REGISTERED NUMBER: 02029052 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 |
FOR |
A & F SPRINKLERS LIMITED |
REGISTERED NUMBER: 02029052 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016 |
FOR |
A & F SPRINKLERS LIMITED |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2016 |
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 |
A & F SPRINKLERS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2016 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
Barclays Bank Chambers |
Market Street |
Hebden Bridge |
West Yorkshire |
HX7 6AD |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2016 |
The directors present their strategic report of the company and the group for the year ended |
31 December 2016. |
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. |
Fire-Mech Fixings Limited -manufacture of bespoke bracketry and supply of components for fire |
sprinklers and other mechanical applications. |
REVIEW OF BUSINESS |
The first full trading year saw a group turnover of £16.5M of which in line with the forecast for A&F |
Sprinklers Limited but 51.2% ahead of Fire-Mech fixings Limited initial forecasts. |
An additional 10 employees were added to the to the workforce across the group during the year. |
The forecasts for the 2017 turnover are to be in the region of £17.8 -£19.8m |
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. |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 December 2016 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The Company'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. The directors believe that the risk is low due to the minimal number of transactions. |
ON BEHALF OF THE BOARD: |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2016 |
The directors present their report with the financial statements of the company and the group for the |
year ended 31 December 2016. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2016 will be £ 1,300,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2016 to the |
date of this report. |
Other changes in directors holding office are as follows: |
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: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A & F SPRINKLERS LIMITED |
We have audited the financial statements of A & F Sprinklers Limited for the year ended |
31 December 2016 on pages seven to twenty two. The financial reporting framework that has been |
applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom |
Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial |
Reporting Standard applicable in the UK and Republic of Ireland'. |
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. |
Respective responsibilities of directors and auditors |
Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements |
sufficient to give reasonable assurance that the financial statements are free from material |
misstatement, whether caused by fraud or error. This includes an assessment of: whether the |
accounting policies are appropriate to the group's and the parent company's circumstances and have |
been consistently applied and adequately disclosed; the reasonableness of significant accounting |
estimates made by the directors; and the overall presentation of the financial statements. In addition, |
we read all the financial and non-financial information in the Group Strategic Report and the Report of |
the Directors to identify material inconsistencies with the audited financial statements and to identify any |
information that is apparently materially incorrect based on, or materially inconsistent with, the |
knowledge acquired by us in the course of performing the audit. If we become aware of any apparent |
material misstatements or inconsistencies we consider the implications for our report. |
Opinion on financial statements |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2016 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. |
Opinion on other matter 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 |
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 has been prepared in |
accordance with applicable legal requirements. In the light of the knowledge and understanding of the |
group and the parent company and its environment, we have not identified any material misstatements |
in the Group Strategic Report or the Report of the Directors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A & F SPRINKLERS LIMITED |
Matters on which we are required to report by exception |
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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Barclays Bank Chambers |
Market Street |
Hebden Bridge |
West Yorkshire |
HX7 6AD |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONSOLIDATED INCOME STATEMENT |
for the Year Ended 31 December 2016 |
2016 | 2015 |
Notes | £ | £ |
TURNOVER | 3 | 16,543,386 | 12,430,908 |
Cost of sales | 11,049,208 | 7,617,042 |
GROSS PROFIT | 5,494,178 | 4,813,866 |
Administrative expenses | 3,273,338 | 2,906,428 |
2,220,840 | 1,907,438 |
Other operating income | 47,960 | 9,944 |
OPERATING PROFIT | 5 | 2,268,800 | 1,917,382 |
Interest receivable and similar income | 5,536 | 3,858 |
2,274,336 | 1,921,240 |
Interest payable and similar expenses | 6 | 85 | 24,083 |
PROFIT BEFORE TAXATION | 2,274,251 | 1,897,157 |
Tax on profit | 7 | 455,375 | 394,671 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,814,815 | 1,503,786 |
Non-controlling interests | 4,061 | (1,300 | ) |
1,818,876 | 1,502,486 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 December 2016 |
2016 | 2015 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,818,876 | 1,502,486 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,818,876 | 1,502,486 |
Total comprehensive income attributable to: |
Owners of the parent | 1,814,815 | 1,503,786 |
Non-controlling interests | 4,061 | (1,300 | ) |
1,818,876 | 1,502,486 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONSOLIDATED BALANCE SHEET |
31 December 2016 |
2016 | 2015 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 856,920 | 351,805 |
Investments | 11 | - | - |
856,920 | 351,805 |
CURRENT ASSETS |
Stocks | 12 | 129,523 | 36,409 |
Debtors | 13 | 2,394,940 | 1,243,243 |
Cash at bank and in hand | 3,459,483 | 2,257,620 |
5,983,946 | 3,537,272 |
CREDITORS |
Amounts falling due within one year | 14 | 4,028,176 | 1,638,294 |
NET CURRENT ASSETS | 1,955,770 | 1,898,978 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,812,690 | 2,250,783 |
CREDITORS |
Amounts falling due after more than one year | 15 | (16,987 | ) | - |
PROVISIONS FOR LIABILITIES | 18 | (96,218 | ) | (70,174 | ) |
NET ASSETS | 2,699,485 | 2,180,609 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 10,018 | 10,018 |
Share premium | 20 | 27,845 | 27,845 |
Retained earnings | 20 | 2,658,852 | 2,144,037 |
SHAREHOLDERS' FUNDS | 2,696,715 | 2,181,900 |
NON-CONTROLLING INTERESTS | 21 | 2,770 | (1,291 | ) |
TOTAL EQUITY | 2,699,485 | 2,180,609 |
The financial statements were approved by the Board of Directors on 14 September 2017 and were |
signed on its behalf by: |
J M Stansfield - Director |
D L Parker - Director |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
COMPANY BALANCE SHEET |
31 December 2016 |
2016 | 2015 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 795,575 | 314,992 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,957,648 | 1,623,082 |
The financial statements were approved by the Board of Directors on signed on its behalf by: |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2016 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2015 | 10,018 | 1,371,251 | 27,845 |
Changes in equity |
Dividends | - | (731,000 | ) | - |
Total comprehensive income | - | 1,503,786 | - |
Balance at 31 December 2015 | 10,018 | 2,144,037 | 27,845 |
Changes in equity |
Dividends | - | (1,300,000 | ) | - |
Total comprehensive income | - | 1,814,815 | - |
Balance at 31 December 2016 | 10,018 | 2,658,852 | 27,845 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2015 | 1,409,114 | - | 1,409,114 |
Changes in equity |
Dividends | (731,000 | ) | - | (731,000 | ) |
Total comprehensive income | 1,503,786 | (1,291 | ) | 1,502,495 |
Balance at 31 December 2015 | 2,181,900 | (1,291 | ) | 2,180,609 |
Changes in equity |
Dividends | (1,300,000 | ) | - | (1,300,000 | ) |
Total comprehensive income | 1,814,815 | 4,061 | 1,818,876 |
Balance at 31 December 2016 | 2,696,715 | 2,770 | 2,699,485 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2016 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2015 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | - |
Balance at 31 December 2015 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | - |
Balance at 31 December 2016 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2016 |
2016 | 2015 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,338,601 | 1,714,665 |
Interest element of hire purchase or finance lease rental payments paid | - | (651 | ) |
Finance costs paid | (85 | ) | (23,432 | ) |
Tax paid | (379,189 | ) | (179,767 | ) |
Net cash from operating activities | 1,959,327 | 1,510,815 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (580,326 | ) | (285,753 | ) |
Sale of tangible fixed assets | 8,100 | 8,000 |
Interest received | 5,536 | 3,858 |
Net cash from investing activities | (566,690 | ) | (273,895 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (3,681 | ) |
Amount introduced by directors | 1,300,481 | 736,750 |
Amount withdrawn by directors | (212,055 | ) | (554,948 | ) |
Government Grant | 20,800 | - |
Equity dividends paid | (1,300,000 | ) | (731,000 | ) |
Net cash from financing activities | (190,774 | ) | (552,879 | ) |
Increase in cash and cash equivalents | 1,201,863 | 684,041 |
Cash and cash equivalents at beginning of year | 2 | 2,257,620 | 1,573,579 |
Cash and cash equivalents at end of year | 2 | 3,459,483 | 2,257,620 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 December 2016 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2016 | 2015 |
£ | £ |
Profit before taxation | 2,274,251 | 1,897,157 |
Depreciation charges | 72,618 | 45,529 |
(Profit)/loss on disposal of fixed assets | (5,508 | ) | 1,200 |
Government grants | (1,773 | ) | - |
Finance costs | 85 | 24,083 |
Finance income | (5,536 | ) | (3,858 | ) |
2,334,137 | 1,964,111 |
Increase in stocks | (93,114 | ) | (14,747 | ) |
(Increase)/decrease in trade and other debtors | (1,294,329 | ) | 2,117,532 |
Increase/(decrease) in trade and other creditors | 1,391,907 | (2,352,231 | ) |
Cash generated from operations | 2,338,601 | 1,714,665 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Consolidated Cash Flow Statement in respect of cash and cash |
equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2016 |
31.12.16 | 1.1.16 |
£ | £ |
Cash and cash equivalents | 3,459,483 | 2,257,620 |
Year ended 31 December 2015 |
31.12.15 | 1.1.15 |
£ | £ |
Cash and cash equivalents | 2,257,620 | 1,573,579 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 December 2016 |
1. | STATUTORY INFORMATION |
A & F Sprinklers Limited is a |
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 |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding |
discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
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. |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
2. | ACCOUNTING POLICIES - continued |
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 geographical market is given below: |
2016 | 2015 |
£ | £ |
United Kingdom |
Europe |
4. | EMPLOYEES AND DIRECTORS |
2016 | 2015 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average monthly number of employees during the year was as follows: |
2016 | 2015 |
Directors | 7 | 5 |
Administrative | 20 | 17 |
Production | 19 | 15 |
The average number of employees by undertakings that are proportionately consolidated during |
the year was 8 . |
2016 | 2015 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2016 | 2015 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2016 | 2015 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( | ) |
Auditors' remuneration |
Foreign exchange differences | ( | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2016 | 2015 |
£ | £ |
Hire purchase |
Tax penalty |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2016 | 2015 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax was charged at 20.25%) in 2015. |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
7. | TAXATION - continued |
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: |
2016 | 2015 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Change in rate | (90 | ) | 2,036 |
Total tax charge | 455,375 | 394,671 |
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 |
2016 | 2015 |
£ | £ |
Ordinary shares of £1 each |
Interim |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2016 | 166,427 | 31,841 | 249,754 | 26,121 | 474,143 |
Additions | 561,826 | - | 18,500 | - | 580,326 |
Disposals | - | - | (39,445 | ) | - | (39,445 | ) |
At 31 December 2016 | 728,253 | 31,841 | 228,809 | 26,121 | 1,015,024 |
DEPRECIATION |
At 1 January 2016 | 22,666 | 4,454 | 81,984 | 13,234 | 122,338 |
Charge for year | 21,293 | 3,186 | 42,576 | 5,564 | 72,619 |
Eliminated on disposal | - | - | (36,853 | ) | - | (36,853 | ) |
At 31 December 2016 | 43,959 | 7,640 | 87,707 | 18,798 | 158,104 |
NET BOOK VALUE |
At 31 December 2016 | 684,294 | 24,201 | 141,102 | 7,323 | 856,920 |
At 31 December 2015 | 143,761 | 27,387 | 167,770 | 12,887 | 351,805 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2016 | 130,086 | 30,745 | 249,754 | 26,121 | 436,706 |
Additions | 531,150 | - | 18,500 | - | 549,650 |
Disposals | - | - | (39,445 | ) | - | (39,445 | ) |
At 31 December 2016 | 661,236 | 30,745 | 228,809 | 26,121 | 946,911 |
DEPRECIATION |
At 1 January 2016 | 22,060 | 4,436 | 81,984 | 13,234 | 121,714 |
Charge for year | 15,259 | 3,076 | 42,576 | 5,564 | 66,475 |
Eliminated on disposal | - | - | (36,853 | ) | - | (36,853 | ) |
At 31 December 2016 | 37,319 | 7,512 | 87,707 | 18,798 | 151,336 |
NET BOOK VALUE |
At 31 December 2016 | 623,917 | 23,233 | 141,102 | 7,323 | 795,575 |
At 31 December 2015 | 108,026 | 26,309 | 167,770 | 12,887 | 314,992 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2016 |
and 31 December 2016 |
NET BOOK VALUE |
At 31 December 2016 |
At 31 December 2015 |
The group or the company's investments at the Balance Sheet date in the share capital of |
companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2016 | 2015 |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( | ) | ( | ) |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2016 | 2015 |
£ | £ |
Aggregate capital and reserves | ( | ) |
Profit/(loss) for the year | ( | ) |
12. | STOCKS |
Group |
2016 | 2015 |
£ | £ |
Stocks | 129,523 | 36,409 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2016 | 2015 | 2016 | 2015 |
£ | £ | £ | £ |
Trade debtors | 2,328,379 | 1,044,855 |
Amounts owed by group undertakings | - | - |
Other debtors | 26,950 | 22,466 |
Tax | 10,921 | 153,553 |
Prepayments and accrued income | 28,690 | 22,369 |
2,394,940 | 1,243,243 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2016 | 2015 | 2016 | 2015 |
£ | £ | £ | £ |
Trade creditors | 1,713,358 | 679,512 |
Tax | 254,312 | 346,802 |
Social security and other taxes | 158,408 | 101,101 |
VAT | 357,813 | 210,675 | 345,280 | 223,477 |
Directors' current accounts | 1,167,071 | 78,645 | 1,167,071 | 78,645 |
Accrued expenses | 375,174 | 221,559 |
Deferred government grants | 2,040 | - |
4,028,176 | 1,638,294 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2016 | 2015 |
£ | £ |
Deferred government grants | 16,987 | - |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Company |
Non-cancellable |
operating leases |
2016 | 2015 |
£ | £ |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
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 |
2016 | 2015 | 2016 | 2015 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 96,218 | 70,174 | 89,334 | 62,811 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2016 | 70,174 |
Credit to Income Statement during year | 26,044 |
Balance at 31 December 2016 | 96,218 |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2016 |
Credit to Income Statement during year |
Balance at 31 December 2016 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2016 | 2015 |
value: | £ | £ |
NIL | Ordinary | £1 | - | 10,018 |
(2015 - 10,018 ) | |
A Ordinary | £1 | 9,353 | - |
F Ordinary | £1 | 665 | - |
10,018 | 10,018 |
A & F SPRINKLERS LIMITED (REGISTERED NUMBER: 02029052) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2016 |
19. | CALLED UP SHARE CAPITAL - continued |
On 19 March 2016 the ordinary shares were reclassified as A ordinary shares. |
On 18 October 2016 665 A ordinary shares were reclassified as F ordinary shares. |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2016 | 2,144,037 | 27,845 | 2,171,882 |
Profit for the year | 1,814,815 | 1,814,815 |
Dividends | (1,300,000 | ) | (1,300,000 | ) |
At 31 December 2016 | 2,658,852 | 27,845 | 2,686,697 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2016 | 1,986,258 |
Profit for the year |
Dividends | ( | ) | ( | ) |
At 31 December 2016 | 2,643,906 |
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 £66,864 (2015 £91,135). |
23. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £1,300,000 (2015 - £731,000) were paid to the directors . |
Mr J M Stansfield loaned the company monies during the year the balance outstanding at 31 |
December 2016 £1,167,071 (2015 £71,895). |
There are two debentures in favour of National Westminster Bank PLC held by way of a legal |
mortgage over Unit 4 Trans Pennine Trading Estate Gorillas Way Castellan. A property in which A |
& F Sprinklers Limited hold the title to as a trustee. |
24. | ULTIMATE CONTROLLING PARTY |
The controlling party is J M Stansfield. |