Company Registration No. 03005203 (England and Wales)
NORTHUMBRIA OPTICAL COATINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2017
PAGES FOR FILING WITH REGISTRAR
NORTHUMBRIA OPTICAL COATINGS LIMITED
COMPANY INFORMATION
Directors
Mr N J Gilland
Mr A J Huntley
Ms S Hawkes
Secretary
Mr N J Gilland
Company number
03005203
Registered office
Unit 10 Burford Way
Boldon Business Park
Boldon
Tyne and Wear
England
NE35 9PZ
Auditor
Baldwins Audit Services Limited
32 Brenkley Way
Blezard Business Park
Seaton Burn
Newcastle upon Tyne
NE13 6DS
NORTHUMBRIA OPTICAL COATINGS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
NORTHUMBRIA OPTICAL COATINGS LIMITED
BALANCE SHEET
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Intangible assets
17,787
60,363
Tangible assets
4
391,437
496,244
Current assets
Stocks
166,369
147,507
Debtors
5
492,551
429,281
Cash at bank and in hand
304,443
230,263
963,363
807,051
Creditors: amounts falling due within one year
6
(209,109)
(224,439)
Net current assets
754,254
582,612
Total assets less current liabilities
1,163,478
1,139,219
Creditors: amounts falling due after more than one year
7
(1,650)
(40,570)
Provisions for liabilities
(59,544)
(79,815)
Deferred income
(29,546)
(37,161)
Net assets
1,072,738
981,673
Capital and reserves
Called up share capital
9
30
30
Share premium account
5,970
5,970
Capital redemption reserve
70
70
Profit and loss reserves
1,066,668
975,603
Total equity
1,072,738
981,673
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.
NORTHUMBRIA OPTICAL COATINGS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 14 February 2018 and are signed on its behalf by:
Mr N J Gilland
Director
Company Registration No. 03005203
NORTHUMBRIA OPTICAL COATINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2017
- 3 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2015
30
5,970
70
863,543
869,613
Year ended 31 May 2016:
Profit and total comprehensive income for the year
-
-
-
208,060
208,060
Dividends
-
-
-
(96,000)
(96,000)
Balance at 31 May 2016
30
5,970
70
975,603
981,673
Year ended 31 May 2017:
Profit and total comprehensive income for the year
-
-
-
178,065
178,065
Dividends
-
-
-
(87,000)
(87,000)
Balance at 31 May 2017
30
5,970
70
1,066,668
1,072,738
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2017
- 4 -
1
Accounting policies
Company information
Northumbria Optical Coatings Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 10 Burford Way, Boldon Business Park, Boldon, Tyne and Wear, England, NE35 9PZ.
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.
These financial statements for the year ended 31 May 2017
are the
first
financial statements of Northumbria Optical Coatings Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 June 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 15.
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
. Where there are contracts which are gradually performed over time, revenue is recognised by reference to an assessment of the fair value of the services provided as a proportion of the total fair value of the contract.
1.3
Intangible fixed assets - goodwill
Goodwill is
initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 6 years.
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:
Improvements to property
15% on cost
Plant and machinery
15% on cost
Fixtures and fittings
15% on cost
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
.
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
1
Accounting policies
(Continued)
- 5 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.6
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.
1.7
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.
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.
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
1
Accounting policies
(Continued)
- 6 -
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.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
Government grants
Grants of a capital nature are credited to a reserve and released to the profit and loss account over the useful life of the assets concerned. Grants which are revenue in nature are released to the profit and loss account over the period to which they relate.
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
1
Accounting policies
(Continued)
- 7 -
1.13
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.
1.14
Research
and development
expenditure is written off against profits in the year in which it is incurred
.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 21 (2016 - 23).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2016 and 31 May 2017
254,000
Amortisation and impairment
At 1 June 2016
193,637
Amortisation charged for the year
42,576
At 31 May 2017
236,213
Carrying amount
At 31 May 2017
17,787
At 31 May 2016
60,363
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
- 8 -
4
Tangible fixed assets
Improvements to property
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 June 2016
233,144
926,458
90,622
1,250,224
Additions
-
35,327
1,282
36,609
Disposals
-
(1,448)
-
(1,448)
At 31 May 2017
233,144
960,337
91,904
1,285,385
Depreciation and impairment
At 1 June 2016
152,022
549,999
51,959
753,980
Depreciation charged in the year
22,711
108,757
9,205
140,673
Eliminated in respect of disposals
-
(705)
-
(705)
At 31 May 2017
174,733
658,051
61,164
893,948
Carrying amount
At 31 May 2017
58,411
302,286
30,740
391,437
At 31 May 2016
81,122
376,459
38,663
496,244
Lombard North Central PLC have a charge dated 14/05/2013 over a range of plant and machinery.
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
242,745
184,216
Gross amounts due from contract customers
127,960
199,466
Corporation tax recoverable
41,312
-
Prepayments and accrued income
80,534
45,599
492,551
429,281
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
- 9 -
6
Creditors: amounts falling due within one year
2017
2016
Notes
£
£
Bank loans and overdrafts
16,000
16,000
Obligations under hire purchase
22,920
52,630
Trade creditors
104,414
72,915
Corporation tax
-
35,590
Other taxation and social security
8,966
15,897
Accruals and deferred income
56,809
31,407
209,109
224,439
7
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Bank loans and overdrafts
1,650
17,650
Obligations under hire purchase
-
22,920
1,650
40,570
The bank loan totalling £17,650 (2016: £33,650) is secured by a debenture dated 25/11/2013.
The hire purchase totalling £22,920 (2016: £75,550) is secured through a debenture dated 28/03/2014.
8
Retirement benefit schemes
2017
2016
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,372
54,860
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
At 31 May 2017, there is a pension scheme creditor of £4,377 included within accruals (2016: £3,583).
9
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
30 Ordinary of £1 each
30
30
30
30
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
- 10 -
10
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 John Leonard.
The auditor was Baldwins Audit Services Limited.
11
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
£
£
39,839
98,637
12
Capital commitments
Amounts contracted for but not provided in the financial statements:
2017
2016
£
£
Acquisition of tangible fixed assets
75,700
-
13
Related party transactions
Transactions with related parties
Mrs P J Gilland, shareholder, received dividends totalling £34,800 during the year (2016: £38,400).
14
Directors' transactions
Dividends totalling £52,200 (2016 - £57,200) were paid in the year in respect of shares held by the company's directors.
N J Gilland, director and shareholder, has given a personal guarantee to HSBC Bank plc, dated 11 November 2013, for up to £130,000.
15
Reconciliations on adoption of FRS 102
NORTHUMBRIA OPTICAL COATINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2017
15
Reconciliations on adoption of FRS 102
(Continued)
- 11 -
Reconciliation of equity
1 June
31 May
2015
2016
Notes
£
£
Equity as reported under previous UK GAAP
877,596
963,471
Adjustments arising from transition to FRS 102:
Employment benefits
14 (i)
(19,173)
(20,491)
Finished goods with order coverage
14 (ii)
11,190
38,693
Equity reported under FRS 102
869,613
981,673
Reconciliation of profit for the financial period
2016
Notes
£
Profit as reported under previous UK GAAP
181,875
Adjustments arising from transition to FRS 102:
Employment benefits
14 (i)
(1,318)
Finished goods with order coverage
14 (ii)
27,503
Profit reported under FRS 102
208,060
Notes to reconciliations on adoption of FRS 102
(i) Employment benefits
Under previous GAAP, the company did not make adjustment for short-term benefits earned but not provided by the year-end. Under FRS 102 the company is required to accrue for such amounts. This has resulted in a reduction in reserves at the date of transition of £19,173 with a further reduction of £1,318 in the year ended 31 May 2016.
(ii) Finished goods with order coverage
Under old GAAP. the company opted to utilise the exemption for small and medium size enterprises from reporting turnover in line with UITF40. On transition to FRS102, the company now values finished goods that have a current sales order against them at the fair value of the consideration receivable. This has resulted in an increase in reserves in the year ended 31 May 2016 of £38,693.
2017-05-31
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false
CCH Software
CCH Accounts Production 2017.400
No description of principal activity
14 February 2018
This audit opinion is unqualified
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