Registered number
06076919
Covtec Limited
Filleted Accounts
29 February 2024
Covtec Limited
Registered number: 06076919
Balance Sheet
as at 29 February 2024
Notes 2024 2023
£ £
Fixed assets
Intangible assets 3 4,608 5,376
Tangible assets 4 30,368 33,070
34,976 38,446
Current assets
Stocks 60,686 49,000
Debtors 5 13,074 95,489
Cash at bank and in hand 367,203 500,431
440,963 644,920
Creditors: amounts falling due within one year 6 (118,149) (319,468)
Net current assets 322,814 325,452
Total assets less current liabilities 357,790 363,898
Provisions for liabilities (1,330) (2,954)
Net assets 356,460 360,944
Capital and reserves
Called up share capital 1,000 1,000
Profit and loss account 355,460 359,944
Shareholders' funds 356,460 360,944
The director is satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr K J McCullagh
Director
Approved by the board on 28 November 2024
Covtec Limited
Notes to the Accounts
for the year ended 29 February 2024
1 Accounting policies
Basis of preparation
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).
Turnover
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 by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Leasehold improvements 5% straight line
Plant and machinery 30% reducing balance
Motor vehicles 25% reducing balance
Stocks
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.
Debtors
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.
Creditors
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.
Taxation
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.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
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.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2024 2023
Number Number
Average number of persons employed by the company 4 4
3 Intangible fixed assets £
Website:
Cost
At 1 March 2023 7,680
At 29 February 2024 7,680
Amortisation
At 1 March 2023 2,304
Provided during the year 768
At 29 February 2024 3,072
Net book value
At 29 February 2024 4,608
At 28 February 2023 5,376
The website is being written off in equal annual instalments over its estimated economic life of 10 years.
4 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 March 2023 31,924 16,805 16,391 65,120
Additions - 606 - 606
At 29 February 2024 31,924 17,411 16,391 65,726
Depreciation
At 1 March 2023 4,808 14,173 13,069 32,050
Charge for the year 1,597 880 831 3,308
At 29 February 2024 6,405 15,053 13,900 35,358
Net book value
At 29 February 2024 25,519 2,358 2,491 30,368
At 28 February 2023 27,116 2,632 3,322 33,070
5 Debtors 2024 2023
£ £
Trade debtors 10,389 93,075
Other debtors 2,685 2,414
13,074 95,489
6 Creditors: amounts falling due within one year 2024 2023
£ £
Trade creditors 2,722 5,686
Taxation and social security costs 61,356 92,152
Other creditors 54,071 221,630
118,149 319,468
7 Related party transactions
Mr K J McCullagh received dividends during the year of £87,500 (2023 £137,500).
8 Controlling party
The company is controlled by the director.
9 Other information
Covtec Limited is a private company limited by shares and incorporated in England. Its registered office is:
Unit 2 Aviation Way
Durham Tees Valley Airport
Darlington
DL2 1NA
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