Company Registration No. 08784968 (England and Wales)
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
PAGES FOR FILING WITH REGISTRAR
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr C W Sterling
Mrs S Westby
Company number
08784968
Registered office
Unit 8
Wassage Way
Hampton Lovett Industrial Estate
Droitwich
Worcestershire
WR9 0NX
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
HSBC Bank Plc
11 Victoria Square
Droitwich
Worcestershire
WR9 8DH
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF STERLING POWER PRODUCTS (HOLDINGS) LIMITED FOR THE YEAR ENDED 28 FEBRUARY 2022
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sterling Power Products (Holdings) Limited for the year ended 28 February 2022 which comprise, the balance sheet and the related notes 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 Sterling Power Products (Holdings) Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Sterling Power Products (Holdings) Limited and state those matters that we have agreed to state to the Board of Directors of Sterling Power Products (Holdings) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Sterling Power Products (Holdings) Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Sterling Power Products (Holdings) 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 Sterling Power Products (Holdings) Limited. You consider that Sterling Power Products (Holdings) 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 Sterling Power Products (Holdings) 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.
Ormerod Rutter Limited
23 August 2022
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
BALANCE SHEET
AS AT
28 FEBRUARY 2022
28 February 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,495,865
1,494,745
Investment properties
4
1,964,250
1,323,770
Investments
5
1
1
3,460,116
2,818,516
Current assets
Debtors
6
860,954
1,232,279
Cash at bank and in hand
3,465
329,851
864,419
1,562,130
Creditors: amounts falling due within one year
7
(960,759)
(956,083)
Net current (liabilities)/assets
(96,340)
606,047
Total assets less current liabilities
3,363,776
3,424,563
Creditors: amounts falling due after more than one year
8
(481,449)
(579,443)
Provisions for liabilities
10
(4,228)
(2,453)
Net assets
2,878,099
2,842,667
Capital and reserves
Called up share capital
11
50
50
Profit and loss reserves
2,878,049
2,842,617
Total equity
2,878,099
2,842,667
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 28 February 2022 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
28 FEBRUARY 2022
28 February 2022
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 23 August 2022 and are signed on its behalf by:
Mr C W Sterling
Director
Company Registration No. 08784968
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 4 -
1
Accounting policies
Company information
Sterling Power Products (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 8, Wassage Way, Hampton Lovett Industrial Estate, Droitwich, Worcestershire, WR9 0NX.
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 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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services and rents provided in the normal course of business, and is shown net of VAT. The fair value of consideration for rents takes into account any lease premiums or rent free periods, which are recognised on a straight line basis over the lease term.
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
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:
Freehold property
not provided
Improvements to property
10% on cost
Plant and machinery
25% on reducing balance
Computer equipment
33% 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.
No depreciation is provided on freehold property. This treatment may be a departure from the requirements of the Companies Act 2006 concerning depreciation of fixed assets, however, the company follows a program of regular refurbishment and maintenance of its properties which includes the reinstatement of the fabric of the buildings where necessary in order to maintain them to a high standard. Accordingly in the opinion of the directors any element of depreciation would be immaterial and no provision has been made, as the residual value would be in excess of cost.
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 5 -
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.7
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 6 -
1.8
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 2 (2021 - 2).
3
Tangible fixed assets
Freehold property
Improvements to property
Plant and machinery
Computer equipment
Total
£
£
£
£
£
Cost
At 1 March 2021
1,450,372
55,467
1,000
1,506,839
Additions
27,514
2,349
29,863
Disposals
(4,289)
(15,005)
(19,294)
At 28 February 2022
1,446,083
55,467
12,509
3,349
1,517,408
Depreciation and impairment
At 1 March 2021
11,094
999
12,093
Depreciation charged in the year
5,547
3,128
775
9,450
At 28 February 2022
16,641
3,128
1,774
21,543
Carrying amount
At 28 February 2022
1,446,083
38,826
9,381
1,575
1,495,865
At 28 February 2021
1,450,371
44,373
1
1,494,745
4
Investment property
2022
£
Fair value
At 1 March 2021
1,323,770
Additions
640,480
At 28 February 2022
1,964,250
The directors have assessed the market value of the properties and consider that there has been no significant change in the market value at the year end.
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 7 -
5
Fixed asset investments
2022
2021
£
£
Investments
1
1
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 March 2021 & 28 February 2022
1
Carrying amount
At 28 February 2022
1
At 28 February 2021
1
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
4,812
8,164
Amounts owed by group undertakings
845,010
1,224,115
Other debtors
11,132
860,954
1,232,279
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
95,594
92,443
Trade creditors
14,478
1,648
Taxation and social security
13,871
34,648
Other creditors
836,816
827,344
960,759
956,083
8
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
481,449
579,443
STERLING POWER PRODUCTS (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 8 -
9
Secured debts
The following secured debts are included within creditors:
2022
2021
£
£
Bank loans
577,043
671,886
Bank loans are secured by way of a fixed and floating charge over all assets of the company.
10
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
4,228
2,453
11
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
90 Ordinary A of 50p each
45
45
10 Ordinary B of 50p each
5
5
50
50
12
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
13
Ultimate controlling party
The ultimate controlling party is Mr C W Sterling.
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