Company Registration No. 05338546 (England and Wales)
STERLING POWER PRODUCTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
PAGES FOR FILING WITH REGISTRAR
STERLING POWER PRODUCTS LIMITED
COMPANY INFORMATION
Director
Mr C W Sterling
Company number
05338546
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 LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
STERLING POWER PRODUCTS LIMITED
ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF STERLING POWER PRODUCTS 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 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 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 Limited and state those matters that we have agreed to state to the Board of Directors of Sterling Power Products 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 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 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 Limited. You consider that Sterling Power Products 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 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 LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2022
28 February 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
242,100
381,789
Current assets
Stocks
3,518,596
3,731,659
Debtors
5
1,998,260
1,461,779
Cash at bank and in hand
119,522
160,748
5,636,378
5,354,186
Creditors: amounts falling due within one year
6
(1,131,791)
(1,508,854)
Net current assets
4,504,587
3,845,332
Total assets less current liabilities
4,746,687
4,227,121
Creditors: amounts falling due after more than one year
7
(33,213)
(42,500)
Provisions for liabilities
8
(44,687)
(67,113)
Net assets
4,668,787
4,117,508
Capital and reserves
Called up share capital
10
1
1
Profit and loss reserves
4,668,786
4,117,507
Total equity
4,668,787
4,117,508

The director of the company has 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 director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has 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 LIMITED
BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2022
28 February 2022
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 23 August 2022.
Mr C W Sterling
Director
Company Registration No. 05338546
STERLING POWER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 4 -
1
Accounting policies
Company information

Sterling Power Products 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. 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 provided in the normal course of business, and is shown net of VAT.

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.

1.3
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.4
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:

Improvements to property
5% on cost
Plant and machinery
4% and 20% on reducing balance
Fixtures and fittings
20% on reducing balance
Motor vehicles
25% on reducing balance

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.

STERLING POWER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 5 -
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
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
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.8
Retirement benefits

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

1.9
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

STERLING POWER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 6 -
1.10
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.

1.11
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 are included in the profit and loss account for the period.

2
Exceptional costs/(income)
2022
2021
£
£
Irrecoverable loan write off
(58,697)
-
0

The irrecoverable loan write off relates to a balance due from a company that the directors previously had an interest in, Kaitec Cycles Limited, which has now been dissolved.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 15 (2021 - 17).

STERLING POWER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 7 -
4
Tangible fixed assets
Improvements to property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2021
103,906
205,659
391,221
135,131
835,917
Additions
8,864
24,267
19,217
38,800
91,148
Disposals
(91,887)
-
0
(209,187)
(22,690)
(323,764)
At 28 February 2022
20,883
229,926
201,251
151,241
603,301
Depreciation and impairment
At 1 March 2021
5,194
129,518
245,982
73,434
454,128
Depreciation charged in the year
1,044
18,572
20,754
20,871
61,241
Eliminated in respect of disposals
-
0
-
0
(148,495)
(5,673)
(154,168)
At 28 February 2022
6,238
148,090
118,241
88,632
361,201
Carrying amount
At 28 February 2022
14,645
81,836
83,010
62,609
242,100
At 28 February 2021
98,712
76,141
145,239
61,697
381,789
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
1,477,895
1,120,111
Other debtors
520,365
341,668
1,998,260
1,461,779
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
9,686
7,500
Trade creditors
12,368
98,826
Amounts owed to group undertakings
845,010
1,214,515
Taxation and social security
257,734
180,505
Other creditors
6,993
7,508
1,131,791
1,508,854
STERLING POWER PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 8 -
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
33,213
42,500
8
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
44,687
67,113
9
Secured debts
The following secured debts are included within creditors:
2022
2021
£
£
Bank loans
42,899
50,000
Bank loans are secured by way of a government-backed guarantee.
10
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary of 50p each
1
1
1
1
11
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.

12
Control

Ultimate parent company

The ultimate parent company is Sterling Power Products (Holdings) Limited, a company registered in England and Wales.

 

Ultimate controlling party

The ultimate controlling party is Mr C W Sterling, by virtue of his controlling interest in the ultimate parent company.

 

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