Company Registration No. 00331602 (England and Wales)
E SUNTER LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2019
30 June 2019
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
E SUNTER LIMITED
COMPANY INFORMATION
Directors
D A Mitchell MBE
A J Mitchell
K A Carr
D L Norman
Secretary
K A Carr
Company number
00331602
Registered office
Premier House
175 Grane Road
Haslingden
Rossendale
Lancashire
BB4 5ER
Accountants
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Business address
Premier House
175 Grane Road
Haslingden
Rossendale
Lancashire
BB4 5ER
E SUNTER LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
E SUNTER LIMITED
BALANCE SHEET
AS AT
30 JUNE 2019
30 June 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
186,089
201,249
Investment properties
4
155,000
140,000
341,089
341,249
Current assets
Stocks
867,650
899,893
Debtors
5
537,864
530,767
Cash at bank and in hand
15,094
15,054
1,420,608
1,445,714
Creditors: amounts falling due within one year
6
(1,041,505)
(980,647)
Net current assets
379,103
465,067
Total assets less current liabilities
720,192
806,316
Creditors: amounts falling due after more than one year
7
(86,730)
(114,664)
Provisions for liabilities
(16,894)
(13,874)
Net assets
616,568
677,778
Capital and reserves
Called up share capital
8
250,000
250,000
Profit and loss reserves
366,568
427,778
Total equity
616,568
677,778
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
E SUNTER LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2019
30 June 2019
- 2 -
For the financial year ended 30 June 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 27 January 2020 and are signed on its behalf by:
K A Carr
D L Norman
Director
Director
Company Registration No. 00331602
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 3 -
1
Accounting policies
Company information
E Sunter Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Premier House, 175 Grane Road, Haslingden, Rossendale, Lancashire, BB4 5ER.
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 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.
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.
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.
1.3
Tangible fixed assets
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:
Plant and machinery
15% reducing balance per annum
Fixtures, fittings & equipment
25% per annum
Motor vehicles
25% per annum
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
.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure
. Subsequently it is measured
at fair value a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
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.
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
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.
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 5 -
1.8
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.
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.
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.
1.9
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.
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 6 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
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
s
asset are consumed.
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 47 (2018 - 48
).
3
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2018
25,984
530,821
162,122
718,927
Additions
-
21,725
61,435
83,160
Disposals
-
-
(75,772)
(75,772)
At 30 June 2019
25,984
552,546
147,785
726,315
Depreciation and impairment
At 1 July 2018
23,499
445,423
48,756
517,678
Depreciation charged in the year
359
23,522
35,685
59,566
Eliminated in respect of disposals
-
-
(37,018)
(37,018)
At 30 June 2019
23,858
468,945
47,423
540,226
Carrying amount
At 30 June 2019
2,126
83,601
100,362
186,089
At 30 June 2018
2,485
85,398
113,366
201,249
4
Investment property
2019
£
Fair value
At 1 July 2018
140,000
Revaluations
15,000
At 30 June 2019
155,000
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 8 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
260,916
263,621
Corporation tax recoverable
241
-
Other debtors
276,707
267,146
537,864
530,767
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
219,950
202,133
Obligations under finance leases
44,083
28,437
Trade creditors
461,732
430,813
Other taxation and social security
101,947
99,609
Other creditors
20,800
19,584
Accruals and deferred income
192,993
200,071
1,041,505
980,647
Net obligations under finance leases and hire purchase contracts amounting to £44,083 (2018: £28,437) are secured by the company.
Other creditors are secured upon the stock held by the company.
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Obligations under finance leases
60,343
91,435
Other creditors
26,387
23,229
86,730
114,664
Net obligations under finance leases and hire purchase contracts amounting to £60,343 (2018: £91,435) are secured by the company.
Other creditors are secured upon the stock held by the company.
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 9 -
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
250,000 Ordinary shares of £1 each
250,000
250,000
9
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:
2019
2018
£
£
41,521
39,462
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 10 -
10
Related party transactions
During the year the company entered into the following transaction with related parties:
E Sunter Limited Retirement Benefit Scheme, of which the directors are members and trustees. Rent payable to the scheme during the year was £76,000 (2018 £76,000).
At 30 June 2019 a balance of £41,087 (2018 £45,513) was owed to E Sunter Retirement Benefit Scheme.
At the balance sheet date an amount of £nil (2018 £5,645 owed by E Sunter Limited) was owed to E Sunter Limited from a director.
At the balance sheet date an amount of £11,635 (2018 £10,347) was owed to E Sunter Limited from a director on which interest has been charged at a rate of 2.5%.
At the balance sheet date an amount of £10,177 (2018 £12,773) was owed to E Sunter Limited from a director on which interest has been charged at a rate of 2.5%.