A & F Sprinklers Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 02029052 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

A & F SPRINKLERS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

J M Stansfield

Mrs L K Stansfield

D L Parker

J O Whitlock

D Parr

C Mooney

M J Stansfield

SECRETARY:

Mrs L K Stansfield

REGISTERED OFFICE:

Unit 4, Gorrels Way

Trans-Pennine Trading Estate

Rochdale

OL11 2PX

REGISTERED NUMBER:

02029052 (England and Wales)

AUDITORS:

Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

Barclays Bank Chambers

Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

The directors present their strategic report of the company and the group for the year ended

31 December 2017.

The principal activity of the company and its Southern Ireland subsidiary continues to be that of, the

design, installation, maintenance and servicing of fire sprinkler protection systems.

The 91% UK subsidiary is a manufacture of bespoke bracketry and supply of components for fire

sprinklers and other mechanical applications.

REVIEW OF BUSINESS

This full trading year saw a group turnover of £15.5m (2016: £16.5m) which is down on the previous

years projections.

An additional 11 employees (2016:10) were added to the to the workforce across the group during the

year.

The forecasts for the 2018 turnover are to be in the region of £15m - £17.5m

The future prospects remain encouraging as we endeavour to consolidate our position in the market.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks facing the group are the competitive environment in which the group trades, but efforts

are made to stay abridge of the industry and to react in a specific way when and if required.

EMPLOYEE INVOLVEMENT

The group keeps its employees upto date on the matters relevant to them via regular staff meetings.

The training and development of the staff is also important to the group. All staff are given an induction

when they start and their training needs are assessed and reviewed throughout the year.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The group's operations expose it to a variety of financial risks that include the effects of credit risk,

including that with cash and deposits. Customers are continually credit checked through our in-house

processes.

Cashflow Risk

The group operated primarily in the UK and Ireland and has a diverse range of customers. It operates

appropriate control over its debtors and creditor balance and therefore exposure to cashflow risk from

realising its working capital is small.

Credit Risk

The group's principal financial assets are cash and bank balances and trade debtors.

The group's credit risk is primarily attributable to its trade debtors. The amount in the balance sheet is

net of allowances for doubtful debts. The group has no significant concentration of credit risk, with

exposure spread over a number of counterparts and customers.

Liquidity Risk

The group's liquidity risk is primarily attributable to its trade debtors. The group has no significant

concentration of liquidity risk, with exposure spread over a number of counterparts and customers.

Exchange Rate Risk

Transactions on foreign currencies are recorded at the exchange rate ruling at the date of the

transaction.

Currency Risk

Due to new products being sourced from overseas we open ourselves up to currency risk. To minimise

the risk we hedge our currency with forward contracts.

ON BEHALF OF THE BOARD:

J M Stansfield - Director

20 July 2018

The directors present their report with the financial statements of the company and the group for the

year ended 31 December 2017.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2017 will be £ 149,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the

date of this report.

J M Stansfield

Mrs L K Stansfield

D L Parker

J O Whitlock

D Parr

C Mooney

M J Stansfield

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or

loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time

the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the

steps that he or she ought to have taken as a director in order to make himself or herself aware of any

relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Cresswells Accountants (UK) Limited Chartered Accountants and Statutory Auditors will be

proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J M Stansfield - Director

20 July 2018

Opinion

We have audited the financial statements of A & F Sprinklers Limited (the 'parent company') and its

subsidiaries (the 'group') for the year ended 31 December 2017 which comprise the Consolidated Income

Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance

Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity,

Consolidated Cash Flow Statement and Notes to the Consolidated 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).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2017 and of the group's 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

group 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 group'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 Group 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 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, 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.

Opinion 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its

environment obtained in the course of the audit, we have not identified material misstatements in the

Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the

parent 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 group or the parent company or to cease operations, or have no realistic alternative but to

do so.

Our 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.

Graham Roper BA FCA (Senior Statutory Auditor)

for and on behalf of Cresswells Accountants (UK) Limited

Chartered Accountants

and Statutory Auditors

Barclays Bank Chambers

Market Street

Hebden Bridge

West Yorkshire

HX7 6AD

20 July 2018

TURNOVER

3

15,540,883

16,543,386

Cost of sales

9,636,858

11,049,208

GROSS PROFIT

5,904,025

5,494,178

Administrative expenses

3,928,732

3,273,338

1,975,293

2,220,840

Other operating income

38,751

47,960

OPERATING PROFIT

5

2,014,044

2,268,800

Interest receivable and similar income

532

5,536

2,014,576

2,274,336

Interest payable and similar expenses

6

2,450

85

PROFIT BEFORE TAXATION

2,012,126

2,274,251

Tax on profit

7

388,862

455,375

PROFIT FOR THE FINANCIAL YEAR

1,623,264

1,818,876

Profit attributable to:

Owners of the parent

1,618,457

1,814,815

Non-controlling interests

4,807

4,061

1,623,264

1,818,876

PROFIT FOR THE YEAR

1,623,264

1,818,876

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,623,264

1,818,876

Total comprehensive income attributable to:

Owners of the parent

1,618,457

1,814,815

Non-controlling interests

4,807

4,061

1,623,264

1,818,876

FIXED ASSETS

Tangible assets

10

1,079,441

856,920

Investments

11

-

1,079,441

856,920

CURRENT ASSETS

Stocks

12

356,413

129,523

Debtors

13

2,298,733

2,394,940

Cash at bank and in hand

2,225,692

3,459,483

4,880,838

5,983,946

CREDITORS

Amounts falling due within one year

14

1,497,447

4,028,176

NET CURRENT ASSETS

3,383,391

1,955,770

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,462,832

2,812,690

CREDITORS

Amounts falling due after more than
one year

15

(168,004

)

(16,987

)

PROVISIONS FOR LIABILITIES

18

(121,079

)

(96,218

)

NET ASSETS

4,173,749

2,699,485

CAPITAL AND RESERVES

Called up share capital

19

10,018

Share premium

20

27,845

Retained earnings

20

4,128,309

2,658,852

SHAREHOLDERS' FUNDS

4,166,172

2,696,715

NON-CONTROLLING INTERESTS

21

7,577

2,770

TOTAL EQUITY

4,173,749

2,699,485

The financial statements were approved by the Board of Directors on 20 July 2018 and were signed on its

behalf by:

J M Stansfield - Director

D L Parker - Director

FIXED ASSETS

Tangible assets

10

982,041

795,575

Investments

11

171

982,212

795,746

CURRENT ASSETS

Debtors

13

2,427,444

2,440,350

Cash at bank

2,119,171

3,410,320

4,546,615

5,850,670

CREDITORS

Amounts falling due within one year

14

1,173,659

3,903,158

NET CURRENT ASSETS

3,372,956

1,947,512

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,355,168

2,743,258

CREDITORS

Amounts falling due after more than
one year

15

(153,137

)

-

PROVISIONS FOR LIABILITIES

18

(113,327

)

(89,334

)

NET ASSETS

4,088,704

2,653,924

CAPITAL AND RESERVES

Called up share capital

19

10,018

Share premium

20

27,845

Retained earnings

20

4,050,841

2,616,061

SHAREHOLDERS' FUNDS

4,088,704

2,653,924

Company's profit for the financial year

1,578,780

1,957,648

The financial statements were approved by the Board of Directors on 20 July 2018 and were signed on its
behalf by:

J M Stansfield - Director

D L Parker - Director

Called up

share

Retained

Share

capital

earnings

premium

£

Balance at 1 January 2016

10,018

2,144,037

27,845

Changes in equity

Dividends

-

(1,300,000

)

-

Total comprehensive income

-

1,818,876

-

Balance at 31 December 2016

10,018

2,662,913

27,845

Changes in equity

Dividends

-

(149,000

)

-

Total comprehensive income

-

1,623,264

-

Balance at 31 December 2017

10,018

4,137,177

27,845

Non-controlling

Total

interests

equity

£

Balance at 1 January 2016

2,181,900

(1,291

)

2,180,609

Changes in equity

Dividends

(1,300,000

)

-

(1,300,000

)

Total comprehensive income

1,818,876

4,061

1,822,937

Balance at 31 December 2016

2,700,776

2,770

2,703,546

Changes in equity

Dividends

(149,000

)

-

(149,000

)

Total comprehensive income

1,623,264

4,807

1,628,071

Balance at 31 December 2017

4,175,040

7,577

4,182,617

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

Balance at 1 January 2016

10,018

1,958,413

27,845

1,996,276

Changes in equity

Dividends

-

(1,300,000

)

-

(1,300,000

)

Total comprehensive income

-

1,957,648

-

1,957,648

Balance at 31 December 2016

10,018

2,616,061

27,845

2,653,924

Changes in equity

Dividends

-

(144,000

)

-

(144,000

)

Total comprehensive income

-

1,578,780

-

1,578,780

Balance at 31 December 2017

10,018

4,050,841

27,845

4,088,704

Cash flows from operating activities

Cash generated from operations

1

461,192

2,338,601

Interest paid

(660

)

-

Interest element of hire purchase
payments paid

(1,790

)

-

Finance costs paid

-

(85

)

Tax paid

(423,390

)

(379,189

)

Net cash from operating activities

35,352

1,959,327

Cash flows from investing activities

Purchase of tangible fixed assets

(338,773

)

(580,326

)

Sale of tangible fixed assets

4,836

8,100

Assets refinanced under HP

218,769

-

Interest received

532

5,536

Net cash from investing activities

(114,636

)

(566,690

)

Cash flows from financing activities

Capital repayments in year

(21,879

)

-

Amount introduced by directors

150,189

1,300,481

Amount withdrawn by directors

(1,133,817

)

(212,055

)

Government Grant

-

20,800

Equity dividends paid

(149,000

)

(1,300,000

)

Net cash from financing activities

(1,154,507

)

(190,774

)

(Decrease)/increase in cash and cash equivalents

(1,233,791

)

1,201,863

Cash and cash equivalents at
beginning of year

2

3,459,483

2,257,620

Cash and cash equivalents at end
of year

2

2,225,692

3,459,483

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

Profit before taxation

2,012,126

2,274,251

Depreciation charges

110,192

72,618

Loss/(profit) on disposal of fixed assets

1,225

(5,508

)

Government grants

(2,080

)

(1,773

)

Finance costs

2,450

85

Finance income

(532

)

(5,536

)

2,123,381

2,334,137

Increase in stocks

(226,890

)

(93,114

)

Decrease/(increase) in trade and other debtors

85,288

(1,294,329

)

(Decrease)/increase in trade and other creditors

(1,520,587

)

1,391,907

Cash generated from operations

461,192

2,338,601

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 December 2017

31.12.17

1.1.17

£

Cash and cash equivalents

2,225,692

3,459,483

Year ended 31 December 2016

31.12.16

1.1.16

£

Cash and cash equivalents

3,459,483

2,257,620

1.	STATUTORY INFORMATION

A & F Sprinklers Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the General

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is recognised at the fair value of 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, settlements and

volume rebates.

Revenue from contracts for the provision of services is recognised by reference to the stage of

completion when the stage of completion, cost incurred and cost to complete can be estimated

reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to

contractual hourly staff rates and materials, as a proportion of total costs. When the outcome

cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised

that are recoverable.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Plant and machinery

-

10% on cost and over 10 years

Fixtures and fittings

-

10% on cost and over 10 years

Motor vehicles

-

over 5 years

Computer equipment

-

over 4 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated

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.

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 group operates a defined contribution pension scheme. Contributions payable to the group's

pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2017

2016

£

Installation of sprinklers

12,334,499

14,577,600

Service and maintenance

2,351,107

1,725,142

Manufacture of components

855,277

240,644

15,540,883

16,543,386

An analysis of turnover by geographical market is given below:

2017

2016

£

United Kingdom

15,540,883

16,543,386

15,540,883

16,543,386

4.	EMPLOYEES AND DIRECTORS

2017

2016

£

Wages and salaries

1,992,928

1,501,889

Social security costs

215,899

160,660

Other pension costs

168,654

66,864

2,377,481

1,729,413

The average number of employees during the year was as follows:

2017

2016

Directors

7

Administrative

27

20

Production

23

19

57

46

2017

2016

£

Directors' remuneration

472,943

458,271

Directors' pension contributions to money purchase schemes

153,629

65,650

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

7

3

Information regarding the highest paid director is as follows:

2017

2016

£

Emoluments etc

109,113

118,101

Pension contributions to money purchase schemes

7,500

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2017

2016

£

Hire of plant and machinery

799,035

792,716

Other operating leases

150,995

109,447

Depreciation - owned assets

106,140

72,619

Depreciation - assets on hire purchase contracts

4,051

-

Loss/(profit) on disposal of fixed assets

1,225

(5,508

)

Auditors' remuneration

17,300

18,102

Other non- audit services

9,500

-

Foreign exchange differences

(2,989

)

(32,422

)

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

Interest on overdue tax

660

-

Hire purchase

1,790

-

Tax penalty

-

85

2,450

85

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

Current tax:

UK corporation tax

364,002

429,331

Deferred tax

24,860

26,044

Tax on profit

388,862

455,375

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

2017

2016

£

Profit before tax

2,012,126

2,274,251

Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2016 - 20%)

382,304

454,850

Effects of:

Expenses not deductible for tax purposes

6,543

615

Income not taxable for tax purposes

(308

)

-

Change in rate

188

(90

)

Tax losses carried forward

135

-

Total tax charge

388,862

455,375

8.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent

company is not presented as part of these financial statements.

9.

DIVIDENDS

2017

2016

£

Ordinary shares of £1 each

Interim

149,000

1,300,000

10.	TANGIBLE FIXED ASSETS

Group

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

COST

At 1 January 2017

-

728,253

31,841

Additions

159,917

83,514

17,862

Disposals

-

(4,500

)

-

At 31 December 2017

159,917

807,267

49,703

DEPRECIATION

At 1 January 2017

-

43,959

7,640

Charge for year

4,792

44,852

3,540

Eliminated on disposal

-

(1,313

)

-

At 31 December 2017

4,792

87,498

11,180

NET BOOK VALUE

At 31 December 2017

155,125

719,769

38,523

At 31 December 2016

-

684,294

24,201

Motor

Computer

vehicles

equipment

Totals

£

COST

At 1 January 2017

228,809

26,121

1,015,024

Additions

60,230

17,250

338,773

Disposals

(41,445

)

(19,454

)

(65,399

)

At 31 December 2017

247,594

23,917

1,288,398

DEPRECIATION

At 1 January 2017

87,707

18,798

158,104

Charge for year

50,132

6,875

110,191

Eliminated on disposal

(40,780

)

(17,245

)

(59,338

)

At 31 December 2017

97,059

8,428

208,957

NET BOOK VALUE

At 31 December 2017

150,535

15,489

1,079,441

At 31 December 2016

141,102

7,323

856,920

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

Reclassification/transfer

243,075

At 31 December 2017

243,075

DEPRECIATION

Charge for year

4,051

At 31 December 2017

4,051

NET BOOK VALUE

At 31 December 2017

239,024

Company

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

COST

At 1 January 2017

-

661,236

30,745

Additions

154,487

49,061

13,875

Disposals

-

(4,500

)

-

At 31 December 2017

154,487

705,797

44,620

DEPRECIATION

At 1 January 2017

-

37,319

7,512

Charge for year

4,746

37,200

3,423

Eliminated on disposal

-

(1,313

)

-

At 31 December 2017

4,746

73,206

10,935

NET BOOK VALUE

At 31 December 2017

149,741

632,591

33,685

At 31 December 2016

-

623,917

23,233

Motor

Computer

vehicles

equipment

Totals

£

COST

At 1 January 2017

228,809

26,121

946,911

Additions

60,230

17,250

294,903

Disposals

(41,445

)

(19,454

)

(65,399

)

At 31 December 2017

247,594

23,917

1,176,415

DEPRECIATION

At 1 January 2017

87,707

18,798

151,336

Charge for year

50,132

6,875

102,376

Eliminated on disposal

(40,780

)

(17,245

)

(59,338

)

At 31 December 2017

97,059

8,428

194,374

NET BOOK VALUE

At 31 December 2017

150,535

15,489

982,041

At 31 December 2016

141,102

7,323

795,575

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

Reclassification/transfer

243,075

At 31 December 2017

243,075

DEPRECIATION

Charge for year

4,051

At 31 December 2017

4,051

NET BOOK VALUE

At 31 December 2017

239,024

11.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 January 2017

and 31 December 2017

171

NET BOOK VALUE

At 31 December 2017

171

At 31 December 2016

171

The group or the company's investments at the Balance Sheet date in the share capital of

companies include the following:

Subsidiaries

A & F Sprinklers (Ireland) Limited

Registered office:

Nature of business: Installation of sprinklers

%

Class of shares:

holding

Ordinary

100.00

2017

2016

£

Aggregate capital and reserves

1,022

14,954

Loss for the year

(983

)

(1,374

)

Fire-Mech Fixings Limited

Registered office:

Nature of business: Components

%

Class of shares:

holding

Ordinary

91.00

2017

2016

£

Aggregate capital and reserves

84,193

30,778

Profit for the year

58,415

45,124

12.

STOCKS

Group

2017

2016

£

Stocks

356,413

129,523

13.

DEBTORS

Group

Company

2017

2016

2017

2016

£

Amounts falling due within one year:

Trade debtors

1,174,376

1,729,853

922,783

1,611,431

Amounts owed by group undertakings

-

578,831

180,071

Amounts recoverable on contract

768,213

598,526

768,213

598,526

Other debtors

285,346

26,950

96,218

24,120

Tax

-

10,921

-

Prepayments and accrued income

41,223

28,690

31,824

26,202

2,269,158

2,394,940

2,397,869

2,440,350

Amounts falling due after more than

one year:

Trade debtors

29,575

-

29,575

-

Aggregate amounts

2,298,733

2,394,940

2,427,444

2,440,350

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2017

2016

2017

2016

£

Hire purchase contracts (see note 16)

43,753

-

43,753

-

Trade creditors

670,985

1,713,358

358,008

1,621,065

Tax

184,003

254,312

170,029

242,805

Social security and other taxes

120,270

158,408

110,914

154,241

VAT

170,127

357,813

186,614

345,280

Directors' current accounts

183,443

1,167,071

183,443

1,167,071

Accrued expenses

122,786

375,174

120,898

372,696

Deferred government grants

2,080

2,040

-

1,497,447

4,028,176

1,173,659

3,903,158

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2017

2016

2017

2016

£

Hire purchase contracts (see note 16)

153,137

-

153,137

-

Deferred government grants

14,867

16,987

-

168,004

16,987

153,137

-

16.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Hire purchase contracts

2017

2016

£

Gross obligations repayable:

Within one year

46,944

-

Between one and five years

164,304

-

211,248

-

Finance charges repayable:

Within one year

3,191

-

Between one and five years

11,167

-

14,358

-

Net obligations repayable:

Within one year

43,753

-

Between one and five years

153,137

-

196,890

-

Company

Hire purchase contracts

2017

2016

£

Gross obligations repayable:

Within one year

46,944

-

Between one and five years

164,304

-

211,248

-

Finance charges repayable:

Within one year

3,191

-

Between one and five years

11,167

-

14,358

-

Net obligations repayable:

Within one year

43,753

-

Between one and five years

153,137

-

196,890

-

Company

Non-cancellable

operating leases

2017

2016

£

Within one year

137,415

99,085

Between one and five years

97,428

107,295

234,843

206,380

17.	SECURED DEBTS

The following secured debts are included within creditors:

Group

Company

2017

2016

2017

2016

£

Hire purchase contracts

196,890

-

196,890

-

The Groups bankers Nat West Bank Plc have a fixed and floating charge over the assets of the

Company by way of a debenture dated 23 November 2006.

18.	PROVISIONS FOR LIABILITIES

Group

Company

2017

2016

2017

2016

£

Deferred tax

Accelerated capital allowances

121,805

96,218

114,053

89,334

Other timing differences

(726

)

-

(726

)

-

121,079

96,218

113,327

89,334

Group

Deferred

tax

£

Balance at 1 January 2017

96,218

Charge to Income Statement

24,861

Balance at 31 December 2017

121,079

Company

Deferred

tax

£

Balance at 1 January 2017

89,334

Charge to Income Statement

23,993

Balance at 31 December 2017

113,327

19.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

9,353

A Ordinary

£1

9,353

665

F Ordinary

£1

665

10,018

20.

RESERVES

Group

Retained

Share

earnings

premium

Totals

£

At 1 January 2017

2,658,852

27,845

2,686,697

Profit for the year

1,618,457

Dividends

(149,000

)

(149,000

)

At 31 December 2017

4,128,309

27,845

4,156,154

Company

Retained

Share

earnings

premium

Totals

£

At 1 January 2017

2,616,061

27,845

2,643,906

Profit for the year

1,578,780

Dividends

(144,000

)

(144,000

)

At 31 December 2017

4,050,841

27,845

4,078,686

21.	NON-CONTROLLING INTERESTS

The Minority Interest is the 9% of shares held in the subsidiary Fire-Mech Fixings Limited.

22.	PENSION COMMITMENTS

The Group contributes to the personal pension schemes of certain employees. The assets of these

scheme are held separately from those of the company in an independently administered fund.

The pension cost charge represents contributions payable by the Group to the fund and amounted

to £168,654 (2016 £66,864).

23.	RELATED PARTY DISCLOSURES

During the year, total dividends of £144,000 (2016 - £1,300,000) were paid to the directors .

The following director's made loans to the company. The balances outstanding at 31 December

2017 were

2017

2016

£

Mr JM Stansfield

125,530

1,167,071

Mrs LK Stansfield

57,913

-

183,443

1,167,071

There are two debentures in favour of Nat West Bank PLC held by way of a legal mortgage over

Unit 4 Trans Pennine Trading Estate Gorrels Way Rochdale. A property in which A & F Sprinklers

Limited hold the title to as a trustee.

On 5th November 2015 the group entered in to a cross guarantee of £200,000 in respect of

borrowing of the UK subsidiary.

The group's head office is owned by a SIPP in which one of its directors has an interest the rent

paid was £54,000 (2016 £54,000)

24.	ULTIMATE CONTROLLING PARTY

The controlling party is J M Stansfield.