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Registration number: 07837905

Hytech Enamelling Limited

Filleted Financial Statements

for the Year Ended 31 December 2021

 

Hytech Enamelling Limited
(Registration number: 07837905)

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 12

 

Hytech Enamelling Limited
(Registration number: 07837905)

Company Information

Directors

Mr A G E Rowe OBE

Mr J White

Mr D H Langley

Company secretary

Mrs S M Rowe

Registered office

Matford Business Centre
Matford Park Road
Exeter
Devon
EX2 8ED

Auditors

Thompson Jenner LLP
Statutory Auditors
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

 

Hytech Enamelling Limited
(Registration number: 07837905)

Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Intangible assets

4

29

100

Tangible assets

5

245,534

175,733

 

245,563

175,833

Current assets

 

Stocks

6

146,726

156,845

Debtors

7

308,271

285,942

Cash at bank and in hand

 

38,819

40,270

 

493,816

483,057

Creditors: Amounts falling due within one year

8

(806,024)

(981,160)

Net current liabilities

 

(312,208)

(498,103)

Total assets less current liabilities

 

(66,645)

(322,270)

Creditors: Amounts falling due after more than one year

8

-

(1,546)

Provisions for liabilities

(46,817)

(19,644)

Net liabilities

 

(113,462)

(343,460)

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

(113,562)

(343,560)

Total equity

 

(113,462)

(343,460)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 July 2022 and signed on its behalf by:
 

.........................................
Mr A G E Rowe OBE
Director

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Matford Business Centre
Matford Park Road
Exeter
Devon
EX2 8ED

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The directors acknowledge that the company is currently trading with negative shareholders' funds, however, they are confident that the company's trading results will continue to improve in the forthcoming periods. The parent company Exeter Estates Holdings Limited have indicated they will provide financial support for the foreseeable future and therefore the directors have prepared the accounts on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of this financial support.

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 28 July 2022 was Mr Simon Lewis, who signed for and on behalf of Thompson Jenner LLP.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

Contract revenue recognition

In respect of contracts for ongoing services, turnover represents the value of work done in the period, including estimates of amounts not invoiced. Turnover in respect of contracts for ongoing services is recognised by reference to the stage of completion.

Stage of completion is measured by reference to the completion of specific production points in the enamelling process for each contract. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

Straight line over the life of the lease

Plant and machinery

10% straight line

Fixtures and fittings

15% reducing balance

Motor vehicles

33% reducing balance

Computer equipment

25% straight line

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Patents

10% straight line

Goodwill

10% straight line

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 20 (2020 - 21).

4

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 January 2021

388,741

4,949

393,690

At 31 December 2021

388,741

4,949

393,690

Amortisation

At 1 January 2021

388,741

4,849

393,590

Amortisation charge

-

71

71

At 31 December 2021

388,741

4,920

393,661

Carrying amount

At 31 December 2021

-

29

29

At 31 December 2020

-

100

100

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

5

Tangible assets

Land and buildings
£

Fixtures and fittings
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 January 2021

48,066

16,730

37,349

309,401

411,546

Additions

31,849

308

64,443

19,158

115,758

Disposals

-

-

(19,800)

-

(19,800)

At 31 December 2021

79,915

17,038

81,992

328,559

507,504

Depreciation

At 1 January 2021

20,106

10,058

11,998

193,651

235,813

Charge for the year

5,111

996

12,729

17,170

36,006

Eliminated on disposal

-

-

(9,849)

-

(9,849)

At 31 December 2021

25,217

11,054

14,878

210,821

261,970

Carrying amount

At 31 December 2021

54,698

5,984

67,114

117,738

245,534

At 31 December 2020

27,960

6,672

25,351

115,750

175,733

Included within the net book value of land and buildings above is £54,698 (2020 - £27,960) in respect of short leasehold land and buildings.
 

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

6

Stocks

2021
£

2020
£

Raw materials and consumables

146,726

156,845

7

Debtors

2021
£

2020
£

Trade debtors

 

172,514

140,965

Amounts owed by group undertakings

-

3,447

Other debtors

 

111,163

106,199

Prepayments and accrued income

 

24,594

35,331

Total current trade and other debtors

 

308,271

285,942

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

8

Creditors

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

9

-

5,267

Trade creditors

 

28,523

65,034

Amounts owed to group undertakings

694,529

759,196

Taxation and social security

 

54,780

93,931

Other creditors

 

3,115

6,722

Accrued expenses

 

25,077

51,010

 

806,024

981,160

Due after one year

 

Loans and borrowings

9

-

1,546

The amounts owed to group undertakings are secured by way of a fixed and floating charge over the assets of the company.

9

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Hire purchase contracts

-

5,267

2021
£

2020
£

Non-current loans and borrowings

Hire purchase contracts

-

1,546

 

Hytech Enamelling Limited
(Registration number: 07837905)

Notes to the Financial Statements for the Year Ended 31 December 2021

10

Parent and ultimate parent undertaking

The company's immediate parent is Exeter Estates Holdings Limited, incorporated in England & Wales.