Company Registration No. 01582704 (England and Wales)
ARCTIC HAYES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
ARCTIC HAYES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
ARCTIC HAYES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
96,631
82,608
Current assets
Stocks
1,289,692
1,158,774
Debtors
4
5,474,899
4,613,085
Cash at bank and in hand
157,126
92,575
6,921,717
5,864,434
Creditors: amounts falling due within one year
5
(2,241,702)
(1,642,632)
Net current assets
4,680,015
4,221,802
Total assets less current liabilities
4,776,646
4,304,410
Creditors: amounts falling due after more than one year
6
(27,062)
(90,463)
Provisions for liabilities
(15,857)
(11,194)
Net assets
4,733,727
4,202,753
Capital and reserves
Called up share capital
89
89
Capital redemption reserve
11
11
Profit and loss reserves
4,733,627
4,202,653
Total equity
4,733,727
4,202,753
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 11 July 2021 and are signed on its behalf by:
Mr L Parsons
Director
Company Registration No. 01582704
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
1
Accounting policies
Company information
Arctic Hayes Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Glover Way, Parkside Industrial Estate, Leeds, LS11 5JP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
Whilst the directors are aware that a number of businesses have been impacted by the Covid-19 pandemic, the company has continued to trade throughout the pandemic, adopting home working as required for office staff, whilst observing government guidelines in terms of social distancing in the workplace. Jobs have been protected wherever possible and the company is aware of the government schemes on offer in order to aid retention of staff. The company is well positioned with cash available and an experienced management team, capable of managing the business through this challenging period.
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
5 years straight line
Office equipment
4 years straight line
Computer equipment
3 to 5 years straight line
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Stock is valued using standard cost.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
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 company after deducting all of its liabilities.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans
and
loans from
fellow group companies, are
initially recognised at transaction price.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
25
29
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 6 -
3
Tangible fixed assets
Plant and machinery
Office equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2020
106,125
43,548
213,776
363,449
Additions
8,059
38,286
46,345
At 31 December 2020
114,184
43,548
252,062
409,794
Depreciation and impairment
At 1 January 2020
63,660
39,924
177,257
280,841
Depreciation charged in the year
12,827
1,684
17,811
32,322
At 31 December 2020
76,487
41,608
195,068
313,163
Carrying amount
At 31 December 2020
37,697
1,940
56,994
96,631
At 31 December 2019
42,465
3,624
36,519
82,608
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
2,572,183
1,795,944
Amounts owed by group undertakings
2,823,355
2,765,298
Other debtors
79,361
51,843
5,474,899
4,613,085
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
271,891
304,686
Trade creditors
703,863
140,430
Amounts owed to group undertakings
50,100
Taxation and social security
388,898
147,702
Other creditors
826,950
1,049,814
2,241,702
1,642,632
Creditors totalling £271,891 (2019: £304,686) have been secured against the debtors to which they relate. Creditors totalling £17,081 (2019: £22,320) have been secured against the assets to which they relate.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Amounts owed to group undertakings
50,100
Other creditors
27,062
40,363
27,062
90,463
Creditors totalling £27,062 (2019: £40,363) have been secured against the assets to which they relate.
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Jonathan Pinder.
The auditor was MHA Moore and Smalley.
8
Financial commitments, guarantees and contingent liabilities
A cross guarantee exists between the company, A B Outsourcing Limited and Hayes (UK) Limited in respect of debts in A B Outsourcing Limited, which totalled £1,215,943 (2019: £1,592,865) at the balance sheet date.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
232,340
271,526
10
Related party transactions
The company has taken advantage of the exemption conferred by Section 33 FRS 102, namely from disclosing any transactions entered into between two or members of the group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
ARCTIC HAYES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
11
Parent company
The company is a wholly owned subsidiary of A B Outsourcing Limited, a company incorporated in England and Wales.
The registered office
of A B Outsourcing Limited
is
Glover Way, Parkside Industrial Estate, Leeds, LS11 5JP.
The largest and smallest group in which the results of the company are consolidated is that headed by A B Outsourcing Limited. Copies of the accounts can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ.
12
Prior period adjustment
Reconciliation of changes in equity
1 January
31 December
2019
2019
£
£
Adjustments to prior year
Total adjustments
-
-
Equity as previously reported
3,700,735
4,202,753
Equity as adjusted
3,700,735
4,202,753
Notes to reconciliation
Rebate provision reclassification
The rebate provision has been reclassified from trade debtors to accruals. This has no impact on the reported net assets or profit in the prior year.