|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 |
|
FOR |
|
ASHVIN METALS LTD |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
|
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019 |
|
FOR |
|
ASHVIN METALS LTD |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
|
|
|
|
|
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 March 2019 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Directors | 4 |
|
Report of the Independent Auditors | 6 |
|
Income Statement | 8 |
|
Balance Sheet | 9 |
|
Statement of Changes in Equity | 10 |
|
Cash Flow Statement | 11 |
|
Notes to the Cash Flow Statement | 12 |
|
Notes to the Financial Statements | 13 |
|
ASHVIN METALS LTD |
|
COMPANY INFORMATION |
for the year ended 31 March 2019 |
|
|
|
|
|
|
|
DIRECTORS: |
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
AUDITORS: |
|
Statutory Auditors |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
|
|
|
BANKERS: |
|
1 Churchill Place |
London |
E14 5HP |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
STRATEGIC REPORT |
for the year ended 31 March 2019 |
|
The directors present their strategic report for the year ended 31 March 2019. |
|
REVIEW OF BUSINESS |
The year to 31 March 2019 has been a challenging year with Ashvin Metals Ltd attempting to build on the results |
achieved in the previous year whilst uncertainty in the market continued. The Company invested significantly in new |
Plant and Machinery with additions of £917,635 and two additional members of staff. The machinery will be used to |
provide additional processing capabilities and increase the volumes of non-ferrous metals handled in the year to 31 |
March 2019 and for future years. |
|
Turnover increased by £350,000 (0.9%) to £38.40 million in comparison to the previous year (2018 - £38.05 million) |
which was in line with directors' expectations. This was achieved through trading increased volumes of higher value |
metals. The resulting Gross Profit of £2.89 million in 2019 was also an improvement on 2018 (£2.74 million) with a |
slight increase in Gross Profit Margin to 7.54% (2018 - 7.20%). |
|
However, Operating Profit was reduced to £1.32 million in 2019 (2018 - £1.39 million) due to an increase in overhead |
expenses of £253,930. This was the result of increased staff costs, insurance expenditure, a significant bad debt and |
additional depreciation charges in respect of the new machinery. |
|
Staff costs were increased due to the two additional employees and an increase in wage rates together with the associated |
costs. |
|
Insurance costs increased as a result of the additional premiums due to the increase in trading activity. |
|
The bad debt incurred of c.£62,000 was the result of overtrading with one customer that wasn't fully covered by the |
credit insurance policy. Traders are now ensuring they remain within the credit limits advised by our underwriter. |
|
The market in which the Company operates remains highly competitive both in the UK and Internationally. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors of the Company face a number of business risks and uncertainties when operating the Company. The main |
risks of the business are as follows. |
|
Exposure to Commodity Price Movements - As the price of non-ferrous scrap metal is directly linked to metal prices |
quoted on the London Metal Exchange (LME), the Company is exposed to the risk of price fluctuation. Worldwide |
metal markets have been affected by a number of macro-economic factors such as the current trade war between China |
and the United States of America and Brexit. |
|
The directors have operated within the metals sector for a number of years and constantly monitor market prices to |
ensure any price movements are reflected accordingly. The directors do not speculate on the movement of market prices. |
|
Metals Price Movements - As metal prices are linked to the LME, the Company is exposed to metals price movements |
for stock held and future sales orders obtained. To mitigate this, the directors use a hedging facility to cover large |
fluctuations in metal prices. The directors do not use the facility to speculate on market price movements. |
|
Credit Risk- The directors have insured the Company's trade debtor balances during the year to mitigate the risk of bad |
debt. The directors obtain an approved level of credit from the insurance underwriter and where possible attempt to trade |
within these limits. Trading with customers above their insured limit must be approved by the directors of Ashvin Metals |
Ltd. |
|
Exchange Rate Risk - With the Company's growth strategy being implemented and the level of export sales trading in |
Euros and US Dollar currencies has increased. To mitigate currency fluctuations, the Company hedges its foreign |
currency sales using forward rates obtained for the date of receipt of monies from customers. Exchange rates differences |
are not significant. |
|
Industry Related Regulations - The directors of Ashvin Metals Ltd ensure the company complies with all scrap and |
waste sector regulations and legislation maintaining all relevant licences and permits. |
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
STRATEGIC REPORT |
for the year ended 31 March 2019 |
|
KEY PERFORMANCE INDICATORS |
The directors monitor volumes of scrap metal traded, monthly sales levels and gross profit on a monthly basis. Working |
capital availability is monitored to manage the business on a daily basis. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
REPORT OF THE DIRECTORS |
for the year ended 31 March 2019 |
|
The directors present their report with the financial statements of the company for the year ended 31 March 2019. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of non-ferrous metal traders. |
|
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2019. |
|
FUTURE DEVELOPMENTS |
The directors aim to increase the trading volumes of non-ferrous metals and improve the efficiencies within the business. |
They are aware of the competitive business environment that the Company operates in and continue to explore new |
opportunities to enhance the financial position of the Company. The Company is in a strong financial position and |
controls the business to mitigate its exposure to operational risks. |
|
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report. |
|
|
|
|
|
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. |
|
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). 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: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will
continue in business. |
|
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. |
|
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. |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
REPORT OF THE DIRECTORS |
for the year ended 31 March 2019 |
|
|
AUDITORS |
The auditors, Jones Harris Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ASHVIN METALS LTD |
|
Opinion |
We have audited the financial statements of Ashvin Metals Ltd (the 'company') for the year ended 31 March 2019 which |
comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash |
Flow Statement and Notes to the Cash Flow Statement, 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). |
|
In our opinion the financial statements: |
- |
give a true and fair view of the state of the company's affairs as at 31 March 2019 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. |
|
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. |
|
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
- |
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
- |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
|
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. |
|
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. |
|
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or |
apparent material misstatements, we are required to determine whether there is a material misstatement in the financial |
statements or a material misstatement of the other information. If, based on the work we have performed, we conclude |
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to |
report in this regard. |
|
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 |
ASHVIN METALS LTD |
|
|
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. |
|
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. |
|
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
|
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. |
|
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. |
|
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. |
|
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. |
|
|
|
|
|
for and on behalf of
|
Statutory Auditors |
17 St Peters Place |
Fleetwood |
Lancashire |
FY7 6EB |
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
INCOME STATEMENT |
for the year ended 31 March 2019 |
|
2019 | 2018 |
Notes | £ | £ |
|
REVENUE | 3 |
|
|
|
Cost of sales |
|
|
GROSS PROFIT |
|
|
|
Administrative expenses |
|
|
1,292,733 | 1,392,488 |
|
Other operating income |
|
|
OPERATING PROFIT | 5 |
|
|
|
Interest receivable and similar income |
|
|
1,327,002 | 1,400,843 |
|
Interest payable and similar expenses | 6 |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 7 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
BALANCE SHEET |
31 March 2019 |
|
2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 8 |
|
|
|
CURRENT ASSETS |
Inventories | 9 |
|
|
Debtors | 10 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 11 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CREDITORS |
Amounts falling due after more than one
year |
12 |
( |
) |
( |
) |
|
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 17 |
|
|
Retained earnings | 18 |
|
|
SHAREHOLDERS' FUNDS |
|
|
|
The financial statements were approved by the Board of Directors on
by: |
|
|
|
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2019 |
|
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
|
Balance at 1 April 2017 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 31 March 2018 |
|
|
|
|
Changes in equity |
Total comprehensive income | - |
|
|
Balance at 31 March 2019 |
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
CASH FLOW STATEMENT |
for the year ended 31 March 2019 |
|
2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
|
|
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments
paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
|
|
|
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
|
|
Interest received |
|
|
Net cash from investing activities | ( |
) | ( |
) |
|
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 991,291 | 125,587 |
Amount withdrawn by directors | (771,782 | ) | (768,391 | ) |
Net cash from financing activities |
|
( |
) |
|
Increase in cash and cash equivalents |
|
|
Cash and cash equivalents at beginning of
year |
2 |
336,441 |
(87,156 |
) |
|
Cash and cash equivalents at end of year | 2 | 542,555 | 336,441 |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE CASH FLOW STATEMENT |
for the year ended 31 March 2019 |
|
1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
|
|
Depreciation charges |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 63,266 | 74,195 |
Finance income | (8,309 | ) | (8,355 | ) |
1,484,928 | 1,530,623 |
Increase in inventories | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
|
Increase/(decrease) in trade and other creditors |
|
( |
) |
Cash generated from operations |
|
|
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these |
Balance Sheet amounts: |
|
Year ended 31 March 2019 |
31/3/19 | 1/4/18 |
£ | £ |
Cash and cash equivalents | 542,555 | 336,441 |
Year ended 31 March 2018 |
31/3/18 | 1/4/17 |
£ | £ |
Cash and cash equivalents | 336,441 | 109,190 |
Bank overdrafts |
|
( |
) |
336,441 | (87,156 | ) |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2019 |
|
1. | STATUTORY INFORMATION |
|
Ashvin Metals Ltd is a
|
registered number and registered office address can be found on the Company Information page. |
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
Revenue recognition |
Revenue is the amount derived from ordinary activities, and is measured at the fair value of the consideration |
received or receivable. Revenue is reduced for estimated customer returns, rebates and other similar allowances, |
and is stated net of VAT. |
|
Revenue from the sale of non-ferrous metals is recognised when all the following conditions are satisfied: |
|
- the company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
|
- 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 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. |
|
Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. |
|
Tangible fixed assets |
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment |
losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less |
estimated residual value, of each asset on a systematic basis over its expected useful life. The carrying values of |
tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying |
value may not be recoverable. |
|
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value |
of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the |
shorter. |
|
Short leasehold | Over the period of the lease |
Plant and machinery | 20% on reducing balance and 10% on reducing balance |
Fixtures and fittings | 20% on reducing balance |
Motor vehicles | 20% on reducing balance |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow |
moving items. |
|
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the |
related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of |
stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any |
reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an |
expense in the period in which the reversal occurs. |
|
Financial instruments |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are |
recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after |
more than one year or constitute a financing transaction are recorded initially at fair value less transaction costs |
and subsequently at amortised cost, net of impairment. |
|
Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term |
highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of |
financial position, bank overdrafts are shown within borrowings or current liabilities. |
|
Trade and other creditors are initially recognised at the transaction price and are therefore stated at amortised |
cost using the effective interest method unless the discounting would be immaterial, in which case they are stated |
at cost. |
|
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to |
initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the |
amount initially recognised and redemption value being recognised in the statement of comprehensive income |
over the period of the borrowings, together with any interest and fees payable, using the effective interest rate |
method. |
|
The company uses forward contracts to reduce exposure to price rate changes of non-ferrous metals. Derivatives |
are initially recognised at fair value on the date a derivative contract is entered into and are subsequently |
re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit and loss. The |
company does not currently apply hedge accounting for any derivatives. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
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. |
|
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held |
under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases |
are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
|
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element |
of the future payments is treated as a liability. |
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease |
|
Pension costs and other post-retirement benefits |
The Company operates defined contribution pension schemes for employees and directors. Contributions |
payable to the company's pension schemes are charged to profit or loss in the period to which they relate |
|
Short term debtors and creditors receivable |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising |
from impairment are recognised in the profit and loss account. |
|
3. | REVENUE |
|
The revenue and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of revenue by geographical market is given below: |
|
2019 | 2018 |
£ | £ |
United Kingdom |
|
|
Rest of world | 9,611,823 | 9,484,035 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
Administration | 9 | 8 |
Yard management | 10 | 9 |
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
|
|
Auditors' remuneration for non audit work |
|
|
Foreign exchange differences | ( |
) |
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Hire purchase |
|
|
Other loan interest |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2018 - 19%). |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2018 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax | 43,656 | 26,831 |
Total tax charge | 215,392 | 270,400 |
|
8. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Short | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
( |
) |
|
|
( |
) |
At 31 March 2019 |
|
|
|
|
|
DEPRECIATION |
At 1 April 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
( |
) |
|
|
( |
) |
At 31 March 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 31 March 2019 |
|
|
|
|
|
At 31 March 2018 |
|
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
8. | PROPERTY, PLANT AND EQUIPMENT - continued |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2018 |
|
|
|
Additions |
|
|
|
At 31 March 2019 |
|
|
|
DEPRECIATION |
At 1 April 2018 |
|
|
|
Charge for year |
|
|
|
At 31 March 2019 |
|
|
|
NET BOOK VALUE |
At 31 March 2019 |
|
|
|
At 31 March 2018 |
|
|
|
|
9. | INVENTORIES |
2019 | 2018 |
£ | £ |
Stocks |
|
|
|
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Other debtors |
|
|
Directors' current accounts | 7,671 | - |
VAT |
|
|
Prepayments |
|
|
|
|
|
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Hire purchase contracts (see note 14) |
|
|
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Directors' current accounts | 650,755 | 423,575 |
Accruals and deferred income |
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Loan from related party (see note 13) |
|
|
Hire purchase contracts (see note 14) |
|
|
Directors' loan accounts | 500,000 | 500,000 |
|
|
|
13. | LOANS |
|
The related party loan was provided by Mr B and Mrs M Dixon, parents of one of the directors. The loan is |
unsecured and interest only until the redemption date of October 2020. Interest is charged at 4% per annum. |
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Hire purchase contracts |
2019 | 2018 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Non-cancellable operating |
leases |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
Lease payments recognised as an expense are £62,600 (2018: £62,600). |
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2019 | 2018 |
£ | £ |
Hire purchase | 31,346 | 39,201 |
Other loans | 1,150,754 | 900,000 |
|
|
|
The other loans above include loan facilities provided by a director, Mr J Howarth and his wife, Mrs N Howarth |
which are secured by second fixed and floating charges over the assets of the company. |
|
The hire purchase contract loans are secured by charges on the assets to which they relate. |
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
16. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax | 191,820 | 148,164 |
|
Deferred |
tax |
£ |
Balance at 1 April 2018 |
|
Charge to Income Statement during year |
|
Balance at 31 March 2019 |
|
|
17. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary A | 1 | 1,020 | 1,020 |
|
Ordinary B | 1 | 980 | 980 |
2,000 | 2,000 |
|
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to |
one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's |
residual assets. |
|
Called-up share capital represents the nominal value of shares that have been issued. |
|
18. | RESERVES |
Retained |
earnings |
£ |
|
At 1 April 2018 |
|
Profit for the year |
|
At 31 March 2019 |
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 31 March 2019 and |
31 March 2018: |
|
2019 | 2018 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts advanced |
|
|
Amounts repaid |
|
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
The advance to the director is unsecured and repayable on demand. Interest is being charged at the HMRC rate |
for beneficial loan arrangements. The loan was repaid in full in May 2019. |
|
20. | RELATED PARTY DISCLOSURES |
|
|
2019 | 2018 |
£ | £ |
Movement on directors loan accounts | (219,509 | ) | 578,759 |
Amount due from related party |
|
|
Amount due to related party |
|
|
|
|
ASHVIN METALS LTD (REGISTERED NUMBER: 07723962) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2019 |
|
|
|
Inglemere Metals (Blackpool) Limited |
2019 | 2018 |
£ | £ |
Sales to related party | 9,897 | 172,600 |
Purchases from related party | 720,303 | 698,670 |
|
Amount due to related party | 112,519 | 2,987 |
|
Mr B & Mrs M Dixon |
2019 | 2018 |
£ | £ |
Loan facility from Mr & Mrs Dixon | 500,000 | 500,000 |
(Parents of one of the directors) |
Interest paid to Mr & Mrs Dixon | 21,000 | 20,000 |
|
The loan is unsecured and is due after more than one year. Interest on the facility is charged at 4% per annum. |
|
Pension Fund |
2019 | 2018 |
£ | £ |
Rent paid to pension fund | 50,000 | 50,000 |