Formrite Precision Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 05803087 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 June 2017

for

Formrite Precision Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

9

DIRECTORS:

G J Neale

Mrs M M Neale

REGISTERED OFFICE:

Westgate

Aldridge

West Midlands

WS9 8EN

REGISTERED NUMBER:

05803087 (England and Wales)

ACCOUNTANTS:

Tomkinson Teal Limited

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

FIXED ASSETS

Tangible assets

4

790,957

693,616

CURRENT ASSETS

Stocks

177,962

214,489

Debtors

5

567,619

519,943

Cash at bank and in hand

86,855

19,799

832,436

754,231

CREDITORS

Amounts falling due within one year

6

(707,652

)

(736,837

)

NET CURRENT ASSETS

124,784

17,394

TOTAL ASSETS LESS CURRENT LIABILITIES

915,741

711,010

CREDITORS

Amounts falling due after more than one year

7

(382,094

)

(341,187

)

PROVISIONS FOR LIABILITIES

8

(59,000

)

(43,700

)

NET ASSETS

474,647

326,123

CAPITAL AND RESERVES

Called up share capital

9

2

2

Retained earnings

10

474,645

326,121

SHAREHOLDERS' FUNDS

474,647

326,123

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 2 October 2017 and were signed on its behalf by:

G J Neale - Director

1.	STATUTORY INFORMATION

Formrite Precision 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 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 as modified by the revaluation of certain assets.

There are no material departures from the standard.

Turnover

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

value added tax and other sales taxes.

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.

Freehold property

-

50 years straight line

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 July 2016

565,000

302,553

35,577

903,130

Additions

-

131,274

20,115

151,389

Disposals

-

(1,900

)

-

(1,900

)

At 30 June 2017

565,000

431,927

55,692

1,052,619

DEPRECIATION

At 1 July 2016

11,300

190,377

7,837

209,514

Charge for year

11,300

37,806

4,319

53,425

Eliminated on disposal

-

(1,277

)

-

(1,277

)

At 30 June 2017

22,600

226,906

12,156

261,662

NET BOOK VALUE

At 30 June 2017

542,400

205,021

43,536

790,957

At 30 June 2016

553,700

112,176

27,740

693,616

Freehold property was revalued on the basis of open market value on 3 September 2015 by Burley Browne,

Chartered Surveyors, and this valuation, after adjustment for depreciation has been included in these accounts

The historical cost of freehold land and buildings included above at a valuation of £565,000 was £458,960.

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

Plant and

machinery

£

COST OR VALUATION

Additions

129,534

At 30 June 2017

129,534

DEPRECIATION

Charge for year

15,022

At 30 June 2017

15,022

NET BOOK VALUE

At 30 June 2017

114,512

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

461,944

414,268

Amounts owed by group undertakings

105,675

105,675

567,619

519,943

Of the total trade debtors £297,193 (2016 - £269,163) are subject to an invoice discounting agreement and

secured by a fixed charge of non vesting debts and a floating charge.

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loan

21,360

19,836

Hire purchase contracts

32,673

-

Factored debt advances

331,259

307,267

Trade creditors

127,987

187,308

Taxation and social security

99,056

67,610

Other creditors

95,317

154,816

707,652

736,837

The bank loan, the aggregate total of which is £316,271 is repayable by monthly instalments over a fifteen year

period commencing December 2014. The interest rate charged is base rate plus 2.44% per annum.

The bank loan is secured by a first legal charge over the company's freehold property, an unlimited debenture

and an all moneys guarantee from the director, G Neale, for a principle amount of £369,206 plus interest and

associated costs.

Included in other creditors is an amount owing to the Funding Circle, the aggregate total of which is £40,281.

This loan is repayable over a three year period commencing December 2015. The interest rate is fixed at 9.20%

per annum. The loan is secured by a guarantee from the director, G Neale.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loan

294,911

317,574

Hire purchase contracts

80,238

-

Other creditors

6,945

23,613

382,094

341,187

Amounts falling due in more than five years:

Repayable by instalments

Bank loan by instalments

188,111

218,394

8.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

59,000

43,700

Deferred

tax

£

Balance at 1 July 2016

43,700

Charge to Income Statement during year

15,300

Balance at 30 June 2017

59,000

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

2

Ordinary

£1

2

2

10.

RESERVES

Retained

earnings

£

At 1 July 2016

326,121

Profit for the year

200,524

Dividends

(52,000

)

At 30 June 2017

474,645

11.	RELATED PARTY DISCLOSURES

12.	ULTIMATE CONTROLLING PARTY

13.	FIRST YEAR ADOPTION

These financial statements for the year ended 30 June 2017 are the first financial statements that comply with

FRS 102 Section 1A "Small Entities". The date of transition is 1 July 2015.

The transition to FRS102 section 1A has resulted in a small number of changes in accounting policies to those

used previously. However, none of the changes have impacted on the opening equity or the profit for the

comparative period.

The transition to FRS102 section 1A has resulted in a small number of changes in accounting policies to those

used previously. The impact of these changes is to restate the opening balances at 1 July 2016 in respect of the

deferred tax provision. As stated in the accounts a formal valuation of freehold property was undertaken on the

3rd September 2015. The directors have considered this valuation and have deemed that the valuation would be

similar at the 1 July 2016. Deferred tax in respect of this valuation has been included in the opening balances at 1

July 2016 resulting in an increase in the deferred tax provision of £19,000. The deferred tax provision in respect

of the balance at 30th June 2017 is £15,000 resulting in an increase in the profit after taxation for the year ended

30th June 2017 of £4,000.

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the

Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Formrite Precision Limited for the year ended 30 June 2017 which comprise the Profit and loss

account, Balance Sheet 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Formrite Precision Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Formrite Precision Limited and state those matters that we have agreed to state to the Board of Directors of Formrite Precision Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Formrite Precision Limited Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Formrite Precision 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 Formrite Precision Limited. You consider that Formrite Precision 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 Formrite Precision 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.

Tomkinson Teal Limited

Hanover Court

5 Queen Street

Lichfield

Staffordshire

WS13 6QD

2 October 2017