Company Registration No. 02154019 (England and Wales)
ALPHA ADHESIVES AND SEALANTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
ALPHA ADHESIVES AND SEALANTS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
ALPHA ADHESIVES AND SEALANTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,521,172
872,803
Investments
5
2
2
1,521,174
872,805
Current assets
Stocks
1,123,042
891,741
Debtors
985,254
862,092
Cash at bank and in hand
1,013,964
890,752
3,122,260
2,644,585
Creditors: amounts falling due within one year
(307,118)
(200,316)
Net current assets
2,815,142
2,444,269
Total assets less current liabilities
4,336,316
3,317,074
Provisions for liabilities
(49,500)
(51,500)
Net assets
4,286,816
3,265,574
Capital and reserves
Called up share capital
6
70
70
Share premium account
649,970
649,970
Revaluation reserve
228,271
Capital redemption reserve
30
30
Profit and loss reserves
3,408,475
2,615,504
Total equity
4,286,816
3,265,574
ALPHA ADHESIVES AND SEALANTS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
In accordance with section 444 of the Companies Act 2006 all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).
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 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies 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.
The 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 by the board of directors and authorised for issue on 26 June 2023 and are signed on its behalf by:
A H Qureshi
Mrs J Qureshi
Director
Director
Company Registration No. 02154019
ALPHA ADHESIVES AND SEALANTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2021
70
649,970
30
2,416,385
3,066,455
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
-
303,119
303,119
Dividends
-
-
-
-
(104,000)
(104,000)
Balance at 31 December 2021
70
649,970
30
2,615,504
3,265,574
Year ended 31 December 2022:
Profit for the year
-
-
-
-
287,088
287,088
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
228,271
-
-
228,271
Total comprehensive income for the year
228,271
287,088
515,359
Dividends
-
-
-
-
(50,000)
(50,000)
Transfers
-
-
-
555,883
555,883
Balance at 31 December 2022
70
649,970
228,271
30
3,408,475
4,286,816
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
1
Accounting policies
Company information
Alpha Adhesives and Sealants Limited is a private company limited by shares incorporated in England and Wales. The registered office is Llewellyn Close, Sandy Lane Industrial Estate, Stourport on Severn, Worcestershire, DY13 9RH.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The financial statements present information about the company as an individual undertaking and not about its group. Consolidated financial statements are not required to be prepared.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
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.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.4
Intangible fixed assets
Goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 3 years.
Licences are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful lives
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.
Tangible fixed assets are stated at cost or valuation less depreciation and any impairment losses. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Buildings freehold
Not depreciated
Plant and machinery
15% p.a. straight line basis
Fixtures, fittings & equipment
10% p.a. straight line basis
Computer equipment
33 1/3% p.a. straight line basis
Motor vehicles
20% p.a. straight line basis
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.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.6
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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
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.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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 cost and replacement 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.
1.9
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.
1.10
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.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in impairment loss arising from and event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments 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. Amounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
1.12
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Government grants
Government grants relating to the Coronavirus Job Retention Scheme have been accounted for on a receivable basis.
1.16
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.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
18
18
3
Intangible fixed assets
Goodwill
Licences
Total
£
£
£
Cost
At 1 January 2022 and 31 December 2022
10,000
968
10,968
Amortisation and impairment
At 1 January 2022 and 31 December 2022
10,000
968
10,968
Carrying amount
At 31 December 2022
At 31 December 2021
4
Tangible fixed assets
Total
£
Cost or valuation
At 1 January 2022
2,460,595
Disposals
(34,500)
Revaluation
228,271
At 31 December 2022
2,654,366
Depreciation and impairment
At 1 January 2022
1,587,792
Depreciation charged in the year
135,785
Eliminated in respect of disposals
(34,500)
Revaluation
(555,883)
At 31 December 2022
1,133,194
Carrying amount
At 31 December 2022
1,521,172
At 31 December 2021
872,803
Land and buildings with a carrying amount of £1,200,000 were revalued at the year end by the Directors on a market value basis.
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
4
Tangible fixed assets
(Continued)
- 10 -
Land and buildings with a carrying amount of £1,200,000 were revalued at the year end by the Directors on a market value basis.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been as follows:
Freehold property
2022
2021
£
£
Cost
971,729
971,729
Accumulated depreciation
(555,883)
(521,155)
Carrying value
415,846
450,574
5
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
2
2
6
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
70
70
70
70
ALPHA ADHESIVES AND SEALANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
7
Related party transactions
Related Individuals
The following transactions took place with individual related parties during the year:
Directors' loan and current accounts
Creditors include the following amounts due to directors at the year end:
2022
2021
£
£
Mrs J Qureshi - current account
25,606
606
A Qureshi - current account
28,156
3,156
During the year Mrs S Qureshi-Needham an employee and daughter of A Qureshi and Mrs J Qureshi operated a loan account, the amount owed to the company at the year end was £355,607.
All Related Party Transactions
There are no provisions against any of the amounts owing at the year end and no amounts have been
written off in respect of these transactions during the year.
2022-12-312022-01-01false27 June 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityMr A H QureshiMrs J QureshiMrs J Qureshi021540192022-01-012022-12-31021540192022-12-31021540192021-12-3102154019core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3102154019core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3102154019core:ShareCapital2022-12-3102154019core:ShareCapital2021-12-3102154019core:SharePremium2022-12-3102154019core:SharePremium2021-12-3102154019core:RevaluationReserve2022-12-3102154019core:RevaluationReserve2021-12-3102154019core:CapitalRedemptionReserve2022-12-3102154019core:CapitalRedemptionReserve2021-12-3102154019core:RetainedEarningsAccumulatedLosses2022-12-3102154019core:RetainedEarningsAccumulatedLosses2021-12-3102154019core:ShareCapital2020-12-3102154019core:SharePremium2020-12-3102154019core:RevaluationReserve2020-12-3102154019core:CapitalRedemptionReservecore:RestatedAmount2020-12-3102154019core:RetainedEarningsAccumulatedLosses2020-12-31021540192020-12-3102154019bus:Director12022-01-012022-12-3102154019bus:CompanySecretaryDirector12022-01-012022-12-3102154019core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31021540192021-01-012021-12-3102154019core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102154019core:RevaluationReserve2022-01-012022-12-3102154019core:ShareCapital2022-01-012022-12-3102154019core:SharePremium2022-01-012022-12-3102154019core:CapitalRedemptionReserve2022-01-012022-12-3102154019core:Goodwill2022-01-012022-12-3102154019core:LandBuildingscore:OwnedOrFreeholdAssets2022-01-012022-12-3102154019core:PlantMachinery2022-01-012022-12-3102154019core:FurnitureFittings2022-01-012022-12-3102154019core:ComputerEquipment2022-01-012022-12-3102154019core:MotorVehicles2022-01-012022-12-3102154019core:Goodwill2021-12-3102154019core:PatentsTrademarksLicencesConcessionsSimilar2021-12-31021540192021-12-3102154019core:Goodwill2022-12-3102154019core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3102154019core:Goodwill2021-12-3102154019core:PatentsTrademarksLicencesConcessionsSimilar2021-12-3102154019bus:PrivateLimitedCompanyLtd2022-01-012022-12-3102154019bus:SmallCompaniesRegimeForAccounts2022-01-012022-12-3102154019bus:FRS1022022-01-012022-12-3102154019bus:AuditExemptWithAccountantsReport2022-01-012022-12-3102154019bus:Director22022-01-012022-12-3102154019bus:CompanySecretary12022-01-012022-12-3102154019bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP