Company No:
Contents
Note | 31.12.20 | 31.12.19 | ||
£ | £ | |||
Fixed assets | ||||
Tangible assets | 3 |
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Investments | 4 |
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52,574 | 21,912 | |||
Current assets | ||||
Stocks |
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Debtors | ||||
- due within one year | 5 |
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- due after more than one year | 5 |
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Cash at bank and in hand |
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2,107,537 | 2,521,863 | |||
Creditors | ||||
Amounts falling due within one year | 6 | (
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Net current assets | 1,087,717 | 1,110,266 | ||
Total assets less current liabilities | 1,140,291 | 1,132,178 | ||
Provisions for liabilities | 7 | (
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Net assets |
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Capital and reserves | ||||
Called-up share capital | 8 |
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Profit and loss account |
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Total shareholder's funds |
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Directors' responsibilities:
The financial statements of Online Valves Limited (registered number:
David John Sim
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Online Valves Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Unit 11 Ashley Base Pitmedden Road, Dyce, Aberdeen, AB21 0DP, Scotland, United Kingdom.
The financial statements have been prepared under the historical cost convention, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.
The company had net current assets of £1,087,717 (2019 - £1,110,266) at the year end. Included in this amount is amounts due both to and from group and related parties, which will not be repaid to the detriment of the company's creditors. It should be noted that within net current assets is an inter-company balance of £1,075,951 that will not be received within one year.
The company made use of government support during the COVID-19 pandemic but has been able to continue trading during the period by taking appropriate measures to protect both staff and the business. Whilst the full impact of COVID-19 has not yet been determined on the trade, the directors are confident these measures will mitigate the impact post year end. The company operated within its overdraft facilities and has continued to do so post year end.
Therefore, on this basis, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.
Short term benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Land and buildings |
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years | Straight line | |||
Plant and machinery etc. |
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years | Straight line |
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.
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.
Non-financial assets
Financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank overdrafts and loans from fellow group companies, are recognised at transaction price.
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 at transaction price.
Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
31.12.20 | 31.12.19 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Land and buildings | Plant and machinery etc. | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 January 2020 |
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Additions |
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Disposals |
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At 31 December 2020 |
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Accumulated depreciation | |||||
At 01 January 2020 |
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Charge for the financial year |
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Disposals |
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At 31 December 2020 |
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Net book value | |||||
At 31 December 2020 |
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At 31 December 2019 |
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31.12.20 | 31.12.19 | ||
£ | £ | ||
Subsidiary undertakings |
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Investments in subsidiaries
31.12.20 | |
£ | |
Cost | |
At 01 January 2020 |
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Additions |
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At 31 December 2020 |
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Carrying value at 31 December 2020 |
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Carrying value at 31 December 2019 |
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Investments in shares
Name of entity | Registered office | Nature of business | Class of shares |
Ownership 31.12.2020 |
Ownership 31.12.2019 |
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United States of America | Supply of valves and pipeline equipment |
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Dubai | Supply of valves and pipeline equipment |
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31.12.20 | 31.12.19 | ||
£ | £ | ||
Debtors: amounts falling due within one year | |||
Trade debtors |
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Deferred tax asset |
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Other debtors |
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Debtors: amounts falling due after more than one year | |||
Amounts owed by Parent undertakings |
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31.12.20 | 31.12.19 | ||
£ | £ | ||
Bank loans and overdrafts (secured) |
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Trade creditors |
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Amounts owed to own subsidiaries |
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Amounts owed to related parties |
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Other creditors |
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Corporation tax | (
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Other taxation and social security |
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31.12.20 | 31.12.19 | ||
£ | £ | ||
Deferred tax |
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31.12.20 | 31.12.19 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Other financial commitments
31.12.20 | 31.12.19 | ||
£ | £ | ||
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The commitment noted above relates to the rental of premises by the company and no security is held in respect of this.
Transactions with owners holding a participating interest in the entity
31.12.20 | 31.12.19 | ||
£ | £ | ||
Amounts owed by related parties | 202,590 | 0 |
The amounts disclosed above are interest free and there are no fixed terms of repayment. During the period, no further transactions were undertaken with this related party, which is related through ownership by the director.
The company has taken advantage of FRS 102 Section 33 (Related party disclosures) which allows exemption from disclosure of related party transactions with other group companies.
The company's ultimate controlling party is David Sim.