Company Registration No. SC202652 (England and Wales)
H & I CHEMICALS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
27 FEBRUARY 2020
27 February 2020
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
H & I CHEMICALS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
H & I CHEMICALS LIMITED
BALANCE SHEET
AS AT 27 FEBRUARY 2020
27 February 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
5
45,387
52,199
Investments
6
1,200
1,200
46,587
53,399
Current assets
Stocks
755,186
793,382
Debtors
7
796,212
958,199
Cash at bank and in hand
103,316
97,626
1,654,714
1,849,207
Creditors: amounts falling due within one year
8
(852,275)
(958,761)
Net current assets
802,439
890,446
Total assets less current liabilities
849,026
943,845
Creditors: amounts falling due after more than one year
9
(1,776)
(8,589)
Provisions for liabilities
(5,900)
(3,735)
Net assets
841,350
931,521
Capital and reserves
Called up share capital
200
200
Share premium account
10,000
10,000
Profit and loss reserves
831,150
921,321
Total equity
841,350
931,521
H & I CHEMICALS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 27 FEBRUARY 2020
27 February 2020
- 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 year ended 27 February 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.
The financial statements were approved and signed by the director and authorised for issue on 20 November 2020
Mr I Williamson
Director
Company Registration No. SC202652
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 27 FEBRUARY 2020
- 3 -
1
Accounting policies
Company information
H & I Chemicals Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
12 Middleton Crescent, Bridge of Don, Aberdeen, AB22 8HY.
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.
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
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It 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.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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:
Leasehold improvements
20% Straight line
Plant and machinery
20% Straight line
Office equipment
20% Reducing balance
Computer equipment
20% 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
.
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 FEBRUARY 2020
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
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.
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.
1.7
Cash at bank and in hand
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.
1.8
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.
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 FEBRUARY 2020
1
Accounting policies
(Continued)
- 5 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
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
in the period
are included in profit or loss.
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 FEBRUARY 2020
- 6 -
2
Exceptional costs/(income)
2020
2019
£
£
Bad debt
136,428
-
The company have recognised bad debts in the year relating to Prime Industries Ltd, Contract Chemicals Ltd and G.S. Minerals Ltd.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
11
11
4
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2019 and 27 February 2020
250
Amortisation and impairment
At 1 March 2019 and 27 February 2020
250
Carrying amount
At 27 February 2020
-
At 28 February 2019
-
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 FEBRUARY 2020
- 7 -
5
Tangible fixed assets
Leasehold improvements
Plant and machinery
Office equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 March 2019
73,470
23,696
17,015
14,033
128,214
Additions
-
11,203
190
-
11,393
At 27 February 2020
73,470
34,899
17,205
14,033
139,607
Depreciation and impairment
At 1 March 2019
41,916
15,654
6,469
11,976
76,015
Depreciation charged in the year
10,339
4,970
2,141
755
18,205
At 27 February 2020
52,255
20,624
8,610
12,731
94,220
Carrying amount
At 27 February 2020
21,215
14,275
8,595
1,302
45,387
At 28 February 2019
31,554
8,042
10,546
2,057
52,199
6
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
1,200
1,200
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 March 2019 & 27 February 2020
1,200
Carrying amount
At 27 February 2020
1,200
At 28 February 2019
1,200
H & I CHEMICALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 27 FEBRUARY 2020
- 8 -
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
747,396
904,931
Corporation tax recoverable
14,715
-
Other debtors
24,187
41,912
Prepayments and accrued income
9,914
11,356
796,212
958,199
8
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
79,296
44,876
Trade creditors
708,671
818,690
Corporation tax
-
18,493
Other taxation and social security
29,753
38,645
Other creditors
17,152
24,152
Accruals and deferred income
17,403
13,905
852,275
958,761
Bank loans totalling £6,655 (2019 - £6,380) were secured by a personal guarantee from the director limited to £50,000 and a floating charge over all book and other debts of H&I Chemicals Limited.
9
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
1,776
8,589
Bank loans totalling £1,776 (2019 - £8,589) were secured by a personal guarantee from the director limited to £50,000 and a floating charge over all book and other debts of H&I Chemicals Limited.
10
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:
2020
2019
£
£
65,459
71,513