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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 2021 |
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NORBAR TORQUE TOOLS LTD |
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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 2021 |
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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 2021 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Statement of Comprehensive Income | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Notes to the Financial Statements | 14 |
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NORBAR TORQUE TOOLS LTD |
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COMPANY INFORMATION |
for the year ended 31 December 2021 |
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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 |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2021 |
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The directors present their strategic report for the year ended 31 December 2021. |
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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) and ultrasonic equipment measuring bolt tension. To some extent the company's prosperity is related to the amount of activity in engineering sectors around the world and any change in the level of activity of those sectors is likely to affect results. The company continues to focus on six main industrial sectors or "critical industries" - oil and gas, mining and refining, power generation, transportation, general manufacturing and aerospace. Norbar's has emerged from the pandemic and subsequent volatile business environment in a position of strength. This speaks to the resilience and power of the Snap-on Value Creation Model employed at Norbar. |
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The company continues to have four different routes to market as follows: |
1) Distribution through Norbar companies including those in the USA, China, India and Australia; |
2) Distribution through global Snap-on family companies; |
3) Independent distributors of tools and torque products; and |
4) Catalogue companies selling a wide range of tools, some of which are labelled with the customers' brand. |
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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 region 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 2021 the company accelerated its "rapid continuous improvement" or RCI activity. These activities are aimed at eliminating waste in processes or products. RCI helped the company to increase its production in line with demand leading to the highest quarterly turnover in the company's history in the second half of 2021. 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. These RCI events help to offset many of the inflationary pressures being experienced in the UK and globally. More continuous improvement initiatives are planned for 2022. |
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The key financial highlights are as follows: |
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2019 (£) | 2020 (£) | 2021 (£) |
Turnover | 33,436,819 | 30,445,515 | 32,606,040 |
Turnover Growth | 6.2% | (8.9)% | 7.1% |
Gross Profit Margin | 41.4% | 37.1% | 36.1% |
Profit before tax | 3,502,678 | 2,454,646 | 2,385,773 |
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In 2021 the company continued to invest heavily in new products and realised significant new product launches. The most notable were the development of smaller, lighter gearboxes applied to a wide array of our powered multiplier product line and extensions of our TrueCheck2 electronic torque measurement offerings. Other research and development work carried out in 2021 will lead to exciting new product launches in 2022 which will help to boost performance further in terms of turnover and profit. |
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The number of employees increased during 2021 relative to 2020 in response to rising demand for Norbar products. Norbar maintained its skilled workforce throughout the pandemic whist remaining profitable, enabling the company to emerge from the pandemic from a position of relative strength. |
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Overall 2021 was an encouraging year with the highest level of revenue ever for Norbar. As we navigate the inflationary pressures of 2022, we are encouraged that our value creation processes will help to navigate any business condition that comes our way. |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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STRATEGIC REPORT |
for the year ended 31 December 2021 |
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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 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 and gas industries means that the cyclic nature of these industries can have an effect on the company's revenue. Norbar also serves transportation and manufacturing industries which, collectively with oil and gas, diversify the company's business broadly. |
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Market competition |
Competition within the torque tool industry remains steady with competitors at both the high quality and lower quality/lower price ends of the market. However, the critical and essential nature of torque product, and Norbar's reputation for offering robust, long lasting solutions give the company some ability to ask for price in the marketplace. 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 inflationary environment in the UK provides a 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 |
Norbar believes in the vision of becoming the business partner of choice for customers and suppliers alike. 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. Norbar continually looks to reshore or near-shore the supply of some components which are currently sourced from far-flung places. 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 and retain 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 2021 |
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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 can affect the business. The company continues to investigate the possibility of local assembly in some markets or regions to counteract this risk. |
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Brexit and Trade |
Norbar has robust plans in place to adapt to the UK's evolving trade status on the world stage post-Brexit. While some delay in imports and exports is likely, these delays are temporary as new logistics procedures are adopted at home and abroad. Additionally, it is unclear what benefits any free trade agreements may yield. |
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Coronavirus Pandemic |
The ongoing pandemic will affect industries served by Norbar and could have an effect on Norbar's revenue. This effect is 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 in every corner of the globe. Operationally, Norbar maintains a COVID-secure workplace. |
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SECTION 172(1) STATEMENT |
As with many organisations in the 2021 financial year, objectives were required to be recast in the light of the Coronavirus pandemic. Using the company's hierarchy of Safety, Quality, Delivery and Cost, we invested significantly in the health and safety of our employees, following government guidelines and delivering a robust regime that prevented 'employee to employee' transmission of the virus throughout the year. We maintained production for all but one week, so supporting our customers, some of whom are in essential services as well as protecting the income and wellbeing of our people. We continued engagement with our customers and suppliers through virtual means, recognising that their long-term success is essential to our long-term success. The step change in travel reduced our carbon footprint and we took lessons from that, with an increased scrutiny of travel as restrictions were relaxed. Our standing in the community and in our supply chain was enhanced, with the visitors who did enter our building stating that we had the best measures they had seen. |
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ENGAGEMENT WITH EMPLOYEES |
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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ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
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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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 2021 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2021. |
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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 2021 to the date of this report. |
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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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STREAMLINED ENERGY AND CARBON REPORTING |
Norbar is committed to the reduction of its carbon footprint and has had an ISO50001 registered Energy Management System since 2015. This means Norbar has been monitoring its energy use since that date and has been actively looking to introduce energy saving measures. In 2015 Norbar installed a solar array on the roof of its factory which produces approximately 8% of its electricity requirements. |
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The figures shown below are for Norbar's energy consumption in financial year 2021 in kWh including purchased electricity, electricity generated by the solar array and car fuel usage. Norbar does not have a gas supply. The related carbon footprint, measured in CO2e metric tonnes, for purchased electricity and car fuel usable has been calculated using the UK Government conversion factors for company reporting of greenhouse gas emissions. This figure has been used to generate the intensity ratio by dividing it by the total sales for 2021. The total emission savings from the solar array generation have been calculated using the same UK Government factors and have not been included in the intensity ratio calculation. |
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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 2021 |
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For the year ended | 31.12.21 | 31.12.20 |
Energy consumption (purchased electricity) plus car fuel usage (kWh) | 2655372 | 2475909 |
Electricity consumption (generated by solar array) (kWh) | 180873 | 193906 |
Total gross emissions (purchased electricity plus car fuel usage) (CO2e metric
tonnes) |
620.75 |
578.8 |
Total emission savings from solar array generation (CO2e metric tonnes) | 45.4 | 53.7 |
Sales (£million) | 32.2 | 30.4 |
Intensity ratio Tonnes CO2e per £1 million sales | 19.3 | 19.0 |
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For the financial year ending 31 December 2021 the measures taken by Norbar to reduce its energy consumption and carbon footprint included installing an electric vehicle charging unit to help support the conversion of fleet and employee vehicles from traditional petrol and diesel models to hybrid or fully electric models and the planning of a second roof mounted solar array for installation in 2022. |
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DISCLOSURE IN THE STRATEGIC REPORT |
Reports for Engagement with Employees and Engagement with Suppliers, Customers and Others are included in the Strategic Report |
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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; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
- | 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 2021 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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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 this gives rise to a material misstatement in the financial statements themselves. 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: |
- | 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 |
- | 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: |
- | 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 six, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORBAR TORQUE TOOLS LTD |
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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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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
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- reference to past history and experience of the Entity, |
- enquiry of management, including obtaining and reviewing supporting documentation concerning |
the Entity's procedures relating to: |
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- identifying and complying with laws and regulations and whether they were aware of any instances |
of non-compliance; |
- detection and response to risk of fraud and whether they were aware of any actual or suspected |
instances of fraud. |
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- assessment of the controls and processes that the Entity has in place to mitigate risk |
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Our assessments included the identification of the following potential areas for fraud: |
- Management override of control; |
- Revenue recognition, particularly in respect of delivery of goods |
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We design audit procedures by tailored and directed testing to aid and support the level of determined level of risk. In response to the assessed risk we plan audit tests and procedures that target specific areas where misstatement may occur. These procedures and the extent to which they are capable of detecting |
irregularities, including fraud, are detailed below: |
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- We critically assessed the appropriateness and tested the application of the revenue and cost |
recognition policies |
- We tested the appropriateness of accounting journals and other adjustments made in the |
preparation of the financial statements |
- We reviewed the Entity's accounting policies for non-compliance with relevant standards. |
- We made enquiries of management and reviewed correspondence with the relevant authorities to |
identify any irregularities or instances of non-compliance with laws and regulations |
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In performing an audit in accordance with UK GAAP, we exercise professional judgement and maintain |
professional scepticism throughout the audit process. |
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The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from |
error, as fraud may involve collusion or override of internal controls. There are inherent limitations in the audit procedures performed. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NORBAR TORQUE TOOLS LTD |
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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 2021 |
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2021 | 2020 |
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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2,061,109 | 2,060,385 |
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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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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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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 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
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Tangible assets | 8 |
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CURRENT ASSETS |
Stocks | 9 |
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Debtors | 10 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 11 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 14 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 15 |
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Retained earnings | 16 |
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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 2021 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2020 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2021 |
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NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
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NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Norbar Torque Tools Ltd is a
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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. |
|
Tangible fixed assets |
|
Improvements to property | - |
|
Plant and machinery | - |
|
Fixtures and fittings | - |
|
Motor vehicles | - |
|
|
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) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
2. | ACCOUNTING POLICIES - continued |
|
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. |
|
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. |
|
Stocks are valued on a First In First Out basis using a standard costing pricing model. |
|
Stock recognised in cost of sales during the year as an expense was £NIL. |
|
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. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
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. |
|
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 2021 |
|
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: |
|
2021 | 2020 |
£ | £ |
United Kingdom |
|
|
Overseas | 24,908,902 | 23,536,970 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2021 | 2020 |
|
Production | 225 | 213 |
Management and administration | 88 | 91 |
|
|
|
2021 | 2020 |
£ | £ |
Directors' remuneration |
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
|
|
Computer software amortisation |
|
|
Auditors' remuneration |
|
|
Foreign exchange differences |
|
( |
) |
Research and development expenditure |
|
|
|
6. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Research & Developments Expenditure Credit | - | 47,769 |
Total current tax |
|
|
|
Deferred tax: |
Deferred tax provision movement |
|
( |
) |
Effect of change of tax rate |
|
- |
Total deferred tax |
|
( |
) |
|
Tax on profit |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2021 | 2020 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
expenditure credit |
Change in tax rate for deferred taxation | 247,744 | - |
Total tax charge | 688,981 | 460,863 |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
7. | INTANGIBLE FIXED ASSETS |
Intellectual | Computer |
property | software | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
and 31 December 2021 |
|
|
|
AMORTISATION |
At 1 January 2021 |
|
|
|
Amortisation for year |
|
|
|
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
|
8. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2021 |
|
|
|
Additions |
|
|
|
Disposals |
|
( |
) |
|
Assets under construction | - | 760,918 | - |
At 31 December 2021 |
|
|
|
DEPRECIATION |
At 1 January 2021 |
|
|
|
Charge for year |
|
|
|
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
8. | TANGIBLE FIXED ASSETS - continued |
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
|
|
|
Additions |
|
|
|
Disposals |
|
|
( |
) |
Assets under construction | - | - | 760,918 |
At 31 December 2021 |
|
|
|
DEPRECIATION |
At 1 January 2021 |
|
|
|
Charge for year |
|
|
|
At 31 December 2021 |
|
|
|
NET BOOK VALUE |
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
|
9. | STOCKS |
2021 | 2020 |
£ | £ |
Raw materials and loose tools |
|
|
Work-in-progress |
|
|
Finished goods |
|
|
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Tax |
|
|
Prepayments |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 12) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
12. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
|
|
|
13. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2021 | 2020 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
14. | PROVISIONS FOR LIABILITIES |
2021 | 2020 |
£ | £ |
Deferred tax | 1,058,086 | 784,522 |
|
Accrued |
Deferred | pension |
tax | provision |
£ | £ |
Balance at 1 January 2021 |
|
|
Charge to Statement of Comprehensive Income during year |
|
|
Change of tax rate | 247,744 | - |
Balance at 31 December 2021 |
|
|
|
15. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
|
Ordinary | £1 | 60,390 | 60,390 |
|
'A' Ordinary | £1 | 2,380 | 2,380 |
62,770 | 62,770 |
NORBAR TORQUE TOOLS LTD (REGISTERED NUMBER: 00380480) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 December 2021 |
|
16. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2021 |
|
Profit for the year |
|
At 31 December 2021 |
|
|
17. | 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 £650,779 (2020: £630,631). There were no outstanding company contributions at the year end. |
|
18. | 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. |
|
19. | 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 £
|