Metwire Belts Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 01238875 (England and Wales)

Financial Statements For The Year Ended 31 December 2017

for

Metwire Belts Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

C R McGivney

Mrs J R Butkus

REGISTERED OFFICE:

Winstanley Works

Long Lane

Warrington

Cheshire

WA2 8PR

REGISTERED NUMBER:

01238875 (England and Wales)

AUDITORS:

Howell Dunn & Co Limited

Statutory Auditors

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

FIXED ASSETS

Tangible assets

4

53,508

34,662

Investments

5

776,679

736,566

830,187

771,228

CURRENT ASSETS

Stocks

149,752

158,934

Debtors

6

497,951

514,758

Cash at bank and in hand

122,756

175,703

770,459

849,395

CREDITORS

Amounts falling due within one year

7

470,742

577,010

NET CURRENT ASSETS

299,717

272,385

TOTAL ASSETS LESS CURRENT LIABILITIES

1,129,904

1,043,613

CREDITORS

Amounts falling due after more than one year

8

(6,372

)

-

PROVISIONS FOR LIABILITIES

11

(5,175

)

(5,756

)

NET ASSETS

1,118,357

1,037,857

CAPITAL AND RESERVES

Called up share capital

12

32,000

32,000

Retained earnings

13

1,086,357

1,005,857

SHAREHOLDERS' FUNDS

1,118,357

1,037,857

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors on 6 June 2018 and were signed on its behalf by:

C R McGivney - Director

1.	STATUTORY INFORMATION

Metwire Belts 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.

Preparation of consolidated financial statements

The financial statements contain information about Metwire Belts Limited 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 or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

10% on cost

Fixtures and office equipment

-

10% on cost

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 be capable of operating.

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

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

moving items.

Cost is calculated using the first in, first out method and includes all purchase, transport and handling costs in

bringing stocks to their present location and condition.

Work in progress and finished goods includes the cost of direct materials and labour plus attributable overheads

based on normal levels of activity.

Net realisable value is based on estimated selling price less any further costs expected to be incurred for

completion and sale. Any 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 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 currencies

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

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.

The apportionment between the finance charge and the reduction of the outstanding liability uses the effective

interest method.

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.

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.

Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan 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, 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 instruments 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 undertaking

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 21 (2016 - 18 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Plant and

office

machinery

equipment

Totals

£

£

£

COST

At 1 January 2017

146,247

8,501

154,748

Additions

25,600

838

26,438

Disposals

(3,800

)

-

(3,800

)

At 31 December 2017

168,047

9,339

177,386

DEPRECIATION

At 1 January 2017

112,768

7,318

120,086

Charge for year

7,328

264

7,592

Eliminated on disposal

(3,800

)

-

(3,800

)

At 31 December 2017

116,296

7,582

123,878

NET BOOK VALUE

At 31 December 2017

51,751

1,757

53,508

At 31 December 2016

33,479

1,183

34,662

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

Plant and

machinery

£

COST

Additions

7,750

At 31 December 2017

7,750

NET BOOK VALUE

At 31 December 2017

7,750

5.	FIXED ASSET INVESTMENTS

Interest

in

subsidiary

£

COST

At 1 January 2017

736,566

Additions

40,113

At 31 December 2017

776,679

NET BOOK VALUE

At 31 December 2017

776,679

At 31 December 2016

736,566

On 31 October 2016, Metwire Belts Limited acquired 100% of the share capital of Digwoods Limited. This

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

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

262,374

241,809

Davies Woven Wire Limited loan account

212,031

256,105

Prepayments

23,546

16,844

497,951

514,758

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Digwoods Limited loan account

280,260

288,299

Hire purchase contracts (see note 9)

3,078

-

Trade creditors

64,400

79,695

Corporation tax

19,419

32,743

Social security and other

taxes

40,480

58,395

Other creditors

-

100,317

Accrued expenses

63,105

17,561

470,742

577,010

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts (see note 9)

6,372

-

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

3,078

-

Between one and five years

6,372

-

9,450

-

Non-cancellable operating

leases

2017

2016

£

£

Within one year

35,800

18,700

Between one and five years

37,568

27,083

73,368

45,783

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Hire purchase contracts

9,450

-

Hire purchase contracts are secured on the asset to which the contract relates.

11.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

5,175

5,756

Deferred

tax

£

Balance at 1 January 2017

5,756

Credit to Statement of Comprehensive Income during year

(581

)

Balance at 31 December 2017

5,175

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

32,000

Ordinary

£1

32,000

32,000

13.

RESERVES

Retained

earnings

£

At 1 January 2017

1,005,857

Profit for the year

80,500

At 31 December 2017

1,086,357

14.	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

15.	RELATED PARTY DISCLOSURES

16.	ULTIMATE CONTROLLING PARTY

The controlling party is Davies Woven Wire Limited.

The ultimate controlling party is Wire Belt Company of America.