Nicholsons Sealing Technologies Limited
|
Statement of Cash Flows |
for the year ended 31 March 2017
|
|
Notes |
|
2017 |
|
2016 |
£ |
£ |
Operating activities |
Profit for the financial year |
2,404,015 |
|
1,522,642 |
|
Adjustments for: |
Interest payable |
19,043 |
|
27,249 |
Tax on profit on ordinary activities |
515,842 |
|
302,067 |
Depreciation |
580,062 |
|
427,785 |
Increase in stocks |
(505,432) |
|
(121,326) |
Increase in debtors |
(358,761) |
|
(333,705) |
Increase in creditors |
2,605,515 |
|
1,688,396 |
|
|
|
5,260,284 |
|
3,513,108 |
|
Interest paid |
|
|
(19,043) |
|
(27,249) |
Corporation tax paid |
(310,749) |
|
(193,058) |
|
Cash generated by operating activities |
4,930,492 |
|
3,292,801 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(2,729,185) |
|
(1,152,037) |
Proceeds from sale of tangible fixed assets |
9,924 |
|
3,067 |
|
Cash used in investing activities |
(2,719,261) |
|
(1,148,970) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(2,400,000) |
|
(1,500,000) |
Repayment of loans |
(397,166) |
|
(40,818) |
Capital element of finance lease payments |
- |
|
(2,012) |
|
Cash used in financing activities |
(2,797,166) |
|
(1,542,830) |
|
|
|
|
|
|
Net cash (used)/generated |
Cash generated by operating activities |
4,930,492 |
|
3,292,801 |
Cash used in investing activities |
(2,719,261) |
|
(1,148,970) |
Cash used in financing activities |
(2,797,166) |
|
(1,542,830) |
|
Net cash (used)/generated |
(585,935) |
|
601,001 |
|
Cash and cash equivalents at 1 April |
1,534,395 |
|
933,394 |
Cash and cash equivalents at 31 March |
948,460 |
|
1,534,395 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
948,460 |
|
1,534,395 |
|
|
|
|
|
|
|
|
Computer equipment |
20% per annum on a straight line basis |
|
|
Investments |
|
Investments in unquoted equity instruments are measured at cost price using the purchase method, less any impairment identified.
|
|
|
Stocks |
|
Stocks of raw materials 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. Work in progress and finished goods are measured at cost price including an estimated element of labour and overhead recovery. The carrying amount of stock sold is recognised as an expenses in the period in which the related revenue is recognised.
|
|
|
Debtors
|
|
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. Loans repayable on demand are measured at nominal value.
|
|
|
Creditors
|
|
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. Loans repayable on demand are measured at nominal value.
|
|
|
Taxation |
|
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 recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
|
|
|
Provisions |
|
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.
|
|
|
Foreign currency translation |
|
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.
|
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate.
|
|
|
Government grants |
|
The company has adopted the performance model in relation to the recognition of government grants. Grants that impose specified future performance related conditions are only recognised in income when all the conditions are met. Such grants are recognised as liabilities within deferred income until the performance related conditions are met. |
|
2 |
Critical accounting estimates and judgements |
|
|
The company makes certain estimates and assumptions concerning the future. The resulting accounting estimates, by definition, will not always be the same as the actual results. Estimates and judgements are continually evaluated and are based on managements' historical experience and other factors, including expectations of future events that are vbelieved to be reasonable under these circumstances. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year include fixed assets (note 9), stocks (note 11), prepayments (note 12) and accruals (note 13).
|
|
|
3 |
Analysis of turnover |
2017 |
|
2016 |
£ |
£ |
|
|
Sale of goods |
11,942,955 |
|
9,104,630 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
7,821,950 |
|
5,589,076 |
|
Europe |
590,353 |
|
501,017 |
|
North America |
2,665,051 |
|
2,582,149 |
|
Rest of world |
865,601 |
|
432,388 |
|
|
|
|
|
|
11,942,955 |
|
9,104,630 |
|
|
|
|
|
|
|
|
|
|
4 |
Operating profit |
2017 |
|
2016 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
580,062 |
|
427,785 |
|
Research and development expenditure |
264,779 |
|
252,692 |
|
Auditors' remuneration for audit services |
11,000 |
|
11,000 |
|
Exchange rate losses |
(49,640) |
|
24,763 |
|
Key management personnel compensation (including directors' emoluments) |
|
132,161 |
|
53,231 |
|
Carrying amount of stock sold |
1,986,726 |
|
1,798,389 |
|
|
|
|
|
|
|
|
|
|
5 |
Directors' emoluments |
2017 |
|
2016 |
£ |
£ |
|
|
Emoluments |
13,463 |
|
13,463 |
|
Company contributions to defined contribution pension plans |
40,563 |
|
39,768 |
|
|
|
|
|
|
54,026 |
|
53,231 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2017 |
|
2016 |
Number |
Number |
|
|
Defined contribution plans |
4 |
|
4 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
2017 |
|
2016 |
£ |
£ |
|
|
Wages and salaries |
2,924,741 |
|
2,489,333 |
|
Social security costs |
226,469 |
|
169,077 |
|
Other pension costs |
130,131 |
|
125,442 |
|
|
|
|
|
|
3,281,341 |
|
2,783,852 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
8 |
|
7 |
|
Development |
13 |
|
13 |
|
Distribution |
16 |
|
15 |
|
Manufacturing |
105 |
|
100 |
|
|
|
|
|
|
142 |
|
135 |
|
|
|
|
|
|
|
|
|
|
7 |
Interest payable |
2017 |
|
2016 |
£ |
£ |
|
|
Bank loans and overdrafts |
19,043 |
|
27,249 |
|
|
|
|
|
|
|
|
|
|
8 |
Taxation |
2017 |
|
2016 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
506,086 |
|
228,992 |
|
Adjustments in respect of previous periods |
889 |
|
- |
|
|
|
|
|
|
506,975 |
|
228,992 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
8,867 |
|
73,075 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
515,842 |
|
302,067 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2017 |
|
2016 |
£ |
£ |
|
Profit on ordinary activities before tax |
2,919,857 |
|
1,824,709 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK
|
20% |
|
20% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
583,971 |
|
364,942 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
10,841 |
|
834 |
|
Capital allowances for period in excess of depreciation |
(14,315) |
|
(70,217) |
|
Relief for research and development expenditure |
(74,411) |
|
(65,700) |
|
Adjustments to tax charge in respect of previous periods |
889 |
|
(867) |
|
|
Current tax charge for period |
506,975 |
|
228,992 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
For financial year ended 31st March 2018, the main rate of Corporation Tax reduces from 20% to 19%.
|
|
|
9 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2016 |
316,311 |
|
6,695,960 |
|
169,754 |
|
7,182,025 |
|
Additions |
1,658,556 |
|
1,039,429 |
|
31,200 |
|
2,729,185 |
|
Disposals |
- |
|
- |
|
(27,444) |
|
(27,444) |
|
At 31 March 2017 |
1,974,867 |
|
7,735,389 |
|
173,510 |
|
9,883,766 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2016 |
14,448 |
|
3,717,715 |
|
98,244 |
|
3,830,407 |
|
Charge for the year |
94,059 |
|
461,262 |
|
24,741 |
|
580,062 |
|
On disposals |
- |
|
- |
|
(17,520) |
|
(17,520) |
|
At 31 March 2017 |
108,507 |
|
4,178,977 |
|
105,465 |
|
4,392,949 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2017 |
1,866,360 |
|
3,556,412 |
|
68,045 |
|
5,490,817 |
|
At 31 March 2016 |
301,863 |
|
2,978,245 |
|
71,510 |
|
3,351,618 |
|
|
|
|
|
|
|
|
|
|
|
10 |
Investments |
2017 |
|
2016 |
£ |
£ |
|
|
Shares in subsidiary undertakings |
1,872,215 |
|
1,872,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The company holds 20% or more of the share capital of the following companies: |
|
Capital and |
Profit (loss) |
|
Company |
Shares held |
reserves |
for the year |
|
|
Class |
% |
£ |
£ |
|
Nicholsons Aircraft Seals Ltd
|
Ordinary
|
100 |
|
1,872,215 |
|
- |
|
|
11 |
Stocks |
2017 |
|
2016 |
£ |
£ |
|
|
Raw materials and consumables |
573,217 |
|
599,555 |
|
Work in progress |
356,502 |
|
329,790 |
|
Finished goods and goods for resale |
1,378,063 |
|
873,005 |
|
|
|
|
|
|
2,307,782 |
|
1,802,350 |
|
|
|
|
|
|
|
|
|
|
12 |
Debtors |
2017 |
|
2016 |
£ |
£ |
|
|
Trade debtors |
2,698,098 |
|
2,362,325 |
|
Prepayments and accrued income |
160,987 |
|
137,999 |
|
|
|
|
|
|
2,859,085 |
|
2,500,324 |
|
|
|
|
|
|
|
|
|
|
13 |
Creditors: amounts falling due within one year |
2017 |
|
2016 |
£ |
£ |
|
|
Bank loans |
- |
|
40,824 |
|
Trade creditors |
863,303 |
|
609,489 |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
5,310,840 |
|
3,513,108 |
|
Corporation tax |
306,085 |
|
109,859 |
|
Other taxes and social security costs |
150,605 |
|
115,106 |
|
Accruals and deferred income |
879,913 |
|
361,443 |
|
|
|
|
|
|
7,510,746 |
|
4,749,829 |
|
|
|
|
|
|
|
|
|
|
14 |
Creditors: amounts falling due after one year |
2017 |
|
2016 |
£ |
£ |
|
|
Bank loans |
- |
|
356,342 |
|
|
|
|
|
|
|
|
|
|
15 |
Deferred taxation |
2017 |
|
2016 |
£ |
£ |
|
|
Accelerated capital allowances |
319,883 |
|
311,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
£ |
£ |
|
|
At 1 April |
311,016 |
|
237,941 |
|
Charged to the profit and loss account |
8,867 |
|
73,075 |
|
|
At 31 March |
319,883 |
|
311,016 |
|
|
|
|
|
|
|
|
|
|
|
16 |
Share capital |
Nominal |
|
2017 |
|
2017 |
|
2016 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares
|
£1 each |
|
691,958 |
|
691,958 |
|
691,958 |
|
|
|
|
|
|
|
|
|
|
17 |
Share premium |
2017 |
|
2016 |
£ |
£ |
|
|
At 1 April |
855,633 |
|
855,633 |
|
|
At 31 March |
855,633 |
|
855,633 |
|
|
|
|
|
|
|
|
|
|
18 |
Other reserves |
2017 |
|
2016 |
|
Capital redemption reserve |
£ |
£ |
|
|
At 1 April |
73,411 |
|
73,411 |
|
|
At 31 March |
73,411 |
|
73,411 |
|
|
|
|
|
|
|
|
|
|
19 |
Profit and loss account |
2017 |
|
2016 |
£ |
£ |
|
|
At 1 April |
4,022,713 |
|
4,000,071 |
|
Profit for the financial year |
2,404,015 |
|
1,522,642 |
|
Dividends |
(2,400,000) |
|
(1,500,000) |
|
|
At 31 March |
4,026,728 |
|
4,022,713 |
|
|
|
|
|
|
|
|
|
|
20 |
Dividends |
2017 |
|
2016 |
£ |
£ |
|
|
Dividends on ordinary shares (note 19) |
2,400,000 |
|
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
21 |
Capital commitments |
2017 |
|
2016 |
£ |
£ |
|
|
Amounts contracted for but not provided in the accounts |
616,300 |
|
- |
|
|
|
|
|
|
|
|
|
|
22 |
Controlling party |
|
|
The company is controlled by its ultimate parent undertaking, Nicholsons Group Limited.
|
|
|
23 |
Government grants |
|
|
During the financial year the company received government grants amounting to £509,249 (2016: £169,901) from the Regional Growth Fund. At 31st March 2017, the company had not fulfilled all conditions attached to the grant funding. The unfulfilled conditions was the creation of a specific number of jobs. The full amount of grant received to 31st March 2017 has been included in deferred income. |
|
|
24 |
Presentation currency |
|
|
The financial statements are presented in Sterling.
|
|
|
25 |
Legal form of entity and country of incorporation |
|
|
Nicholsons Sealing Technologies Limited is a private company limited by shares and incorporated in England. |
|
|
26 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Amos Drive |
|
Greencroft Industrial Park |
|
Stanley |
|
County Durham |
|
DH9 7YE |