Inpress Precision Ltd
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Notes to the Accounts |
for the year ended 31 December 2021
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102 Section 1a small entities, the financial reporting standard applicable in the UK and the Republic of Ireland.
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Freehold buildings |
2% straight line on building |
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Freehold land |
No depreciation on land which is revalued to fair value |
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Leasehold improvements |
7 year life of lease |
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Plant and Machinery |
14 years straight line |
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Motor Vehicles |
25% reducing balance or over the life of finance lease, as appropriate |
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Generator (included in Plant and Machnery figure) |
3 years straight line |
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Inventories |
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Inventories 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. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction 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.
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Creditors |
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Short term creditors are measured at transaction 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.
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Taxation |
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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.
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Foreign currency translation |
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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.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
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2 |
Exceptional items |
2021 |
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2020 |
£ |
£ |
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Net insurance proceeds |
1,198,437 |
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- |
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1,198,437 |
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- |
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The financial statements include an exceptional item for insurance proceeds received by the company as a result of storm damage to the properties used by the company. The proceeds received net of legal fees and restoration costs to date are included as income in the Statement of Income. The tax on this income has been estimated for the purposes of these accounts and is subject to revision when a claim is submitted under TCGA 1992, s. 23 in the next accounting period. |
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3 |
Employees |
2021 |
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2020 |
Number |
Number |
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Average number of persons employed by the company |
76 |
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58 |
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4 |
Government grants |
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The company has received government grants under the coronavirus job retention scheme. These grants are shown in the profit and loss for the period in which the related salary expenditure was incurred. |
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2021 |
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2020 |
£ |
£ |
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Grants received under the covid job retention scheme |
13,397 |
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20,774 |
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5 |
Intangible fixed assets |
£ |
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Goodwill |
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Research & development |
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Total |
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Cost |
£ |
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£ |
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£ |
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At 1 January 2021 |
251,165 |
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426,977 |
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678,142 |
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Additions |
- |
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34,021 |
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34,021 |
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At 31 December 2021 |
251,165 |
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460,998 |
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712,163 |
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Amortisation |
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At 1 January 2021 |
187,832 |
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352,808 |
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540,640 |
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Provided during the year |
50,233 |
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33,759 |
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83,992 |
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At 31 December 2021 |
238,065 |
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386,567 |
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624,632 |
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Net book value |
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At 31 December 2021 |
13,100 |
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74,431 |
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87,531 |
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At 31 December 2020 |
63,333 |
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74,169 |
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137,502 |
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Research and development is being written off in equal annual instalments over the estimated economic life of 5 years, from the year after it has been incurred. |
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Goodwill is being written off in equal annual instalments over the estimated economic life of 5 years. |
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6 |
Tangible fixed assets |
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Land and buildings /Leasehold improvements |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 January 2021 |
1,674,623 |
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1,349,989 |
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110,962 |
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3,135,574 |
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Additions |
194,148 |
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139,910 |
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33,024 |
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367,082 |
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Fair value movements |
127,122 |
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- |
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- |
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127,122 |
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At 31 December 2021 |
1,995,893 |
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1,489,899 |
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143,986 |
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3,629,778 |
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Depreciation |
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At 1 January 2021 |
50,949 |
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329,433 |
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59,252 |
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439,634 |
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Charge for the year |
47,782 |
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128,014 |
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24,622 |
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200,418 |
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At 31 December 2021 |
98,731 |
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457,447 |
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83,874 |
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640,052 |
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Net book value |
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At 31 December 2021 |
1,897,162 |
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1,032,452 |
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60,112 |
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2,989,726 |
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At 31 December 2020 |
1,623,674 |
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1,020,556 |
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51,710 |
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2,695,940 |
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Freehold land and buildings: |
2021 |
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2020 |
£ |
£ |
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Historical cost |
637,405 |
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532,706 |
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Cumulative depreciation based on historical cost |
16,902 |
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11,106 |
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620,503 |
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521,600 |
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The Land was revalued in the year end 31 December 2015 by £140,859 and also in the year end 31 December 2017 by £200,873. A valuation report was also prepared in the year end 31 December 2019 by Richard Bull, RCIS Registered Valuer giving the most recent valuation of £1,300,000. During the year the directors obtained several valuations for the Land and have set the market value at 31 December 2021 as £1,700,000. |
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7 |
Debtors |
2021 |
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2020 |
£ |
£ |
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Trade debtors |
894,272 |
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842,219 |
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Prepayments |
102,999 |
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6,913 |
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Accrued income |
149,971 |
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- |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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1,802,934 |
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28,912 |
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Other debtors |
61,098 |
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30,071 |
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3,011,274 |
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908,115 |
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Amounts due after more than one year included above |
1,802,934 |
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- |
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8 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
£ |
£ |
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Bank loans and overdrafts |
209,877 |
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201,568 |
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Obligations under finance lease and hire purchase contracts |
49,190 |
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47,777 |
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Trade creditors |
934,782 |
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688,714 |
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Accruals |
239,924 |
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135,054 |
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Corporation tax |
180,740 |
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- |
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Other taxes and social security costs |
36,532 |
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62,541 |
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Factoring loans |
705,461 |
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740,808 |
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Mortgages |
20,722 |
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20,953 |
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Other creditors |
790,702 |
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51,342 |
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3,167,930 |
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1,948,757 |
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9 |
Creditors: amounts falling due after one year |
2021 |
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2020 |
£ |
£ |
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Bank loans |
462,300 |
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662,958 |
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Obligations under finance lease and hire purchase contracts |
104,156 |
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145,536 |
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Mortgages |
311,492 |
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332,356 |
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877,948 |
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1,140,850 |
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10 |
Loans |
2021 |
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2020 |
£ |
£ |
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Creditors include: |
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Mortgages, bank and Factoring loans |
1,709,852 |
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1,608,643 |
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The balances due under Mortgages are secured on all the property and assets of the company and the balances due under Factoring loans are secured over the invoices booked by the company represented by the Trade debtors balance under note 7.
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11 |
Revaluation reserve |
2021 |
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2020 |
£ |
£ |
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At 1 January 2021 |
1,095,489 |
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1,120,527 |
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Gain on revaluation of land and buildings |
127,122 |
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- |
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Deferred taxation arising on the revaluation of land and buildings |
(84,527) |
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15,255 |
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Transfer of excess depreciation from revaluation reserve |
(40,293) |
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(40,293) |
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At 31 December 2021 |
1,097,791 |
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1,095,489 |
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12 |
Other financial commitments |
2021 |
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2020 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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251,274 |
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305,869 |
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13 |
Contingent liabilities |
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During the year the company committed to the purchase of machinery, paying a 30% deposit. On delivery of the machinery, and subject to the correct specification being met, the company will be obliged to pay the remaining 70% of the cost, £106,742. The machine is expected to be delivered within 12 months of the year end.
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14 |
Controlling party |
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The parent company is Inpress Holding Ltd with registered office: 1 Harwood Industrial Estate, Harwood Road, Littlehampton, West Sussex, BN17 7AU.
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15 |
Other information |
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Inpress Precision Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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1 Harwood Industrial Estate |
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Harwood Road |
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Littlehampton |
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West Sussex |
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BN17 7AU |