Grindtec Limited - Limited company accounts 17.3

REGISTERED NUMBER: 06986090 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31st August 2017

for

Grindtec Limited

Page

Company Information

1

Report of the Directors

2

Abridged Statement of Income and Retained Earnings

3

Abridged Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

D S Armstrong

S J Wood

SECRETARY:

S J Wood

REGISTERED OFFICE:

Unit 2

Springfield Estate

Manchester Street

Oldbury

West Midlands

B69 4HH

REGISTERED NUMBER:

06986090 (England and Wales)

ACCOUNTANTS:

dhjh llp

Chartered Accountants

Wyre Forest House

Finepoint Way

Kidderminster

Worcestershire

DY11 7WF

The directors present their report with the financial statements of the company for the year ended 31st August 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of tool grinding.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st September 2016 to the date of this

report.

D S Armstrong

S J Wood

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

D S Armstrong - Director

15th January 2018

GROSS PROFIT

184,091

172,454

Administrative expenses

107,207

117,121

OPERATING PROFIT

4

76,884

55,333

Interest receivable and similar income

-

2

76,884

55,335

Interest payable and similar expenses

732

363

PROFIT BEFORE TAXATION

76,152

54,972

Tax on profit

5

15,088

11,382

PROFIT FOR THE FINANCIAL YEAR

61,064

43,590

Retained earnings at beginning of year

22,476

20,886

Dividends

6

(44,000

)

(42,000

)

RETAINED EARNINGS AT END OF YEAR

39,540

22,476

FIXED ASSETS

Tangible assets

7

24,995

32,785

CURRENT ASSETS

Stocks

275

400

Debtors

91,945

66,595

Cash at bank and in hand

34,615

22,904

126,835

89,899

CREDITORS

Amounts falling due within one year

95,283

77,208

NET CURRENT ASSETS

31,552

12,691

TOTAL ASSETS LESS CURRENT LIABILITIES

56,547

45,476

CREDITORS

Amounts falling due after more than one year

(11,858

)

(16,043

)

PROVISIONS FOR LIABILITIES

(4,749

)

(6,557

)

NET ASSETS

39,940

22,876

CAPITAL AND RESERVES

Called up share capital

400

400

Retained earnings

39,540

22,476

SHAREHOLDERS' FUNDS

39,940

22,876

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st August 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st August 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 in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

All the members have consented to the preparation of an abridged Statement of Income and Retained Earnings and an abridged Balance Sheet for the year ended 31st August 2017 in accordance with Section 444(2A) of the Companies Act 2006.

The financial statements were approved by the Board of Directors on 15th January 2018 and were signed on its behalf by:

D S Armstrong - Director

S J Wood - Director

1.	STATUTORY INFORMATION

Grindtec 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.

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.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Computer equipment

-

25% 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 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 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.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Warranties

Provision is made for the estimated liability on all products under warranty. The provision is based on past

experience of the directors of claims arising in the warranty period.

3.	EMPLOYEES AND DIRECTORS

The average monthly number of employees during the year was 8 (2016 - 7 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Depreciation - owned assets

2,726

3,206

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

16,896

7,379

Deferred tax

(1,808

)

4,003

Tax on profit

15,088

11,382

6.

DIVIDENDS

2017

2016

£

£

Ordinary shares of £1 each

Interim

26,000

24,000

B Ordinary shares of £1 each

Interim

18,000

18,000

44,000

42,000

7.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1st September 2016

56,624

Additions

506

At 31st August 2017

57,130

DEPRECIATION

At 1st September 2016

23,839

Charge for year

8,296

At 31st August 2017

32,135

NET BOOK VALUE

At 31st August 2017

24,995

At 31st August 2016

32,785

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

Totals

£

COST

At 1st September 2016

and 31st August 2017

23,250

DEPRECIATION

At 1st September 2016

969

Charge for year

5,570

At 31st August 2017

6,539

NET BOOK VALUE

At 31st August 2017

16,711

At 31st August 2016

22,281

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

4,185

4,185

Between one and five years

11,858

16,043

16,043

20,228

Non-cancellable operating

leases

2017

2016

£

£

Within one year

17,825

17,825

Between one and five years

2,971

20,796

20,796

38,621

9.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

16,043

20,228

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

10.	RELATED PARTY DISCLOSURES

During the year, total dividends of £36,800 were paid to the directors .

11.	FIRST YEAR ADOPTION

This is the first year that the company has presented its financial statements under Financial Reporting Standard

102 Section 1A (FRS102 1A). The last financial statements under previous UK GAAP were for the year ended

31st August 2016 and the date of transition was therefore 1st September 2015. It has not been necessary to

make adjustments on the transition to FRS102 1A.