Verigas Engineering Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10531079 (England and Wales)

VERIGAS ENGINEERING LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr J Hickman

Mr R Thorley

REGISTERED OFFICE:

Alington Road

Little Barford

St Neots

Cambridgeshire

PE19 6YH

REGISTERED NUMBER:

10531079 (England and Wales)

ACCOUNTANTS:

ApC

Chartered Accountants

7 St John Street

Mansfield

Nottinghamshire

NG18 1QH

FIXED ASSETS

Intangible assets

5

2,667

10,667

Tangible assets

6

231,458

282,860

234,125

293,527

CURRENT ASSETS

Stocks

207,622

153,532

Debtors

7

422,844

719,199

Cash in hand

100

100

630,566

872,831

CREDITORS

Amounts falling due within one year

8

634,282

538,513

NET CURRENT (LIABILITIES)/ASSETS

(3,716

)

334,318

TOTAL ASSETS LESS CURRENT LIABILITIES

230,409

627,845

CREDITORS

Amounts falling due after more than one year

9

-

(63,751

)

PROVISIONS FOR LIABILITIES

-

(26,198

)

NET ASSETS

230,409

537,896

CAPITAL AND RESERVES

Called up share capital

11

127

201

Share premium

120,025

169,950

Retained earnings

110,257

367,745

SHAREHOLDERS' FUNDS

230,409

537,896

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1 April 2022 and were signed on its behalf by:

Mr J Hickman - Director

1.	STATUTORY INFORMATION

Verigas Engineering 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.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The Company make estimates and assumptions concerning the future. The resulting accounting estimate will, by definition seldom equal the related actual result. The estimates and assumptions that have the greatest level of uncertainty are as follows:

Depreciation - The rates are annually reviewed in line with what the directors believe the assets are worth taken intro account the income streams generated by those assets.

Amounts recoverable on contracts - The company calculates the amounts recoverable on sales contracts as a percentage of the stage of completion of the project based up on the cost of materials and labour and the expected sales value.

Accrued expenses - The company makes estimates regarding the recognition of expenses invoiced after and goods received not fully invoiced at the the year end . The amount of accrued expenses relating to such estimates is included within creditors due within one year.

There is no other significant judgements or estimates, all accounting policies are disclosed in the appropriate note to the financial statements. The Directors consider no further disclosures are necessary.

Turnover

Turnover represents the value excluding Value Added Tax of goods and services provided to customers during the year. In respect of goods and services provided, all income is taken to profit and loss at the same point as the right to receive consideration has been acquired.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

20% straight line and 10% straight line

Plant and machinery

-

15% straight line

Office equipment

-

33% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

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.

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.

Financial instruments

Financial instruments and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Debtors & 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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2020 - 11 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2020

and 30 September 2021

40,000

AMORTISATION

At 1 October 2020

29,333

Amortisation for year

8,000

At 30 September 2021

37,333

NET BOOK VALUE

At 30 September 2021

2,667

At 30 September 2020

10,667

6.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Office

property

machinery

equipment

Totals

£

£

£

£

COST

At 1 October 2020

213,978

239,206

8,030

461,214

Additions

-

523

7,996

8,519

At 30 September 2021

213,978

239,729

16,026

469,733

DEPRECIATION

At 1 October 2020

69,002

103,734

5,618

178,354

Charge for year

22,685

35,264

1,972

59,921

At 30 September 2021

91,687

138,998

7,590

238,275

NET BOOK VALUE

At 30 September 2021

122,291

100,731

8,436

231,458

At 30 September 2020

144,976

135,472

2,412

282,860

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 October 2020

225,000

Transfer to ownership

(225,000

)

At 30 September 2021

-

DEPRECIATION

At 1 October 2020

100,050

Transfer to ownership

(100,050

)

At 30 September 2021

-

NET BOOK VALUE

At 30 September 2021

-

At 30 September 2020

124,950

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

191,092

277,804

Amounts owed by related parties

-

434,591

Amounts recoverable on contract

4,657

-

Other debtors

227,095

6,804

422,844

719,199

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

89,914

89,423

Hire purchase contracts

-

20,325

Payments on account

34,409

-

Trade creditors

193,746

117,613

Taxation and social security

21,297

76,297

Other creditors

294,916

234,855

634,282

538,513

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Other creditors

-

63,751

Amounts falling due in more than five years:

Repayable by instalments

Other loans due after 5 years

-

9,167

10.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank overdrafts

89,914

89,423

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

125

Ordinary

£1

125

200

1

Ordinary A

£1

1

1

1

Ordinary B

£1

1

-

127

201

1 Ordinary B share of £1 was allotted and fully paid for cash at par during the year.

During the year 75 (2020:No) shares were repurchased by the company.

12.	RELATED PARTY DISCLOSURES

As at the balance sheet date the company was owed £Nil (2020: £434,591) by a related party undertaking, due to that company going into liquidation, bad debts of £280,536 relating to trade sales under normal commercial terms was written off during the year.

Key management personnel remuneration in the period totalled £14,318 (2020:£68,408).