Company Registration No. 06776129 (England and Wales)
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
PAGES FOR FILING WITH REGISTRAR
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2019
30 September 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,078,481
1,066,646
Current assets
Stocks
467,307
577,966
Debtors
5
585,519
432,983
Cash at bank and in hand
143,078
359,837
1,195,904
1,370,786
Creditors: amounts falling due within one year
6
(254,302)
(326,974)
Net current assets
941,602
1,043,812
Total assets less current liabilities
2,020,083
2,110,458
Creditors: amounts falling due after more than one year
7
(84,860)
(107,036)
Provisions for liabilities
9
(64,526)
(83,234)
Net assets
1,870,697
1,920,188
Capital and reserves
Called up share capital
11
200
200
Share premium account
50,000
50,000
Revaluation reserve
94,607
71,765
Profit and loss reserves
1,725,890
1,798,223
Total equity
1,870,697
1,920,188
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 15 June 2020 and are signed on its behalf by:
B W P Kerfoot
Director
Company Registration No. 06776129
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2017
200
50,000
-
1,552,118
1,602,318
Year ended 30 September 2018:
Profit for the year
-
-
-
280,245
280,245
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
88,599
-
88,599
Tax relating to other comprehensive income
-
-
(16,834)
-
(16,834)
Total comprehensive income for the year
-
-
71,765
280,245
352,010
Dividends
-
-
-
(34,140)
(34,140)
Balance at 30 September 2018
200
50,000
71,765
1,798,223
1,920,188
Year ended 30 September 2019:
Loss for the year
-
-
-
(55,263)
(55,263)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
28,200
-
28,200
Tax relating to other comprehensive income
-
-
(5,358)
-
(5,358)
Total comprehensive income for the year
-
-
22,842
(55,263)
(32,421)
Dividends
-
-
-
(17,070)
(17,070)
Balance at 30 September 2019
200
50,000
94,607
1,725,890
1,870,697
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 3 -
1
Accounting policies
Company information
Specialised Inflatable Technology Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 2, Atlantic Way, Dempster Buildings, Brunswick Business Park, Liverpool, L3 4BE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Despite the matters set out in the
e
vents
after the reporting date
note, at the date of approving the financial statements the directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The company has been able to continue operating throughout the Covid-19 crisis and has a strong future order book in place for the long term.
1.3
Turnover
Turnover represents amounts receivable for goods and services provided during the period net of VAT and trade discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold Land and buildings
2% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
33.3% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value. Work in progress represents work carried out at the year end that is not considered billable due to the terms of the contracts under which this work is undertaken. Work in progress is valued on the basis of direct costs. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 5 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 6 -
1.12
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
The company has an obligation to provide a warranty on boat sales for a period of up to two years from the date of sale, the provision is based on approximately 2.5% of turnover.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 38 (2018 - 34).
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 7 -
3
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
(8,432)
25,724
Deferred tax
Origination and reversal of timing differences
934
(8,189)
Total tax (credit)/charge
(7,498)
17,535
4
Tangible fixed assets
Freehold Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 October 2018
1,033,442
208,560
1,242,002
Additions
-
33,727
33,727
Revaluation
28,200
-
28,200
At 30 September 2019
1,061,642
242,287
1,303,929
Depreciation and impairment
At 1 October 2018
58,442
116,914
175,356
Depreciation charged in the year
20,904
29,188
50,092
At 30 September 2019
79,346
146,102
225,448
Carrying amount
At 30 September 2019
982,296
96,185
1,078,481
At 30 September 2018
975,000
91,646
1,066,646
Freehold
Land and buildings were revalued at
£990,000 on
14 May 2019
by
Eckersley,
independent valuers
(
not connected with the company
)
on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
4
Tangible fixed assets
(Continued)
- 8 -
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2019
2018
£
£
Cost
944,843
944,843
Accumulated depreciation
(77,339)
(58,442)
Carrying value
867,504
886,401
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
241,380
229,158
Corporation tax recoverable
8,478
-
Amounts owed by group undertakings
297,382
181,610
Other debtors
38,279
22,215
585,519
432,983
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
31,255
33,040
Trade creditors
128,263
138,214
Corporation tax
-
25,729
Other taxation and social security
14,860
38,776
Other creditors
79,924
91,215
254,302
326,974
7
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Bank loans and overdrafts
8
84,860
107,036
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 9 -
8
Loans and overdrafts
2019
2018
£
£
Bank loans
116,115
139,991
Bank overdrafts
-
85
116,115
140,076
Payable within one year
31,255
33,040
Payable after one year
84,860
107,036
The bank loans of £116,115 (2018: £139,991) are secured by a debenture over the company and a legal charge over the property.
9
Provisions for liabilities
2019
2018
£
£
Warranty provision
25,000
50,000
Deferred tax liabilities
10
39,526
33,234
64,526
83,234
Movements on provisions apart from retirement benefits and deferred tax liabilities:
Warranty provision
£
At 1 October 2018
50,000
Utilisation of provision
(25,000)
At 30 September 2019
25,000
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 10 -
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
17,334
16,400
Revaluations
22,192
16,834
39,526
33,234
2019
Movements in the year:
£
Net liability at 1 October 2018
33,234
Charge to profit or loss
934
Charge to other comprehensive income
5,358
Net liability at 30 September 2019
39,526
11
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary 'A' Shares of 1p each
100
100
10,000 Ordinary 'B' Shares of 1p each
100
100
200
200
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Peter Taaffe FCA CTA DChA.
The auditor was BWM.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 11 -
13
Events after the reporting date
Since the year end the emergence of the Covid-19 infection has impacted on operations and the company’s supply chain. The company has been able to continuing trading throughout the lockdown and action has been taken to protect the workers by organising homeworking wherever possible and observing social distancing and strict hygiene arrangements in the workplace. It is too early to assess what overall impact the pandemic will have on the business but the company has already seen some customers being forced to defer delivery dates due to lockdowns closing their premises and some difficulties in obtaining components from suppliers both in the UK and overseas. The directors are cautiously optimistic that the effect will be limited if the lockdown of business is eased and will be able to cover any shortfalls in cashflows by using the Government emergency funding schemes.
14
Related party transactions
Transactions with related parties
The company has taken advantage of the disclosure exemptions to which it is entitled regarding transactions with its parent, subsidiary and other 100% owned subsidiary companies within the group.
15
Directors' transactions
The company paid dividends during the year to Chris Chadwick, a director, of £17,070 (2018 - £34,140).
2019-09-30
2018-10-01
false
24 June 2020
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
This audit opinion is unqualified
J R C Chadwick
P T L Hilbert
P A Hine
Mr B Kerfoot
Newfield Trust Services Limited
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