Grommets Limited
Unaudited Financial Statements
For the year ended 31 August 2023
Pages for Filing with Registrar
Company Registration No. 02842512 (England and Wales)
Grommets Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
Grommets Limited
Balance Sheet
As at 31 August 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
911,410
686,268
Current assets
Stock
153,730
109,307
Debtors
4
131,347
127,257
Cash at bank and in hand
501,777
624,757
786,854
861,321
Creditors: amounts falling due within one year
5
(222,203)
(220,941)
Net current assets
564,651
640,380
Total assets less current liabilities
1,476,061
1,326,648
Creditors: amounts falling due after more than one year
6
(578,998)
(478,250)
Provisions for liabilities
7
(19,119)
(14,268)
Net assets
877,944
834,130
Capital and reserves
Called up share capital
7
37,221
37,221
Share premium account
12,779
12,779
Profit and loss reserves
827,944
784,130
Total equity
877,944
834,130
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 August 2023 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.
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.
Grommets Limited
Balance Sheet (Continued)
As at 31 August 2023
Page 2
The financial statements were approved by the board of directors and authorised for issue on 9 December 2023 and are signed on its behalf by:
Joanne Boorsma
Director
Company Registration No. 02842512
Grommets Limited
Notes to the Financial Statements
For the year ended 31 August 2023
Page 3
1
Accounting policies
Company information
Grommets Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Hollands Lane, Henfield, West Sussex, BN5 9QY.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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. 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 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
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:
Freehold land and buildings
5% straight line
Plant and equipment
20%/ 33.33% straight line
Fixtures and fittings
20% straight line
Motor vehicles
20% straight line
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
Stock
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.
Grommets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 4
1.5
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.
1.6
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as ‘other’ or financial instruments measured at fair value.
1.7
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.
1.8
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.
1.9
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.
Grommets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
1
Accounting policies
(Continued)
Page 5
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 leases 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 in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
14
15
Grommets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 6
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2022
584,707
174,801
11,330
79,241
850,079
Additions
289,313
1,418
2,583
293,314
At 31 August 2023
874,020
176,219
11,330
81,824
1,143,393
Depreciation and impairment
At 1 September 2022
6,561
110,105
11,327
35,818
163,811
Depreciation charged in the year
32,525
19,742
3
15,902
68,172
At 31 August 2023
39,086
129,847
11,330
51,720
231,983
Carrying amount
At 31 August 2023
834,934
46,372
30,104
911,410
At 31 August 2022
578,146
64,696
3
43,423
686,268
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
123,601
124,903
Other debtors
300
-
Prepayments and accrued income
7,446
2,354
131,347
127,257
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
60,674
57,756
Trade creditors
22,633
29,491
Corporation tax
50,154
63,266
Other taxation and social security
66,985
15,004
Other creditors
10,338
51,924
Accruals and deferred income
11,419
3,500
222,203
220,941
Grommets Limited
Notes to the Financial Statements (Continued)
For the year ended 31 August 2023
Page 7
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
571,109
468,782
Other creditors
7,889
9,468
578,998
478,250
The company had three loans outstanding at the balance sheet date.
The first loan is a Bounce Back Loan, supported by the Bounce Back Loan Scheme, and secured by a guarantee from the UK Government under the Bounce Back Loan Scheme Guarantee. The loan is repayable in instalments up to and including March 2026. Interest is payable at 5% per annum.
The second loan is a mortgage secured by a fixed and floating charge covering all property and assets of the company. The loan is repayable in instalments up to and including November 2041. Interest is payable at 5% per annum.
The third loan is a temporary draw down loan which will be transferred to a fixed rate mortgage upon completion of a new unit which remained under construction at the balance sheet date.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
37,221
37,221
37,221
37,221
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:
2023
2022
£
£
24,905
9
Related party transactions
At the balance sheet date, an amount of £300 (2022: £nil) was owed to the company by the directors and is included in other debtors.