Company registration number 06776129 (England and Wales)
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
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 - 10
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,333,853
1,094,440
Current assets
Stocks
917,452
751,795
Debtors
5
792,665
696,144
Cash at bank and in hand
13,191
100,999
1,723,308
1,548,938
Creditors: amounts falling due within one year
6
(226,539)
(192,635)
Net current assets
1,496,769
1,356,303
Total assets less current liabilities
2,830,622
2,450,743
Creditors: amounts falling due after more than one year
8
(492,819)
(519,857)
Provisions for liabilities
9
(158,915)
(77,437)
Net assets
2,178,888
1,853,449
Capital and reserves
Called up share capital
200
200
Share premium account
50,000
50,000
Revaluation reserve
341,939
143,671
Profit and loss reserves
1,786,749
1,659,578
Total equity
2,178,888
1,853,449
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 and in accordance with the provisions of FRS 102 Section 1A small entities.
The financial statements were approved by the board of directors and authorised for issue on 30 June 2023 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 2022
- 2 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 October 2020
200
50,000
94,607
1,776,562
1,921,369
Year ended 30 September 2021:
Loss for the year
-
-
-
(116,984)
(116,984)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
60,573
-
60,573
Tax relating to other comprehensive income
-
-
(11,509)
(11,509)
Total comprehensive income for the year
49,064
(116,984)
(67,920)
Balance at 30 September 2021
200
50,000
143,671
1,659,578
1,853,449
Year ended 30 September 2022:
Profit for the year
-
-
-
127,171
127,171
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
278,547
-
278,547
Tax relating to other comprehensive income
-
-
(80,279)
(80,279)
Total comprehensive income for the year
-
-
198,268
127,171
325,439
Balance at 30 September 2022
200
50,000
341,939
1,786,749
2,178,888
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 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 Riverbank Road, Bromborough, Wirral, CH62 3JQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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
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.
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
10% reducing balance
Computer equipment
33.3% straight line
Motor vehicles
25% reducing balance
Moulds
10% straight line
Freehold land and assets in the course of construction are not depreciated.
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.
All assets which have a net book value of £500 or less are fully depreciated within the year.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
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.
1.7
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.
1.8
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.
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.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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 is 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.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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 between 1% and 2.5% of turnover.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset received 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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
The financial statements have been prepared on the assumption that group relief will be used to facilitate the transfer of corporation tax losses between companies in the group. No compensation is made in respect of any loss relief between companies.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
25
29
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
(Continued)
- 7 -
3
Taxation
2022
2021
£
£
Deferred tax
Origination and reversal of timing differences
1,199
(3,214)
Tax losses totalling £nil (2021 - £73,101) are available to carry forward against future profits of the same trade. No deferred tax asset was provided in respect of the prior year losses as recovery was uncertain.
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 October 2021
1,000,000
307,004
1,307,004
Additions
3,663
3,663
Revaluation
250,000
250,000
At 30 September 2022
1,250,000
310,667
1,560,667
Depreciation and impairment
At 1 October 2021
8,548
204,016
212,564
Depreciation charged in the year
20,000
22,798
42,798
Eliminated on revaluation
(28,548)
(28,548)
At 30 September 2022
226,814
226,814
Carrying amount
At 30 September 2022
1,250,000
83,853
1,333,853
At 30 September 2021
991,452
102,988
1,094,440
Freehold Land and buildings were revalued at £1.25m on 10 January 2023 by Lambert Smith Hampton, independent valuers (not connected with the company) on the basis of market value. The valuation conformed to the Royal Institution of Chartered Surveyors (RICS) Valuation Guidance Standards - Red Book Global Standards.
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:
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
4
Tangible fixed assets
(Continued)
- 8 -
2022
2021
£
£
Cost
944,843
944,843
Accumulated depreciation
(134,030)
(115,133)
Carrying value
810,813
829,710
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
541,626
161,365
Amounts owed by group undertakings
207,037
498,204
Other debtors
44,002
36,575
792,665
696,144
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
25,683
28,172
Trade creditors
150,527
112,230
Taxation and social security
12,353
13,370
Other creditors
37,976
38,863
226,539
192,635
7
Loans and overdrafts
2022
2021
£
£
Bank loans
518,502
548,029
Payable within one year
25,683
28,172
Payable after one year
492,819
519,857
This loan is secured by a fixed legal charge over the company's property and by a floating charge over all property or undertaking of the company.
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 9 -
8
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
7
492,819
519,857
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
5,627
Payable other than by instalments
-
384,708
390,335
9
Provisions for liabilities
2022
2021
£
£
Warranty provision
25,000
25,000
Deferred tax liabilities
10
133,915
52,437
158,915
77,437
Movements on provisions apart from deferred tax liabilities:
Warranty provision
£
At 1 October 2021 and 30 September 2022
25,000
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
19,935
18,736
Revaluations
113,980
33,701
133,915
52,437
SPECIALISED INFLATABLE TECHNOLOGY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
10
Deferred taxation
(Continued)
- 10 -
2022
Movements in the year:
£
Liability at 1 October 2021
52,437
Charge to equity
81,478
Liability at 30 September 2022
133,915
11
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.
Senior Statutory Auditor:
Mr Richard Johnson BSc FCA
Statutory Auditor:
BWM
12
Financial commitments, guarantees and contingent liabilities
A cross-guarantee in respect of bank borrowings is in place between the company, its fellow subsidiary undertaking MST Special Products Limited and its parent undertaking Marine Specialised Technology Limited.
13
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.
14
Parent company
The Company's immediate and ultimate controlling party is Marine Specialised Technology Limited, which is incorporated in England and Wales.
2022-09-302021-10-01false30 June 2023CCH SoftwareCCH Accounts Production 2023.100No description of principal activityThis audit opinion is unqualifiedP T L HilbertP A HineMr B KerfootNewfield Trust Services Limited2023-06-30067761292021-10-012022-09-30067761292022-09-30067761292021-09-3006776129core:LandBuildings2022-09-3006776129core:OtherPropertyPlantEquipment2022-09-3006776129core:LandBuildings2021-09-3006776129core:OtherPropertyPlantEquipment2021-09-3006776129core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3006776129core:CurrentFinancialInstrumentscore:WithinOneYear2021-09-3006776129core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3006776129core:Non-currentFinancialInstrumentscore:AfterOneYear2021-09-3006776129core:CurrentFinancialInstruments2022-09-3006776129core:CurrentFinancialInstruments2021-09-3006776129core:Non-currentFinancialInstrumentscore:MoreThanFiveYears2022-09-3006776129core:Non-currentFinancialInstrumentscore:MoreThanFiveYears2021-09-3006776129core:ShareCapital2022-09-3006776129core:ShareCapital2021-09-3006776129core:SharePremium2022-09-3006776129core:SharePremium2021-09-3006776129core:RevaluationReserve2022-09-3006776129core:RevaluationReserve2021-09-3006776129core:RetainedEarningsAccumulatedLosses2022-09-3006776129core:RetainedEarningsAccumulatedLosses2021-09-3006776129core:ShareCapital2020-09-3006776129core:SharePremium2020-09-3006776129core:RevaluationReserve2020-09-3006776129core:RetainedEarningsAccumulatedLosses2020-09-30067761292020-09-3006776129bus:Director32021-10-012022-09-3006776129core:RetainedEarningsAccumulatedLosses2020-10-012021-09-30067761292020-10-012021-09-3006776129core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3006776129core:RevaluationReserve2021-10-012022-09-3006776129core:RevaluationReserve2020-10-012021-09-3006776129core:RevenueReservesInvestmentFundsOnly2020-10-012021-09-3006776129core:ShareCapital2020-10-012021-09-3006776129core:SharePremium2020-10-012021-09-3006776129core:LandBuildingscore:OwnedOrFreeholdAssets2021-10-012022-09-3006776129core:PlantMachinery2021-10-012022-09-3006776129core:FurnitureFittings2021-10-012022-09-3006776129core:ComputerEquipment2021-10-012022-09-3006776129core:MotorVehicles2021-10-012022-09-3006776129core:LandBuildings2021-09-3006776129core:OtherPropertyPlantEquipment2021-09-30067761292021-09-3006776129core:LandBuildings2021-10-012022-09-3006776129core:OtherPropertyPlantEquipment2021-10-012022-09-3006776129core:WithinOneYear2022-09-3006776129core:WithinOneYear2021-09-3006776129core:Non-currentFinancialInstruments2022-09-3006776129core:Non-currentFinancialInstruments2021-09-3006776129bus:PrivateLimitedCompanyLtd2021-10-012022-09-3006776129bus:SmallCompaniesRegimeForAccounts2021-10-012022-09-3006776129bus:FRS1022021-10-012022-09-3006776129bus:Audited2021-10-012022-09-3006776129bus:Director12021-10-012022-09-3006776129bus:Director22021-10-012022-09-3006776129bus:CompanySecretary12021-10-012022-09-3006776129bus:FullAccounts2021-10-012022-09-30xbrli:purexbrli:sharesiso4217:GBP