Company Registration No. 02479307 (England and Wales)
BRUSH TECHNOLOGY LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
BRUSH TECHNOLOGY LIMITED
COMPANY INFORMATION
Directors
RW Renwick
G Renwick
J Renwick
Secretary
G Renwick
Company number
02479307
Registered office
Unit 3, Throckley Ind Est
Ponteland Road
Throckley
Newcastle upon Tyne
Tyne & Wear
NE15 9EW
Accountants
Baldwins (Portobello) Limited
Rowlands House
Portobello Road
Birtley
Chester-le-Street
Co. Durham
DH3 2RY
BRUSH TECHNOLOGY LIMITED
CONTENTS
Page
Directors' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
BRUSH TECHNOLOGY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2017
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2017.
Principal activities
The principal activity of the company continued to be that of industrial brushware.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
RW Renwick
G Renwick
J Renwick
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the board
G Renwick
Secretary
22 April 2018
BRUSH TECHNOLOGY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
744,247
949,388
Current assets
Stocks
358,999
159,598
Debtors
4
451,209
543,318
Cash at bank and in hand
668,701
549,179
1,478,909
1,252,095
Creditors: amounts falling due within one year
5
(217,921)
(228,848)
Net current assets
1,260,988
1,023,247
Total assets less current liabilities
2,005,235
1,972,635
Creditors: amounts falling due after more than one year
6
(17,800)
(26,700)
Provisions for liabilities
-
(124,855)
Net assets
1,987,435
1,821,080
Capital and reserves
Called up share capital
8
5,000
5,000
Profit and loss reserves
1,982,435
1,816,080
Total equity
1,987,435
1,821,080
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.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act 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.
BRUSH TECHNOLOGY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 18 April 2018 and are signed on its behalf by:
RW Renwick
Director
Company Registration No. 02479307
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 4 -
1
Accounting policies
Company information
Brush Technology Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 3, Throckley Ind Est, Ponteland Road, Throckley, Newcastle upon Tyne, Tyne & Wear, NE15 9EW.
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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
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:
Moulding tools
33% Straight line
Plant and machinery
10% and 20% Reducing balance
Fixtures, fittings & equipment
20% Reducing balance
Motor vehicles
25% 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
.
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
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).
1.6
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell.
1.7
Cash and cash equivalents
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.
1.8
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 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.
1.9
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.
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 6 -
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.14
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 are included in the profit and loss account for the period.
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 14 (2016 - 14).
3
Tangible fixed assets
Moulding tools
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2017
349,456
3,504,543
121,550
160,570
4,136,119
Additions
-
2,047
-
-
2,047
Disposals
-
(93,348)
-
-
(93,348)
At 31 December 2017
349,456
3,413,242
121,550
160,570
4,044,818
Depreciation and impairment
At 1 January 2017
347,571
2,676,437
91,234
71,489
3,186,731
Depreciation charged in the year
1,885
163,295
6,064
22,270
193,514
Eliminated in respect of disposals
-
(79,674)
-
-
(79,674)
At 31 December 2017
349,456
2,760,058
97,298
93,759
3,300,571
Carrying amount
At 31 December 2017
-
653,184
24,252
66,811
744,247
At 31 December 2016
1,885
828,106
30,316
89,081
949,388
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
409,554
512,791
Corporation tax recoverable
19,271
-
Other debtors
-
5,280
Prepayments and accrued income
22,384
25,247
451,209
543,318
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 8 -
5
Creditors: amounts falling due within one year
2017
2016
£
£
Obligations under finance leases
-
5,752
Trade creditors
168,783
58,846
Corporation tax
-
19,266
Other taxation and social security
4,946
46,223
Other creditors
37,229
91,773
Accruals and deferred income
6,963
6,988
217,921
228,848
6
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Government grants
7
17,800
26,700
7
Government grants
2017
2016
£
£
Arising from government grants
17,800
26,700
17,800
26,700
Deferred income is included in the financial statements as follows:
2017
2016
£
£
Non-current liabilities
17,800
26,700
17,800
26,700
Government grants amounting to £8,900 (2016:£8,900) have been released to the profit and loss account in the year.
BRUSH TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 9 -
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
5,000 Ordinary shares of £1 each
5,000
5,000
5,000
5,000
9
Related party transactions
Transactions with related parties
During the year the company paid rent totalling £153,800 (2016:£149,133) to BTL Directors Retirement and Death Benefit Scheme, the trustees and beneficiaries of the scheme are also directors and shareholders of the company.
The directors have a 50% interest in Northern Municipal Spares Limited, Sales to this company during the year were £492,412 (2016: £478,270), management fees to the company were £36,000 (2016: £36,000) and purchases from the company £112,747 (2016: £87,164). At the year end the company owed Brush Technology Limited £165,410 (2016: £157,767) which is included in trade debtors and was owed £9,711 (2016: £3,785) which is included in trade creditors. The 50% interest was disposed of in the year..