Company Registration No. 02159815 (England and Wales)
SAPER GLASS INDUSTRIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
SAPER GLASS INDUSTRIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
SAPER GLASS INDUSTRIES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
4
343,494
322,824
Investments
5
780,093
205,923
1,123,587
528,747
Current assets
Stocks
117,642
111,102
Debtors
6
1,802,419
1,798,578
Cash at bank and in hand
292,604
439,081
2,212,665
2,348,761
Creditors: amounts falling due within one year
7
(1,982,059)
(2,076,263)
Net current assets
230,606
272,498
Total assets less current liabilities
1,354,193
801,245
Creditors: amounts falling due after more than one year
8
(34,127)
(27,723)
Net assets
1,320,066
773,522
Capital and reserves
Called up share capital
9
10
10
Other reserves
10
780,092
205,922
Profit and loss reserves
539,964
567,590
Total equity
1,320,066
773,522
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
SAPER GLASS INDUSTRIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2017
31 December 2017
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 September 2018 and are signed on its behalf by:
P J McCarthy
Director
Company Registration No. 02159815
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 3 -
1
Accounting policies
Company information
Saper Glass Industries Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Thames House, Longreach Road, Barking, Essex, England, IG11 0JR.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover represents revenue due from construction contracts which is accounted for as noted under Construction contracts below.
Rental income is included in the accounts in the period in which it falls due.
1.3
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15% Reducing balance
Fixtures, fittings and equipment
15% Reducing balance
Motor vehicles
15% Reducing balance
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
.
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.4
Fixed asset investments
Interests in subsidiaries
are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised
through the Statement of Comprehensive Income
. Transaction costs are expensed as incurred.
A subsidiary's financial statement figures are used to calculate its fair value at the company's year end if its year end is within three months of the company's year end and any movements between the year ends is not significant. Where figures are considered to be significantly different then the directors use management information to determine the subsidiary's fair value at the company's year end.
The fair value of investments has been determined by the directors by taking into account the nature of the entity's business activities to determine the most appropriate business valuation model to apply. For an investment property company the fair value of net assets, taking into account any taxation due, was used.
The fair value of investment properties held within
subsidiaries
have been valued by the director with the benefit of external professionals and available data on current market rents and rental yields for comparable local properties adjusted for any difference in nature, location or condition of the specific property.
Fair value adjustments through the Statement of Comprehensive Income are transferred from the profit and loss reserve to a fair value reserve which is a non-distributable reserve.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.5
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Stocks
Stocks
consists of raw materials and
are stated at the lower of cost and estimated selling price less costs to complete and sell.
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, 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’ 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 and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
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.
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
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. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 7 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 the profit and loss account 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 income 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 asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Where they have entered into sale and leaseback transactions that results in a finance lease the sale and repurchase of the asset are not recognised in the accounts. Any difference between the sales price and the carrying amount received is amortised over the term of the lease. The related financing is accounted for as for finance leases above.
2
Exceptional income
2017
2016
£
£
Exceptional item
-
(301,665)
In the year, the company received an insurance payout of £
nil
(201
6
: £301,665) under a keyman policy for a director.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 65 (2016 - 69).
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 8 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2017
1,197,434
Additions
74,588
Disposals
(15,976)
At 31 December 2017
1,256,046
Depreciation and impairment
At 1 January 2017
874,610
Depreciation charged in the year
48,773
Eliminated in respect of disposals
(10,831)
At 31 December 2017
912,552
Carrying amount
At 31 December 2017
343,494
At 31 December 2016
322,824
5
Fixed asset investments
2017
2016
£
£
Investments
780,093
205,923
Fixed asset investments revalued
The shares held in the subsidiary, which are an unlisted investment, have been valued at the year end by the directors at fair value in accordance with the company's accounting policy (see note 1).
On a historical cost basis the shares would have been included at £1 (2016: £1)
,
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
5
Fixed asset investments
(Continued)
- 9 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2017
205,923
Fair value movement in the year
574,170
At 31 December 2017
780,093
Carrying amount
At 31 December 2017
780,093
At 31 December 2016
205,923
No deferred taxation has been provided on the fair value movement as any retained profits in the subsidiary would be paid to the company by dividend which would not incur a tax charge for the company.
6
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
641,363
620,070
Amounts owed by group undertakings
64,973
58,173
Other debtors
1,096,083
1,120,335
1,802,419
1,798,578
7
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
318,998
260,460
Trade creditors
880,304
775,061
Corporation tax
14,938
71,921
Other taxation and social security
259,852
381,503
Other creditors
507,967
587,318
1,982,059
2,076,263
The bank loans and overdrafts are secured by a fixed and floating charge over the assets of the company.
Included in other creditors is £
27,337
(2016: £54,183) secured against assets with a net book value of £
33,730
(2016: £207,999) included in tangible fixed assets.
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 10 -
8
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
34,127
27,723
Other creditors are secured against assets with a net book value of £
33,730
(2016: £207,999) included in tangible fixed assets.
9
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
5 Ordinary A Shares of £1 each
5
5
4 Ordinary B Shares of £1 each
4
4
1 Ordinary C Shares of £1 each
1
1
10
10
All shares rank parri passu in respect of voting, dividends and on a winding up
e
xcept that dividends can be paid at different amounts on each
share
and on one class
of share
and not the others.
10
Other reserves
Fair value reserve
£
Balance at 1 January 2016
-
Other movements
205,922
Balance at 31 December 2016
205,922
Other movements
574,170
Balance at 31 December 2017
780,092
11
Financial commitments, guarantees and contingent liabilities
The company has a cross guarantee with Saper Longreach Limited, its subsidiary, to secure each others liabilities. At the year end, Saper Longreach Limited owed the bank £1,081,205 (2016: £1,134,235).
SAPER GLASS INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 11 -
12
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:
2017
2016
£
£
-
131,178
13
Events after the reporting date
After the year end, the company re-financed its overdraft facility with Metro Bank with interest payable at the bank's base rate plus 3.5%. The facility was increased by £200,000, secured against freehold property owned by its subsidiary and is to be reviewed annually.
14
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales of services
Purchase of services
2017
2016
2017
2016
£
£
£
£
Other related parties
84,338
30,101
206,092
81,812
The following amounts were outstanding at the reporting end date:
2017
2016
Amounts owed to related parties
£
£
Other related parties
401,439
435,118
The amounts are unsecured, repayable on demand and interest-free.
15
Directors' transactions
Dividends totalling £90,000 (2016 - £154,000) were paid in the year in respect of shares held by the company's directors.
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P J McCarthy
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