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Financial Statements |
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for the Year Ended 31 March 2020 |
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for |
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CARRS COATINGS LIMITED |
REGISTERED NUMBER:
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Financial Statements |
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for the Year Ended 31 March 2020 |
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for |
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CARRS COATINGS LIMITED |
CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Contents of the Financial Statements |
for the year ended 31 March 2020 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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CARRS COATINGS LIMITED |
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Company Information |
for the year ended 31 March 2020 |
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Director: |
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Registered office: |
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Registered number: |
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Auditors: |
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5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
B15 3BE |
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Bankers: |
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1 Centenary Square |
Birmingham |
B1 1HQ |
CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Balance Sheet |
31 March 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 4 |
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Current assets |
Stocks | 5 |
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Debtors | 6 |
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Cash at bank |
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Creditors |
Amounts falling due within one year | 7 |
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Net current assets |
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Total assets less current liabilities |
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Capital and reserves |
Called up share capital | 10 |
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Retained earnings |
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Shareholders' funds |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director and authorised for issue on
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CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements |
for the year ended 31 March 2020 |
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1. | Statutory information |
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Carrs Coatings Limited is a private company limited by shares and incorporated in England and Wales. The registered head office is located at 2E Eagle Road, North Moons Moat, Redditch, Worcestershire, B98 9HF. The financial statements are presented in sterling (£). |
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2. | Accounting policies |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
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The net debt position of the Trimite Topco Limited group, of which Trimite Technologies Limited forms a part, is carefully managed and the business retains an excellent relationship with the primary lender, Duke Royalty UK Limited, who remains supportive of the group's medium term strategy and growth plans. |
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The directors obtained a pledge of continued financial support from the ultimate parent company, Trimite Topco Limited until at least 31 March 2021. |
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On this basis the directors consider that the company has sufficient resources to continue operating as a going concern for a period of at least twelve months from the date of signing the financial statements. The financial statements have therefore been prepared on a going concern basis. |
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Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
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Sales of goods |
Revenue from the sale of good is recognised when all the following conditions are satisfied: |
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- the Company has transferred the significant risks and rewards of ownership to the buyer |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Company will receive consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
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Revenue is generally recognised on dispatch. |
CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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2. | Accounting policies - continued |
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Tangible fixed assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method. |
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Depreciation is provided on the following basis: |
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Plant and machinery | - Straight line basis over 10 years |
Motor vehicles | - Straight line basis over 4 years |
Fixtures and fittings | - Straight line basis over 3 years |
Office equipment | - Straight line basis over 3 years |
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The assets residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income. |
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Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
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At the balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to it selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
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Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of the financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. |
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Debt instruments (other than those wholly repayable and receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. |
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Financial assets that are measured at cost and amortised costs are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
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For financial assets measured at amorotised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows, discounted at the rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
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For financial assets measured at cost less impairment, the impairment loss is measured as the differences between an asset;s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. |
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Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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2. | Accounting policies - continued |
Current and deferred taxation |
The tax expense for the year compromises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, expect that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
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The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. |
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Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that: |
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- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
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Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on straight line basis over the lease term. |
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Benefits received and receivable an an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of lessee's benefit from the use of the lessee asset. |
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Comprehensive Income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
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Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction cost, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
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Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with significant risk of change in value. |
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Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
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Finance costs |
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
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Borrowing costs |
All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred. |
CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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2. | Accounting policies - continued |
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Pensions |
The Company operated a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. |
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The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet, The assets of the plan are held separately from the Company in independently administered funds. |
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Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
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Provisions are charged as an expense to the Statement of comprehensive income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure required to settle the obligation, talking into account relevant risks and uncertainties. |
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When payments are eventually made, they are charged to the provision carried in the Statement of financial position. |
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3. | Employees and directors |
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The average number of employees during the year was
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4. | Tangible fixed assets |
Fixtures |
Plant and | and | Motor | Office |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1 April 2019 |
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Additions |
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Disposals |
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Transfer to ownership | 141,027 | - | - | - | 141,027 |
At 31 March 2020 |
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Depreciation |
At 1 April 2019 |
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Charge for year |
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Eliminated on disposal |
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Transfer to ownership | 58,272 | - | - | - | 58,272 |
At 31 March 2020 |
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Net book value |
At 31 March 2020 |
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At 31 March 2019 |
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5. | Stocks |
2020 | 2019 |
£ | £ |
Raw materials |
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Work-in-progress |
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Finished goods |
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CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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6. | Debtors: amounts falling due within one year |
2020 | 2019 |
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Trade debtors |
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Amounts owed by group undertakings |
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Amounts owed by participating interests | 2,056 | 9,459 |
Other debtors |
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Corporation tax |
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Deferred tax asset |
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Prepayments and accrued income |
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Amounts owed by the group undertakings and related parties are interest fee, unsecured and repayable on demand. |
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7. | Creditors: amounts falling due within one year |
2020 | 2019 |
£ | £ |
Hire purchase contracts (see note 8) |
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Trade creditors |
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Amounts owed to group undertakings |
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Social security and other taxes |
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VAT | 88,118 | 56,281 |
Other creditors |
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Invoice discounting facility | 1,252,491 | 1,518,236 |
Accruals and deferred income |
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The invoice discounting facility is secured by a fixed and floating charge over the Company's assets. |
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Finance leases and hire purchase arrangements are secured against the assets to which they relate. |
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Amounts owed to group undertakings are interest free and repayable on demand. |
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8. | Leasing agreements |
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Minimum lease payments fall due as follows: |
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Hire purchase contracts |
2020 | 2019 |
£ | £ |
Net obligations repayable: |
Within one year |
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Non-cancellable |
operating leases |
2020 | 2019 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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9. | Deferred tax |
£ |
Balance at 1 April 2019 | ( |
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Provided during year |
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Balance at 31 March 2020 |
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10. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
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Ordinary | 1 | 100 | 100 |
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11. | Disclosure under Section 444(5B) of the Companies Act 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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12. | Contingent liabilities |
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The company and certain fellow group companies have entered into a cross-guarantee agreements in relation banking facilities with HSBC. At 31 March 2020 the contingent liability under these agreements was £499,188 (2019 - £787,211). |
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The company and certain fellow group companies have entered into a cross-guarantee agreements in relation to bank facilities with Duke Royalty UK Limited. At 31 March 2020 the contingent liability under these arrangements was £10,503,289 (2019 - £9,534,263). |
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13. | Pension commitments |
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The Company operates a defined contributions pension scheme in respect of its employees. The assets of the scheme are administered by independent managers. The pension cost charge represents contributions paid from the company and amounted to £25,848 (2019: £22,196). |
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14. | Related party disclosures |
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The company has taken advantage of the exemption available under FRS 102 not to disclose transactions between the group company and its parent and 100% owned subsidiaries within the Trimite Top Co Limited group. |
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During the year, the company sold goods to Trimite Scotland Limited amounting to £14,159 (2019: £29,878), a company having common directorship. At the year end, the amount owed from Trimite Scotland Limited was £2,056 (2019: £9,459). |
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During the year, the company sold goods to Tier One Limited amounting to £nil (2019: £352), a company having common directorship. During 2019, it was formally agreed between the company and Tier One Limited that an amount owed of £nil (2019: £4,107) would be waived. This resulted in an expense of £nil (2019: £294) in the Statement of Comprehensive Income. |
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During the year interest of £nil (2019: £3,740) was charged on amounts owed to Meritage Management Group Limited, a company having common directorship. At the year end, the balance owed by the company to Meritage Management Group Limited, was £nil (2019: £nil). During 2019, it was formally agreed between the company and Meritage Management Group Limited that the amounts owed by the company would waived. This resulted in an income of £nil (2019: £129,485) in the Statement of Comprehensive Income. |
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Key management is considered to include all of the directors who are remunerated through other group companies. |
CARRS COATINGS LIMITED (REGISTERED NUMBER: 06628569) |
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Notes to the Financial Statements - continued |
for the year ended 31 March 2020 |
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15. | Post balance sheet events |
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The COVID-19 viral pandemic was officially announced as present in the UK during January 2020. Under UK GAAP, the consequences of a condition present at the balance sheet date are considered to be an adjusting post balance sheet event and therefore potentially have implications for the period end balance sheet. |
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Having reviewed the trading conditions in the post balance sheet period, and in particular having considered the Balance Sheet carrying values of fixed assets, inventories and the recoverability of trade and other receivables, the directors are satisfied there are currently no indications of any material impairment. |
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The directors' assessment of the impact of COVID-19 on the future development and performance of the business, and on the going concern assumption for preparation of the financial statements, is detailed in the Accounting Policies. |
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16. | Ultimate controlling party |
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The immediate parent company is Trimite Bidco Limited, a company registered in England. |
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The ultimate parent company is Trimite Topco Limited, a company registered in England. The ultimate controlling party is Mr and Mrs D Roberts, the majority shareholders of Trimite Topco Limited. |