Company registration number 05848113 (England and Wales)
Watersaver Labtaps Limited
financial statements
For the year ended 31 December 2021
Watersaver Labtaps Limited
Contents
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
Watersaver Labtaps Limited
Statement of financial position
As at 31 December 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Current assets
Stocks
126,492
158,214
Debtors
5
93,902
123,273
Cash at bank and in hand
366,318
404,708
586,712
686,195
Creditors: amounts falling due within one year
6
(132,924)
(195,538)
Net current assets
453,788
490,657
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
452,788
489,657
Total equity
453,788
490,657
The director of the company has elected not to include a copy of the income statement 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 30 August 2022 and are signed on its behalf by:
Mr S A Kersten
Director
Company Registration No. 05848113
Watersaver Labtaps 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
1,000
515,330
516,330
Year ended 31 December 2020:
Loss and total comprehensive income for the year
-
(25,673)
(25,673)
Balance at 31 December 2020
1,000
489,657
490,657
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(36,869)
(36,869)
Balance at 31 December 2021
1,000
452,788
453,788
Watersaver Labtaps Limited
Notes to the financial statements
For the year ended 31 December 2021
- 3 -
1
Accounting policies
Company information
Watersaver Labtaps Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 11, High Carr Network Centre, Newcastle under Lyme, Staffordshire, England, ST5 7XE.
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
Going concern
The financial statements have been prepared on a going concern basis on the assumption has adequate resources to continue in operational existence for the foreseeable future. The director has made this assessment with regard to the company's current and expected performance and the offer of immediate financial support from its parent company should the need arise. In making this assessment the director has considered a period of time of at least 12 months from the date the financial statements have been approved. Particular consideration has been given to the impact of global inflation and the on-going coronavirus (Covid-19) pandemic.
1.3
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 and other sales related taxes. 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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 equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33.33% on cost
Watersaver Labtaps Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
- 4 -
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.
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 cost and replacement 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 and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
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 statement of financial position 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.
Fair value measurement of financial instruments
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.
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.
Watersaver Labtaps Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
- 5 -
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 transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Watersaver Labtaps Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies
(Continued)
- 6 -
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 leases asset are consumed.
1.13
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.
1.14
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
The director has assessed the going concern status of the company and considers the company to be a going concern. In making the assessment the director has reviewed the ability of the parent company to support the company and the anticipated levels of trade for the coming period.
The anticipated levels of revenue and operating loss is subject to significant estimation uncertainty, but in the directors judgement the company has sufficient resources to enable it to meet its ongoing liabilities for the foreseeable future.
There were no other critical accounting judgements or estimates required to be disclosed in the preparation of the financial statements.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
4
4
Watersaver Labtaps Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021
31,610
Disposals
(2,509)
At 31 December 2021
29,101
Depreciation and impairment
At 1 January 2021
31,610
Eliminated in respect of disposals
(2,509)
At 31 December 2021
29,101
Carrying amount
At 31 December 2021
At 31 December 2020
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
77,376
102,490
Other debtors
16,526
20,783
93,902
123,273
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
13,349
3,329
Amounts owed to group undertakings
91,784
145,499
Taxation and social security
12,525
11,673
Other creditors
15,266
35,037
132,924
195,538
Watersaver Labtaps Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
- 8 -
7
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 Nicola Johnson and the auditor was Mitten Clarke Audit Limited.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
44,538
72,888
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with a company under common control.
During the year purchases of £Nil (2020 - £10,974) were made from this company. At the year end there was no intercompany loan balance (2020 - £Nil).
Other information
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 group entities where the relationship is one of being wholly owned.
10
Parent company
The company is a wholly owned subsidiary of Watersaver Faucet Co., a company incorporated in the United States of America. This company is owned by S Kersten.
The smallest and largest group in which accounts are consolidated is that headed by Watersaver Faucet Co. The statutory financial statements can be obtained from 701. W.Erie Street, Chicago, IL 60654, USA.