Company Registration No. 00331602 (England and Wales)
E SUNTER LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2018
30 June 2018
PAGES FOR FILING WITH REGISTRAR
PM+M Solutions for Business LLP
Chartered Accountants
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
Ms A Campbell
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
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 2018
30 June 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
3
201,249
156,832
Investment properties
4
140,000
140,000
341,249
296,832
Current assets
Stocks
899,893
903,023
Debtors
5
530,767
557,026
Cash at bank and in hand
15,054
20,018
1,445,714
1,480,067
Creditors: amounts falling due within one year
6
(980,647)
(981,499)
Net current assets
465,067
498,568
Total assets less current liabilities
806,316
795,400
Creditors: amounts falling due after more than one year
7
(114,664)
(84,772)
Provisions for liabilities
(13,874)
(6,927)
Net assets
677,778
703,701
Capital and reserves
Called up share capital
8
250,000
250,000
Profit and loss reserves
427,778
453,701
Total equity
677,778
703,701
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 2018
30 June 2018
- 2 -
For the financial year ended 30 June 2018 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 25 January 2019 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 2018
- 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 2018
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 2018
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 2018
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 the profit and loss account 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 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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 48 (2017 - 49
).
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 7 -
3
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2017
25,422
495,954
138,987
660,363
Additions
562
34,867
74,864
110,293
Disposals
-
-
(51,729)
(51,729)
At 30 June 2018
25,984
530,821
162,122
718,927
Depreciation and impairment
At 1 July 2017
23,166
421,682
58,683
503,531
Depreciation charged in the year
333
23,741
25,840
49,914
Eliminated in respect of disposals
-
-
(35,767)
(35,767)
At 30 June 2018
23,499
445,423
48,756
517,678
Carrying amount
At 30 June 2018
2,485
85,398
113,366
201,249
At 30 June 2017
2,256
74,272
80,304
156,832
4
Investment property
2018
£
Fair value
At 1 July 2017 and 30 June 2018
140,000
5
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
263,621
236,328
Other debtors
267,146
320,698
530,767
557,026
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 8 -
6
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
202,133
161,158
Obligations under finance leases
28,437
17,787
Trade creditors
450,397
488,313
Corporation tax
-
23,665
Other taxation and social security
99,609
107,950
Accruals and deferred income
200,071
182,626
980,647
981,499
Net obligations under finance leases and hire purchase contracts amounting to £79,720 (2017: £34,284) 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
2018
2017
£
£
Obligations under finance leases
91,435
66,439
Other creditors
23,229
18,333
114,664
84,772
Net obligations under finance leases and hire purchase contracts amounting to £91,435 (2017: £66,439) are secured by the company.
Other creditors are secured upon the stock held by the company.
8
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
250,000 Ordinary shares of £1 each
250,000
250,000
250,000
250,000
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 9 -
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:
2018
2017
£
£
39,462
14,162
E SUNTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 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 (2017 £88,000).
At 30 June 2018 a balance of £45,513 (2017 £42,663) was owed to E Sunter Retirement Benefit Scheme.
At the balance sheet date an amount of £5,645 (2017 £1,333 owed by E Sunter Limited) was owed to E Sunter Limited from a director.
At the balance sheet date an amount of £10,347 (2017 £61,204) 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 £12,773 (2017 £15,620 owed by E Sunter Limited) was owed to E Sunter Limited from a director on which interest has been charged at a rate of 2.5%.