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Company registration number: 01532208

Universal Components Limited

Filleted Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Universal Components Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 11

 

Universal Components Limited

(Registration number: 01532208)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

47,760

18,966

Investment property

6

3,500,000

3,000,000

Investments

7

5,600

5,600

 

3,553,360

3,024,566

Current assets

 

Stocks

8

248,225

273,350

Debtors

9

249,018

160,845

Cash at bank and in hand

 

450,866

424,653

 

948,109

858,848

Creditors: Amounts falling due within one year

10

(418,081)

(373,144)

Net current assets

 

530,028

485,704

Total assets less current liabilities

 

4,083,388

3,510,270

Creditors: Amounts falling due after more than one year

10

(424,408)

(577,969)

Provisions for liabilities

 

Provisions

11

(150,000)

(150,000)

Deferred tax liabilities

 

(125,000)

-

Provisions for liabilities

11

(275,000)

(150,000)

Net assets

 

3,383,980

2,782,301

Capital and reserves

 

Called up share capital

2,020,000

2,020,000

Fair value reserve

 

1,203,274

828,274

Profit and loss account

160,706

(65,973)

Total equity

 

3,383,980

2,782,301

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the director on 19 June 2024 .
 


D Mouskis
Director

   
 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Unit 35
St Richards Road
Evesham
Worcestershire
WR11 1XJ

2

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 that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

Going concern

The director has made an assessment that the company is a going concern and has prepared the financial statements on this basis. The director does not believe there to be any material uncertainty in this assessment, but does note that it is based on the following key assumptions:


• The director has obtained confirmation from its parent undertaking that support will be provided if required for a period of at least 12 months from the approval of the financial statements and that repayment of the loan will not be sought if considered detrimental to the company’s ability to continue as a going concern.
• The director believes there to be sufficient equity in the investment property to enable funds to be raised if required.
• The company’s cash position remains strong in comparison to the company's fixed cost base, with sufficient reserves to meet the majority of the company’s fixed costs for the next 12 months.

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. The carrying value of deferred tax is recognised as a provision in the balance sheet.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

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 & machinery

Straight line over 3, 5 & 10 years

Motor vehicles

Straight line over 4 years

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Rental income derived from the investment property is recognised as the service is accrued as other operating income.

Intangible assets

Intangible assets are stated at cost, less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Trademarks, Patents and Licenses

Straight line over 5 years

Investments

Investments in subsidiaries 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.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade and other 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 or other 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.

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 and other creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 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.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Fair value reserve is the surplus or deficit arising on the valuation of investment properties to fair value.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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.

The benefits of lease incentives are recognised in the profit and loss account over the lease period.

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 Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

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

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 15 (2022 - 15).

4

Intangible assets

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 January 2023

10,000

10,000

At 31 December 2023

10,000

10,000

Amortisation

At 1 January 2023

10,000

10,000

At 31 December 2023

10,000

10,000

Carrying amount

At 31 December 2023

-

-

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

5

Tangible assets

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 January 2023

44,622

309,681

354,303

Additions

44,620

1,701

46,321

Disposals

(28,409)

-

(28,409)

At 31 December 2023

60,833

311,382

372,215

Depreciation

At 1 January 2023

40,671

294,666

335,337

Charge for the year

10,377

3,199

13,576

Eliminated on disposal

(24,458)

-

(24,458)

At 31 December 2023

26,590

297,865

324,455

Carrying amount

At 31 December 2023

34,243

13,517

47,760

At 31 December 2022

3,951

15,015

18,966

6

Investment properties

2023
 £

At 1 January and 31 December 2020

3,000,000

Fair value adjustments

500,000

At 31 December 2023

3,500,000


A valuation of the property was carried out by Vickery Holman Property Consultants at the request of the director as at 30 March 2020. The director has assessed this valuation and has concluded that the property has benefitted from an uplift in the property valuation between the date of the formal valuation and the balance sheet date. Whilst there is a significant degree of judgement the director is confident that the recognised fair value is a reasonable approximation. The investment property provides security for the company's debt.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

7

Investments

2023
£

2022
£

Investments in subsidiaries

5,600

5,600

Subsidiaries

£

Cost or valuation

At 1 January 2023

5,600

Carrying amount

At 31 December 2023

5,600

At 31 December 2022

5,600

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Gardenarea Limited

Unit 35
St Richards Road
Evesham

Ordinary

100%

100%

 

England

     

Independent Engineering Company Limited (The)

Unit 35
St Richards Road
Evesham

Ordinary

100%

100%

 

England

     

Subsidiary undertakings

Gardenarea Limited

The principal activity of Gardenarea Limited is dormant.

Independent Engineering Company Limited (The)

The principal activity of Independent Engineering Company Limited (The) is dormant.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

8

Stocks

2023
£

2022
£

Stocks

248,225

273,350

9

Debtors

Current

2023
£

2022
£

Trade debtors

206,946

117,916

Prepayments

40,227

41,084

Other debtors

1,845

1,845

 

249,018

160,845

10

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

12

-

8,585

Trade creditors

 

85,905

41,251

Amounts owed to group undertakings and undertakings in which the company has a participating interest

14

200,000

200,000

Taxation and social security

 

93,802

87,475

Accruals and deferred income

 

36,001

34,203

Other creditors

 

2,373

1,630

 

418,081

373,144

Creditors include loans due to group undertakings of £200,000 (2022 - £200,000). The security given comprises of a fixed charge over the investment property and floating charges over other assets.

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

Amounts owed to group undertakings and undertakings in which the company has a participating interest

424,408

577,969

Creditors include loans due to group undertakings of £412,390 (2022 - £577,969). The security given comprises of a fixed charge over the investment property and floating charges over other assets.

 

Universal Components Limited

Notes to the Financial Statements
for the Year Ended 31 December 2023

11

Provisions for liabilities

Deferred tax
£

Repairs
£

Total
£

At 1 January 2023

-

150,000

150,000

Additional provisions

125,000

-

125,000

At 31 December 2023

125,000

150,000

275,000

12

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

-

8,585

Other borrowings

Hire purchase contract liabilities are secured on the motor vehicle they are financing.

13

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £3,609,213 (2022 - £3,408,235). The commitments are in relation to non-cancellable operating leases and are due over the following periods: £113,909 (2022- £76,950) in one year, £260,328 (2022 - £242,557) in two to five years and £2,919,863 (2022 - £2,980,201) in more than five years.

14

Related party transactions

Summary of transactions with parent

The company has taken advantage of not disclosing transactions with its parent company on the grounds it is a wholly owned subsidiary.
 

15

Parent and ultimate parent undertaking

The company's immediate parent is Mustika Aluminium Industries Ltd, incorporated in Cyprus.

 

16

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 19 June 2024 was Christopher Walford ACA, who signed for and on behalf of Albert Goodman LLP.