Company Registration No. 02001847 (England and Wales)
WASHINGTON GREEN FINE ART GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2019
WASHINGTON GREEN FINE ART GROUP LIMITED
COMPANY INFORMATION
Directors
P J S Green
R Green
G Washington
T J Dawson
E Sheleg
I Weatherby-Blythe
Secretary
T J Dawson
Company number
02001847
Registered office
Unit 15 Spitfire Road
Erdington
Birmingham
B24 9PR
Auditor
HW Fisher
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
WASHINGTON GREEN FINE ART GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
WASHINGTON GREEN FINE ART GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2019
- 1 -
The directors present the strategic report for the year ended 30 April 2019.
Fair review of the business
Turnover substantially increased in the year alongside an improved gross profit margin resulting from a greater focus on the retail market. This has assisted in the company improving its profitability.
Principal risks and uncertainties
The principal risk and uncertainty facing the company relates to the volatility of high street retail. The company manages this risk by creating and offering unique and desirable products, through higher levels of information and marketing tools to enable the company to retain and attract customers.
Recent events of Covid-19 has created disruption to the day to day operations of the company. The directors have taken steps to mitigate this risk including making significant cost savings. The directors are confident that with Government support, together with ongoing discussions with the company's bank, the company will be able to continue trading and keep its market position.
Development and performance
The company made a pre- tax profit of £1,471,208 (2018: £682,905) for the year on a turnover of £12,222,318 (2018: £10,867,174).
At 30 April 2019 the company had net assets of £11,209,059 (2018: £11,020,927).
Key performance indicators
In the opinion of the directors
the
Key Performance Indicators
are the level of turnover generated and margin achieved.
P J S Green
Director
24 April 2020
WASHINGTON GREEN FINE ART GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2019
- 2 -
The directors present their report and accounts for the year ended 30 April 2019.
Principal activities
The principal activity of the company continues to be the publication and marketing of original fine art prints
.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P J S Green
R Green
G Washington
T J Dawson
E Sheleg
I Weatherby-Blythe
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £1,000,000. The directors do not recommend payment of a final dividend.
Auditor
The auditor, HW Fisher, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
P J S Green
Director
24 April 2020
WASHINGTON GREEN FINE ART GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2019
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WASHINGTON GREEN FINE ART GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WASHINGTON GREEN FINE ART GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of Washington Green Fine Art Group Limited (the 'company') for the year ended 30 April 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 April 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw attention to note
1.2
in the financial statements which discloses the impact of Covid-19 outbreak on the company’s business. As stated in note
1.2
, these events or conditions, along with the other matters as set forth in note
1.2
, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Note 1.2 also discloses the measures the directors are taking so they can be confident that the company can still continue as a going concern.
Our opinion is not modified in respect of this matter.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WASHINGTON GREEN FINE ART GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WASHINGTON GREEN FINE ART GROUP LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
David Selwyn (Senior Statutory Auditor)
for and on behalf of HW Fisher
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
24 April 2020
WASHINGTON GREEN FINE ART GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2019
- 6 -
2019
2018
Notes
£
£
Turnover
3
12,222,318
10,867,174
Cost of sales
(7,872,699)
(7,149,980)
Gross profit
4,349,619
3,717,194
Distribution costs
(392,494)
(506,694)
Administrative expenses
(2,487,554)
(2,523,983)
Operating profit
4
1,469,571
686,517
Interest receivable and similar income
7
1,637
321
Interest payable and similar expenses
8
-
(3,933)
Profit before taxation
1,471,208
682,905
Tax on profit
9
(283,076)
(133,851)
Profit for the financial year
1,188,132
549,054
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
WASHINGTON GREEN FINE ART GROUP LIMITED
BALANCE SHEET
AS AT
30 APRIL 2019
30 April 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
270,963
264,493
Investments
12
5,000,003
5,000,003
5,270,966
5,264,496
Current assets
Stocks
14
12,111,212
11,682,688
Debtors
15
11,093,681
11,041,426
Cash at bank and in hand
84,184
407,419
23,289,077
23,131,533
Creditors: amounts falling due within one year
16
(17,174,332)
(16,940,006)
Net current assets
6,114,745
6,191,527
Total assets less current liabilities
11,385,711
11,456,023
Accruals
18
(176,652)
(435,096)
Net assets
11,209,059
11,020,927
Capital and reserves
Called up share capital
20
7,500,100
7,500,100
Profit and loss reserves
3,708,959
3,520,827
Total equity
11,209,059
11,020,927
The financial statements were approved by the board of directors and authorised for issue on 24 April 2020 and are signed on its behalf by:
P J S Green
Director
Company Registration No. 02001847
WASHINGTON GREEN FINE ART GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2019
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2017
100
2,971,773
2,971,873
Year ended 30 April 2018:
Profit and total comprehensive income for the year
-
549,054
549,054
Issue of share capital
20
7,500,000
-
7,500,000
Balance at 30 April 2018
7,500,100
3,520,827
11,020,927
Year ended 30 April 2019:
Profit and total comprehensive income for the year
-
1,188,132
1,188,132
Dividends
10
-
(1,000,000)
(1,000,000)
Balance at 30 April 2019
7,500,100
3,708,959
11,209,059
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2019
- 9 -
1
Accounting policies
Company information
Washington Green Fine Art Group Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 15 Spitfire Road, Erdington, Birmingham, B24 9PR.
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.
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 £.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group
.
The financial statements of the company are consolidated in the financial statements of
Halcyon Fine Art Group Holdings Limited
. These consolidated financial statements are available from its registered office,
29 New Bond Street, London, W1S 2RL
1.2
Going concern
As stated in note 23, the directors have considered the effect of the Covid-19 outbreak. The directors consider that the outbreak is likely to cause a material disruption to the company’s operations by reduced sales activity. With the costs savings currently put in place, the financial support measures offered by the Government, and on-going discussions with the company’s bank for increased facilities, the directors are confident of the company’s ability to continue as a going concern.
true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
artwork sold
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
artwork
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.
1.4
Tangible fixed assets
Tangible fixed assets
are measured at cost, net of depreciation and any impairment losses.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
1
Accounting policies
(Continued)
- 10 -
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Fixtures, fittings & equipment
10-25% of cost or net book value per annum
Motor vehicles
33% reducing balance
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
Fixed asset investments
Interests in subsidiaries
are measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
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).
1.7
Stocks
Stocks
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises
of the agreed purchase price of the artwork.
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.
1.8
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.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
1
Accounting policies
(Continued)
- 11 -
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,
and amounts due
from
fellow group companies, 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.
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.
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
.
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.
1.12
Retirement benefits
The company operates a defined contributions pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
1
Accounting policies
(Continued)
- 12 -
1.13
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.
1.14
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements
,
involving estimates
,
have had the most significant
effect on amounts recognised in the financial statements.
Stock impairment and provision
Stocks
are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving stocks. Calculation of these provisions require judgements to be made, which include forecasting consumer demand, competitive and economic environment and
stock
loss trends.
Debtors impairment and provision
Debtors
are initially held at the transaction price and are subsequently held at amortised cost including, where necessary, provisions for any debts that are not deemed to be recoverable. Calculations of these provisions require judgements to be made, which include the likelihood of receiving the monies owed, the situation of the
debtor
and any other external factors which may affect the ability to pay.
Investment impairment
Investments are held at the transaction price less impairment. The assessment of impairment requires judgements to be made, which include the assessment of the future performance of investments outside the control of the company.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 13 -
3
Turnover and other revenue
2019
2018
£
£
Sale of goods
12,222,318
10,867,174
2019
2018
£
£
United Kingdom
11,715,413
10,435,443
EU
475,384
381,023
USA
-
5,587
Rest of World
31,521
45,121
12,222,318
10,867,174
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
296,389
(174,970)
Fees payable to the company's auditor for the audit of the company's financial statements
61,250
58,000
Depreciation of owned tangible fixed assets
103,108
99,858
Profit on disposal of tangible fixed assets
(800)
-
Cost of stocks recognised as an expense
7,475,846
6,760,151
Operating lease charges
217,875
139,920
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Sales
12
11
Management, marketing & administration
26
28
Production
39
37
77
76
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
5
Employees
(Continued)
- 14 -
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
1,894,104
1,838,244
Social security costs
228,528
214,626
Pension costs
35,412
25,496
2,158,044
2,078,366
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
353,990
303,211
Company pension contributions to defined contribution schemes
7,294
5,000
361,284
308,211
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
252,787
253,087
Company pension contributions to defined contribution schemes
5,000
5,000
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
1,637
321
8
Interest payable and similar expenses
2019
2018
£
£
-
-
Other interest
-
3,933
-
3,933
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
(Continued)
- 15 -
9
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
289,467
142,603
Deferred tax
Origination and reversal of timing differences
(6,391)
(8,752)
Total tax charge
283,076
133,851
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
1,471,208
682,905
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
279,530
129,752
Tax effect of expenses that are not deductible in determining taxable profit
3,253
2,453
Tax effect of income not taxable in determining taxable profit
(458)
-
Other adjustments
751
931
Depreciation on assets not qualifying for tax allowances
-
1,553
Deferred tax adjustments in respect of prior years
-
(838)
Taxation charge for the year
283,076
133,851
10
Dividends
2019
2018
£
£
Interim paid
1,000,000
-
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 16 -
11
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 May 2018
2,014,413
64,890
2,079,303
Additions
109,578
-
109,578
At 30 April 2019
2,123,991
64,890
2,188,881
Depreciation and impairment
At 1 May 2018
1,781,222
33,588
1,814,810
Depreciation charged in the year
92,779
10,329
103,108
At 30 April 2019
1,874,001
43,917
1,917,918
Carrying amount
At 30 April 2019
249,990
20,973
270,963
At 30 April 2018
233,191
31,302
264,493
12
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
13
5,000,003
5,000,003
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 May 2018 & 30 April 2019
5,000,003
Carrying amount
At 30 April 2019
5,000,003
At 30 April 2018
5,000,003
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 17 -
13
Subsidiaries
Details of the company's subsidiaries at 30 April 2019 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Artica Galleries Limited
1
Not trading
Ordinary
0
100.00
Castle Galleries Retail Limited
1
Dormant
Ordinary
100.00
0
Forest Galleries Limited
1
Dormant
Ordinary
100.00
0
Washington Green Retail Limited
1
Art Retailer
Ordinary
100.00
0
Registered Office addresses:
1
Unit 15 Spitfire Road, Erdington, Birmingham, West Midlands, England, B24 9PR
14
Stocks
2019
2018
£
£
Finished goods and goods for resale
12,111,212
11,682,688
During the year, net impairment losses of £549,746 (2018: £185,332) were released in the profit and loss account.
15
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
724,895
539,539
Tax debtor
332,691
241,995
Amount due from group undertaking
9,053,823
10,053,823
Other debtors
840,325
59,051
Prepayments and accrued income
133,754
145,216
11,085,488
11,039,624
Amounts falling due after one year:
Deferred tax asset (note 17)
8,193
1,802
Total debtors
11,093,681
11,041,426
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 18 -
16
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
9,076,360
8,844,787
Amounts owed to group undertakings
7,375,783
7,632,893
Corporation tax
427,352
137,899
Other taxation and social security
60,368
60,514
Other creditors
234,469
263,913
17,174,332
16,940,006
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2019
2018
Balances:
£
£
Accelerated capital allowances
8,193
1,802
2019
Movements in the year:
£
Liability/(Asset) at 1 May 2018
(1,802)
Credit to profit or loss
(6,391)
Liability/(Asset) at 30 April 2019
(8,193)
18
Accruals
2019
2018
£
£
Accruals
176,652
435,096
19
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,412
25,496
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 19 -
20
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
7,500,100 Ordinary shares of £1 each
7,500,100
7,500,100
21
Financial commitments, guarantees and contingent liabilities
The company has entered into a joint revolving bank loan facility with its ultimate parent and fellow subsidiary companies with a total group liability at 30 April 2019 of £30,000,000 (2018: £22,000,000). The bank has a fixed and floating charge over the assets of the company.
As at 30 April 201
9
, the company acts as a guarantor to operating lease commitments for galleries of fellow subsidiary company, for
future minimum lease payments of
£1,124,750
(201
8
:
£517,917
).
As at 30 April 201
9
, the
ultimate parent
company
, Halcyon Fine Art Group Holdings Limited,
acts as a guarantor to operating lease commitments for
the premises
of
the
company, for
future minimum lease payments of
£
1,221,644
(201
8
: £
1,392,106
).
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
403,007
407,884
Between two and five years
963,570
1,112,072
In over five years
369,334
539,796
1,735,911
2,059,752
23
Events after the reporting date
The directors have considered the effect of the Covid-19 outbreak, that has been spreading throughout the world in early 2020, on the company’s activities. This outbreak is likely to cause a material disruption to the company’s business by reduced sales activity but at the date of approval of these financial statements, the extent and quantum of the disruption remains uncertain
.
24
Related party transactions
At 30 April 2019, the company was owed £274,693 (2018: £274,693) by a related company against which a provision of £274,693 (2018: £274,693) has been made at the year end, leaving a net balance of £nil (2018: £nil) in the accounts. Certain directors of the company, are also directors and shareholders of the related company.
At 30 April 2019, the company owed £7,221,620 (2018: £7,053,086) to a related company through ownership. During the year purchases of £2,931,967(2018: £2,688,381) and other movements with a net debit of £2,763,433 (2018: net debit of £269,948) were processed with this related company.
WASHINGTON GREEN FINE ART GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2019
- 20 -
25
Controlling party
The company's ultimate parent company is Halcyon Fine Art Group Holdings Limited, which is incorporated in the United Kingdom. Halcyon Fine Art Group Holdings Limited prepares group accounts, copies of which can be obtained from 29 New Bond Street
, London, W1
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