Company Registration No. SC138807 (Scotland)
BARRHEAD SANITARY WARE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
BARRHEAD SANITARY WARE LIMITED
COMPANY INFORMATION
Directors
Mr D Conn
Mr I Hall
Company number
SC138807
Registered office
Wright, Johnston & Mackenzie Llp
302 St. Vincent Street
Glasgow
G2 5RZ
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
BARRHEAD SANITARY WARE LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
BARRHEAD SANITARY WARE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Debtors
4
34,885
33,053
Cash at bank and in hand
6,242
6,242
Net current assets
41,127
39,295
Creditors: amounts falling due after more than one year
5
(1,020,002)
(995,627)
Net liabilities
(978,875)
(956,332)
Capital and reserves
Called up share capital
4,945,945
4,945,945
Profit and loss reserves
(5,924,820)
(5,902,277)
Total equity
(978,875)
(956,332)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 11 August 2022 and are signed on its behalf by:
Mr D Conn
Director
Company Registration No. SC138807
BARRHEAD SANITARY WARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
4,945,945
(5,892,255)
(946,310)
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
(10,022)
(10,022)
Balance at 31 December 2020
4,945,945
(5,902,277)
(956,332)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(22,543)
(22,543)
Balance at 31 December 2021
4,945,945
(5,924,820)
(978,875)
BARRHEAD SANITARY WARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Barrhead Sanitary Ware Limited is a private company limited by shares incorporated in Scotland. The registered office is Wright, Johnston & Mackenzie Llp, 302 St. Vincent Street, Glasgow, Scotland, G2 5RZ.
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. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of services is recognised by reference to the stage of completion, when the costs incurred and costs to complete can be estimated reliably.
1.3
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
BARRHEAD SANITARY WARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
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.
1.4
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.5
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.
1.6
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
BARRHEAD SANITARY WARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
1,832
Amounts owed by group undertakings
33,053
33,053
34,885
33,053
5
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other borrowings
325,000
325,000
Other creditors
695,002
670,627
1,020,002
995,627
Other creditors relate to accrued preference share dividends.
Details of shares shown as liabilities are as follows:
Number
Class
Nominal value
2021
2020
£
£
£
325,000
7.5% redeemable cumulative preference (voting) shares
1
325,000
325,000
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Colm McGrory FCA and the auditor was Ormerod Rutter Limited.
BARRHEAD SANITARY WARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
7
Financial commitments, guarantees and contingent liabilities
The company is party to a multi-lateral guarantee over all monies owed by the company and its fellow group undertakings to HSBC, secured by way of fixed and floating charges over the assets and undertakings of the company. As at 31 December 2021, Utopia Furniture Ltd owed £nil (2020: £nil) to HSBC.
BARRHEAD SANITARY WARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
8
Related party transactions
Barrhead International Limited
Barrhead International Limited owns 42% of the ordinary voting shares, 80% of the ordinary non-voting shares and 100% of the preference shares of the company (with the remaining 58% of the ordinary voting shares being owned by Barrhead International Limited's parent company Utopia Group Limited).
During the year the company issued preference share dividends of £24,375 (2020: £24,375) to Barrhead International Limited. As at 31 December 2021 the company owed Barrhead International Limited £695,002 (2020: £670,627) in unpaid preference share dividends.
Utopia Furniture Limited
Utopia Furniture Limited is a subsidiary of Utopia Group Limited, the parent company of Barrhead International Limited.
As at 31 December 2021 Utopia Furniture Limited owed the company £33,053 (2020: £33,053).
9
Ultimate parent company
The immediate parent company is Barrhead International Limited, a company registered in Scotland.
On 22 December 2021, ownership of Utopia Group Limited, an intermediate parent company, was transferred to Utopia Capital Investments Group Limited, which is now considered to be the ultimate parent undertaking.