Spalding Pallets Limited Company Accounts

SPALDING PALLETS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 03295849

Spalding Pallets Limited

Unaudited Financial Statements

for the year ended

31 May 2017

Spalding Pallets Limited

Financial Statements

for the year ended 31st May 2017

Contents	Pages

Chartered accountant's report to the board of directors on the preparation of the unaudited statutory financial statements	1

Statement of financial position	2 to 3

Notes to the financial statements	4 to 11

Spalding Pallets Limited

Chartered Accountant's Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of Spalding Pallets Limited

for the year ended 31st May 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Spalding Pallets Limited for the year ended 31st May 2017, which comprise the statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the Board of Directors of Spalding Pallets Limited, as a body, in accordance with the terms of our engagement letter dated 26th August 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Spalding Pallets Limited and state those matters that we have agreed to state to you, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Spalding Pallets Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Spalding Pallets Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Spalding Pallets Limited. You consider that Spalding Pallets Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the financial statements of Spalding Pallets Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

MOORE THOMPSON Chartered Accountants

Bank House Broad Street Spalding PE11 1TB

Dated: 19 September 2017

Spalding Pallets Limited

Statement of Financial Position

as at 31 May 2017

	2017		2016
Note	£	£	£	£

Fixed assets

Intangible assets	5	3,670	7,340
Tangible assets	6	415,384	490,684
Investments	7	70	70
		-----------	-----------
		419,124	498,094

Current assets

Stocks		53,849	63,101
Debtors	8	184,473	146,061
Cash at bank and in hand		3	1,384
		-----------	-----------
		238,325	210,546

Creditors: amounts falling due within one year	9	374,963		368,513
		-----------		-----------
Net current liabilities			136,638		157,967
			-----------		-----------
Total assets less current liabilities			282,486		340,127

Creditors: amounts falling due after more than one year	10		119,785		181,590

Provisions

Taxation including deferred tax	29,182	23,104
	-----------	-----------
Net assets	133,519	135,433
	-----------	-----------

Capital and reserves

Called up share capital	11	100	100
Profit and loss account		133,419	135,333
		-----------	-----------
Members funds		133,519	135,433
		-----------	-----------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31st May 2017 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 financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Spalding Pallets Limited

Statement of Financial Position (continued)

as at 31 May 2017

These financial statements were approved by the board of directors and authorised for issue on 19 September 2017 , and are signed on behalf of the board by:

Ray Turner
Director

Company registration number: 03295849

Spalding Pallets Limited

Notes to the Financial Statements

for the year ended 31st May 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Barr Farm, Deeping St Nicholas, Spalding, Lincolnshire, PE11 3HA.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1st June 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 15.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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. Estimation of useful life The useful economic life used to amortise intangible assets and depreciate tangible fixed assets relates to the expected future performance of the assets acquired and management's estimate of the period over which economic benefit will be derived from the asset. Estimation of residual value The residual value of an asset is the estimated fair value of that asset at the end of its useful economic life and therefore is also dependent upon the estimation of that life span. Historically, changes to the useful economic life and residual values have not had a material impact on the amortisation or depreciation amount charged to the profit and loss.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	straight line over 5 years

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Property improvement	-	straight line over 5 years
Plant and machinery	-	20% reducing balance
Recycling equipment	-	20% reducing balance
Motor vehicles	-	25% reducing balance
Portacabins	-	straight line over 5 years

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. 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 profit and loss account in other administrative expenses.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year, including the directors, amounted to 12 (2016: 9 ).

5. Intangible assets

	Goodwill
	£

Cost
At 1 Jun 2016 and 31 May 2017	18,350
	-----------
Amortisation
At 1st June 2016	11,010
Charge for the year	3,670
	-----------
At 31st May 2017	14,680
	-----------
Carrying amount
At 31st May 2017	3,670
	-----------
At 31st May 2016	7,340
	-----------

6. Tangible assets

Property improvement	Plant and machinery	Recycling equipment	Motor vehicles	Portacabins	Total
£	£	£	£	£	£

Cost
At 1 Jun 2016	168,979	65,296	674,257	326,255	52,457	1,287,244
Additions	–	4,205	69,200	7,000	–	80,405
Disposals	–	( 300)	( 258,750)	( 6,500)	–	( 265,550)
	-----------	-----------	-----------	-----------	-----------	------------
At 31 May 2017	168,979	69,201	484,707	326,755	52,457	1,102,099
	-----------	-----------	-----------	-----------	-----------	------------
Depreciation
At 1 Jun 2016	102,180	41,588	430,453	169,882	52,457	796,560
Charge for the year	21,132	5,552	56,759	40,158	–	123,601
Disposals	–	( 146)	( 229,542)	( 3,758)	–	( 233,446)
	-----------	-----------	-----------	-----------	-----------	------------
At 31 May 2017	123,312	46,994	257,670	206,282	52,457	686,715
	-----------	-----------	-----------	-----------	-----------	------------
Carrying amount
At 31 May 2017	45,667	22,207	227,037	120,473	–	415,384
	-----------	-----------	-----------	-----------	-----------	------------
At 31 May 2016	66,799	23,708	243,804	156,373	–	490,684
	-----------	-----------	-----------	-----------	-----------	------------

7. Investments

	Subsidiary
	£

Cost
At 1 Jun 2016 and 31 May 2017	70
	-----------
Impairment
At 1 Jun 2016 and 31 May 2017	–
	-----------

Carrying amount
At 31st May 2017	70
	-----------

Investment in subsidiary

The company owns 70 ordinary £1 shares (70% of the issued share capital) in Ray Turner Labour Limited.

	2017	2016
	£	£
Aggregate capital and reserves
Ray Turner Labour Limited	93,111	105,301

Profit and (loss) for the period
Ray Turner Labour Limited	(12,190)	35,658

Ray Turner Labour Limited is registered in England and Wales and was formed and commenced trading as a supplier of HGV drivers to the haulage industry on 6th September 2004, preparing coterminous accounts.

Under the provision of section 248 of the Companies Act 1985 the company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity.

8. Debtors

	2017	2016
	£	£

Trade debtors	61,085	87,502
Amounts owed by group undertakings	16,927	–
Prepayments and accrued income	29,211	19,263
Directors loan accounts	–	1,141
Other debtors	77,250	38,155
	-----------	-----------
	184,473	146,061
	-----------	-----------

9. Creditors: amounts falling due within one year

	2017	2016
	£	£

Bank loans and overdrafts	32,090	76,971
Trade creditors	48,026	52,661
Amounts owed to group undertakings	120,079	85,902
Amounts owed to related parties	426	–
Accruals and deferred income	25,626	26,631
Social security and other taxes	37,542	22,813
Hire purchase agreements	101,388	103,535
Director loan accounts	9,786	–
	-----------	-----------
	374,963	368,513
	-----------	-----------

Bank loans and overdrafts are secured on the company assets. Hire purchase agreements are secured on the assets to which they relate.

10. Creditors: amounts falling due after more than one year

	2017	2016
	£	£

Hire purchase agreements	119,785	181,590
	-----------	-----------

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

11. Called up share capital

Issued, called up and fully paid

2017		2016
No.	£	No.	£

Ordinary shares of £ 1 each	100	100	100	100
	-----------	-----------	-----------	-----------

12. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2017	2016
	£	£

Not later than 1 year	5,630	6,569
Later than 1 year and not later than 5 years	–	2,815
	-----------	-----------
	5,630	9,384
	-----------	-----------

13. Directors' advances, credits and guarantees

As at the 31 May 2017 the company owed £ 9,786 to the directors in respect of their directors loan accounts. As at 31st May 2016 the company was owed £1,141 by the directors in respect of their directors loan accounts. The company has provided a guarantee supported by a debenture over the bank loan of a company Ray Turner Energy Limited in which the directors have an interest. The balance on this loan account was £1,299,970 at 31 May 2016.

14. Related party transactions

The company was under the control of one of the directors throughout the current and previous year. One of the directors has given a personal guarantee to the company's bankers. Ray Turner Labour Limited is a company under common control. The accounts include management charges of £54,000 (2016 - £54,000) receivable from Ray Turner Labour Limited. Ray Turner Labour Limited also recharged expenses to the company of £28,235 (2016 - £42,163) during the year and was charged £9,897 (2016 - £ 25,988). Ray Turner Labour Limited charged the company £105,854 (2016 - £100,372) for labour costs in the year. At 31st May 2017 the company was owed £ 16,926 by Ray Turner Labour Limited . At 31st May 2016 the company owed £85,903 to Ray Turner Labour Limited. During the year the company both received and then provided interest free short term finance with Ray Turner Energy Limited, a company in which both directors have an interest. As at 31st May 2017, the company owed £ 120,079 to Ray Turner Energy Limited . As at 31st May 2016, the company was owed £37,875 by Ray Turner Energy Limited.

15. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1st June 2015.

No transitional adjustments were required in equity or profit or loss for the year.