REGISTERED NUMBER:
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2019 |
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FOR |
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NORBAR TORQUE TOOLS LTD |
REGISTERED NUMBER:
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2019 |
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FOR |
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NORBAR TORQUE TOOLS LTD |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 December 2019 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 6 |
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Report of the Independent Auditors | 8 |
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Statement of Comprehensive Income | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Notes to the Financial Statements | 13 |
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NORBAR TORQUE TOOLS LTD |
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COMPANY INFORMATION |
for the year ended 31 December 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
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BANKERS: |
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17 Market Place |
Banbury |
Oxfordshire |
OX16 5ED |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2019 |
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The directors present their strategic report for the year ended 31 December 2019. |
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REVIEW OF BUSINESS |
The company's range of products is focused on the torque tool market (torque tools and measuring |
instruments) with the addition of ultrasonic measurement for measuring bolt length and tension. To some |
extent the company's prosperity is related to the amount of activity in the engineering sectors around the |
world and any change in the level of activity is likely to affect the results. The company continues to focus on |
six main industrial sectors or "critical industries" - oil and gas, mining and refining, power generation, |
transportation, general assembly and aerospace. |
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The company continues to have three different routes to market as follows: |
1) Distribution through Norbar companies including those in the US, Singapore, China, India and Australia; |
2) Independent distributors of tools and torque products; and |
3) Catalogue companies selling a wide range of tools, some of which are under the customers' brand name. |
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In addition, since mid-2017 the company now has new channels to market available to it as a result of the |
purchase of the Norbar group of companies by Snap-on Inc (a New York Stock Exchange listed company |
with operations world-wide). As a result it is now supplying a number of product lines to Snap-on under the |
Snap-on and Bahco brands as well as finding new routes to market for Norbar branded products. |
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This multi-tiered approach to market serves the company well however, like all things, it is subject to ongoing |
review to see if the model needs changing in any particular country or industrial sector. The impact of internet |
sales is becoming increasingly apparent with both advantages in terms of reaching a wider customer base |
and disadvantages in the disruptive effect it has on existing supply chains. This may lead to changes to the |
distribution model in future. The very broad nature of the company's distribution, not just in geographic |
market terms, but also industrial markets, means that to some extent the company is protected from any |
specific country risk or industrial sector risk. |
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During 2019 the company held multiple "rapid continuous improvement" or RCI events - week long events |
aimed at eliminating waste in the company's processes or products during the course of the week. |
Continuous improvement projects and events helped the company to increase its production in line with |
demand leading to the highest annual turnover in the company's history. RCI is a unique way to engage |
employees at all levels by teaching them how to recognise waste within their operation or function and |
empowering them with the tools and resources necessary to eliminate that waste. More continuous |
improvement initiatives are planned for 2020. |
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The key financial highlights are as follows: |
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2017 (£) | 2018 (£) | 2019(£) |
Turnover | 28,331,019 | 31,472,454 | 33,436,819 |
Turnover Growth | 12% | 11.1% | 6.2% |
Gross Profit Margin | 37.3% | 37.2% | 41.4% |
Profit before tax | 1,218,123 | 1,768,644 | 3,786,444 |
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In 2019 the company continued to invest heavily in new products and realised 2 major new product launches. |
The most notable was the Evotorque Battery Tool (EBT) which utilises innovations from both Norbar and its |
sister companies within Snap-on. The EBT utilises patent pending torque control technology to deliver |
industry-leading accuracy. Also, Norbar launched the TBox2TM torque data acquisition system. The |
TBox2TM utilises an intuitive touchscreen interface within a rugged industrial housing to read, record, |
analyse, transmit and log data generated simultaneously from multiple transducers - making the torque |
calibration technician twice as efficient. Other research and development work carried out in 2019 will lead to |
exciting new product launches in 2020 which will help to boost performance further in terms of turnover and |
profit. |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2019 |
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The number of employees decreased during 2019 to an average of 308 as compared with 319 in 2018. |
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Overall 2019 was a good year with increasing revenue profitability driven by higher sales, profitable new |
product launches and efficiencies arising from continuous improvement activities. |
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STATEMENTS OF ENGAGEMENT |
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Norbar's parent company, Snap-on Inc., expresses a vision of being an employer of choice, a brand of choice |
and a business partner of choice. |
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Norbar maintains open and frequent dialogue with employees of all levels. Specifically, directors meet with |
employees monthly by holding an Employee Council where all departments and shifts are represented. The |
Employees' Council (EC) allows all employees to participate in the decisions that help us achieve our mission |
and vision. Additionally, Norbar offers all employees a profit sharing scheme so that everyone can benefit |
from the company's financial success. |
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Through our sales forces and distributors, we make daily contacts with thousands of professionals in their |
workplaces across the globe. Each of these contacts represents an opportunity to understand in depth our |
customers' wants and needs, which we believe provides us with an important strategic advantage. |
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Guided by our core beliefs and values, Snap-on's and Norbar's commitments to integrity and social |
responsibility extend to its worldwide supply base. |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
In common with all trading businesses, the company is exposed to a variety of risks in the conduct of its |
normal business operations. The company maintains a range of insurance policies against major identified |
insurable risks including (but not limited to) those related to business interruption, damage to property and |
equipment, product and employee liability. While it is not possible to completely record or quantify every |
material risk, below is summary of those risks that the directors believe are most significant to the company's |
business: |
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Operational and commercial risks |
The company's revenues are principally derived from the sales of torque tightening and measuring tools and |
instruments. The markets for these products (and therefore revenues) are subject to variations in patterns of |
demand and economic growth. The wide range of markets and geographic territories serviced by the group |
mitigates this risk, although exposure to the oil industry means that significant drops in the oil price do have |
an effect on the company's revenue. This effect is somewhat offset by the relative stability in natural gas |
prices. Both the oil industry and the gas industry purchase similar products and solutions. |
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Market competition |
Competition within the torque tool industry remains strong with competitors at both the high quality and lower |
quality/lower price ends of the market which puts pressure on selling prices. The company has also become |
aware of copies of its products entering the market which pose risks to both sales and reputation as the |
copies may be incorrectly associated with the company. The company will continue to develop and sell high |
quality products and the directors believe that in this market it remains competitive. The company is also |
investing in registered intellectual property protection to help mitigate this risk. |
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Foreign exchange risk |
The company continues to sell mainly in pounds and so the continuing political uncertainty in the UK around |
the Brexit decision provides an ongoing currency risk. However, currency risk is now mitigated through |
hedging. The company's strategy is to focus on continuous improvement and increasing its efficiency to help |
counteract the impact of increased prices and salaries. |
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Suppliers |
Although the company takes care to ensure alternative sources of supply are available for goods on which the |
company's business is critically dependent, this is not always possible. The company follows a policy of local |
supply where possible and has strong relationships with its key suppliers. It is actively looking to reshore the |
supply of some components which are currently sourced from outside of the UK. In addition, the company is |
leveraging the greater buying power of its parent company to help source goods at a better price. |
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IT and systems reliability |
The company is dependent on its information technology systems to operate its business efficiently, without |
failure or interruption. While data within key systems is regularly backed up and the system is subject to virus |
and fire wall protection, any failure of back up systems or other major interruption to the information |
technology system could have a disruptive effect on the company's business. |
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Skilled employees |
In order to remain competitive the company needs to remain at the forefront of the development of new |
products. To do this it needs to be able to recruit suitably skilled employees, particularly engineers and skilled |
CNC machine operators. The company is working closely with local schools and universities to promote |
engineering as a career and to attract suitably skilled individuals to the company at all levels including |
apprenticeships. |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2019 |
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Political change |
The company sells worldwide including into regions that are politically unstable and sales can be impacted by |
sanctions or other export controls that may be imposed by the UK government. An increasing move towards |
protectionism in major markets including Russia, China and India also pose risks to the business. The |
company continues to investigate the possibility of local assembly in some markets to counteract this risk. |
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Brexit and Trade |
It is unclear what the UK's trading relationship with the EU will be once the Brexit transition period ends and |
also what impact this will have on its relationships with other countries outside the EU with which the UK |
currently enjoys a preferential trade agreement by virtue of being in the EU. The possibility of the imposition of |
tariffs on exports to the EU and increased difficulty in recruiting from the EU are both potential risks to the |
company. Work on continuous improvement and efficiency savings has been stepped up to try to counteract |
the impact of tariffs and the company continues to recruit apprentices and engage with schools and colleges |
to raise its profile when recruiting. Additionally, it is unclear what benefits a UK - US free trade agreement |
may yield. |
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Pandemics |
A pandemic would affect industries served by Norbar and would have an effect on Norbar's revenue. This |
effect would be somewhat mitigated by the nature of Norbar's goods and services in the field of torque. |
Torque products are necessary to maintain safe operation of oil and gas production, the production of |
electricity, mining, manufacturing and the mobility of fleets of ground, air and sea transport - all of which are |
critical industries, necessary even in times of pandemics. |
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ON ORDER OF THE BOARD: |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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REPORT OF THE DIRECTORS |
for the year ended 31 December 2019 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2019. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2019. |
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RESEARCH AND DEVELOPMENT |
The company continues with its research and development activities. The purpose of this is to develop new |
concepts to improve the technology used in torque tools and to continue to bring new products to market to |
enable the company to maintain its product range as being a worldwide market leading torque tool |
manufacturer. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2019 to the date of |
this report. |
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Other changes in directors holding office are as follows: |
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EMPLOYEES |
The company shares information with employees through cascade briefings or "Team Briefs". The directors |
continue to meet regularly with the senior managers to discuss the core aspects of the business and to |
consider trading trends and marketing policies that are applicable to an ever-changing global sales |
environment. |
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The company has monthly gatherings to communicate general news and has an elected representative body |
which complies with the European Information and Consultation Directive requirements. |
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DISABLED EMPLOYEES |
The company has policies and procedures in place to encourage employees with disabilities. Managers |
receive education in the requirements of the Disability Discrimination Act 1995 and the Equality Act 2010. |
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To remove any possible discrimination our application form for recruitment does not ask if a potential |
applicant has a disability. After selection of candidates, in our invite, for interview letter we ask what |
reasonable adjustments can be made to enable that applicant to attend. |
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We work closely with our Occupational Health team to make the necessary reasonable adjustments for those |
who become disabled to allow them to continue to carry out their job roles. |
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Our Equal Opportunities policy commits that we treat all our employees equally for recruitment, selection, |
training and development and promotion. |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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REPORT OF THE DIRECTORS |
for the year ended 31 December 2019 |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law |
the directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including |
Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of |
Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied |
that they give a true and fair view of the state of affairs of the company and of the profit or loss of the |
company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain |
the company's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and enable them to ensure that the financial statements comply with the Companies Act 2006. They |
are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for |
the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps |
that he ought to have taken as a director in order to make himself aware of any relevant audit information and |
to establish that the company's auditors are aware of that information. |
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ON ORDER OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORBAR TORQUE TOOLS LTD |
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Opinion |
We have audited the financial statements of Norbar Torque Tools Ltd (the 'company') for the year ended |
31 December 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of |
Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting |
policies. The financial reporting framework that has been applied in their preparation is applicable law and |
United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting |
Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting |
Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its profit for
the year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
applicable law. Our responsibilities under those standards are further described in the Auditors' |
responsibilities for the audit of the financial statements section of our report. We are independent of the |
company in accordance with the ethical requirements that are relevant to our audit of the financial statements |
in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in |
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and |
appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report |
of the Auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent |
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, |
in doing so, consider whether the other information is materially inconsistent with the financial statements or |
our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such |
material inconsistencies or apparent material misstatements, we are required to determine whether there is a |
material misstatement in the financial statements or a material misstatement of the other information. If, |
based on the work we have performed, we conclude that there is a material misstatement of this other |
information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which
the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORBAR TORQUE TOOLS LTD |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of |
the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
report to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, the directors |
are responsible for the preparation of the financial statements and for being satisfied that they give a true and |
fair view, and for such internal control as the directors determine necessary to enable the preparation of |
financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to |
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going |
concern basis of accounting unless the directors either intend to liquidate the company or to cease |
operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes |
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit |
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. |
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, |
they could reasonably be expected to influence the economic decisions of users taken on the basis of these |
financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of |
the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's |
members those matters we are required to state to them in a Report of the Auditors and for no other purpose. |
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the |
company and the company's members as a body, for our audit work, for this report, or for the opinions we |
have formed. |
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for and on behalf of
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Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STATEMENT OF COMPREHENSIVE INCOME |
for the year ended 31 December 2019 |
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2019 | 2018 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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3,415,077 | 1,656,671 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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3,786,444 | 1,770,358 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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BALANCE SHEET |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
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Tangible assets | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 16 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Retained earnings | 18 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 December 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2018 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2019 | 62,770 | 21,535,119 | 21,597,889 |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2019 |
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1. | STATUTORY INFORMATION |
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Norbar Torque Tools Ltd is a
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The company's registered number and registered office address can be found on the Company |
Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and |
Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
rebates, value added tax and other sales taxes. |
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Turnover from the sale of goods are recognised when significant risks and rewards of ownership of the |
goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable |
that the economic benefits associated with the transaction will flow to the company and the costs |
incurred or to be incurred in respect of the transaction can be measured reliably. This is either on an |
ex-works basis for international sales or a CIP basis for domestic sales. |
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Intellectual property |
Amortisation is provided to write off intellectual property over its estimated useful life of 5 years from |
the acquisition date of the intellectual property. |
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Computer software |
Amortisation is provided to write off computer software over its estimated useful life of 5 years from |
when the asset comes into use by the company. |
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Tangible fixed assets |
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Improvements to property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation |
and accumulated impairment losses. Cost includes costs directly attributable to making the asset |
capable of operating as intended. |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due |
allowance for obsolete and slow moving items. |
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Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling |
costs in bringing stocks to their present location and condition. |
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Stocks are valued on a First In First Out basis using a standard costing pricing model. |
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Stock recognised in cost of sales during the year as an expense was £NIL. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive |
income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
|
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of |
exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at |
the operating result. |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
|
Government grants |
Revenue grants are charged to the profit and loss account when the expenditure is incurred. Capital |
grants are deducted from the acquisition cost of fixed assets acquired under the terms of the grant. |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Changes in accounting estimates |
Bad Debt Provision |
|
Bad debts are assessed according to how long the customer is over their terms by: |
|
100% for customers with known trading issues |
90%- 180 days or more over their terms |
50% - between 121-179 days over their terms |
20% - between 90-120 days over their terms |
|
Stock Provision |
|
Stock provision is assessed on usage over the past 12 months compared to the relative stock |
holdings, |
|
Quantity over 12 mths usage - 5% |
Quantity over 24 mths usage - 20% |
Quantity over 36 mths usage - 30% |
No usage in last 12 mths - 100% |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2019 | 2018 |
£ | £ |
United Kingdom |
|
|
Overseas | 25,589,387 | 24,131,171 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Production | 223 | 238 |
Management and administration | 85 | 81 |
|
|
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
|
|
Intellectual property amortisation |
|
|
Computer software amortisation |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
( |
) |
Research and development expenditure |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Bank interest |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Research & Developments Expenditure Credit | 53,916 | (209,567 | ) |
Total current tax |
|
( |
) |
|
Deferred tax provision movement |
|
|
Tax on profit |
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
difference is explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Depreciation in excess of capital allowances |
|
|
Utilisation of tax losses | ( |
) | ( |
) |
Research & development expenditure credit | - | (209,567 | ) |
Total tax charge | 712,532 | 129,450 |
|
8. | INTANGIBLE FIXED ASSETS |
Intellectual | Computer |
property | software | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
At 31 December 2019 |
|
|
|
AMORTISATION |
At 1 January 2019 |
|
|
|
Amortisation for year |
|
|
|
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
9. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) |
|
At 31 December 2019 |
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
|
|
|
Additions |
|
|
|
Disposals |
|
|
( |
) |
At 31 December 2019 |
|
|
|
DEPRECIATION |
At 1 January 2019 |
|
|
|
Charge for year |
|
|
|
At 31 December 2019 |
|
|
|
NET BOOK VALUE |
At 31 December 2019 |
|
|
|
At 31 December 2018 |
|
|
|
|
10. | STOCKS |
2019 | 2018 |
£ | £ |
Raw materials and loose tools |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments |
|
|
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 13) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
|
13. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
|
Bank security amounts to a Letter of Negative Pledge dated 11 January 1989. |
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
15. | SECURED DEBTS |
|
The bank overdraft facility is secured by Letter of Negative Pledge. |
|
16. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax | 793,548 | 765,373 |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2019 |
|
16. | PROVISIONS FOR LIABILITIES - continued |
|
Accrued |
Deferred | pension |
tax | provision |
£ | £ |
Balance at 1 January 2019 |
|
|
Provided during year |
|
|
Balance at 31 December 2019 |
|
|
|
17. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 60,390 | 60,390 |
|
'A' Ordinary | £1 | 2,380 | 2,380 |
62,770 | 62,770 |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2019 | 18,461,208 |
Profit for the year |
|
At 31 December 2019 | 21,535,120 |
|
19. | PENSION COMMITMENTS |
|
The company operates a defined contribution scheme. Contributions payable for the year are charged |
to the profit and loss account as incurred. Employer contributions made in the year were £607,880 |
(2018: £528,475). There were no outstanding company contributions at the year end. |
|
20. | ULTIMATE PARENT COMPANY |
|
The ultimate parent company is Snap-on Inc. A copy of the Snap-on Inc annual report can be obtained |
from www.snapon.com or at the company's offices at 2801 80th Street, Kenosha, Wisconsin, 53143, |
USA. |
|
21. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
party transactions with wholly owned subsidiaries within the group. |
|
During the year, a total of key management personnel compensation of £
|
was paid. |