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REGISTERED NUMBER: 00500155 (England and Wales)















SPENCER MANUFACTURING LIMITED

Financial Statements for the Year Ended 31 December 2021






SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)






Contents of the Financial Statements
for the year ended 31 December 2021




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3 to 7


SPENCER MANUFACTURING LIMITED

Company Information
for the year ended 31 December 2021







Director: D G Hawkins





Secretary: R D Phillips





Registered office: Ludlow Business Park
Sheet Road
Ludlow
Shropshire
SY8 1XF





Registered number: 00500155 (England and Wales)





Auditors: Haines Watts Birmingham LLP
5-6 Greenfield Crescent
Edgbaston
Birmingham
West Midlands
B15 3BE

SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Balance Sheet
31 December 2021

2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 4 833,606 715,040

Current assets
Stocks 556,910 439,078
Debtors 5 1,611,461 1,350,927
Cash in hand 191,330 80,711
2,359,701 1,870,716
Creditors
Amounts falling due within one year 6 1,734,772 1,465,073
Net current assets 624,929 405,643
Total assets less current liabilities 1,458,535 1,120,683

Creditors
Amounts falling due after more than one
year

7

(406,437

)

(215,432

)

Provisions for liabilities (92,260 ) (50,944 )
Net assets 959,838 854,307

Capital and reserves
Called up share capital 11 2,568 2,568
Revaluation reserve 12 103,893 122,497
Retained earnings 853,377 729,242
Shareholders' funds 959,838 854,307

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director and authorised for issue on 13 September 2022 and were signed by:





D G Hawkins - Director


SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Notes to the Financial Statements
for the year ended 31 December 2021

1. Statutory information

Spencer Manufacturing Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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

Going concern
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Government grants
Grants which are of a revenue nature are credited to the profit and loss account in the same period as the related expenditure.

Tangible fixed assets
All fixed assets are initially recorded at cost or valuation less accumulated depreciation and accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter.

Land and buildings-over the term of the lease
Plant and machinery-5% - 25% on cost
Motor Vehicles-25% on reducing balance

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3. Employees and directors

The average number of employees during the year was 43 (2020 - 49 ) .

4. Tangible fixed assets
Long Plant and Motor
leasehold Fixtures vehicles Totals
£ £ £ £
Cost or valuation
At 1 January 2021 53,113 988,245 21,193 1,062,551
Additions - 153,250 30,500 183,750
Disposals - - (21,193 ) (21,193 )
At 31 December 2021 53,113 1,141,495 30,500 1,225,108
Depreciation
At 1 January 2021 53,113 276,035 18,363 347,511
Charge for year - 59,338 3,257 62,595
Eliminated on disposal - - (18,604 ) (18,604 )
At 31 December 2021 53,113 335,373 3,016 391,502
Net book value
At 31 December 2021 - 806,122 27,484 833,606
At 31 December 2020 - 712,210 2,830 715,040

SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

4. Tangible fixed assets - continued

Cost or valuation at 31 December 2021 is represented by:

Long Plant and Motor
leasehold Fixtures vehicles Totals
£ £ £ £
Valuation in 1999 - 158,901 - 158,901
Valuation in 2003 - 16,937 - 16,937
Valuation in 2008 - 75,336 - 75,336
Valuation in 2014 - 90,950 - 90,950
Cost 53,113 799,371 30,500 882,984
53,113 1,141,495 30,500 1,225,108

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
Fixtures
£
Cost or valuation
At 1 January 2021 544,412
Additions 140,395
At 31 December 2021 684,807
Depreciation
At 1 January 2021 136,065
Charge for year 33,366
At 31 December 2021 169,431
Net book value
At 31 December 2021 515,376
At 31 December 2020 408,347

5. Debtors: amounts falling due within one year
2021 2020
£ £
Trade debtors 1,541,807 1,284,170
Amounts owed by group undertakings 564 181
Other debtors - 36,647
Directors' loan accounts 2,000 2,000
Corporation tax 41,694 -
Prepayments 25,396 27,929
1,611,461 1,350,927

6. Creditors: amounts falling due within one year
2021 2020
£ £
Bank loans and overdrafts (see note 8) 96,009 54,722
Other loans (see note 8) 468,996 306,785
Hire purchase contracts (see note 9) 82,025 42,558
Trade creditors 853,991 807,057
Social security and other taxes 143,325 152,994
Accruals and deferred income 90,426 100,957
1,734,772 1,465,073

SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

7. Creditors: amounts falling due after more than one year
2021 2020
£ £
Bank loans (see note 8) 333,991 166,666
Hire purchase contracts (see note 9) 72,446 48,766
406,437 215,432

8. Loans

A guarantee from the UK Government to Bank of Scotland Plc has been provided for the bank loan under the CBIL scheme. The loan attracts 2.33% plus base rate interest and is due to be repaid by June 2027.

The company has obtained Coronavirus Business Interruption Loan Scheme. The loan attracts 10.2% plus base rate interest and is due to be repaid by January 2026.

9. Leasing agreements

Minimum lease payments fall due as follows:

Hire purchase contracts
2021 2020
£ £
Net obligations repayable:
Within one year 82,025 42,558
Between one and five years 72,446 48,766
154,471 91,324

Non-cancellable
operating leases
2021 2020
£ £
Within one year 143,069 122,097
Between one and five years 31,564 39,344
In more than five years 5,232 5,886
179,865 167,327

10. Secured debts

The following secured debts are included within creditors:

2021 2020
£ £
Hire purchase contracts 154,471 91,324
Invoice financing 468,996 306,785
623,467 398,109

Liabilities under hire purchase are secured by the assets they relate to. Liabilities under invoice financing are secured by the invoices that they relate to.

SPENCER MANUFACTURING LIMITED (REGISTERED NUMBER: 00500155)

Notes to the Financial Statements - continued
for the year ended 31 December 2021

11. Called up share capital


Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £ £
2,568 Ordinary shares 1 2,568 2,568

12. Reserves
Revaluation
reserve
£
At 1 January 2021 122,497
Transfer to/from revaluation
reserve (18,604 )

At 31 December 2021 103,893

13. Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

Andrew Hughes ACA (Senior Statutory Auditor)
for and on behalf of Haines Watts Birmingham LLP

14. Capital commitments
2021 2020
£ £
Contracted but not provided for in the
financial statements 152,250 152,250

15. Related party disclosures

Included in debtors is an amount of £2,000 (2020: £2,000) owed to the company by Mr D G Hawkins.

During the year rent of £122,650 (2020: £95,416) was charged to Spencer Manufacturing Ltd by D & D Commercial Property Ltd, a company in which Mr D G Hawkins is both a shareholder and a director.

16. Ultimate controlling party

The company's ultimate parent undertaking is Spencer Manufacturing Holdings Limited.

D G Hawkins, a director, is the ultimate controlling party, owning the majority of the issued share capital of Spencer Manufacturing Holdings Limited.