Company Registration No. 00641526 (England and Wales)
HOWARDSON LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
HOWARDSON LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
HOWARDSON LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Intangible assets
4
40,000
85,000
Tangible assets
5
928,773
1,003,720
Current assets
Stocks
802,456
786,243
Debtors
6
2,150,694
1,683,352
Cash at bank and in hand
917,658
733,829
3,870,808
3,203,424
Creditors: amounts falling due within one year
7
(1,160,828)
(1,313,072)
Net current assets
2,709,980
1,890,352
Total assets less current liabilities
3,678,753
2,979,072
Creditors: amounts falling due after more than one year
8
(59,644)
(156,873)
Provisions for liabilities
(83,966)
(83,966)
Net assets
3,535,143
2,738,233
Capital and reserves
Called up share capital
9
50,812
47,008
Other reserves
6,756
6,750
Profit and loss reserves
3,477,575
2,684,475
Total equity
3,535,143
2,738,233
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
HOWARDSON LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 27 September 2018
Mr I D Howard
Director
Company Registration No. 00641526
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 3 -
1
Accounting policies
Company information
Howardson Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Howardson Works, Ashbourne Road, Kirk Langley, Ashbourne, DE6 4NJ.
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
.
Turnover is recognised when goods are supplied.
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, which is 5 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:
Land and buildings Leasehold
15% Reducing balance
Plant and machinery
15% Reducing balance
Fixtures, fittings & equipment
15% Reducing balance
Motor vehicles
25% 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
.
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
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.
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 los
s.
1.6
Cash at bank and in hand
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
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest method. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan.
1.8
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.
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
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.
1.11
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 42 (2016 - 40).
3
Director's remuneration
2017
2016
£
£
Remuneration paid to directors
8,640
208,640
Dividends paid to directors
-
450,000
Dividends totalling £0 (2016 - £450000) were paid in the year in respect of shares held by the company's directors.
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 6 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2017 and 31 December 2017
250,000
Amortisation and impairment
At 1 January 2017
165,000
Amortisation charged for the year
45,000
At 31 December 2017
210,000
Carrying amount
At 31 December 2017
40,000
At 31 December 2016
85,000
5
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2017
399,357
1,413,721
203,635
346,897
2,363,610
Additions
-
10,940
2,083
137,816
150,839
Disposals
-
-
-
(76,548)
(76,548)
At 31 December 2017
399,357
1,424,661
205,718
408,165
2,437,901
Depreciation and impairment
At 1 January 2017
258,498
654,525
182,970
263,897
1,359,890
Depreciation charged in the year
39,936
115,520
11,060
50,254
216,770
Eliminated in respect of disposals
-
-
-
(67,532)
(67,532)
At 31 December 2017
298,434
770,045
194,030
246,619
1,509,128
Carrying amount
At 31 December 2017
100,923
654,616
11,688
161,546
928,773
At 31 December 2016
140,859
759,196
20,665
83,000
1,003,720
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
6
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
1,611,354
830,139
Corporation tax recoverable
33,626
-
Other debtors
505,714
853,213
2,150,694
1,683,352
7
Creditors: amounts falling due within one year
2017
2016
Notes
£
£
Bank loans and overdrafts
10
105
Obligations under finance leases
149,898
172,441
Trade creditors
594,624
679,896
Corporation tax
176,530
92,298
Other taxation and social security
65,753
73,477
Other creditors
101,888
46,298
Accruals and deferred income
72,125
248,557
1,160,828
1,313,072
8
Creditors: amounts falling due after more than one year
2017
2016
Notes
£
£
Obligations under finance leases
59,644
156,873
9
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
47,000 Ordinary shares of £1 each
47,000
47,000
1 Ordinary A share of £1 each
1
1
1 Ordinary D share of £1 each
-
1
1 Ordinary E share of £1 each
-
1
1 Ordinary F share of £1 each
-
1
1 Ordinary G share of £1 each
-
1
1 Ordinary H share of £1 each
-
1
1 Ordinary I share of £1 each
-
1
1 Ordinary J share of £1 each
1
1
1 Ordinary B share of £1 each
3,810
-
50,812
47,008
HOWARDSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 8 -
10
Operating lease commitments
Lessee
11
Related party transactions
At the balance sheet date 31 December 2017 there was an amount owed from All British Precision Limited, a company under common control of £209,947 (2016 : £438,072).
At the balance sheet date 31 December 2017 there was an amount owed from Crocodile Precision Limited, a company under common control of £75,224 (2016 : 215,576).