HARKNESS SCREENS (UK) LIMITED

HARKNESS SCREENS (UK) LIMITED

HARKNESS SCREENS (UK) LIMITED - Company Information

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HARKNESS SCREENS (UK) LIMITED

Company Registration Number:
02576490 (England and Wales)

Unaudited abridged accounts for the year ended 30 September 2019

Period of accounts

Start date: 01 October 2018

End date: 30 September 2019

HARKNESS SCREENS (UK) LIMITED

Contents of the Financial Statements

for the Period Ended 30 September 2019

Balance sheet
Notes

HARKNESS SCREENS (UK) LIMITED

Balance sheet

As at 30 September 2019


Notes
2019
2018


£
£
Fixed assets
Intangible assets:   0 0
Tangible assets: 3 161,604 113,900
Investments: 4 1 1
Total fixed assets: 161,605 113,901
Current assets
Stocks: 198,011 215,687
Debtors: 5 4,069,898 3,668,742
Cash at bank and in hand: 510,691 420,250
Total current assets: 4,778,600 4,304,679
Creditors: amounts falling due within one year: 6 (923,380) (834,885)
Net current assets (liabilities): 3,855,220 3,469,794
Total assets less current liabilities: 4,016,825 3,583,695
Provision for liabilities: (13,569) (13,459)
Total net assets (liabilities): 4,003,256 3,570,236
Capital and reserves
Called up share capital: 352,941 352,941
Other reserves: 540,000 540,000
Profit and loss account: 3,110,315 2,677,295
Shareholders funds: 4,003,256 3,570,236

The notes form part of these financial statements

HARKNESS SCREENS (UK) LIMITED

Balance sheet statements

For the year ending 30 September 2019 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen to not file a copy of the company’s profit & loss account.

This report was approved by the board of directors on 14 May 2021
and signed on behalf of the board by:

Name: Patrick Carolan
Status: Director

The notes form part of these financial statements

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

1. Accounting policies

These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

Turnover policy

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:Sale of goodsRevenue from the sale of goods is recognised when all of the following conditions are satisfied:the Company has transferred the significant risks and rewards of ownership to the buyer;the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;the amount of revenue can be measured reliably;it is probable that the Company will receive the consideration due under the transaction; andthe costs incurred or to be incurred in respect of the transaction can be measured reliably.The principal activity of the company is the manufacture and sale of projection screens for the entertainment industry. Sales of goods are recognised mainly at the point of shipment to the customer. Delivery occurs when the goods have been shipped to the location specified by the customer, the risks of obsolescence or loss have been transferred to the customer, the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied.Goods sold are sometimes sold with volume rebates. Sales are measured at the prices specified in the sale contract, net of estimated volume rebates and returns. Volume rebates are assessed based on anticipated annual purchases and historical experience, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.Sales are normally made with a credit term of 30 days.

Tangible fixed assets and depreciation policy

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.The estimated useful lives range as follows:Plant and machinery - 8 years (12.5%)Fixtures and fittings - 2-8 years (50%, 25%, 33.3% and 12.5%)

Other accounting policies

Going concernAs part of their assessment of the company’s ability to continue as a going concern, the directors have evaluated the relevant conditions and events that are known at the date of the financial statements, including the ongoing impact of the COVID-19 pandemic.Harkness Screens Group Limited (together with its subsidiaries ‘the group’) has committed to the company that it will provided sufficient financial support, to the extent that it is required, to enable the company meet all of its obligations as they fall due for a period of at least twelve months from the date of approval of the financial statements.The directors have assessed the group’s financial forecasts for at least twelve months from the date of approval of the financial statements, including the performance of stress test analysis on downside risk scenarios. Setting aside the renewal of the group’s debt financing addressed separately below, in all scenarios, the group will have sufficient funds to meet all operational and financing repayment obligations as they fall due.The term of the group’s debt financing facility, amounting to €11.5 million at the date of approval of the financial statements, ends in December 2021 and accordingly, the group requires a renewal of the debt outstanding at that date. The group has made all scheduled debt and interest repayments over the life of the existing facility and is compliant with current and forecasted facility covenants.Additionally, the group’s external lenders, having reviewed the group’s forecasted financial performance, have expressed their intention, subject to their credit approval process to be completed within the normal timeframe for facility renewal, to extend the group’s facility on normal commercial terms before December 2021.However, notwithstanding the expressed intentions of the groups external lenders to renew the facilities in a timely fashion, such renewal of the group’s debt facility nevertheless represents a material uncertainty which may cast significant doubt as to the ability of the group to continue as a going concern. On the basis of the group’s full compliance with all aspects of the existing loan facilities throughout the Covid period, the continuing recovery of trading performance in key markets and the expressed intentions of its external lenders to complete the renewal before the end of 2021, the directors are satisfied that the renewal will be achieved on acceptable terms and on that basis are satisfied that it is appropriate that the group financial statements are prepared on the going concern basis for the year ended 30 September 2019.

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

2. Employees

2019 2018
Average number of employees during the period 24 24

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

3. Tangible Assets

Total
Cost £
At 01 October 2018 977,172
Additions 81,042
At 30 September 2019 1,058,214
Depreciation
At 01 October 2018 863,272
Charge for year 33,338
At 30 September 2019 896,610
Net book value
At 30 September 2019 161,604
At 30 September 2018 113,900

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

4. Fixed investments

Investments in subsidiary companies £Cost or valuationAt 1 October 2018 1At 30 September 2019 1The company holds 100% of the ordinary shares of Harkness Screens (USA) Limited, a company incorporated in the United Kingdom. The principal activity of the company is the manufacture and sale of projection screens.The company owns 90% of the ordinary shares of SCI Du Clos dArquemont, a company incorporated in France. The principal activity of the company is the holding of French property.The company owns 0.01% of the ordinary shares of Harkness Screens India LLP, a limited liability partnership incorporated in India. The principal activity of the limited liability partnership is the manufacture and sale of projection screens.

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

5. Debtors

2019 2018
££
Debtors due after more than one year: 0 0

Debtors 2019 2018 £ £Trade debtors 590,247 674,720Amounts owed by group undertakings 3,356,359 2,821,046Other debtors 53,477 16,999Prepayments and accrued income 69,815 56,234Corporation tax recoverable - 99,743 4,069,898 3,668,742 Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.Trade debtors are stated after provisions for impairment of £31,653 (2018 - £28,419).

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

6. Creditors: amounts falling due within one year note

Creditors: Amounts falling due within one year 2019 2018 £ £Trade creditors 178,931 139,813Amounts owed to group undertakings 476,900 441,958Corporation tax 106,551 -Other taxation and social security 60,676 37,353Other creditors 25,099 99,466Accruals and deferred income 75,223 116,295 923,380 834,885Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

HARKNESS SCREENS (UK) LIMITED

Notes to the Financial Statements

for the Period Ended 30 September 2019

7. Financial commitments

Pension commitmentsThe company makes contributions to personal defined contribution pension arrangements of certain employees. The pension cost for the year represents contributions payable by the company and amounted to £92,747 (2018 - £87,037). Contributions of £Nil (2018 - £Nil) were payable at 30 September 2019.