Chemtec Center Ltd |
Notes to the Accounts |
for the year ended 31 October 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised on a straight-line basis over the period of the contract. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Improvements to land and buildings |
10% straight line |
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Plant and machinery |
25% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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Government grants |
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Government grants are accounted for under the "performance model". Grants received without any specific future performance-related conditions are recognised in income when the grant income is received or receivable. |
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Going concern |
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The company incurred a loss of £28,149 (2022: loss of £199,998) in the year and at the balance sheet date had net liabilities of £385,947 (2022: £357,799). Since the year end the company entered into a contract selling the goodwill and certain assets of its main business. The directors have not yet made a decision regarding the future trading intentions for the company. The ability of the company to continue as a going concern is dependent on the ability of the company to realise value from its remaining assets, directors' decisions regarding the future activites of the company, and the continued support of the company's creditors and shareholders. The financial statements have been prepared on the basis that the company will continue as a going concern. |
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2 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
9 |
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10 |
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3 |
Tangible fixed assets |
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Building improvements |
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Plant and machinery, fixtures and fittings |
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Motor vehicles |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 November 2022 |
112,794 |
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80,506 |
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172,852 |
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366,152 |
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Additions |
- |
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13,682 |
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- |
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13,682 |
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Disposals |
- |
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(6,100) |
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- |
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(6,100) |
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At 31 October 2023 |
112,794 |
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88,088 |
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172,852 |
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373,734 |
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Depreciation |
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At 1 November 2022 |
18,470 |
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68,930 |
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78,585 |
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165,985 |
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Charge for the year |
10,087 |
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4,317 |
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26,754 |
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41,158 |
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On disposals |
- |
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(6,100) |
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- |
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(6,100) |
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At 31 October 2023 |
28,557 |
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67,147 |
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105,339 |
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201,043 |
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Net book value |
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At 31 October 2023 |
84,237 |
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20,941 |
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67,513 |
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172,691 |
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At 31 October 2022 |
94,324 |
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11,576 |
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94,267 |
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200,167 |
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4 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
54,867 |
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59,850 |
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Other debtors |
34,409 |
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39,517 |
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89,276 |
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99,367 |
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5 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
24,619 |
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27,090 |
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Obligations under finance lease and hire purchase contracts |
36,881 |
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35,098 |
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Trade creditors |
586,570 |
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524,182 |
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Taxation and social security costs |
22,826 |
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39,368 |
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Shareholders' loan account |
52,544 |
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58,281 |
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Other creditors, including deferred income |
93,185 |
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79,903 |
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816,625 |
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763,922 |
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6 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
31,018 |
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36,622 |
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Obligations under finance lease and hire purchase contracts |
25,269 |
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53,090 |
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56,287 |
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89,712 |
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7 |
Loans and overdrafts |
2023 |
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2022 |
£ |
£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
8,794 |
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14,402 |
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Secured bank loans and overdrafts |
19,063 |
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21,535 |
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Amounts owed to the company's bank are secured by way of a fixed and floating charge over the assets of the company. |
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Amounts owed under hire purchase agreements and finance leases are secured against the assets they relate to. |
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8 |
Events after the reporting date |
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Since the year end the company has sold the goodwill and certain assets of the main business of the company. |
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9 |
Other information |
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Chemtec Center Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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901 Honeypot Lane |
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Stanmore |
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Middlesex |
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HA7 1AR |
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The registered office is the company's principal place of business. |