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COMPANY REGISTRATION NUMBER: 01986321
Truflow Hydraulic Components Limited
Filleted Financial Statements
31 December 2023
Truflow Hydraulic Components Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
5
295,401
302,163
Current assets
Stocks
2,228,235
2,305,173
Debtors
6
1,545,371
1,264,956
Cash at bank and in hand
62,239
181,478
------------
------------
3,835,845
3,751,607
Creditors: amounts falling due within one year
7
3,392,479
3,162,404
------------
------------
Net current assets
443,366
589,203
---------
---------
Total assets less current liabilities
738,767
891,366
---------
---------
Net assets
738,767
891,366
---------
---------
Capital and reserves
Called up share capital
1,500
1,500
Profit and loss account
737,267
889,866
---------
---------
Shareholders funds
738,767
891,366
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 30 August 2024 , and are signed on behalf of the board by:
Mr D M Carr
Director
Company registration number: 01986321
Truflow Hydraulic Components Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Squire Patton Boggs (uk) Llp (ref: Csu), Rutland House, 148 Edmund Street, Birmingham, B3 2JR, England.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: The recoverability of certain long outstanding trade debts. The company had trade debts at the year end that were not cleared during their agreed credit terms at the date of the accounts of £13,272 (2022 - £72,045). The company believes that the debts remain recoverable and that no provision for bad debts is required. This assertion is based on the knowledge of the customers involved, normal remittance timescales and the company's history of bad debts.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Long leasehold property
-
10% reducing balance
Plant and machinery
-
15% reducing balance
Fixtures and fittings
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Office equipment
-
15 % reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of average cost and estimated selling price less costs to complete and sell. Average cost includes average costs of purchase,conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 19 (2022: 15 ).
5. Tangible assets
Long leasehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
£
Cost
At 1 Jan 2023
128,394
31,130
175,951
17,938
62,121
415,534
Additions
31,046
760
5,432
37,238
---------
--------
---------
--------
--------
---------
At 31 Dec 2023
159,440
31,130
176,711
17,938
67,553
452,772
---------
--------
---------
--------
--------
---------
Depreciation
At 1 Jan 2023
2,139
27,920
39,902
9,361
34,049
113,371
Charge for the year
15,730
482
20,769
2,144
4,875
44,000
---------
--------
---------
--------
--------
---------
At 31 Dec 2023
17,869
28,402
60,671
11,505
38,924
157,371
---------
--------
---------
--------
--------
---------
Carrying amount
At 31 Dec 2023
141,571
2,728
116,040
6,433
28,629
295,401
---------
--------
---------
--------
--------
---------
At 31 Dec 2022
126,255
3,210
136,049
8,577
28,072
302,163
---------
--------
---------
--------
--------
---------
6. Debtors
2023
2022
£
£
Trade debtors
1,308,137
1,082,821
Amounts owed by group undertakings and undertakings in which the company has a participating interest
60,646
52,614
Other debtors
176,588
129,521
------------
------------
1,545,371
1,264,956
------------
------------
The debtors above include the following amounts falling due after more than one year:
2023
2022
£
£
Other debtors
144,222
108,774
---------
---------
7. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
957,388
1,457,066
Amounts owed to group undertakings and undertakings in which the company has a participating interest
2,352,356
1,626,528
Social security and other taxes
35,391
30,220
Other creditors
47,344
48,590
------------
------------
3,392,479
3,162,404
------------
------------
JPMorgan Chase Bank, N.A. holds a fixed and floating charge over all the property or undertaking of the company and a negative pledge made by the company, dated 25 May 2023.
8. Summary audit opinion
The auditor's report dated 30 August 2024 was unqualified .
The senior statutory auditor was Peter Stewart FCA , for and on behalf of Gregory Priestley & Stewart .
9. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2023
2022
2023
2022
£
£
£
£
Parties subject to common control
567,843
411,529
( 25,978)
( 69,425)
Ultimate parent company
222,521
249,204
( 597,509)
( 422,285)
---------
---------
---------
---------
During the year the company traded with associated group companies. They are all subject to common control or influence from Brennan Industries Inc. All of the transactions were in the normal course of trade, but the ones disclosed above were at a preferential rate because of their group status.
10. Controlling party
The ultimate parent company is Brennan Industries Inc, registered office: 6701, Cochran Road, Solon, Ohio, 44139, United States.