PRP Optoelectronics Limited - Period Ending 2020-12-31

PRP Optoelectronics Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 11

PRP Optoelectronics Limited

Company Information

Directors	Mr K R Peart Mr S J Cox Mr R Martin Mr A J McKerrow

Registered office

Unit 2 Western Gate Hillmead Enterprise Park Langley Road Swindon Wiltshire SN5 5WN

Accountants

UHY Ross Brooke Chartered Accountants 16 Dorcan Business Village Murdock Road, Dorcan Swindon Wiltshire SN3 5HY

PRP Optoelectronics Limited

(Registration number: 02383612)
Balance Sheet as at 31 December 2020

	Note	2020 £	2019 £
Fixed assets
Intangible assets	4	1,150,089	1,116,532
Tangible assets	5	475,376	337,825
		1,625,465	1,454,357
Current assets
Stocks	6	676,361	817,881
Debtors	7	655,609	707,824
Cash at bank and in hand		1,677,439	1,490,223
		3,009,409	3,015,928
Creditors: Amounts falling due within one year	8	(833,792)	(811,383)
Net current assets		2,175,617	2,204,545
Total assets less current liabilities		3,801,082	3,658,902
Creditors: Amounts falling due after more than one year	8	(990,251)	(1,233,829)
Net assets		2,810,831	2,425,073
Capital and reserves
Called up share capital	9	218,888	218,888
Share premium reserve		83,174	83,174
Capital redemption reserve		67,000	67,000
Profit and loss account		2,441,769	2,056,011
Shareholders' funds		2,810,831	2,425,073

PRP Optoelectronics Limited

(Registration number: 02383612)
Balance Sheet as at 31 December 2020

For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 July 2021 and signed on its behalf by:
 

.........................................

Mr A J McKerrow
Director

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 2 Western Gate
Hillmead Enterprise Park
Langley Road
Swindon
Wiltshire
SN5 5WN

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Revenue recognition

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from development orders is recognised when the significant risks and rewards of ownership of the development work have passed to the buyer (usually on inspection by the buyer on-site or acceptance of samples received), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Government grants

Government grants are accounted for as revenue based grants under the accrual model in the period in which they are receivable.

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted and substantively enacted by the reporting date in the countries there the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial satements.

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.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	straight line basis over the remaining term of the lease
Plant and machinery	straight line basis over 2 to 10 years

Development costs

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Internally generated development costs	over the useful life of the project once production commences.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 34 (2019 - 33).

4	Intangible assets

	Internally generated development costs £	Total £
Cost or valuation
At 1 January 2020	1,287,176	1,287,176
Additions internally developed	231,090	231,090
At 31 December 2020	1,518,266	1,518,266
Amortisation
At 1 January 2020	170,644	170,644
Amortisation charge	197,533	197,533
At 31 December 2020	368,177	368,177
Carrying amount
At 31 December 2020	1,150,089	1,150,089
At 31 December 2019	1,116,532	1,116,532

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

5	Tangible assets

	Short leasehold property improvements £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2020	156,981	1,590,750	1,747,731
Additions	177,101	44,162	221,263
Disposals	-	(1,142)	(1,142)
At 31 December 2020	334,082	1,633,770	1,967,852
Depreciation
At 1 January 2020	123,822	1,286,084	1,409,906
Charge for the year	23,514	59,690	83,204
Eliminated on disposal	-	(634)	(634)
At 31 December 2020	147,336	1,345,140	1,492,476
Carrying amount
At 31 December 2020	186,746	288,630	475,376
At 31 December 2019	33,159	304,666	337,825

6

Stocks

	2020 £	2019 £
Work in progress	148,563	182,055
Other inventories	527,798	635,826
	676,361	817,881

7

Debtors

	Note	2020 £	2019 £
Trade debtors		534,623	547,422
Amounts owed by group undertakings and undertakings in which the company has a participating interest		-	7,481
Prepayments		112,276	79,042
Other debtors		8,710	73,879
		655,609	707,824

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

8

Creditors

Creditors: amounts falling due within one year

	2020 £	2019 £
Due within one year
Loans and borrowings	294,921	45,579
Trade creditors	178,053	407,101
Payments on account	137,599	217,559
Amounts owed to group undertakings and undertakings in which the company has a participating interest	397	-
Taxation and social security	22,624	33,004
Other creditors	57,911	51,386
Accrued expenses	142,287	56,754
	833,792	811,383

Loans and borrowings include hire purchase contracts of £39,616 (2019 - £44,236) and bank loans of £3,932 (2019 - £nil) which are secured.
Hire purchase liabilities are secured on the assets concerned.
Bank borrowings are secured by H M Government.

Payments on account include factored debts of £nil (2019 £846) which are secured on the amounts due.

Other creditors include company credit card liabilities of £nil (2019 £2,173) which are secured by a bank floating charge.

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	10	990,251	1,233,829

	2020 £	2019 £
Due after more than five years
After more than five years by instalments	6,160	-

	-	-

Loans and borrowings include hire purchase contracts of £55,557 (2019 - £95,172) and bank loans of £46,067 (2019 - £nil) which are secured.
Hire purchase liabilities are secured on the assets concerned.
Bank borrowings are secured by H M Government.

Creditors include bank loans repayable by instalments of £6,160 (2019 - £0.00) due after more than five years.

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary of £1 each	218,888	218,888	218,888	218,888

10	Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	3,932	-
Hire purchase contracts	39,616	44,236
Other borrowings	251,373	1,343
	294,921	45,579

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	46,067	-
Hire purchase contracts	55,557	95,172
Other borrowings	888,627	1,138,657
	990,251	1,233,829

Other borrowings is a Local Enterprise Partnership loan which is fully repayable by 31 December 2024. The loan is repayable by installments and interest is charged at a fixed rate of 3.5% for the duration of the loan.

Included in the loans and borrowings are the following amounts due after more than five years:

Bank loans and overdrafts after five years

Repayable by monthly instalments at a fixed interest rate of 2.5%

PRP Optoelectronics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2020

11	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £1,616,634 (2019 - £416,328). These consist entirely of outstanding commitments for future minimum lease payments under non-cancellable operating leases.

	Premises	Equipment and vehicles	Total
	£	£	£
Payable within 1 Year	145,000	86,528	231,528
Payable 2-5 years	580,000	206,981	786,981
Payable after 5 years	598,125	-	598,125
At 31 December 2020	1,323,125	293,509	1,616,634
At 31 December 2019	39,226	377,102	416,328

12	Parent and ultimate parent undertaking

The company's immediate parent is Hillmead Technology Limited. It is a private company limited by shares incorporated in England and Wales: Registered Number 09557787.
The registered office is Unit 2 Western Gate, Hillmead Enterprise Park, Langley Road, Swindon, Wiltshire, SN5 5WN.