Omega Signs Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02683286 (England and Wales)

OMEGA SIGNS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2018

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

18

DIRECTORS:

A R Timmermans

Mrs. M A Chapman

A P Stirling

P Gains

D J Chapman

M R Timmermans

B Dennehy

C Norfolk

SECRETARY:

A P Stirling

REGISTERED OFFICE:

Newmarket Approach

Leeds

LS9 0RJ

REGISTERED NUMBER:

02683286 (England and Wales)

AUDITORS:

Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

BANKERS:

HSBC Bank Plc

7 Prospect Crescent

Harrogate

North Yorkshire

HG1 1RN

The Directors report the financial results for our year ending 31 December 2018.

The financial results reflect the challenging conditions seen throughout the market place and the wider economy in the period to

December 2018. A number of factors, especially the "Brexit" effect have led to a toughening economy and a high degree of

uncertainty, which has impacted on our customers and their investment plans. This is in turn has impacted on the marketplace as a

whole resulting in a very competitive environment. Strategically, we have rolled out a number of initiatives to combat this and are

beginning to see the benefits. We continue to invest in the business and our people to ensure efficiency whilst maintaining our

industry leading levels of quality and service. This will continue to be the driver and focus of the business as we return to growth

and profitability. A large part of this future business investment in 2018 was in research and development in new products and

technologies. The majority of this work relates to new customer contracts that span the forthcoming 3 years, although the

associated R&D costs have been digested upfront. The business retains its inherent strength with a flexible and wide ranging skill

base, and is pleased to report a strengthened balance sheet and debt free financial position.

We continue to operate across a number of market sectors to provide stability and limit exposure and furthered this during 2018 by

diversifying into new sectors and new customers. This will provide a solid base for future growth and increased performance. These

are economically unprecedented times but the directors are confident that we have the right plans and people in place to emerge

stronger.

Once again, we must acknowledge the extraordinary efforts our employees have made this year. They have once again stepped up

to the challenges set and have surpassed all expectations. Our sincere thanks and appreciation goes out to them all.

PRINCIPAL RISKS AND UNCERTAINTIES

Price risk

The company mainly uses short term matched contracts with suppliers and customers to manage its exposure to variation in

market prices. There are a small number of long term contracts with customers where the majority of costs are incurred at an early

stage minimizing the inherent risk in them.

Exchange rates

The company uses a combination of spot purchases and forward contracts to manage its exchange rate risk.

Credit risk

The company mainly trades with long standing customers. The nature of these relationships assists management on controlling

credit risk in addition to normal credit management process.

Liquidity risk

Management control and monitor the company's cash flow on a regular basis including forecasting future cash values.

ON BEHALF OF THE BOARD:

A P Stirling - Director

23rd August 2019

The directors present their report with the financial statements of the company for the year ended 31st December 2018.

DIVIDENDS

The total distribution of dividends for the period ended 31st December 2018 was £Nil (2017: £14,083)

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2018 to the date of this report.

A R Timmermans

Mrs. M A Chapman

A P Stirling

P Gains

D J Chapman

M R Timmermans

B Dennehy

Other changes in directors holding office are as follows:

C Norfolk was appointed as a director after 31st December 2018 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements

unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the

company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's

transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure

that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the

company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a

director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

AUDITORS

The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A P Stirling - Director

23rd August 2019

Opinion

We have audited the financial statements of Omega Signs Limited (the 'company') for the year ended 31st December 2018 which

comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes

to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,

including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United

Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report

and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have

not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our

opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as

the directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always

detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis

of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to

state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report,

or for the opinions we have formed.

Stuart Adam FCA (Senior Statutory Auditor)

for and on behalf of Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

23rd August 2019

TURNOVER

12,160,602

13,615,226

Cost of sales

8,658,689

9,702,872

GROSS PROFIT

3,501,913

3,912,354

Administrative expenses

3,747,072

3,637,599

(245,159

)

274,755

Other operating income

(1,403

)

1,047

OPERATING (LOSS)/PROFIT

4

(246,562

)

275,802

Interest payable and similar expenses

5

852

355

(LOSS)/PROFIT BEFORE TAXATION

(247,414

)

275,447

Tax on (loss)/profit

6

(314,155

)

57,877

PROFIT FOR THE FINANCIAL YEAR

66,741

217,570

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

66,741

217,570

FIXED ASSETS

Tangible assets

8

229,292

306,497

Investments

9

10,000

10,000

239,292

316,497

CURRENT ASSETS

Stocks

10

716,787

918,964

Debtors

11

4,165,601

3,597,826

Cash at bank

344,584

196,032

5,226,972

4,712,822

CREDITORS

Amounts falling due within one year

12

3,289,604

2,902,519

NET CURRENT ASSETS

1,937,368

1,810,303

TOTAL ASSETS LESS CURRENT LIABILITIES

2,176,660

2,126,800

CREDITORS

Amounts falling due after more than one year

13

-

(10,500

)

PROVISIONS FOR LIABILITIES

16

(16,683

)

(23,064

)

NET ASSETS

2,159,977

2,093,236

CAPITAL AND RESERVES

Called up share capital

17

30,400

30,400

Retained earnings

18

2,129,577

2,062,836

SHAREHOLDERS' FUNDS

2,159,977

2,093,236

The financial statements were approved by the Board of Directors on 23rd August 2019 and were signed on its behalf by:

D J Chapman - Director

A P Stirling - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2017

30,400

1,859,349

1,889,749

Changes in equity

Dividends

-

(14,083

)

(14,083

)

Total comprehensive income

-

217,570

217,570

Balance at 31st December 2017

30,400

2,062,836

2,093,236

Changes in equity

Total comprehensive income

-

66,741

66,741

Balance at 31st December 2018

30,400

2,129,577

2,159,977

Cash flows from operating activities

Cash generated from operations

1

244,621

(126,293

)

Interest paid

(852

)

(355

)

Tax paid

(54,454

)

(40,585

)

Net cash from operating activities

189,315

(167,233

)

Cash flows from investing activities

Purchase of tangible fixed assets

(32,763

)

(102,340

)

Sale of tangible fixed assets

-

5,518

Net cash from investing activities

(32,763

)

(96,822

)

Cash flows from financing activities

Capital repayments in year

-

28,500

Amount withdrawn by directors

(8,000

)

(15,000

)

Equity dividends paid

-

(14,083

)

Net cash from financing activities

(8,000

)

(583

)

Increase/(decrease) in cash and cash equivalents

148,552

(264,638

)

Cash and cash equivalents at beginning of year

2

196,032

460,670

Cash and cash equivalents at end of year

2

344,584

196,032

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

(Loss)/profit before taxation

(247,414

)

275,447

Depreciation charges

109,968

112,368

Profit on disposal of fixed assets

-

(5,508

)

Finance costs

852

355

(136,594

)

382,662

Decrease/(increase) in stocks

202,177

(132,120

)

Increase in trade and other debtors

(252,000

)

(1,638,945

)

Increase in trade and other creditors

431,038

1,262,110

Cash generated from operations

244,621

(126,293

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance

Sheet amounts:

Year ended 31st December 2018

31/12/18

1/1/18

£

£

Cash and cash equivalents

344,584

196,032

Year ended 31st December 2017

31/12/17

1/1/17

£

£

Cash and cash equivalents

196,032

460,670

1.	STATUTORY INFORMATION

Omega Signs Limited is a private company, limited by shares , registered in England and Wales. The company's registered

number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value

added tax and other sales taxes.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated

impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided to write off the cost less the estimated residual of tangible fixed assets by equal instalments over

their estimated useful economic lives as follows:

Short leasehold

- 5% on cost

Plant and machinery, fixtures and fittings, motor vehicles

- 25% on cost

Computer equipment

- 33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing

stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet

date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in

which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been

enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet

date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction.

Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over

their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the

future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected

useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the

outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are

included in creditors.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme

are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction

price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

3,384,292

3,289,120

Other pension costs

202,997

202,569

3,587,289

3,491,689

The average number of employees during the year was as follows:

2018

2017

Management

6

6

Administration

77

77

83

83

2018

2017

£

£

Directors' remuneration

628,703

600,716

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

6

6

Information regarding the highest paid director is as follows:

2018

2017

£

£

Emoluments etc

165,462

148,921

4.	OPERATING (LOSS)/PROFIT

The operating loss (2017 - operating profit) is stated after charging/(crediting):

2018

2017

£

£

Other operating leases

130,000

130,000

Depreciation - owned assets

99,343

106,702

Depreciation - assets on hire purchase contracts

10,625

5,666

Profit on disposal of fixed assets

-

(5,508

)

Auditors' remuneration

11,780

11,200

Foreign exchange differences

1,403

(1,047

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Hire purchase interest

852

355

6.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

(99,661

)

54,453

Prior year tax over provision

(208,113

)

-

Total current tax

(307,774

)

54,453

Deferred tax

(6,381

)

3,424

Tax on (loss)/profit

(314,155

)

57,877

Reconciliation of total tax (credit)/charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained

below:

2018

2017

£

£

(Loss)/profit before tax

(247,414

)

275,447

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.247%)

(47,009

)

53,015

Effects of:

Expenses not deductible for tax purposes

2,325

3,140

Capital allowances in excess of depreciation

-

(641

)

Depreciation in excess of capital allowances

12,575

-

Enhanced reliefs

(269,673

)

-

(Profit)/Loss on disposal of assets

-

(1,061

)

Change in tax rate

(5,992

)

-

Deferred tax

(6,381

)

3,424

Total tax (credit)/charge

(314,155

)

57,877

7.

DIVIDENDS

2018

2017

£

£

Ordinary shares of 1 each

Interim

-

14,083

8.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1st January 2018

553,172

470,727

383,379

40,380

1,447,658

Additions

-

29,672

3,091

-

32,763

Disposals

-

-

(5,076

)

-

(5,076

)

At 31st December 2018

553,172

500,399

381,394

40,380

1,475,345

DEPRECIATION

At 1st January 2018

439,829

334,277

332,564

34,491

1,141,161

Charge for year

31,203

40,501

32,375

5,889

109,968

Eliminated on disposal

-

-

(5,076

)

-

(5,076

)

At 31st December 2018

471,032

374,778

359,863

40,380

1,246,053

NET BOOK VALUE

At 31st December 2018

82,140

125,621

21,531

-

229,292

At 31st December 2017

113,343

136,450

50,815

5,889

306,497

Included in the total net book value of plant and machinery was £26,209 (2017- £36,834) in respect of assets held under

finance leases.