| LCR Capacitors (EU) Limited |
| Notes to the Accounts |
| for the year ended 31 January 2018 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost or valuation less accumulative depreciation and any accumulative impairment losses. Revaluation of plant, machinery and equipment are undertaken regularly by the directors so that amounts shown equate to fair value. Revaluation surpluses/deficits are credited/charged to the revaluation reserve, whilst impairment losses are charged to the profit and loss account. Regardless of whether or not revaluations are made, depreciation is charged as detailed below except in the period when a revalution or impairment review has been undertaken. |
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Plant, machinery,equipment |
10% per annum on a reducing-balance basis |
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Motor vehicles |
25% per annum on a reducing-balance basis |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is not provided for on the basis that the nature of the company's trade requires constant investment so that timing differences would never reverse. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2018 |
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2017 |
| Number |
Number |
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Average number of persons employed by the company |
45 |
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45 |
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| 3 |
Tangible fixed assets |
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Plant, machinery, equipment |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
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Cost/Revaluation |
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At 1 February 2017 |
1,266,281 |
|
146,765 |
|
1,413,046 |
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Additions |
42,463 |
|
18,491 |
|
60,954 |
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Disposals |
- |
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(15,947) |
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(15,947) |
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At 31 January 2018 |
1,308,744 |
|
149,309 |
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1,458,053 |
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Depreciation |
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At 1 February 2017 |
911,381 |
|
58,334 |
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969,715 |
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Charge for the year |
35,759 |
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23,737 |
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59,496 |
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On disposals |
- |
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(3,987) |
|
(3,987) |
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At 31 January 2018 |
947,140 |
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78,084 |
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1,025,224 |
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Net book value |
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At 31 January 2018 |
361,604 |
|
71,225 |
|
432,829 |
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At 31 January 2017 |
354,900 |
|
88,431 |
|
443,331 |
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Plant, machinery, equipment: |
2018 |
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2017 |
| £ |
£ |
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Historical cost |
1,256,932 |
|
1,254,234 |
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Cumulative depreciation based on historical cost |
1,072,563 |
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1,036,804 |
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|
184,369 |
|
217,430 |
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The revaluations relate to plant, machinery and equipment undertaken by the Director in 2006 (NBV-£440500) , in 2008 (NBV-£155059) and the 2017 (NBV-£354900). In each case, no liability to corporation tax would have arisen should if, hypothetically, the revalued items had been sold at the balance sheets. Revaluation credits and debits are ignored for tax purposes. |
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| 4 |
Debtors |
2018 |
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2017 |
| £ |
£ |
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Trade debtors |
271,073 |
|
206,367 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
2,814 |
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2,514 |
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Other debtors |
3,783 |
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3,783 |
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|
277,670 |
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212,664 |
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Other debtors includes an amount due to the company by its director of £3033 (2017-£3033). The loan is on an interest-free basis and the highest outstanding amount to the company during the year was £3033 (2017-£3033). |
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| 5 |
Creditors: amounts falling due within one year |
2018 |
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2017 |
| £ |
£ |
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Bank loans (secured) |
23,448 |
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23,448 |
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Obligations under finance lease and hire purchase contracts |
8,200 |
|
18,827 |
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Trade creditors |
31,305 |
|
17,230 |
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Corporation tax |
29,366 |
|
- |
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Other taxes and social security costs |
48,122 |
|
72,495 |
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Other creditors |
61,160 |
|
96,213 |
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201,601 |
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228,213 |
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| 6 |
Creditors: amounts falling due after one year |
2018 |
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2017 |
| £ |
£ |
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Bank loans (secured) |
23,130 |
|
49,745 |
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Obligations under finance lease and hire purchase contracts |
18,767 |
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- |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
425,459 |
|
425,459 |
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Deferred income-grants |
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|
67,392 |
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75,816 |
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|
534,748 |
|
551,020 |
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A debenture dated 31/12/13 over the assets of the company has been taken by LCR Capacitors Limited, a sister company, securing all monies now due and becoming due, to it. |
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| 7 |
Revaluation reserve |
2018 |
|
2017 |
| £ |
£ |
|
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At 1 February 2017 |
607,606 |
|
595,559 |
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Gain on revaluation of plant and machinery |
- |
|
12,047 |
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At 31 January 2018 |
607,606 |
|
607,606 |
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The revaluations relate to plant, machinery and equipment undertaken by the Director in 2006 (NBV-£440500) , in 2008 (NBV-£155059) and the curreny year (NBV-£354900). In each case, no liability to corporation tax would have arisen should if, hypothetically, the revalued items had been sold at the balance sheets. Revaluation credits and debits are ignored for tax purposes. |
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| 8 |
Controlling party |
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The company is a wholly-owned subsidiary of LRC Capacitors Holdings, a company registered in England and Wales, company number 05864914. |
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| 9 |
Other information |
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LCR Capacitors (EU) Limited is a private company limited by shares and incorporated in Wales. Its registered office is: |
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Unit 18 |
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Rassau Industrial Estate |
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Ebbw Vale |
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Gwent |
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NP23 5SD |
