Registration number:
Universal Coatings & Services Limited
Filleted
for the Period from 2 July 2022 to 30 June 2023
Universal Coatings & Services Limited
Contents
Company Information |
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Statement of Financial Position |
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Notes to the Financial Statements |
Universal Coatings & Services Limited
Company Information
Directors |
S Pearson C Stobbs S Glenn W Scott |
Company secretary |
C Stobbs |
Registered office |
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Auditor |
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Universal Coatings & Services Limited
(Registration number: 03867095)
Statement of Financial Position as at 30 June 2023
Note |
30 June |
1 July |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.
Approved and authorised for issue by the
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Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention.
These financial statements are prepared in sterling which is the functional currency of the entity.
Disclosure of long or short period
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
2 |
Accounting policies (continued) |
Going concern
The financial statements have been prepared on a going concern basis.
The company is part of a group headed by Wilton Universal Group Limited. The company and its group are party, as chargors, to a funding facility in the form of a £4m term loan to Port Clarence Logistics Limited, a company under common control. This term loan is repayable in quarterly instalments of £110,000 plus a final instalment of £2,309,000 due in September 2024. In the current year there was an additional £1m term loan which is repayable in quarterly instalments of £17,000 plus a final instalment of £729,000 due in September 2024. In addition, during the year ended 30 June 2021, the group also received a CBILS loan of £1,500,000 repayable in monthly instalments with the final instalment due in June 2026. The group also received a bridging loan of £4.1m in relation to the purchase of the Haverton Hill site which they refinanced in December 2022.
The company has recorded a loss before tax of £232,002 in the period ended 30 June 2023 and has net current assets of £1,135,232 at the year end. The company meets its day to day working capital requirements through cash generated from operations and related party borrowings.
The company and group’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account a return to profit in the current year and improved trading performance and the timing of work alongside the continuing financial support of Port Clarence Logistics Limited. This also considers the impact of increased levels of inflation and high energy prices on the wider economy, and the effectiveness of available measures to assist in mitigating this impact and allow management to continue to carefully manage the group’s working capital position to allow it to trade within its available facilities. The current order book is forecast to increase in the coming year and enquiries and prospects remain strong. A letter of support has been received from Port Clarence Logistics Limited.
Although the forecast prepared taking account of the matters above support the ability of the company to remain a going concern and to be able to trade and meets its debts as they fall due, the full impact on the wider economy of high levels of inflation and the underlying trading assumptions used in forecasting are judgemental and difficult to predict and could be subject to significant variation. However, based on the factors set out above, the directors believe that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
2 |
Accounting policies (continued) |
Revenue recognition
Turnover comprises revenue recognised in respect of services supplied during the year, net of discounts and excluding Value Added Tax.
Unless construction contract accounting is applied, turnover is recognised as projects are completed and invoiced. Costs incurred on incomplete projects are held on the balance sheet as work in progress, to be released to the profit and loss account at the point of completion and billing.
When construction contract accounting is applied, if the outcome of a contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the proportion that contract costs to date bear to the total estimated contract costs.
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately.
Revenue recognised in excess of amounts invoiced to customers is classified as amounts recoverable on contracts, within debtors, whilst payments and invoices in excess of revenue recognised on individual contracts are included in creditors as payments received on account.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position 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:
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
2 |
Accounting policies (continued) |
Asset class |
Depreciation method and rate |
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Leasehold improvements |
five to ten years straight line |
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Motor vehicles |
one to five years straight line |
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Plant and machinery |
one to five years straight line |
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Office equipment |
one to five years straight line |
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Fixtures and fittings |
three years straight line |
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.
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 income statement 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.
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
2 |
Accounting policies (continued) |
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 statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement 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.
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.
Share based payments
The company provides share based payment arrangements to certain employees.
Equity-settled arrangements are measured at fair value at the date of the grant. To the extent material, the fair value (excluding the effect of non-market based vesting conditions) is expensed on a straight line basis over the vesting period. The amount recognised as an expense is adjusted periodically to reflect revisions to the actual number of share options that are expected to vest.
The company has no cash-settled share based payment arrangements.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
Auditor's remuneration |
30 June |
1 July |
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Audit of the financial statements |
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Tangible assets |
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
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Cost or valuation |
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At 2 July 2022 |
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Additions |
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- |
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Disposals |
( |
- |
( |
( |
- |
( |
At 30 June 2023 |
- |
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Depreciation |
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At 2 July 2022 |
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- |
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Charge for the period |
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Eliminated on disposal |
( |
- |
( |
( |
- |
( |
At 30 June 2023 |
- |
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Carrying amount |
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At 30 June 2023 |
- |
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- |
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At 1 July 2022 |
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Included within the net book value of land and buildings above is £Nil (2022 - £60,674) in respect of long leasehold land and buildings.
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
Stocks |
30 June |
1 July |
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Raw materials and consumables |
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Debtors |
30 June |
1 July |
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Trade debtors |
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Amounts owed by group undertakings |
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Prepayments |
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Other debtors |
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Amounts recoverable on contracts |
153,000 |
125,000 |
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Creditors |
Creditors: amounts falling due within one year
Note |
30 June |
1 July |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Amounts owed to group undertakings |
- |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
30 June |
1 July |
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Due after one year |
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Loans and borrowings |
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Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
Loans and borrowings |
30 June |
1 July |
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Current loans and borrowings |
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Hire purchase and finance lease liabilities |
2,762 |
2,992 |
30 June |
1 July |
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Non-current loans and borrowings |
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Hire purchase and finance lease liabilities |
427 |
2,959 |
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the statement of financial position
The company, together with its fellow group undertakings and Port Clarence Logistics Limited, an entity subject to common control, is party to an Omnibus Guarantee and Set Off Agreement with Barclays Bank plc. These arrangements incorporate a fixed and floating charge over all the assets of the company, of its group headed by Wilton Universal Group Limited and of Port Clarence Logistics Limited and a cross guarantee to collectively guarantee payment of their indebtedness to the bank. The aggregate amount outstanding at the balance sheet date to which these guarantees relate was £3,689,098 (2022 - £3,166,262) of which £nil (2022 - £nil) is recognised within these financial statements.
The company, together with the other members of its group headed by Wilton Universal Group Limited, is also a joint borrower in respect of loans to Port Clarence Logistics Limited from W Scott and S Glenn for which a fixed and floating charge over each borrowers’ assets has been provided. The total amount outstanding at the balance sheet date, to which the security relates, was £545,385 (2022 - £537,093).
The company and other members of the Wilton Universal Group Limited, has also provided security in respect of funding to Wilton Engineering Services Limited for customer bonds of £366,360 (2022 - £521,105).
Universal Coatings & Services Limited
Notes to the Financial Statements for the Period from 2 July 2022 to 30 June 2023 (continued)
Parent and ultimate parent undertaking |
The company's immediate parent is
These consolidated financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is the
Audit report |
The name of the Senior Statutory Auditor who signed the audit report on
Azets Audit Services is a trading name of Azets Audit Services Limited.