Company Registration No. SC105407 (Scotland)
KELVINSIDE ELECTRONICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
KELVINSIDE ELECTRONICS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
KELVINSIDE ELECTRONICS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr I Ferguey
Mr D Baird
Secretary
Mr D Baird
Company number
SC105407
Registered office
2 Gavell Road
Kilsyth
Glasgow
Scotland
G65 9BS
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
United Kingdom
G2 2LB
Business address
2 Gavell Road
Kilsyth
Glasgow
Scotland
G65 9BS
KELVINSIDE ELECTRONICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 2 -
The directors present the strategic report for the year ended 30 November 2019.
Fair review of the business
The company generated an operating profit of £1,406,358 during the year (2018: £513,492). At the year end the company had shareholders funds of £3,244,847 (2018: £2,132,081) including distributable profits of £3,168,595(2018: £2,055,829). The directors therefore believe the Company's position to be satisfactory.
The directors have seen continuing satisfactory trading results in the year following the accounting period and expect these to continue going forward.
COVID-19
At the time of signing the financial statements, there has been no material impact to the company as a result of the COVID-19 pandemic. The Directors has been able to adapt its practices to helped mitigate the effects of the pandemic. The welfare of our customers and staff remains the Directors’ top priority.
Brexit
The transitional arrangements with the EU ended 31 December 2020 and the Directors have been working with the company's suppliers and customers to help mitigate the impact of the regulatory changes. The Directors are confident that the company is well placed to continue to thrive through these changes and will be able to deal with any issues as they arise.
Principal risks and uncertainties
The directors have assessed the main risk facing the company as being the competition from other companies within the industry. The directors believe that the reputation of the company and the quality of the products will mitigate this risk.
Key performance indicators
As with many other businesses, the Directors of the Company use a number of key performance indicators to assess performance of the company. Those regularly reviewed are:
KELVINSIDE ELECTRONICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 3 -
Other information and explanations
The company finances its operations through a mixture of retained profits and operational bank accounts, and where necessary to fund expansion or capital expenditure programmes through bank borrowings and hire purchase. The management's objectives are to:
-
retain sufficient liquid funds to enable the company to meet its day to day obligations as they fall due whilst maximising returns on surplus funds;
-
minimise the company's exposure to exchange rate fluctuations by using a mixture of forward contracts and foreign currency bank accounts
The company is exposed to the normal credit risk associated with dealing with customers on commercial credit terms.
The company is exposed to the normal exchange rate risk associated with dealing with foreign suppliers on commercial credit terms.
Mr I Ferguey
Director
17 May 2021
KELVINSIDE ELECTRONICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 4 -
The directors present their annual report and financial statements for the year ended 30 November 2019.
Principal activities
The principal activity of the company continued to be
that of designing, manufacturing and repairing electronic equipment.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I Ferguey
Mr D Baird
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
The auditor, Consilium Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
KELVINSIDE ELECTRONICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 5 -
On behalf of the board
Mr I Ferguey
Director
KELVINSIDE ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KELVINSIDE ELECTRONICS LIMITED
- 6 -
Opinion
We have audited the financial statements of Kelvinside Electronics Limited (the 'company') for the year ended 30 November 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 November 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.
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
Auditor's
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
KELVINSIDE ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELVINSIDE ELECTRONICS LIMITED
- 7 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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 an auditor’s report 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: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
KELVINSIDE ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KELVINSIDE ELECTRONICS LIMITED
- 8 -
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 an auditor's report 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.
David Holt (Senior Statutory Auditor)
for and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
United Kingdom
G2 2LB
Date:
17 May 2021
KELVINSIDE ELECTRONICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 9 -
2019
2018
Notes
£
£
Turnover
3
10,312,394
8,315,587
Cost of sales
(6,155,299)
(5,526,025)
Gross profit
4,157,095
2,789,562
Administrative expenses
(2,750,737)
(2,276,070)
Operating profit
4
1,406,358
513,492
Interest receivable and similar income
7
2,414
896
Interest payable and similar expenses
8
(20,206)
63,781
Profit before taxation
1,388,566
578,169
Tax on profit
9
(275,800)
244,306
Profit for the financial year
1,112,766
822,475
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KELVINSIDE ELECTRONICS LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2019
30 November 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
306,842
305,635
Current assets
Stocks
12
3,464,010
2,644,871
Debtors
13
3,083,421
5,226,717
Cash at bank and in hand
625,035
284,148
7,172,466
8,155,736
Creditors: amounts falling due within one year
14
(3,828,773)
(6,283,964)
Net current assets
3,343,693
1,871,772
Total assets less current liabilities
3,650,535
2,177,407
Creditors: amounts falling due after more than one year
15
(362,414)
Provisions for liabilities
17
(43,274)
(45,326)
Net assets
3,244,847
2,132,081
Capital and reserves
Called up share capital
21
6,579
6,579
Share premium account
65,923
65,923
Capital redemption reserve
3,750
3,750
Profit and loss reserves
3,168,595
2,055,829
Total equity
3,244,847
2,132,081
The financial statements were approved by the board of directors and authorised for issue on 17 May 2021 and are signed on its behalf by:
Mr I Ferguey
Director
Company Registration No. SC105407
KELVINSIDE ELECTRONICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 December 2017
6,579
65,923
3,750
2,083,354
2,159,606
Year ended 30 November 2018:
Profit and total comprehensive income for the year
-
-
-
822,475
822,475
Dividends
10
-
-
-
(850,000)
(850,000)
Balance at 30 November 2018
6,579
65,923
3,750
2,055,829
2,132,081
Year ended 30 November 2019:
Profit and total comprehensive income for the year
-
-
-
1,112,766
1,112,766
Balance at 30 November 2019
6,579
65,923
3,750
3,168,595
3,244,847
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 12 -
1
Accounting policies
Company information
Kelvinside Electronics Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
2 Gavell Road, Kilsyth, Glasgow, Scotland, G65 9BS. The company's registration number is SC105407.
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.
The financial statements are prepared in
sterling
, which is the functional
and presentational
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Kelvinside Electronics (Number 1) Limited
. These consolidated financial statements are available from its registered office
,
2 Gavell Road, Kilsyth, Glasgow, G65 9BS.
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 13 -
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:
Plant and equipment
15% on cost
Fixtures and fittings
20% on cost
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
.
1.5
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
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
Work in progress
Work in progress is valued on the basis of direct material and labour costs plus attributable overheads based on a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
1.7
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.
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 14 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
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.
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 15 -
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.13
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.
1.14
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.
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant
effect on amounts recognised in the financial statement
s:
-
Determine the basis of recognising income. The Company recognises revenue when the amount can be measured reliably; it is probable that future economic benefit will flow to the Company and the Company has fulfilled its contractual obligations.
-
Determine whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
-
Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
-
Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.
-
Determine whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis. Factors considered include stock obsolescence, stock turnover and stock condition.
3
Turnover and other revenue
2019
2018
£
£
Other significant revenue
Interest income
2,414
896
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
10,234,465
8,147,019
Overseas
77,929
168,568
10,312,394
8,315,587
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 17 -
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
8,228
11,587
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
16,000
Depreciation of owned tangible fixed assets
72,206
65,192
Operating lease charges
7,133
4,644
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Production staff
57
59
Administative staff
7
9
Management staff
2
2
Total
66
70
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,671,405
1,564,279
Social security costs
156,867
22,265
Pension costs
187,024
70,947
2,015,296
1,657,491
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
197,315
329,960
Company pension contributions to defined contribution schemes
40,000
237,315
329,960
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2018 - 1).
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
n/a
197,305
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
2,414
896
8
Interest payable and similar expenses
2019
2018
£
£
Other interest
20,206
(63,781)
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
276,740
34,765
Adjustments in respect of prior periods
1,112
(292,741)
Total current tax
277,852
(257,976)
Deferred tax
Origination and reversal of timing differences
(2,052)
13,670
Total tax charge/(credit)
275,800
(244,306)
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
9
Taxation
(Continued)
- 19 -
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,388,566
578,169
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
263,828
109,852
Tax effect of expenses that are not deductible in determining taxable profit
7,358
754
Adjustments in respect of prior years
(354,153)
Depreciation on assets not qualifying for tax allowances
984
Under/(over) provided in prior years
1,112
Deferred tax adjustments in respect of prior years
2,518
(759)
Taxation charge/(credit) for the year
275,800
(244,306)
10
Dividends
2019
2018
£
£
Final paid
850,000
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Total
£
£
£
Cost
At 1 December 2018
1,992,598
258,743
2,251,341
Additions
38,279
35,134
73,413
At 30 November 2019
2,030,877
293,877
2,324,754
Depreciation and impairment
At 1 December 2018
1,693,476
252,230
1,945,706
Depreciation charged in the year
65,323
6,883
72,206
At 30 November 2019
1,758,799
259,113
2,017,912
Carrying amount
At 30 November 2019
272,078
34,764
306,842
At 30 November 2018
299,122
6,513
305,635
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 20 -
12
Stocks
2019
2018
£
£
Raw materials and consumables
2,977,721
2,198,067
Work in progress
40,500
40,500
Finished goods and goods for resale
445,789
406,304
3,464,010
2,644,871
13
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,892,989
2,911,628
Other debtors
146,990
2,275,265
Prepayments and accrued income
43,442
39,824
3,083,421
5,226,717
14
Creditors: amounts falling due within one year
2019
2018
Notes
£
£
Other borrowings
16
2,412
Trade creditors
1,467,215
1,632,377
Amounts owed to group undertakings
1,001,073
550,826
Corporation tax
276,740
34,765
Other taxation and social security
873,303
4,004,453
Government grants
19
1,489
Accruals and deferred income
206,541
61,543
3,828,773
6,283,964
15
Creditors: amounts falling due after more than one year
2019
2018
Notes
£
£
Other borrowings
16
15,477
Taxation and social security
342,044
Government grants
19
4,893
362,414
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 21 -
16
Loans and overdrafts
2019
2018
£
£
Other loans
17,889
Payable within one year
2,412
Payable after one year
15,477
The other loans are repayable by instalments evenly over 8 years and is interest free. The loan is unsecured.
17
Provisions for liabilities
2019
2018
Notes
£
£
Deferred tax liabilities
18
43,274
45,326
18
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
43,274
45,326
2019
Movements in the year:
£
Liability at 1 December 2018
45,326
Credit to profit or loss
(2,052)
Liability at 30 November 2019
43,274
The deferred tax liability set out above is expected to reverse within £2,052 and relates to accelerated capital allowances that are expected to mature within the same period.
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 22 -
19
Deferred grants
2019
2018
£
£
Arising from government grants
6,382
-
Deferred income is included in the financial statements as follows:
Current liabilities
1,489
Non-current liabilities
4,893
6,382
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
187,024
70,947
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
6,579 Ordinary of £1 each
6,579
6,579
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
8,816
4,375
Between two and five years
11,048
2,188
19,864
6,563
23
Related party transactions
KELVINSIDE ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
23
Related party transactions
(Continued)
- 23 -
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
No further transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
24
Ultimate controlling party
The
c
ompany was under the control of D Baird throughout the current and previous year by virtue of his interest in the issued share capital of the ultimate parent company, Kelvinside Electronics (Number 1) Limited.
The company is included within the consolidated financial statements of the ultimate parent company, Kelvinside Electronics (Number 1) Limited.
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