Company Registration No. 06310205 (England and Wales)
CFP COMPOSITES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
PAGES FOR FILING WITH REGISTRAR
CFP COMPOSITES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 10
CFP COMPOSITES LIMITED
BALANCE SHEET
AS AT
31 JULY 2020
31 July 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
284,288
304,053
Tangible assets
4
645,753
810,547
930,041
1,114,600
Current assets
Stocks
140,931
153,822
Debtors
5
302,924
380,590
Cash at bank and in hand
293,097
552,416
736,952
1,086,828
Creditors: amounts falling due within one year
6
(421,865)
(227,429)
Net current assets
315,087
859,399
Total assets less current liabilities
1,245,128
1,973,999
Creditors: amounts falling due after more than one year
7
(1,096,819)
(1,240,523)
Net assets
148,309
733,476
Capital and reserves
Called up share capital
8
4,297,833
4,297,471
Share premium account
2,406,871
1,920,942
Profit and loss reserves
(6,556,395)
(5,484,937)
Total equity
148,309
733,476
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 July 2020 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.
CFP COMPOSITES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JULY 2020
31 July 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 1 October 2020 and are signed on its behalf by:
Mr S R Price
Director
Company Registration No. 06310205
CFP COMPOSITES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2020
- 3 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 8 August 2018
4,297,207
1,107,633
(4,307,501)
1,097,339
Period ended 31 July 2019:
Loss and total comprehensive income for the period
-
-
(1,177,436)
(1,177,436)
Issue of share capital
8
264
813,309
-
813,573
Balance at 31 July 2019
4,297,471
1,920,942
(5,484,937)
733,476
Year ended 31 July 2020:
Loss and total comprehensive income for the year
-
-
(1,071,458)
(1,071,458)
Issue of share capital
8
362
485,929
-
486,291
Balance at 31 July 2020
4,297,833
2,406,871
(6,556,395)
148,309
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
- 4 -
1
Accounting policies
Company information
CFP Composites Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Regus House, Central Boulevard, Blythe Valley Business Park, Solihull, West Midlands, B90 8AG.
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
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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
and development
expenditure is written off against profits in the year in which it is incurred.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Patents & licences
20 years straight line
1.5
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.
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 5 -
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 equipment
15% reducing balance
Fixtures and fittings
20% straight line
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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.7
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.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash
at bank and
in hand
only.
1.9
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
trade debtors, corporation tax recoverable, other 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.
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities
Basic financial liabilities, including
trade creditors
, bank loans
and overdrafts
,
tax and social security and other creditors,
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 transaction costs.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 7 -
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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
11
12
3
Intangible fixed assets
Patents & licences
£
Cost
At 1 August 2019 and 31 July 2020
395,354
Amortisation and impairment
At 1 August 2019
91,301
Amortisation charged for the year
19,765
At 31 July 2020
111,066
Carrying amount
At 31 July 2020
284,288
At 31 July 2019
304,053
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 8 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 August 2019
1,337,224
Disposals
(83,750)
At 31 July 2020
1,253,474
Depreciation and impairment
At 1 August 2019
526,677
Depreciation charged in the year
114,268
Eliminated in respect of disposals
(33,224)
At 31 July 2020
607,721
Carrying amount
At 31 July 2020
645,753
At 31 July 2019
810,547
The net book value of tangible fixed assets includes £
7,873
(2019
:
£9,
262
) in respect of assets held under finance lease or hire purchase contracts. The depreciation charge in respect of such assets amounted to £
1,389
(2019
:
£
488
) for the year.
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
19,250
1,296
Corporation tax recoverable
175,924
218,822
Other debtors
107,750
160,472
302,924
380,590
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 9 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
373
-
Trade creditors
150,152
133,165
Taxation and social security
42,370
15,366
Other creditors
228,970
78,898
421,865
227,429
Included with other creditors are net obligations under hire purchase contract amounting to £3,504 (2019: £9,345) that are secured on the assets to which they relate.
Also included within other creditors is a loan that is secured by a fixed and floating charge over the company's assets.
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
20,627
-
Other creditors
1,076,192
1,240,523
1,096,819
1,240,523
Included with other creditors are net obligations under hire purchase contract amounting to £2,336 (2019: £Nil) that are secured on the assets to which they relate.
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,025,038 (2019: 1,015,038) Ordinary of 0.1p each
1,025
1,015
1,029,962 (2019: 678,496) A Ordinary of 0.1p each
1,030
678
4,295,778 (2019: 4,295,778) B Non-equity of £1 each
4,295,778
4,295,778
4,297,833
4,297,471
During the year the company issued 10,000 Ordinary £0.001 shares for a total consideration of £14,000.
Also during the year, the company issued 351,466 Ordinary A £0.001 shares for a total consideration of £492,052. The company incurred legal fees totalling £19,761 in respect of these share issues which has been offset against the share premium reserve.
CFP COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 10 -
9
Related party transactions
Included within other creditors falling due within one year is a balance of £55,000 (2019: £55,000) due to a company director, This loan is interest free and repayable on demand.