TALON_NDT_LIMITED - Accounts


TALON NDT LIMITED
SC174563
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
PAGES FOR FILING WITH REGISTRAR
MESTON REID & CO.
CHARTERED ACCOUNTANTS
12 CARDEN PLACE
ABERDEEN
AB10 1UR
TALON NDT LIMITED
COMPANY INFORMATION
Director
I R Judge
Secretary
Ms L B Brodie
Company number
SC174563
Registered office
11 Matthew Park
Gilbert Road
Bucksburn
Aberdeen
AB21 9AR
Accountants
Meston Reid & Co
12 Carden Place
Aberdeen
AB10 1UR
Bankers
The Royal Bank of Scotland plc
18 Ellon Road
Bridge Of Don
Aberdeen
AB23 8EA
TALON NDT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
TALON NDT LIMITED
BALANCE SHEET
AS AT
30 APRIL 2017
30 April 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,053
46,020
Current assets
Debtors
4
161,962
189,211
Cash at bank and in hand
18,815
13,962
180,777
203,173
Creditors: amounts falling due within one year
5
(334,849)
(390,914)
Net current liabilities
(154,072)
(187,741)
Total assets less current liabilities
(149,019)
(141,721)
Creditors: amounts falling due after more than one year
6
(114,122)
(23,909)
Provisions for liabilities
-
(8,098)
Net liabilities
(263,141)
(173,728)
Capital and reserves
Called up share capital
7
1
1
Profit and loss reserves
(263,142)
(173,729)
Total equity
(263,141)
(173,728)

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 April 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

TALON NDT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2017
30 April 2017
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 21 March 2018
I R Judge
Director
Company Registration No. SC174563
TALON NDT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2017
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2015
1
45,766
45,767
Year ended 30 April 2016:
Loss and total comprehensive income for the year
-
(219,495)
(219,495)
Balance at 30 April 2016
1
(173,729)
(173,728)
Year ended 30 April 2017:
Loss and total comprehensive income for the year
-
(89,413)
(89,413)
Balance at 30 April 2017
1
(263,142)
(263,141)
TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2017
- 4 -
1
Accounting policies
Company information

Talon NDT Limited is a private company limited by shares in the United Kingdom, incorporated in Scotland. The registered office is 11 Matthew Park, Gilbert Road, Bucksburn, Aberdeen, AB21 9AR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

These financial statements for the year ended 30 April 2017 are the first financial statements of Talon NDT Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 May 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

1.2
Going concern

The trading performance of the company has improved when compared to the previous year and together with further financial support, the director considers it appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
1
Accounting policies
(Continued)
- 5 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
25% on cost
Plant and machinery
25% on cost
Fixtures, fittings & equipment
25% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
1
Accounting policies
(Continued)
- 6 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
- 7 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 9 (2016 - 9).

3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2016
81,338
330,624
411,962
Additions
-
399
399
Disposals
-
(40,129)
(40,129)
At 30 April 2017
81,338
290,894
372,232
Depreciation and impairment
At 1 May 2016
69,318
296,624
365,942
Depreciation charged in the year
12,020
29,346
41,366
Eliminated in respect of disposals
-
(40,129)
(40,129)
At 30 April 2017
81,338
285,841
367,179
Carrying amount
At 30 April 2017
-
5,053
5,053
At 30 April 2016
12,020
34,000
46,020
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
102,758
117,546
Other debtors
59,204
71,665
161,962
189,211
5
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
6,465
29,195
Trade creditors
129,477
166,265
Corporation tax
2
2
Other taxation and social security
26,203
61,051
Other creditors
172,702
134,401
334,849
390,914
TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
- 8 -
6
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans and overdrafts
5,145
17,910
Other creditors
108,977
5,999
114,122
23,909

The company's bankers hold a standard security over the sole director's personal property and a floating charge over the whole assets of the company.

 

The loan from Morgan Lloyd Trustees Limited is secured via both a fixed charge over any policies of insurance or assurance, and a floating charges over all the property and undertakings of the company. In addition, the directors have provided personal guarantees for amounts payable,

7
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
1ordinary share of £1 each
1
1
1
1
8
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2017
2016
£
£
348,203
38,750
9
Related party transactions

During the year the company made sales of £nil (2016 - £14,017) to Talon NDT Blackpool Limited, a company in which I R Judge is also a director and shareholder. At the year end Talon NDT Blackpool Limited owed the company £16,397 (2016 - £16,397). Included within creditors falling due after more than one year is a loan balance of £1,000 (2016-£nil) owed to Talon NDT Blackpool Limited.

 

During the year a loan of £161,000 (2016-£nil) was advanced from Morgan Lloyd Trustees Limited who are the Trustees of the Talon NDT pension scheme. At the year end £137,417 remained outstanding (2016-£nil). This loan is secured via both a fixed charge over any policies of insurance or assurance, and a floating charges over all the property and undertakings of the company.

TALON NDT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2017
- 9 -
10
Directors' transactions

Transactions in relation to loans with directors during the year are outlined in the table below:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan
-
(85,759)
10,892
(11,245)
(86,112)
(85,759)
10,892
(11,245)
(86,112)

The loan from the director at the year end is unsecured, and repayable on demand.

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