Company Registration No. 00226797 (England and Wales)
K Laundry Limited
Unaudited financial statements
for the year ended 31 December 2019
Pages for filing with the Registrar
K Laundry Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
K Laundry Limited
Statement of financial position
As at 31 December 2019
Page 1
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
337,322
383,441
Current assets
Stocks
11,019
10,751
Debtors
4
268,540
267,723
Cash at bank and in hand
801,731
682,333
1,081,290
960,807
Creditors: amounts falling due within one year
5
(288,466)
(254,727)
Net current assets
792,824
706,080
Total assets less current liabilities
1,130,146
1,089,521
Provisions for liabilities
(34,776)
(26,956)
Net assets
1,095,370
1,062,565
Capital and reserves
Called up share capital
6
24,222
24,222
Capital redemption reserve
9,528
9,528
Profit and loss reserves
1,061,620
1,028,815
Total equity
1,095,370
1,062,565
K Laundry Limited
Statement of financial position (continued)
As at 31 December 2019
Page 2
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 7 July 2020 and are signed on its behalf by:
Clive Jones
Director
Company Registration No. 00226797
K Laundry Limited
Notes to the financial statements
For the year ended 31 December 2019
Page 3
1
Accounting policies
Company information
K Laundry Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Northwood Road, Ramsgate, Kent, CT12 6RR.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
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.
1.3
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.
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:
Land and buildings freehold
over 50 years
Plant and machinery
over 5 years
Fixtures, fittings & equipment
over 3 to 5 years
Motor vehicles
over 3 to 5 years
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
.
K Laundry Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 4
1.4
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.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents
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.
K Laundry Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 5
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 statement of financial position 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.
Basic financial assets
Basic financial assets, which include debtors, 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
paymen
ts 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. A
m
ounts 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 transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
K Laundry Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
1
Accounting policies (continued)
Page 6
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
The pension costs charged in the financial statements represent the contributions payable by the company relating to the year.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 50 (2018 - 49).
K Laundry Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 7
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2019
304,916
995,006
1,299,922
Additions
-
41,228
41,228
At 31 December 2019
304,916
1,036,234
1,341,150
Depreciation and impairment
At 1 January 2019
96,078
820,403
916,481
Depreciation charged in the year
4,343
83,004
87,347
At 31 December 2019
100,421
903,407
1,003,828
Carrying amount
At 31 December 2019
204,495
132,827
337,322
At 31 December 2018
208,838
174,603
383,441
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
225,258
228,696
Other debtors
137
1,778
Prepayments and accrued income
43,145
37,249
268,540
267,723
K Laundry Limited
Notes to the financial statements (continued)
For the year ended 31 December 2019
Page 8
5
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
46,297
9,853
Corporation tax
19,460
31,173
Other taxation and social security
77,930
81,169
Other creditors
932
728
Accruals and deferred income
143,847
131,804
288,466
254,727
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
24,222 Ordinary shares of £1 each
24,222
24,222
7
Events after the reporting date
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organisation as a
“Global
P
andemic” on the 11th March 2020, has impacted global financial markets. In the UK market
activity is being
i
mpacted in all sectors and the current response to COVID 19 means that we are faced
with an unprecedented set of circumstances. At the approval date of these financial statements the
future impact to the sector
in which this company operates
is unknown and we cannot reliably estimate its effect
on trading in the short term.
In light of the current uncertainties the directors have assessed the potential financial implications of
the pandemic, and have assessed that the company has sufficient resources to allow it to trade through
this period without any additional working capital funding required.