Company Registration No. 03039739 (England and Wales)
FOUNTAINS DIRECT LIMITED
ANNUAL REPORT AND UNAUDITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 APRIL 2020
PAGES FOR FILING WITH REGISTRAR
TWP Accounting LLP
Chartered Accountants
The Old Rectory
Church Street
Weybridge
Surrey
KT13 8DE
FOUNTAINS DIRECT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
FOUNTAINS DIRECT LIMITED
Company Registration No. 03039739
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 1 -
2020
2019
£
£
£
£
Fixed assets
Tangible assets
3
899,796
843,367
Current assets
Stocks
204,089
89,521
Debtors
4
1,195,767
648,330
Cash at bank and in hand
206,217
15,802
1,606,073
753,653
Creditors: amounts falling due within one year
5
(765,150)
(654,537)
Net current assets
840,923
99,116
Total assets less current liabilities
1,740,719
942,483
Creditors: amounts falling due after more than one year
6
(211,292)
(225,573)
Provisions for liabilities
(20,229)
(15,193)
Net assets
1,509,198
701,717
Capital and reserves
Called up share capital
7
100
100
Revaluation reserve
125,587
125,587
Profit and loss reserves
1,383,511
576,030
Total equity
1,509,198
701,717
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 30 April 2020 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.
FOUNTAINS DIRECT LIMITED
Company Registration No. 03039739
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2020
30 April 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 October 2020 and are signed on its behalf by:
N Roberts
Director
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
- 3 -
1
Accounting policies
Company information
Fountains Direct Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
41 Dartnell Park Road, West Byfleet, KT14 6PR.
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, 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
Going concern
The current COVID-19 pandemic has created uncertainty over the future financial implications to the worldwide economy. The directors are confident that the company has adequate resources to continue in operational existence for the foreseeable future and meet its financial obligations. Therefore they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
1.3
Turnover
Turnover is recognised by the company in respect of specialised construction and landscape service activities supplied during the year, and is shown net of VAT and other sales related taxes.
1.4
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
not depreciated
Plant and machinery etc
20% to 25% on 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
.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity
;
such
gains and loss
es
are recognised in profit or loss.
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 4 -
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
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 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.
1.7
Financial instruments
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.
1.8
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.
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.
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 5 -
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
25
23
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2019
750,000
196,016
946,016
Additions
-
80,543
80,543
Disposals
-
(11,900)
(11,900)
At 30 April 2020
750,000
264,659
1,014,659
Depreciation and impairment
At 1 May 2019
-
102,649
102,649
Depreciation charged in the year
-
18,719
18,719
Eliminated in respect of disposals
-
(6,505)
(6,505)
At 30 April 2020
-
114,863
114,863
Carrying amount
At 30 April 2020
750,000
149,796
899,796
At 30 April 2019
750,000
93,367
843,367
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
536,163
265,083
Other debtors
659,604
383,247
1,195,767
648,330
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 7 -
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
169,100
144,270
Trade creditors
139,747
249,881
Other taxation and social security
397,136
146,871
Other creditors
59,167
113,515
765,150
654,537
Included within creditors due within one year are bank loans and overdrafts of £
169,100
(201
9
- £
144,270
) which are secured on the company's assets.
Included in other creditors are hire purchase contracts of £3,426
(2019 - £Nil)
, which are secured on the asset to which they relate.
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
194,181
225,573
Other creditors
17,111
-
211,292
225,573
Included within creditors due after one year
are
bank loan
s
of £
194,181
(201
9
- £
225,573
) which
are
secured on the company's assets.
Included in other creditors are hire purchase contracts of £17,111
(2019 - £Nil)
, which are secured on the asset to which they relate.
Creditors which fall due after five years are as follows:
2020
2019
£
£
Payable by instalments
78,257
106,761
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
FOUNTAINS DIRECT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 8 -
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Within one year
28,760
25,979
Between two and five years
38,494
36,998
67,254
62,977
9
Related party transactions
At the balance sheet date the company owed the director, N Roberts
, £
Nil
(2019 -
£
4,632)
. This loan is interest
free.
At the balance sheet date the company owed the director, S Roberts
, £
Nil
(2019 -
£4,
632)
. This loan is interest free
.
At the balance sheet date Kerslake Rentals Ltd owed the company £492,000 (2019 £332,000) on an interest free basis. Kerslake Rentals Ltd is a company whose shareholders are the directors close family members.