HTS Spares Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 07843566 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2017

FOR

HTS SPARES LIMITED

Page

Company information

1

Balance sheet

2

Notes to the financial statements

4

Directors:

G Knappett

J Knappett

I Knappett

Secretary:

I Knappett

Registered office:

Surrey House

Beacon Road

Hereford

HR2 6JF

Registered number:

07843566 (England and Wales)

Fixed assets

Intangible assets

4

480,000

600,000

Tangible assets

5

242,117

210,972

Investments

6

784,413

34,245

1,506,530

845,217

Current assets

Stocks

937,242

884,645

Debtors

7

1,623,333

1,441,558

Cash at bank and in hand

589,960

677,244

3,150,535

3,003,447

Creditors

Amounts falling due within one year

8

1,253,108

1,061,767

Net current assets

1,897,427

1,941,680

Total assets less current liabilities

3,403,957

2,786,897

Creditors

Amounts falling due after more than one year

9

(498,594

)

(263,735

)

Provisions for liabilities

11

(25,000

)

(10,800

)

Net assets

2,880,363

2,512,362

Capital and reserves

Called up share capital

1,000

1,000

Retained earnings

12

2,879,363

2,511,362

2,880,363

2,512,362

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

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 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 Income statement has not been delivered.

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

G Knappett - Director

1.	Statutory information

HTS Spares 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.

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.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

Leasehold improvements

20% straight line

Plant and equipment

20% straight line

Motor vehicles

25% straight line

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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.

Foreign currencies

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

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. 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.

Assets obtained under hire purchase contracts or finance leasees 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.

The interest element of these obligations is charged to the profit and loss account 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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and

'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the

company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements

when there is a legally enforceable right to set off the recognised amounts and there is an intention

to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are

measured at transaction price less any impairment. Loans receivable are measured initially at fair

value, net of transaction costs, and are measured subsequently at amortised cost using the effective

interest method, less any impairment.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries,

associates or joint ventures, are initially measured at fair value, which is normally the transaction

price. Such assets are subsequently carried at fair value and the changes in fair value are recognised

in profit or loss, except that investments in equity instruments that are not publicly traded and

whose fair values cannot be measured reliably are measured at the cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for

indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more

events that occurred after initial recognition of the financial asset, the estimated future cash flows

have been affected. If an asset is impaired, the impairment loss is the difference between the

carrying amount and the present value of the estimated cash flows discounted at the assets original

effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment

was recognised, the impairment is reversed. The reversal is such that the current carrying amount

does not exceed what the carrying amount would have been, had the impairment not previously

been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset

expire or are settled, or when the group transfers the financial asset and substantially all of the risks

and rewards of the ownership to another entity, or if some significant risks and rewards of

ownership are retained but control of the asset has transferred to another party that is able to sell the

asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 group after deducing all of its liabilities.

Basic financial liabilities, including trade and other payables are measured at the transaction price.

Other financial liabilities, including bank loans, loans from fellow group companies and preference

shares that are classified as debt, are measured initially at fair value, net of transaction costs, and

are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic

financial instruments. Derivatives are initially recognised at fair value on the date a derivative

contract is entered into and are subsequently re-measured at their fair value. Changes in the fair

value of derivatives are recognised in profit or loss in finance costs or finance income as

appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are

discharged or cancelled.

3.	Employees and directors

The average number of employees during the year was 32 (2016 - 30 ) .

4.	Intangible fixed assets

Goodwill

£

Cost

At 1st January 2017

and 31st December 2017

1,200,000

Amortisation

At 1st January 2017

600,000

Amortisation for year

120,000

At 31st December 2017

720,000

Net book value

At 31st December 2017

480,000

At 31st December 2016

600,000

5.	Tangible fixed assets

Leasehold

Plant and

Motor

improvements

machinery

vehicles

Totals

£

£

£

£

Cost

At 1st January 2017

19,586

347,205

186,603

553,394

Additions

13,509

93,555

91,768

198,832

Disposals

-

(129,723

)

(88,672

)

(218,395

)

At 31st December 2017

33,095

311,037

189,699

533,831

Depreciation

At 1st January 2017

13,486

228,001

100,935

342,422

Charge for year

5,491

63,707

45,036

114,234

Eliminated on disposal

-

(129,723

)

(35,219

)

(164,942

)

At 31st December 2017

18,977

161,985

110,752

291,714

Net book value

At 31st December 2017

14,118

149,052

78,947

242,117

At 31st December 2016

6,100

119,204

85,668

210,972

The net book value of tangible fixed assets includes £ 7,645 (2016 - £ 18,567 ) in respect of assets

held under hire purchase contracts.

6.	Fixed asset investments

Interest in

Shares in

other

group

participating

undertakings

interests

Totals

£

£

£

Cost

At 1st January 2017

-

34,245

34,245

Additions

784,413

-

784,413

Disposals

-

(34,245

)

(34,245

)

At 31st December 2017

784,413

-

784,413

Net book value

At 31st December 2017

784,413

-

784,413

At 31st December 2016

-

34,245

34,245

The company's investments at the Balance sheet date in the share capital of companies include the

following:

Commercial and Plant Limited

Registered office: Surrey House Beacon Road, Rotherwas, Hereford, HR2 6JF

Nature of business: Wholesale of machine tools

%

Class of shares:

holding

Ordinary shares

100.00

31.12.17

30.4.17

£

£

Aggregate capital and reserves

355,617

284,060

Profit for the period

88,272

41,733

On 1st January 2018, the assets and liabilities of Commercial and Plant Limited were hived up into

the company.

HTS Spares Limited was a partner in Rotia LLP.

The fixed asset investment above represents the company's capital account in the partnership.

The fixed asset investment was sold to HTS Spares Limited on 1st January 2017.

7.

Debtors: amounts falling due within one year

31.12.17

31.12.16

£

£

Trade debtors

1,509,362

1,394,122

Other debtors

63,667

24,781

Prepayments

50,304

22,655

1,623,333

1,441,558

8.

Creditors: amounts falling due within one year

31.12.17

31.12.16

£

£

Bank loans and overdrafts

81,728

39,099

Hire purchase contracts (see note 10)

-

8,419

Trade creditors

274,275

245,092

Amounts owed to group undertakings

12,681

-

Corporation tax

191,700

169,600

Social security and other taxes

77,475

96,280

Other creditors

462,811

350,836

Directors' current accounts

80,244

131,764

Accruals

72,194

20,677

1,253,108

1,061,767

9.

Creditors: amounts falling due after more than one year

31.12.17

31.12.16

£

£

Bank loans

282,960

148,735

Bank loans

215,634

-

Other loans

-

115,000

498,594

263,735

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

215,634

-

10.	Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase

contracts

31.12.17

31.12.16

£

£

Net obligations repayable:

Within one year

-

8,419

Non-cancellable

operating leases

31.12.17

31.12.16

£

£

Within one year

39,576

31,251

Between one and five years

33,608

8,122

73,184

39,373

11.	Provisions for liabilities

31.12.17

31.12.16

£

£

Deferred tax

25,000

10,800

Deferred tax

£

Balance at 1st January 2017

10,800

Accelerated capital allowances

14,200

Balance at 31st December 2017

25,000

12.

Reserves

Retained

earnings

£

At 1st January 2017

2,511,362

Profit for the year

768,001

Dividends

(400,000

)

At 31st December 2017

2,879,363

A dividend of £400,000 was duly authorised and paid on 4th January 2018.

13.	Contingent liabilities

There were no contingent liabilities at 31st December 2017.

14.	Related party disclosures

During the year, the directors used a current account with the company to record amounts due to

them and amounts drawn by them. The amounts owed by the company at the end of the year was

£80,244 (2016: £131,764).

During the year, the company was charged £85,000 for rent of premises owned by members of the

Knappett family (2016: £85,000).

Included within other creditors are loans from members of the Knappett family totalling £462,811

(2016: £299,312).

During the year, interest was charged on director's and other family loans @ 5%, totalling £35,143

(2016: £nil). All director's and other family loans were repayable on demand.

At the start of the year Rotia LLP, a Partnership in which HTS Spares Limited is a partner, ceased

trading. Therefore, no sales were made with Rotia LLP during the year (2016: £1,354). No

management charge to Rotia LLP was charged during the year (2016: £10,181). The amount owed

by the company to Rotia LLP at the year end is £nil (2016: £49,660).

The company has taken advantage of exemption, under the terms of Financial Reporting Standard

102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to

disclose related party transactions with wholly owned subsidiaries within the group.

15.	Ultimate controlling party

The company is controlled by the Knappett family.