Company Registration No. 01122438 (England and Wales)
Universal Air Tool Company Limited
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Universal Air Tool Company Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
Universal Air Tool Company Limited
Statement of financial position
As at 31 December 2023
31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
16,433
26,929
Current assets
Stocks
646,693
779,404
Debtors
5
1,184,265
1,075,030
Cash at bank and in hand
114,954
40,927
1,945,912
1,895,361
Creditors: amounts falling due within one year
6
(443,386)
(407,303)
Net current assets
1,502,526
1,488,058
Net assets
1,518,959
1,514,987
Capital and reserves
Called up share capital
6,601
6,601
Share premium account
38,400
38,400
Profit and loss reserves
1,473,958
1,469,986
Total equity
1,518,959
1,514,987
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on
19 August 2024 and are signed on its behalf by:
2024-08-19
Marc Mabie
Director
Company Registration No. 01122438
Universal Air Tool Company Limited
Notes to the financial statements
For the year ended 31 December 2023
2
1
Accounting policies
Company information
Universal Air Tool Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 100 Avebury Boulevard, Milton Keynes, MK9 1FH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods provided in the normal course of business, net of discounts, VAT and other sales related taxes. Turnover is recognised on the despatch of goods.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% straight line basis
Computers
25% straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Universal Air Tool Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
3
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided on the liability method to take account of timing differences between the treatment of certain items for accounts purposes and their treatment for tax purposes. Tax deferred and accelerated is accounted for in respect of all material timing differences.
Universal Air Tool Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Property, plant and equipment acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.
Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.
2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provision for obsolete stock
There is possibility for stocks of finished goods to degrade in value due to obsolescence which would reduce the appropriate value of the stock items. Management provide for obsolete stock items on a monthly basis based upon age of stock items and historic stock sales.
Universal Air Tool Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
5
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
10
10
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023
20,494
38,638
59,132
Additions
4,600
4,600
Disposals
(15,526)
(7,265)
(22,791)
At 31 December 2023
4,968
35,973
40,941
Depreciation and impairment
At 1 January 2023
11,068
21,135
32,203
Depreciation charged in the year
4,194
8,219
12,413
Eliminated in respect of disposals
(12,845)
(7,263)
(20,108)
At 31 December 2023
2,417
22,091
24,508
Carrying amount
At 31 December 2023
2,551
13,882
16,433
At 31 December 2022
9,426
17,503
26,929
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
271,567
237,099
Amounts owed by group undertakings
886,359
812,113
Prepayments and accrued income
26,339
25,818
1,184,265
1,075,030
Universal Air Tool Company Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
71,841
45,383
Amounts owed to group undertakings
184,004
184,004
Corporation tax
5,398
14,074
Other taxation and social security
49,119
38,164
Other creditors
133,024
125,678
443,386
407,303
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Andrew Watkinson
Statutory Auditors:
Saffery LLP
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
60,626
67,336
9
Related party transactions
The Company has taken advantage of the exemption in FRS 102 Section 33.1A to not disclose transactions with wholly owned group entities. There are no other related party transactions which require disclosure.
10
Parent company
The company is controlled by ShoreView subsidiary, Florida Pneumatic Manufacturing Corporation (registered office: 1660 Silver Beach Road Suite 100, Lake Park, FL 33403, USA). The company is a wholly owned subsidiary of Florida Pneumatic Manufacturing Corporation.
At the Balance Sheet date, the immediate parent undertaking was Florida Pneumatic Manufacturing Corporation. The ultimate parent undertaking is ShoreView.