limited which owns 100%

of the share capital of Davies Woven Wire Limited.

Wire Belt Company Limited owns 100% of the share capital of Amron Associates Limited.

14.	ULTIMATE CONTROLLING PARTY

The controlling party is Lindley Associates Limited.

The ultimate controlling party is Wire Belt Company of America.