REGISTERED NUMBER: 01740670 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 October 2022

for

Polar (N.E.) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

J Hill

N Baxter

REGISTERED OFFICE:

Unit 9

Stephenson Court

Skippers Lane Industrial Estate

Middlesbrough

TS6 6UT

REGISTERED NUMBER:

01740670 (England and Wales)

AUDITORS:

Anderson Barrowcliff LLP

Statutory Auditor

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

The directors present their strategic report for the year ended 31 October 2022.

REVIEW OF BUSINESS

Throughout 2022, we confronted several unique challenges that tested our resilience and adaptability. Central to these challenges were two significant contracts. One, in particular, did not align with our financial expectations, leading to strain on our cash flow. This challenge led us to secure backing from both IWOCA and FW Capital Investments.

Furthermore, we identified and addressed staffing concerns. Recognizing areas where we may have been overstaffed, we made calculated decisions to adjust our workforce. This decision was driven not merely by a desire to reduce costs, but by an intent to operate more efficiently and smartly. This leaner approach resulted in improved cash conversion and enhanced our billing cycle, leading to a reduction in debtor days.

The financial position of the company at the year end is considered to be satisfactory and is expected to continue. The company has made a pre tax loss of £361,113 in 2022 (2021: profit £971,643) and has net assets of £748,568 (2021: £941,231).

PRINCIPAL RISKS AND UNCERTAINTIES

As we move forward, we're acutely aware of certain potential challenges:

- Supplier Dependency: Our significant business dealings with Kawneer make it imperative for us to have contingency strategies, ensuring smooth operations even if supply chain disruptions arise.

- Product Safety: Given the diverse clientele we cater to, ensuring that our products are used safely and as intended is paramount. This is especially true considering potential ligature risks and the specific needs of our clients.

- Market Dynamics: The fluctuating nature of major contracts, especially in the construction arena, brings its own set of uncertainties. The unpredictability of the construction market is something we're constantly monitoring, and we're prepared to adapt as needed.

FUTURE DEVELOPMENTS

The path ahead is promising. We've witnessed a notable uptick in our project pipeline, with a significant focus on the healthcare sector. This shift not only highlights our expertise in this domain but also demonstrates a clear preference among our clients for our services over competitors. This sentiment is a testament to our commitment to quality and reliability.

Additionally, our eyes are set on global horizons. While our overseas market expansion has been a gradual journey, we genuinely believe in its potential. As this sector progresses, it has the power to reshape our company's trajectory in the coming years, offering growth and diversification opportunities.

ON BEHALF OF THE BOARD:

J Hill - Director

28 September 2023

The directors present their report with the financial statements of the company for the year ended 31 October 2022.

DIVIDENDS

The total distribution of dividends for the year ended 31 October 2022 will be £ 36,000 .

DIRECTORS

J Hill has held office during the whole of the period from 1 November 2021 to the date of this report.

Other changes in directors holding office are as follows:

A W Baxter - resigned 25 October 2022

R Hill - resigned 25 October 2022

N Baxter - appointed 25 October 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Anderson Barrowcliff LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J Hill - Director

28 September 2023

Opinion

We have audited the financial statements of Polar (N.E.) Limited (the 'company') for the year ended 31 October 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 2022 and of its loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:

-

Enquiry of management and those charged with governance around actual and potential litigation and claims.

-

Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.

-

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations

-

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

-

Challenging estimates and judgements made by management in their significant accounting estimates.

-

Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Helen Wilson FCA (Senior Statutory Auditor)

for and on behalf of Anderson Barrowcliff LLP

Statutory Auditor

Chartered Accountants

3 Kingfisher Court

Bowesfield Park

Stockton on Tees

TS18 3EX

2 October 2023

TURNOVER

11,691,369

11,473,134

Cost of sales

8,230,839

7,432,662

GROSS PROFIT

3,460,530

4,040,472

Administrative expenses

3,773,969

3,041,085

(313,439

)

999,387

Other operating income

482

22,445

OPERATING (LOSS)/PROFIT

4

(312,957

)

1,021,832

Interest payable and similar expenses

5

48,156

50,189

(LOSS)/PROFIT BEFORE TAXATION

(361,113

)

971,643

Tax on (loss)/profit

6

(204,450

)

114,047

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(156,663

)

857,596

(LOSS)/PROFIT FOR THE YEAR

(156,663

)

857,596

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(156,663

)

857,596

FIXED ASSETS

Tangible assets

8

210,068

226,532

CURRENT ASSETS

Stocks

9

240,389

282,548

Debtors

10

4,146,141

3,020,750

Cash at bank and in hand

100,844

168,446

4,487,374

3,471,744

CREDITORS

Amounts falling due within one year

11

3,732,057

2,343,365

NET CURRENT ASSETS

755,317

1,128,379

TOTAL ASSETS LESS CURRENT LIABILITIES

965,385

1,354,911

CREDITORS

Amounts falling due after more than one year

12

(216,817

)

(371,680

)

PROVISIONS FOR LIABILITIES

16

-

(42,000

)

NET ASSETS

748,568

941,231

CAPITAL AND RESERVES

Called up share capital

17

392

392

Capital redemption reserve

18

196

196

Retained earnings

18

747,980

940,643

SHAREHOLDERS' FUNDS

748,568

941,231

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

J Hill - Director

N Baxter - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 November 2020

392

128,047

196

128,635

Changes in equity

Dividends

-

(45,000

)

-

(45,000

)

Total comprehensive income

-

857,596

-

857,596

Balance at 31 October 2021

392

940,643

196

941,231

Changes in equity

Dividends

-

(36,000

)

-

(36,000

)

Total comprehensive income

-

(156,663

)

-

(156,663

)

Balance at 31 October 2022

392

747,980

196

748,568

Cash flows from operating activities

Cash generated from operations

1

(151,514

)

505,967

Interest paid

(42,126

)

(41,865

)

Interest element of hire purchase payments paid

(6,030

)

(8,324

)

Tax paid

39,250

-

Net cash from operating activities

(160,420

)

455,778

Cash flows from investing activities

Purchase of tangible fixed assets

(41,488

)

(9,631

)

Net cash from investing activities

(41,488

)

(9,631

)

Cash flows from financing activities

New loans in year

290,000

50,000

Loan repayments in year

(89,695

)

(55,217

)

Capital repayments in year

(29,999

)

(32,637

)

Equity dividends paid

(36,000

)

(45,000

)

Net cash from financing activities

134,306

(82,854

)

(Decrease)/increase in cash and cash equivalents

(67,602

)

363,293

Cash and cash equivalents at beginning of year

2

168,446

(194,847

)

Cash and cash equivalents at end of year

2

100,844

168,446

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

(Loss)/profit before taxation

(361,113

)

971,643

Depreciation charges

57,952

57,784

Finance costs

48,156

50,189

(255,005

)

1,079,616

Decrease/(increase) in stocks

42,159

(82,133

)

Increase in trade and other debtors

(1,098,238

)

(507,995

)

Increase in trade and other creditors

1,159,570

16,479

Cash generated from operations

(151,514

)

505,967

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2022

31.10.22

1.11.21

£

£

Cash and cash equivalents

100,844

168,446

Year ended 31 October 2021

31.10.21

1.11.20

£

£

Cash and cash equivalents

168,446

611

Bank overdrafts

-

(195,458

)

168,446

(194,847

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.11.21

Cash flow

At 31.10.22

£

£

£

Net cash

Cash at bank and in hand

168,446

(67,602

)

100,844

168,446

(67,602

)

100,844

Debt

Finance leases

(54,083

)

29,999

(24,084

)

Debts falling due within 1 year

(69,477

)

(269,076

)

(338,553

)

Debts falling due after 1 year

(202,662

)

68,773

(133,889

)

(326,222

)

(170,304

)

(496,526

)

Total

(157,776

)

(237,906

)

(395,682

)

1.	STATUTORY INFORMATION

Polar (N.E.) 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Critical accounting judgements and key sources of estimation uncertainty

Amounts recoverable on contracts

Amounts recoverable on contracts are calculated in order to the take the profits that the company is entitled to through the work that has been done. As the result of the calculation amounts recoverable will be included within debtors and amounts received ahead of the entitlement will be shown in accruals and deferred income.

Turnover

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

Tangible fixed assets

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

Short leasehold

-

over the period of the lease

Fixtures and fittings

-

33% on cost, 20% on cost and 10% on cost

Motor vehicles

-

25% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

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.

Deferred tax

Deferred tax is recognised in respect of all 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.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Government grants

Revenue grants receivable are credited to the profit and loss in the period to which they relate.

Where assets are acquired with the aid of specific capital grants, they are capitalised and depreciated in accordance with the above policy. The related grants are credited to a deferred capital grant account and are released to the profit and loss over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,801,998

2,428,209

Social security costs

282,372

240,928

Other pension costs

102,551

99,637

3,186,921

2,768,774

The average number of employees during the year was as follows:

2022

2021

Sales & Administration

44

40

Production

30

27

Installation

7

9

81

76

2022

2021

£

£

Directors' remuneration

242,401

226,046

Directors' pension contributions to money purchase schemes

24,949

25,964

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

108,820

94,910

Pension contributions to money purchase schemes

4,316

-

4.	OPERATING (LOSS)/PROFIT

The operating loss (2021 - operating profit) is stated after charging:

2022

2021

£

£

Other operating leases

251,085

251,901

Depreciation - owned assets

39,555

39,387

Depreciation - assets on hire purchase contracts

18,397

18,396

Auditors remuneration

9,750

7,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank interest

367

650

Funding circle interest

33,110

30,395

Shareholder loan interest

8,649

10,820

Hire purchase interest

6,030

8,324

48,156

50,189

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

(97,497

)

96,047

Over provision in prior year

(67,503

)

-

Corporation tax interest

2,550

-

Total current tax

(162,450

)

96,047

Deferred taxation

(42,000

)

18,000

Tax on (loss)/profit

(204,450

)

114,047

7.

DIVIDENDS

2022

2021

£

£

Interim

36,000

45,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 November 2021

126,790

512,541

212,785

23,246

875,362

Additions

-

31,477

10,011

-

41,488

At 31 October 2022

126,790

544,018

222,796

23,246

916,850

DEPRECIATION

At 1 November 2021

111,760

320,516

193,310

23,244

648,830

Charge for year

2,440

39,283

16,228

1

57,952

At 31 October 2022

114,200

359,799

209,538

23,245

706,782

NET BOOK VALUE

At 31 October 2022

12,590

184,219

13,258

1

210,068

At 31 October 2021

15,030

192,025

19,475

2

226,532