Company Registration No. 03042924 (England and Wales)
Pure-Tec Limited
Unaudited financial statements
for the year ended 30 April 2021
Pages for filing with the Registrar
Pure-Tec Limited
Contents
Page
Statement of financial position
2 - 3
Notes to the financial statements
4 - 11
Pure-Tec Limited
Directors' responsibilities statement
For the year ended 30 April 2021
Page 1
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;
-
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.
Pure-Tec Limited
Statement of financial position
As at 30 April 2021
Page 2
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
9,530
33,029
Tangible assets
4
131,074
161,945
140,604
194,974
Current assets
Stocks
1,576,249
745,389
Debtors
5
2,393,806
1,896,554
Cash at bank and in hand
580,993
755,999
4,551,048
3,397,942
Creditors: amounts falling due within one year
6
(2,681,262)
(1,789,097)
Net current assets
1,869,786
1,608,845
Total assets less current liabilities
2,010,390
1,803,819
Creditors: amounts falling due after more than one year
7
(1,012,866)
(1,012,866)
Net assets
997,524
790,953
Capital and reserves
Called up share capital
1,061,443
1,061,443
Profit and loss reserves
(63,919)
(270,490)
Total equity
997,524
790,953
Pure-Tec Limited
Statement of financial position (continued)
As at 30 April 2021
Page 3
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 30 April 2021 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 21 December 2021 and are signed on its behalf by:
David Gilson
Director
Company Registration No. 03042924
Pure-Tec Limited
Notes to the financial statements
For the year ended 30 April 2021
Page 4
1
Accounting policies
Company information
Pure-Tec Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Puretec Offices, Britannia Road, Goole, East Riding of Yorkshire, DN14 6ET.
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 directors are aware that these accounts are being signed in the middle of the coronavirus pandemic. Despite the negative impact of the pandemic on businesses and the global economy, the operations of the company have benefited through the increase in demand for home fitness equipment. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
1
Accounting policies (continued)
Page 5
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
3 years straight line
Patents
20% straight line
1.5
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:
Plant and machinery
20% straight line
Fixtures, fittings & equipment
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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
1
Accounting policies (continued)
Page 6
1.8
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.
1.9
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 statement of financial position 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, 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.
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
, 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.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
1
Accounting policies (continued)
Page 7
1.10
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.
1.11
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
income statement
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
1
Accounting policies (continued)
Page 8
1.14
Leases
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.
1.15
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:
2021
2020
Number
Number
Total
20
20
3
Intangible fixed assets
Other
£
Cost
At 1 May 2020 and 30 April 2021
75,024
Amortisation and impairment
At 1 May 2020
41,995
Amortisation charged for the year
23,499
At 30 April 2021
65,494
Carrying amount
At 30 April 2021
9,530
At 30 April 2020
33,029
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
Page 9
4
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 May 2020
34,949
220,899
255,848
Additions
3,062
3,062
Disposals
(300)
(300)
At 30 April 2021
34,949
223,661
258,610
Depreciation and impairment
At 1 May 2020
15,842
78,061
93,903
Depreciation charged in the year
2,457
31,176
33,633
At 30 April 2021
18,299
109,237
127,536
Carrying amount
At 30 April 2021
16,650
114,424
131,074
At 30 April 2020
19,107
142,838
161,945
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,015,413
1,491,995
Other debtors
366,463
339,892
2,381,876
1,831,887
Deferred tax asset
11,930
64,667
2,393,806
1,896,554
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
Page 10
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
2,027,157
1,320,323
Taxation and social security
7,857
261,388
Other creditors
646,248
207,386
2,681,262
1,789,097
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
1,012,866
1,012,866
Other creditors above include £1,012,866 (2020: £1,012,866) of long term loan balances owed to the 100% shareholder and director Richard Chung.
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:
2021
2020
£
£
2,287,075
2,601,637
Pure-Tec Limited
Notes to the financial statements (continued)
For the year ended 30 April 2021
Page 11
9
Related party transactions
Transactions with related parties
At the year end £1,012,866 was due to Mr Richard Chung (2020: £1,012,866). These amounts have been made available by way of loans to the company and are interest free.
10
Control
At 30 April 2021 the company was under the control of the director Richard Chung by virtue of his 100% shareholding.