Company Registration No. 00941929 (England and Wales)
Pen Cutting Tools Limited
Unaudited accounts
for the year ended 31 December 2021
Pen Cutting Tools Limited
Unaudited accounts
Contents
Pen Cutting Tools Limited
Company Information
for the year ended 31 December 2021
Directors
Simon Ling
Peter Raybould
John Whitfield
Caroline Ling
Helene Raybould
Elizabeth Whitfield
Company Number
00941929 (England and Wales)
Registered Office
Bold Street
Attercliffe
Sheffield
South Yorkshire
S9 2LR
United Kingdom
Pen Cutting Tools Limited
Statement of financial position
as at 31 December 2021
Tangible assets
575,039
589,230
Inventories
190,000
165,100
Cash at bank and in hand
1,634
50,925
Creditors: amounts falling due within one year
(372,369)
(510,822)
Net current assets
489,471
233,224
Total assets less current liabilities
1,064,510
822,454
Creditors: amounts falling due after more than one year
(208,333)
(87,365)
Provisions for liabilities
Deferred tax
(109,257)
(111,953)
Net assets
746,920
623,136
Called up share capital
3,300
3,300
Revaluation reserve
378,070
361,901
Capital redemption reserve
8,700
8,700
Profit and loss account
356,850
249,235
Shareholders' funds
746,920
623,136
For the year ending 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with the provisions of FRS 102 Section 1A - Small Entities. The profit and loss account has not been delivered to the Registrar of Companies.
The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2022 and were signed on its behalf by
Simon Ling
Director
Company Registration No. 00941929
Pen Cutting Tools Limited
Notes to the Accounts
for the year ended 31 December 2021
Pen Cutting Tools Limited is a private company, limited by shares, registered in England and Wales, registration number 00941929. The registered office is Bold Street, Attercliffe, Sheffield, South Yorkshire, S9 2LR, United Kingdom.
2
Compliance with accounting standards
The accounts have been prepared in accordance with the provisions of FRS 102 Section 1A Small Entities. There were no material departures from that standard.
The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.
The accounts have been prepared under the historical cost convention, as modified by the revaluation of plant and machinery to a fair value basis, as specified in the relevant accounting policy below.
The accounts are presented in £ sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
Tangible fixed assets and depreciation
A policy of revaluation has been adopted with regard to the company's plant and machinery asset class, which is now carried at fair value amount, less accumulated depreciation and provision for impairment.
All other assets are recorded at cost, less accumulated depreciation and provision for impairment. Depreciation has been provided at the following rates in order to write off the cost of the assets (less any estimated residual value) over their estimated useful lives:
Plant & machinery
15% straight line (revalued assets over 5.25 years)
Computer equipment
33% straight line
Impairment of fixed assets
At the end of each reporting period, the company reviews the carrying amount of its tangible fixed assets for any indication of impairment. If any indication exists, the relevant asset is reduced to its recoverable amount (being the higher of fair value less sale costs, and value in use).
Impairment losses are recognised immediately in the Statement of Income and Retained Earnings, unless the asset has been revalued, in which case the revaluation reserve is eliminated first.
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover from the sale of goods is recognised when goods have been delivered to customers such that risks and rewards of ownership have transferred to them.
Inventories have been valued at the lower of cost and estimated selling price less costs to complete and sell.
In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of manufacturing/completion.
Pen Cutting Tools Limited
Notes to the Accounts
for the year ended 31 December 2021
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the statement of income and retained earnings when due.
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences which result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
Deferred tax assets and liabilities are not discounted.
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Rentals applicable to operating leases are charged against profit on a straight line basis over the lease term.
Assets held under finance leases and hire purchase contracts are capitalised and depreciated over their useful lives. They are recognised at the lower of the asset's fair value at the date of inception, and the present value of the minimum lease payments. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of rental obligations is charged to the statement of income and retained earnings over the period of the lease at a constant proportion of the outstanding balance of capital repayments.
The costs of short-term employee benefits, and termination benefits, are recognised as an expense at the point when the company is demonstrably committed to terminate the employment of an employee, or to provide termination benefits.
The cost of unused holiday entitlement is recognised in the period in which the employee's services are received.
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss.
Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Government grants are treated in accordance with the Companies Act 2006, and the accruals model of FRS 102. Where they relate to revenue expenditure, they are credited to the statement of income and retained earnings as they are received, and treated as a trading receipt for corporation tax purposes. Where they relate to capital expenditure, the grant is deferred and subsequently released to the statement of income and retained earnings over the useful life of the related asset. In the latter case, the amount released to the statement of income and retained earnings is not treated as a trading receipt for corporation tax purposes.
Pen Cutting Tools Limited
Notes to the Accounts
for the year ended 31 December 2021
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Tangible fixed assets
Plant & machinery
Fixtures & fittings
Computer equipment
Total
Cost or valuation
At cost
At cost
At cost
At 1 January 2021
584,010
90,259
114,049
788,318
Additions
111,250
192
1,037
112,479
Disposals
(1,500)
-
-
(1,500)
At 31 December 2021
693,760
90,451
115,086
899,297
At 1 January 2021
-
87,801
111,287
199,088
Charge for the year
122,121
660
2,389
125,170
At 31 December 2021
122,121
88,461
113,676
324,258
At 31 December 2021
571,639
1,990
1,410
575,039
At 31 December 2020
584,010
2,458
2,762
589,230
Carrying amount of plant & machinery on cost basis
209,951
137,219
The company's plant and machinery asset class was revalued on 31 December 2020 to £584,010.
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Debtors: amounts falling due within one year
2021
2020
Trade debtors
333,228
276,197
Amounts due from group undertakings etc.
332,373
240,673
Other debtors
4,605
11,151
6
Creditors: amounts falling due within one year
2021
2020
Bank loans and overdrafts
227,086
271,573
Trade creditors
52,878
80,966
Taxes and social security
72,311
93,642
Other creditors
20,094
64,641
Within 'Bank loans and overdrafts' is an amount of £145,048 (2020: £136,156) secured against the company's trade debtors, and an amount of £79,167 (2020: £68,750) secured against the assets of the company.
Within 'Other creditors' is an amount of £16,530 (2020: £48,210) which represents finance leases which are secured against the assets to which they relate.
Pen Cutting Tools Limited
Notes to the Accounts
for the year ended 31 December 2021
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Creditors: amounts falling due after more than one year
2021
2020
Within 'Bank loans' is an amount of £208,333 (2020: £37,500) secured against the assets of the company.
Within 'Other creditors' is an amount of £Nil (2020: £16,532) representing finance leases which are secured against the assets to which they relate.
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Operating lease commitments
2021
2020
At 31 December 2021 the company has total minimum future payment commitments under non-cancellable operating leases as follows:
Operating leases expiring:
Within two to five years
4,028
4,350
More than five years
964,000
1,036,000
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Transactions with related parties
Rent payments totalling £72,000 (2020: £44,000) were paid in the year to Threesixty Holdco 2 Limited, the ultimate parent company.
Since 31 December 2019, the company has entered into a composite cross guarantee (together with its ultimate parent company) to secure the financing of its working capital. At the balance sheet date, the potential liability in respect of this guarantee amounted to £145,048 (2020: £136,156).
The company is a wholly owned subsidiary of Pen Cutting Holdings Limited, whose principal place of business and registered office address is: Pen Cutting Tools, Bold Street, Attercliffe, Sheffield, S9 2LR.
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Average number of employees
During the year the average number of employees was 23 (2020: 23).