| Cheltenham Tool Company Ltd |
| Notes to the Accounts |
| for the year ended 31 March 2019 |
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| 1 |
Accounting policies |
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Basis of preparation |
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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). |
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Turnover |
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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. |
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Tangible fixed assets |
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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: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Stocks |
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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. |
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Debtors |
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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. |
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Creditors |
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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. |
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Taxation |
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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. |
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Provisions |
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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. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
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Cost |
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At 1 April 2018 |
29,400 |
|
744,013 |
|
57,298 |
|
830,711 |
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At 31 March 2019 |
29,400 |
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744,013 |
|
57,298 |
|
830,711 |
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Depreciation |
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At 1 April 2018 |
8,801 |
|
719,758 |
|
11,271 |
|
739,830 |
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Charge for the year |
1,030 |
|
6,258 |
|
11,506 |
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18,794 |
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At 31 March 2019 |
9,831 |
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726,016 |
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22,777 |
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758,624 |
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Net book value |
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At 31 March 2019 |
19,569 |
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17,997 |
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34,521 |
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72,087 |
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At 31 March 2018 |
20,599 |
|
24,255 |
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46,027 |
|
90,881 |
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| 3 |
Debtors |
2019 |
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2018 |
| £ |
£ |
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Trade debtors |
888,745 |
|
556,653 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
92,195 |
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137,564 |
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Other debtors |
493,852 |
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685,799 |
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1,474,792 |
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1,380,016 |
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Amounts due after more than one year included above |
92,195 |
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137,564 |
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| 4 |
Creditors: amounts falling due within one year |
2019 |
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2018 |
| £ |
£ |
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Obligations under finance lease and hire purchase contracts |
11,296 |
|
14,871 |
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Trade creditors |
374,521 |
|
312,824 |
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Taxation and social security costs |
32,059 |
|
246,345 |
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Other creditors |
675,175 |
|
152,938 |
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1,093,051 |
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726,978 |
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| 5 |
Creditors: amounts falling due after one year |
2019 |
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2018 |
| £ |
£ |
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Obligations under finance lease and hire purchase contracts |
5,957 |
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16,970 |
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| 6 |
Related party transactions |
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During the year the company made sales to the following company with common directors : |
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Universal Steels & Aluminium Ltd - £918,268 |
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At the year end the trade amount oustanding due to the company by Universal Steels & Aluminium Ltd was - £68,549 |
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During the year the company incurred the following costs from companies with common directors as follows : |
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Freeman & Proctor Ltd - Welding services - £255,952 |
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Universal Estates & Developments Ltd - Rent - £90,000 |
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Universal Estates & Developments Ltd - Insurance charges - £2,480 |
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Aeroforma Technologies Group Ltd - Management fees - £383,000 |
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Universal Steels & Aluminium Ltd - Heat treatment services - £1,440 |
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Universal Steels & Aluminium Ltd - Profiling services - £10,015 |
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Universal Steels & Aluminium Ltd - Machining services - £136,000 |
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Universal Steels & Aluminium Ltd - Materials - £1,796,072 |
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Universal Steels & Aluminium Ltd - Other services - £550 |
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Universal Steels & Aluminium (South West) Ltd - Profiling services - £165 |
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Universal Steels & Aluminium (South West) Ltd - Heat treatment services - £764 |
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Universal Steels & Aluminium (South West) Ltd - Machining services - £1,258 |
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Universal Steels & Aluminium (South West) Ltd - Materials - £79,287 |
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At the year end the following trade balances were due by the company to companies with common directors as follows : |
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Freeman & Proctor Ltd - £8,999 |
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Aeroforma Technologies Group Ltd - £54,900 |
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Universal Steels & Aluminium Ltd - £198,897 |
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Universal Steels & Aluminium (South West) Ltd - £11,975 |
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In addition the following non trade balances were due to and by the company to companies with common directors as follows : |
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Amounts due to the company : |
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Freeman & Proctor Ltd - £418,090 |
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Universal Estates & Developments Ltd - £11,712 |
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Aeroforma Technologies Group Ltd - £92,195 |
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Universal Steels & Aluminium (South West) Ltd - £5,483 |
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Amounts due by the company : |
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Universal Steels & Aluminium Ltd - £16,328 |
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| 7 |
Controlling party |
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The company is a wholly owned subsidiary of Aeroforma Technologies Group Ltd a copmpany incorporated in England. The ultimate controlling party is EW Kwiatkowski by virtue of his ownership of the majority of the issued share capital of that company, together with the shareholding of his spouse. |
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| 8 |
Other information |
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Cheltenham Tool Company Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Unit 1 |
|
Harwood Lodge |
|
Swindon Road |
|
Cheltenham |
|
GL51 9NB |
