Company Registration No. 03808602 (England and Wales)
STREAM MEASUREMENT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
STREAM MEASUREMENT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
STREAM MEASUREMENT LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2019
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
64,454
67,944
Current assets
Stocks
223,565
241,077
Debtors
4
100,211
256,420
Cash at bank and in hand
312,538
540,884
636,314
1,038,381
Creditors: amounts falling due within one year
5
(283,717)
(330,943)
Net current assets
352,597
707,438
Total assets less current liabilities
417,051
775,382
Provisions for liabilities
(12,089)
(8,930)
Net assets
404,962
766,452
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
404,960
766,450
Total equity
404,962
766,452
STREAM MEASUREMENT LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
31 December 2019
2019
2019
as restated
Notes
£
£
£
£
- 2 -
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 8 month period ended ended 31 December 2019 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 8 month period ended 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.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2020 and are signed on its behalf by:
Mr D J Gemmell
Mr K M Fairbairn
Director
Director
Company Registration No. 03808602
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
Stream Measurement Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 5 St Johns Industrial Estate, Elder Road, Lees, Oldham, Lancs, England, OL4 3DZ.
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
Following the Covid-19 coronavirus outbreak in the United Kingdom in the first quarter of 2020, it is
true
anticipated that the business will suffer reduced trading during the outbreak. The directors have considered
the implications of
Covid
-19 and although business
levels
will decline, overheads will also fall
,
furloughing
funding
will be
obtained
,
and
hence
the company will not suffer
significant
losses as a
result.
Having taken into consideration the impact of the Covid-19 coronavirus pandemic on the company, at the
time of approving the financial statements the directors have a reasonable expectation that the company
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors
continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The year end of the company has been changed from 30 April to 31 December to bring the year end in line with other group companies. As a result these financial statements are for a period of 8 months and comparatives represent a full year.
1.4
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
Sales of flow monitoring equipment are recognised when the company has delivered the equipment to the customer, the customer has accepted the equipment, and collectability of the related receivables is fairly assured.
Service revenues are recognised as those services are provided to customers.
A provision is recognised for the best estimate of the costs of making good under the warranty products sold before the balance sheet date.
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.
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
1.5
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
.
1.6
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:
Leasehold improvements
10% on cost
Plant and machinery
10% on cost
Fixtures, fittings & equipment
15% on reducing balance
Computer equipment
20% to 33% 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
.
1.7
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Cash and cash equivalents
Cash and cash equivalents
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.
1.10
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.
1.11
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.
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.12
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.13
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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
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.
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 7 -
1.17
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the 8 month period ended was:
2019
2019
Number
Number
Total
14
13
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2019
-
219,324
219,324
Additions
716
9,389
10,105
Disposals
-
(38,936)
(38,936)
At 31 December 2019
716
189,777
190,493
Depreciation and impairment
At 1 May 2019
-
151,380
151,380
Depreciation charged in the 8 month period ended
6
13,589
13,595
Eliminated in respect of disposals
-
(38,936)
(38,936)
At 31 December 2019
6
126,033
126,039
Carrying amount
At 31 December 2019
710
63,744
64,454
At 30 April 2019
-
67,944
67,944
STREAM MEASUREMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE 8 MONTH PERIOD ENDED ENDED 31 DECEMBER 2019
- 8 -
4
Debtors
2019
2019
Amounts falling due within one year:
£
£
Trade debtors
78,179
232,633
Other debtors
22,032
23,787
100,211
256,420
5
Creditors: amounts falling due within one year
2019
2019
£
£
Trade creditors
179,100
163,465
Corporation tax
62,330
25,109
Other taxation and social security
20,730
27,761
Other creditors
21,557
114,608
283,717
330,943
6
Events after the reporting date
Since
31 December 2019
the spread of Covid-19 has severely impacted many local economics around the
globe. In many countries, businesses are being forced to cease or limit operations for long or indefinite
periods of time.
Me
asures taken to contain the spread of the virus, including travel bans, quarantines,
social distancing and closures of non-essential services have triggered significant disruptions to businesses
worldwide, resulting in an economic slowdown.
The duration and impact of the C
ovid
-19 pandemic, as well as the effectiveness of government and
central bank responses, remains unclear at this time. It is not possible to reliably estimate the duration and
severity of these consequences, as well as their impact on the financial position and results of the
Company for future periods.
The Company has determined that these events are non-adjusting subsequent events. Accordingly, the
financial position and results of operations as of and for the
8 month
period
ended
31 December 2019
have not been
adjusted to reflect their impact. The effects on the company is expected to be reduced turnover
and profits.
7
Parent company
On 1 October 2019, the company became a wholly owned subsidiary of JWF Process Solutions Limited. The ultimate controlling party is JWF (Group) Limited.