Company Registration No. 00850009 (England and Wales)
SABOTCASTLE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2018
SABOTCASTLE LIMITED
COMPANY INFORMATION
Directors
K.G.Lethbridge
P Lethbridge
Secretary
P Lethbridge
Company number
00850009
Registered office
Unit R1
Northfleet Industrial Estate
Lower Road
Northfleet
DA11 9SN
Accountants
Harrison Hill Castle & Co
Melbury House
34 Southborough Road
Bickley
Kent
BR1 2EB
Business address
Unit R1
Northfleet Industrial Estate
Lower Road
Northfleet
DA11 9SN
SABOTCASTLE LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4
Notes to the financial statements
5 - 9
SABOTCASTLE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2018
- 1 -

The directors present their annual report and financial statements for the year ended 31 August 2018.

Principal activities
The principal activity of the company in the year under review was the manufacture of plastic containers.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

K.G.Lethbridge
P Lethbridge

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

By order of the board
P Lethbridge
Secretary
17 October 2018
SABOTCASTLE LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SABOTCASTLE LIMITED FOR THE YEAR ENDED 31 AUGUST 2018
- 2 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sabotcastle Limited for the year ended 31 August 2018 set out on pages 3 to 9 from the company’s accounting records and from information and explanations you have given us.

 

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of as a body, in accordance with the terms of our engagement letter.

It is your duty to ensure that Sabotcastle Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Sabotcastle Limited. You consider that Sabotcastle Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Sabotcastle Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Harrison Hill Castle & Co
18 October 2018
Chartered Accountants
Melbury House
34 Southborough Road
Bickley
Kent
BR1 2EB
SABOTCASTLE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2018
- 3 -
2018
2017
Notes
£
£
Turnover
1,279,712
1,051,446
Cost of sales
(398,223)
(385,895)
Gross profit
881,489
665,551
Administrative expenses
(646,738)
(562,402)
Operating profit
234,751
103,149
Interest receivable and similar income
322
572
Interest payable and similar expenses
(1,871)
-
Profit before taxation
233,202
103,721
Tax on profit
(42,783)
(19,823)
Profit for the financial year
190,419
83,898
SABOTCASTLE LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2018
31 August 2018
- 4 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
204,725
129,317
Current assets
Stocks
4,833
4,758
Debtors
4
273,486
156,420
Cash at bank and in hand
271,676
216,883
549,995
378,061
Creditors: amounts falling due within one year
5
(264,117)
(150,167)
Net current assets
285,878
227,894
Total assets less current liabilities
490,603
357,211
Provisions for liabilities
6
(34,104)
(21,131)
Net assets
456,499
336,080
Capital and reserves
Called up share capital
7
15,000
15,000
Profit and loss reserves
8
441,499
321,080
Total equity
456,499
336,080

For the financial year ended 31 August 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the board of directors and authorised for issue on 17 October 2018 and are signed on its behalf by:
K.G.Lethbridge
P Lethbridge
Director
Director
Company Registration No. 00850009
SABOTCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2018
- 5 -
1
Accounting policies
Company information

Sabotcastle Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit R1, Northfleet Industrial Estate, Lower Road, Northfleet, DA11 9SN.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover
Turnover represents the total invoice value, excluding value added tax, of goods sold and services rendered during the year.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs 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. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
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.

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 machinery
20% on cost
Office furniture and fittings
10-20% on cost
Motor vehicles
25% reducing balance
Other assets
10% 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.

SABOTCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
1
Accounting policies
(Continued)
- 6 -
1.4
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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

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.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

SABOTCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
1
Accounting policies
(Continued)
- 7 -
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.

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 payments 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. 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 initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.10
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.

SABOTCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
1
Accounting policies
(Continued)
- 8 -
Deferred tax

Deferred taxation is provided using the liability method on all timing differences to the extent that they are expected to reverse in the future without being replaced, calculated at the rate at which it is anticipated the timing differences will reverse.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 13 (2017 - 11).

3
Tangible fixed assets
Plant and machinery etc
Other assets
Total
£
£
£
Cost
At 1 September 2017
367,046
8,839
375,885
Additions
148,558
-
148,558
At 31 August 2018
515,604
8,839
524,443
Depreciation and impairment
At 1 September 2017
237,725
8,839
246,564
Depreciation charged in the year
73,154
-
73,154
At 31 August 2018
310,879
8,839
319,718
Carrying amount
At 31 August 2018
204,725
-
204,725
At 31 August 2017
129,317
-
129,317
SABOTCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2018
- 9 -
4
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
257,305
140,141
Corporation tax recoverable
-
1,308
Other debtors
16,181
14,971
273,486
156,420
5
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
54,684
54,810
Corporation tax
29,810
-
Other taxation and social security
81,564
39,670
Other creditors
98,059
55,687
264,117
150,167
6
Provisions for liabilities
2018
2017
£
£
Deferred tax liabilities
34,104
21,131
7
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
15,000 Ordinary shares of £1 each
15,000
15,000
15,000
15,000
8
Profit and loss reserves
2018
2017
£
£
At the beginning of the year
321,080
307,182
Profit for the year
190,419
83,898
Dividends declared and paid in the year
(70,000)
(70,000)
At the end of the year
441,499
321,080
SABOTCASTLE LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2018
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