Submarine Manufacturing And Products Ltd - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 02608984 (England and Wales)

Unaudited Financial Statements

for the Period 30 December 2016 to 30 June 2017

for

Submarine Manufacturing And Products Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

P J Connolly

A Scott

SECRETARY:

Mrs J Connolly

REGISTERED OFFICE:

Fleetwood Road

Wesham

Kirkham

Preston

Lancashire

PR4 3HD

REGISTERED NUMBER:

02608984 (England and Wales)

ACCOUNTANTS:

ma2 Limited

Chartered Accountants

5 Crescent East

Thornton Cleveleys

Lancashire

FY5 3LJ

FIXED ASSETS

Intangible assets

4

79,052

90,057

Tangible assets

5

311,134

328,979

390,186

419,036

CURRENT ASSETS

Stocks

6

2,087,023

2,022,230

Debtors

7

415,630

304,579

Prepayments and accrued income

21,202

34,271

Cash at bank and in hand

8,545

32,146

2,532,400

2,393,226

CREDITORS

Amounts falling due within one year

8

2,155,482

2,198,592

NET CURRENT ASSETS

376,918

194,634

TOTAL ASSETS LESS CURRENT LIABILITIES

767,104

613,670

CREDITORS

Amounts falling due after more than one year

9

(230,556

)

(230,556

)

PROVISIONS FOR LIABILITIES

(16,951

)

(16,532

)

NET ASSETS

519,597

366,582

CAPITAL AND RESERVES

Called up share capital

200

200

Retained earnings

519,397

366,382

SHAREHOLDERS' FUNDS

519,597

366,582

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 June 2017.

The members have not required the company to obtain an audit of its financial statements for the period ended 30 June 2017 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 12 March 2018 and were signed on its behalf by:

P J Connolly - Director

1.	STATUTORY INFORMATION

Submarine Manufacturing And Products Ltd 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.

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.

Turnover

Turnover reflects the contracts undertaken and sales made in the year. Income is taken on retail sales

when the product is delivered, and for contract work, the amount of work performed in the period.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of

work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term

contracts and contracts for on-going services is recognised by reference to the stage of completion.

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.

Development costs are being amortised evenly over their estimated useful life of nil years.

Research and development

Research and Development costs are capitalised and written off over 7 years on a straight line basis.

Tangible fixed assets

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

Short leasehold

-

10% on cost

Plant and machinery

-

10% on reducing balance

Fixtures and fittings

-

10% on reducing balance

Motor vehicles

-

25% on reducing balance

Tangible assets are stated in the statement of financial position 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.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing stocks to their present location and condition.

Taxation

Taxation for the period 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 period 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at

the operating result.

Hire purchase and leasing commitments

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 26 (2016 - 33 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 30 December 2016

and 30 June 2017

154,068

AMORTISATION

At 30 December 2016

64,011

Charge for period

11,005

At 30 June 2017

75,016

NET BOOK VALUE

At 30 June 2017

79,052

At 29 December 2016

90,057

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 30 December 2016

399,925

108,154

40,277

72,629

620,985

Additions

-

11,990

-

-

11,990

At 30 June 2017

399,925

120,144

40,277

72,629

632,975

DEPRECIATION

At 30 December 2016

210,716

25,305

14,709

41,276

292,006

Charge for period

19,996

4,642

1,278

3,919

29,835

At 30 June 2017

230,712

29,947

15,987

45,195

321,841

NET BOOK VALUE

At 30 June 2017

169,213

90,197

24,290

27,434

311,134

At 29 December 2016

189,209

82,849

25,568

31,353

328,979

6.

STOCKS

2017

2016

£

£

Stocks

1,755,348

1,703,640

Work-in-progress

331,675

318,590

2,087,023

2,022,230

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

307,619

192,203

Tax

94,424

94,424

VAT

13,587

17,952

415,630

304,579

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

596,007

745,729

Trade creditors

381,345

429,741

Amounts owed to group undertakings

250,000

250,000

Amounts owed to associates

535,000

334,900

Social security and other taxes

21,366

60,784

Sundry creditors and accruals

371,764

377,438

2,155,482

2,198,592

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans - 2-5 years

230,556

230,556

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

412,760

525,008

Bank loans

413,803

451,277

826,563

976,285

Burnhart Holdings Limited who own 50% of the issued share capital of the company have provided a

guarantee in respect of the banking facilities.

The company has an unlimited cross guarantee arrangement in respect of it's banking facilities, in

connection with the group overdraft with it's associate MSS Holdings (UK) Limited.

11.	RELATED PARTY DISCLOSURES

During the period the company was a partially owned subsidiary of MSS Holdings (UK) Limited.

(MSSH)

The company received management and office services from MSSH, and fees of £50,000 (2016,

£67,689) were charged by MSSH during the period..

During the year, a loan account existed between the company and MSSH. The total amount owed at

the year end is shown in the relevant creditor note.

MSSH owns the premises from which the company trades and charged a rent of £25,000 during the

period.

Burnhart Holdings Limited holds 50% of the issued share capital in the company. Burnhart Holdings

Limited is treated as an associate.

Burnhart Holdings Limited has provided a bank guarantee in respect of the company, whilst in a

transitional phase.

The total amount owed at the year end to Burnhart Holdings Limited is shown in the relevant creditor

note.

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is not known.