Certass Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04350234 (England and Wales)

Financial Statements for the Year Ended 31 December 2019

for

Certass Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr J M Clemmit

Mr P T Dawson

Mrs J L Reid

Mr J E Vanstone

Mr J M Brettell

SECRETARY:

Mr B J Houston

REGISTERED OFFICE:

1st Floor

14 Castle Street

Liverpool

L2 0NE

REGISTERED NUMBER:

04350234 (England and Wales)

INDEPENDENT AUDITORS:

PricewaterhouseCoopers LLP

Chartered Accountants and

Statutory Auditors

141 Bothwell Street

Glasgow

G2 7EQ

FIXED ASSETS

Tangible assets

4

6,629

8,321

Investments

5

535,100

375,100

541,729

383,421

CURRENT ASSETS

Debtors

6

183,829

181,675

Cash at bank

807,386

751,431

991,215

933,106

CREDITORS

Amounts falling due within one year

7

550,409

323,319

NET CURRENT ASSETS

440,806

609,787

TOTAL ASSETS LESS CURRENT LIABILITIES

982,535

993,208

PROVISIONS FOR LIABILITIES

8

74

525

NET ASSETS

982,461

992,683

CAPITAL AND RESERVES

Called up share capital

9

100

100

Retained earnings

10

982,361

992,583

SHAREHOLDERS' FUNDS

982,461

992,683

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2020 and were signed on its behalf by:

Mr J E Vanstone - Director

1.	STATUTORY INFORMATION

Certass 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of 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 and on a going concern basis.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Significant judgements and estimates

The preparation of the Financial Statements requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and assumptions are reviewed on an ongoing basis and revisions to estimates are recognised in the period in which the estimate is revised and in any future periods affected.

The directors are of the opinion that there are no matters of significant judgement and estimation which are material to the financial statements.

Turnover/revenue recognition

Turnover represents net invoiced sales of certification services, excluding value added tax.

Tangible assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Tangible assets are stated at cost less depreciation.

Investments in subsidiaries and associates

Investments in subsidiary and associate undertakings are recognised at cost.

Financial instruments

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument and are classified in accordance with their underlying economic reality. The Company has two main categories of financial instruments, which are loans and other receivables and other financial liabilities:

Loans and other receivables

Loans and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Upon recognition, these assets are measured at fair value less directly related transaction expenses. In successive periods these are measured at amortised cost, and any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value less any allowance for credit losses.

Other financial liabilities

Other financial liabilities are recognised initially at fair value, net of transaction costs incurred. In successive periods these are measured at amortised cost. Any differences between acquisition cost and redemption value is accounted for over the borrowing period by using the effective interest method. If transaction costs are immaterial and the credit period is short, amortised cost is equal to the nominal value.

Impairment of financial instruments

A provision for impairment is established when there is objective evidence that, as a result of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss, 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.

Pension costs and other post-retirement benefits

The company makes contributions into a UK defined contribution pension scheme. Contributions payable are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 (2018 - 19 ) .

4.	TANGIBLE ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2019

8,675

64,197

72,872

Additions

-

3,321

3,321

Disposals

-

(1,373

)

(1,373

)

At 31 December 2019

8,675

66,145

74,820

DEPRECIATION

At 1 January 2019

4,920

59,631

64,551

Charge for year

1,735

2,401

4,136

Eliminated on disposal

-

(496

)

(496

)

At 31 December 2019

6,655

61,536

68,191

NET BOOK VALUE

At 31 December 2019

2,020

4,609

6,629

At 31 December 2018

3,755

4,566

8,321

5.	INVESTMENTS

Shares in

Interest

group

in

undertakings

associate

Totals

£

£

£

COST

At 1 January 2019

100

375,000

375,100

Additions

160,000

-

160,000

At 31 December 2019

160,100

375,000

535,100

NET BOOK VALUE

At 31 December 2019

160,100

375,000

535,100

At 31 December 2018

100

375,000

375,100

The investment in associated companies represents a 5.6% (2018: 5.6%) shareholding in Kinnell Holdings Limited, a related party due to common control.

The investment in subsidiaries represents a 100% shareholding in Certass TA Limited, a company incorporated on 12 July 2018.

6.

DEBTORS

2019

2018

£

£

Trade debtors

11,169

3,864

Prepayments and accrued income

172,660

177,811

183,829

181,675

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

109,118

54,194

Amounts owed to group undertakings

160,100

100

Corporation tax

38,831

17,141

Other taxation and social

security

12,977

13,345

VAT

72,019

69,860

Other creditors

5,097

4,582

Accruals and deferred income

152,267

164,097

550,409

323,319

8.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

Accelerated capital allowances

595

695

Other timing differences

(521

)

(170

)

74

525

Deferred

tax

£

Balance at 1 January 2019

525

Credit to Profit and Loss during year

(451

)

Balance at 31 December 2019

74

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

100

Ordinary

£1

100

100

10.

RESERVES

Retained

earnings

£

At 1 January 2019

992,583

Profit for the year

139,778

Dividends

(150,000

)

At 31 December 2019

982,361

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Christopher Meyrick (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

12.	RELATED PARTY DISCLOSURES

Included within trade creditors falling due within one year at 31 December 2019 is an amount of £16,815 (2018: £40,663) due to Warranty Services Limited, an amount of £Nil (2018: £947) due to The Remedial Company Limited and an amount of £Nil (2018: £240) due to Kinnell Holdings Limited.

Included within trade debtors falling due within one year at 31 December 2019 is an amount due from Warranty Services Limited of £3,267 (2018: £840).

During the year the company made sales to the value of £71,716 (2018: £55,430) to Warranty Services Limited and incurred expenses of £384,482 (2018: £387,224) from Warranty Services Limited. Expenses to the value of £126,553 (2018: £106,634) were incurred from Kinnell Holdings Limited, expenses to the value of £1,411 (2018: £1,363) were incurred from The Remedial Company Limited, expenses to the value of £4,176 (2018: £Nil) were incurred from Guarantee Protection Insurance Limited and expenses to the value of £5,202 (2018: £4,160) were incurred from Kinnell Corporate Limited.

The companies detailed above are under the common control of Mr P T Dawson, a Director of Certass Limited.

At 31 December 2019 an amount of £160,100 (2018: £100) was due to Certass TA Limited, a 100% subsidiary of the company.

13.	ULTIMATE CONTROLLING PARTY

The controlling party is Mr P T Dawson.

14.	POST BALANCE SHEET EVENTS

In early 2020, the existence of a new coronavirus ("COVID-19") was confirmed and has since spread across a significant number of counties, leading to disruption to businesses and economic activity which has been reflected in recent fluctuations in global stock markets. Certass Limited considers the emergence of the spread of COVID-19 to be a non-adjusting post balance sheet event. Given the inherent uncertainties, it is not practicable at this time to determine with certainty the future impact of COVID-19 on Certass Limited or to provide further definitive quantitative estimate of the future impact.