Registration number:
Prepared for the registrar
for the
Year Ended 31 August 2023
Industrial Sales Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Industrial Sales Limited
Company Information
Directors |
J A Bailey N R Bailey M Bailey C H Harvey H N Bailey |
Company secretary |
H N Bailey |
Registered office |
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Accountants |
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Industrial Sales Limited
(Registration number: 01223744)
Balance Sheet as at 31 August 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Investments |
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Other financial assets |
477,604 |
- |
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Current assets |
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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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( |
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Net current assets |
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Total assets less current liabilities |
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Deferred tax liabilities |
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( |
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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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Capital reserve |
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Revaluation reserve |
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Profit and loss account |
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Total equity |
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For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
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 and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Director
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 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 except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Group accounts not prepared
The company is part of a small group. The company has taken advantage of the exemption provided by Section 399 (2A) of the Companies Act 2006 and has not prepared group accounts
Going concern
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in the accounting policies.
Revenue recognition
Turnover represents amounts excluding value added tax receivable during the year for property rental. Rental lease incentives are spread over the period to the date of the next rent review or the lease term.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable 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 balance sheet 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:
Asset class |
Depreciation method and rate |
Plant and machinery |
20% of cost per annum |
Motor vehicles |
25% of cost per annum |
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Trade debtors
Trade debtors are amounts due from tenants in respect of property rental.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
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 profit and loss account 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.
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.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was as follows:
2023 |
2022 |
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Average number of employees |
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Tangible assets |
Assets under construction |
Plant and machinery |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 September 2022 |
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At 31 August 2023 |
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Depreciation |
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At 1 September 2022 |
- |
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At 31 August 2023 |
- |
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Carrying amount |
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At 31 August 2023 |
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At 31 August 2022 |
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Investment properties |
£ |
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At 1 September 2022 & 31 August 2022 |
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The fair value of the investment properties comprises of an external independent valuation undertaken on 31 August 2013 by Mr P J Pratt BSc MRICS of Alder King in the amount of £14,318,000 and subsequent additions at cost of £1,706,166. The directors do not consider the fair values at the balance sheet date to be significantly different from the amounts reported above. The historical cost of the investment properties is £14,589,707 (2022 - £14,589,707).
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
Investments |
2023 |
2022 |
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Investments in subsidiaries |
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Other financial assets |
Financial assets at fair value through profit and loss |
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Non-current financial assets |
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Cost or valuation |
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At 1 September 2022 |
- |
Additions |
482,284 |
Fair value movement |
(4,680) |
At 31 August 2023 |
477,604 |
Carrying amount |
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At 31 August 2023 |
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At 31 August 2022 |
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Debtors |
2023 |
2022 |
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Trade debtors |
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Other debtors |
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- |
Prepayments |
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Creditors |
Note |
2023 |
2022 |
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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 due to related parties (subsidiaries) |
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Social security and other taxes |
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Other creditors |
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Accrued expenses and deferred income |
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Corporation tax liability |
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Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
Loans and borrowings |
2023 |
2022 |
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Current loans and borrowings |
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Other loans |
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Related party transactions |
During the year, the company made the following related party transactions
Executive pension scheme in which the directors are trustees and members
During the year, rent was charged to the company of £48,552 (2022 - £48,552) and expenses of £3,290 (2022 - £1,644) were paid by the company on behalf of the pension scheme. At the balance sheet date, there were no outstanding amounts with the pension scheme.
Directors of the company
During the year, the company was charged interest of £136,201 (2022 - £126,606) on loans made to the company. Loan repayments of £430,463 (2022 - £511,767) were made by the company, with funds of £292,158 (2022 - £796,137) introduced into the company. The amounts due to the directors at the end of the year are not expected to be fully repaid within one year of the date of approval of the financial statements, although if such repayments were required the directors consider that, with the unencumbered value of the investment properties, that sufficient funding would be obtained to facilitate such repayments. At the balance sheet date, the amounts due to the directors was £3,505,580 (2022 - £3,643,884). Dividend payments to the directors amounted to £60,000 (2022 - £306,000).
Trusts in which the directors are trustees
During the year, the company was charged interest of £25,410 (2022 - £22,404) on loans made to the company. During the year funds of £nil (2022 - £60,000) was introduced into the company from these trusts. At the balance sheet date, the amounts due to these trusts was £670,003 (2022 - £670,000).
Financial instruments |
Categorisation of financial instruments
2023 |
2022 |
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Financial assets measured at fair value through profit or loss |
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- |
Financial assets measured at fair value
Investment portfolio
Investments are included at fair value based on the price quoted on the relevant exchange or the net asset value provided by the fund investment manager.
The fair value is £477,604 (2022 - £nil) and the change in value included in profit or loss is £4,680 (2022 - £nil).
Items of income, expense, gains or losses
2023 |
Income |
Expense |
Net gains |
Net losses |
Financial assets measured at fair value through profit or loss |
59 |
- |
- |
4,680 |
2022 |
Income |
Expense |
Net gains |
Net losses |
Financial assets measured at fair value through profit or loss |
- |
- |
- |
- |
Industrial Sales Limited
Notes to the Financial Statements for the Year Ended 31 August 2023
Non adjusting events after the financial period |
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