31/12/2017
2017-12-31
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No description of principal activities is disclosed
2017-01-01
Sage Accounts Production 18.11 - FRS
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Company registration number:
03498840
S & V E Williams Limited
Financial statements
31 December 2017
S & V E Williams Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
S & V E Williams Limited
Directors and other information
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Directors
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S Williams
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Mrs V E Williams
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Secretary
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Mrs V E Williams
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Company number
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03498840
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Registered office
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28-30 Grange Road West
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Birkenhead
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Merseyside
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CH41 4DA
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Auditor
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Robert S Boys Ltd
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28-30 Grange Road West
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Birkenhead
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Merseyside
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CH41 4DA
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Bankers
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The Royal Bank of Scotland Plc
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St Ann Street
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Manchester
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M60 2SS
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|
S & V E Williams Limited
Strategic report
Year ended 31 December 2017
Principal activity
The principal activity of the company during the year was that of a chain of fast food restaurants.
Business review
The external commercial environment is expected to remain competitive, however, we remain confident that we will build on our current level of performance in the future.
Principal risks and uncertainties
As a franchisee the company is fully supported by a global organisation which minimises the brands risks and uncertainties. The company values safe, quality food which is affordable and convenient.
Performance and position
The company has had another successful year with profits on ordinary activities before taxation of £457,770. This is a decrease of 50.1% compared with 2016 despite the increase in turnover following the mid year acquisition of an additional restaurant. This is due to major repair costs in refurbishment of restaurants during the year. The gross profit margin has remained relatively constant in 2017 at 40% compared to 41% in 2016. The net profit margin has fallen in 2017 by 3% when compared with 2016. The company recognises its responsibility to protect and preserve the environment for future generations to come. The company has a policy of employing local people representing the communities in which we operate. The company also operates a code of conduct with regards to human rights.
Future Development
The company is striving to expand in the future with the addition of further restaurants within the business.
This report was approved by the board of directors on 1 August 2018 and signed on behalf of the board by:
S Williams
Director
S & V E Williams Limited
Directors report
Year ended 31 December 2017
The directors present their report and the financial statements of the company for the year ended 31 December 2017.
Directors
The directors who served the company during the year were as follows:
|
S Williams
|
Mrs V E Williams
|
|
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company is striving to expand in the future with the addition of further restaurants within the business.
Employment of disabled persons
The company is an equal opportunity employer and one of their greatest strengths is their diverse workforce. The company recognise the importance of being an inclusive employer and employ on the basis of qualities regardless of disability or qualifications.
Employee involvement
The company has an excellent training programme and opportunities to suit individual employee ambitions to aid career development and promotion.
Financial instruments
The key business risks and uncertainties affecting the company are considered to relate to competition and the economic climate.
Disclosure of information in the strategic report.
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company has set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Directors responsibilities statement
the directors are responsible for preparing the strategic report, directors 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 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 judgments and accounting estimates that are reasonable and prudent; and - 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
-
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on
01 August 2018
and signed on behalf of the board by:
S Williams
Director
S & V E Williams Limited
Independent auditor's report to the members of
S & V E Williams Limited
Year ended 31 December 2017
Opinion
We have audited the financial statements of S & V E Williams Limited for the year ended 31 December 2017 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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). 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 auditors 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. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2017 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.
Basis for opinion
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.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 the audit:
-
the information given in the strategic report and the directors' report 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 has been prepared in accordance with applicable legal requirements.
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 identified material misstatements in the strategic report or the directors' report. 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 the 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' responsibilities statement, 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Richard I Coulthard
(Senior Statutory Auditor)
For and on behalf of
Robert S Boys Ltd
Chartered Accountants and Statutory Auditor
28-30 Grange Road West
Birkenhead
Merseyside
CH41 4DA
01 August 2018
S & V E Williams Limited
Statement of income and retained earnings
Year ended 31 December 2017
|
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2017
|
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2016
|
|
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|
Note
|
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£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
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Turnover
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4
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|
19,858,062
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|
16,211,187
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|
|
Cost of sales
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|
|
|
(
11,857,678)
|
|
(
9,604,670)
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
Gross profit
|
|
|
|
8,000,384
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|
6,606,517
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|
|
|
|
|
|
|
|
|
|
|
Administrative expenses
|
|
|
|
(
7,537,570)
|
|
(
5,689,539)
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|
|
|
|
|
|
_______
|
|
_______
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|
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Operating profit
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5
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|
462,814
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916,978
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|
|
|
|
|
|
|
|
|
|
Other interest receivable and similar income
|
|
9
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|
1,154
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|
1,308
|
|
|
Interest payable and similar expenses
|
|
10
|
|
(
6,198)
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|
(
173)
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|
|
|
|
|
|
_______
|
|
_______
|
|
|
Profit before taxation
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|
|
|
457,770
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918,113
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|
|
|
|
|
|
|
|
|
|
|
Tax on profit
|
|
11
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|
(
137,742)
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|
(
186,134)
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|
|
|
|
|
|
_______
|
|
_______
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|
|
Profit for the financial year and total comprehensive income
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|
|
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320,028
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731,979
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|
|
|
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|
_______
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|
_______
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|
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|
|
|
|
|
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Dividends declared and paid or payable during the year
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12
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(
227,500)
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(
190,000)
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|
|
|
|
|
|
|
|
|
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Retained earnings at the start of the year
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|
|
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1,589,196
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1,047,217
|
|
|
|
|
|
|
_______
|
|
_______
|
|
|
Retained earnings at the end of the year
|
|
|
|
1,681,724
|
|
1,589,196
|
|
|
|
|
|
|
_______
|
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_______
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|
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All the activities of the company are from continuing operations.
S & V E Williams Limited
Statement of financial position
31 December 2017
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
Note
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
Fixed assets
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
13
|
828,639
|
|
|
|
101,750
|
|
|
Tangible assets
|
|
14
|
3,313,712
|
|
|
|
1,478,777
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
4,142,351
|
|
|
|
1,580,527
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Stocks
|
|
15
|
97,350
|
|
|
|
62,159
|
|
|
Debtors
|
|
16
|
85,469
|
|
|
|
115,814
|
|
|
Investments
|
|
17
|
10,000
|
|
|
|
8,750
|
|
|
Cash at bank and in hand
|
|
|
1,590,870
|
|
|
|
1,683,506
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
1,783,689
|
|
|
|
1,870,229
|
|
|
Creditors: amounts falling due
|
|
|
|
|
|
|
|
|
|
within one year
|
|
18
|
(
2,850,960)
|
|
|
|
(
1,669,441)
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
Net current (liabilities)/assets
|
|
|
|
|
(
1,067,271)
|
|
|
|
200,788
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Total assets less current liabilities
|
|
|
|
|
3,075,080
|
|
|
|
1,781,315
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due
|
|
|
|
|
|
|
|
|
|
after more than one year
|
|
19
|
|
|
(
1,187,171)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Provisions for liabilities
|
|
20
|
|
|
(
206,085)
|
|
|
|
(
192,019)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Net assets
|
|
|
|
|
1,681,824
|
|
|
|
1,589,296
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
|
|
|
Called up share capital
|
|
23
|
|
|
100
|
|
|
|
100
|
Profit and loss account
|
|
24
|
|
|
1,681,724
|
|
|
|
1,589,196
|
|
|
|
|
|
_______
|
|
|
|
_______
|
Shareholders funds
|
|
|
|
|
1,681,824
|
|
|
|
1,589,296
|
|
|
|
|
|
_______
|
|
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
These financial statements were approved by the
board of directors
and authorised for issue on
01 August 2018
, and are signed on behalf of the board by:
S Williams
Director
Company registration number:
03498840
S & V E Williams Limited
Statement of cash flows
Year ended 31 December 2017
|
|
2017
|
|
2016
|
|
|
|
£
|
|
£
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
Profit for the financial year
|
|
320,028
|
|
731,979
|
|
|
|
|
|
|
|
Adjustments for:
|
|
|
|
|
|
Depreciation of tangible assets
|
|
337,478
|
|
226,689
|
|
Amortisation of intangible assets
|
|
223,111
|
|
22,625
|
|
Other interest receivable and similar income
|
|
(
1,154)
|
|
(
1,308)
|
|
Interest payable and similar expenses
|
|
6,198
|
|
173
|
|
Gain/(loss) on disposal of tangible assets
|
|
150,707
|
|
66,866
|
|
Tax on profit
|
|
137,742
|
|
186,134
|
|
Accrued expenses/(income)
|
|
42,476
|
|
74,367
|
|
|
|
|
|
|
|
Changes in:
|
|
|
|
|
|
Stocks
|
|
(
35,191)
|
|
10,872
|
|
Trade and other debtors
|
|
30,345
|
|
(
49,998)
|
|
Trade and other creditors
|
|
834,553
|
|
(
13,301)
|
|
Provisions and employee benefits
|
|
(
2,690)
|
|
5,000
|
|
|
|
_______
|
|
_______
|
|
Cash generated from operations
|
|
2,043,603
|
|
1,260,098
|
|
|
|
|
|
|
|
Interest paid
|
|
(
6,198)
|
|
(
173)
|
|
Interest received
|
|
1,154
|
|
1,308
|
|
Tax paid
|
|
(
186,505)
|
|
(
79,763)
|
|
|
|
_______
|
|
_______
|
|
Net cash from operating activities
|
|
1,852,054
|
|
1,181,470
|
|
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
Purchase of tangible assets
|
|
(
2,323,121)
|
|
(
367,523)
|
|
Proceeds from sale of tangible assets
|
|
1
|
|
19,751
|
|
Purchase of intangible assets
|
|
(
950,000)
|
|
-
|
|
Purchase of other investments
|
|
(
1,250)
|
|
-
|
|
|
|
_______
|
|
_______
|
|
Net cash used in investing activities
|
|
(
3,274,370)
|
|
(
347,772)
|
|
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
Proceeds from borrowings
|
|
1,557,180
|
|
12,661
|
|
Equity dividends paid
|
|
(
227,500)
|
|
(
190,000)
|
|
|
|
_______
|
|
_______
|
|
Net cash from/(used in) financing activities
|
|
1,329,680
|
|
(
177,339)
|
|
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
Net increase/(decrease) in cash and cash equivalents
|
|
(
92,636)
|
|
656,359
|
|
Cash and cash equivalents at beginning of year
|
|
1,683,506
|
|
1,027,146
|
|
|
|
_______
|
|
_______
|
|
Cash and cash equivalents at end of year
|
|
1,590,870
|
|
1,683,505
|
|
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
S & V E Williams Limited
Notes to the financial statements
Year ended 31 December 2017
1.
General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 28-30 Grange Road West, Birkenhead, Merseyside, CH41 4DA.
2.
Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
|
|
|
Goodwill |
- |
3 years
|
Other intangible assets |
- |
5-20 years
|
|
|
|
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
|
|
|
|
|
Plant and machinery
|
-
|
15 %
|
reducing balance
|
|
Fittings fixtures and equipment
|
-
|
15 %
|
reducing balance
|
|
Computer equipment
|
-
|
20 %
|
reducing balance
|
|
|
|
|
|
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets
.
For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Sale of goods
|
|
19,858,062
|
16,211,187
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating profit
Operating profit is stated after charging/(crediting):
|
|
|
|
2017
|
2016
|
|
|
|
|
£
|
£
|
|
Amortisation of intangible assets
|
|
|
223,111
|
22,625
|
|
Depreciation of tangible assets
|
|
|
337,478
|
226,689
|
|
(Gain)/loss on disposal of tangible assets
|
|
|
150,707
|
66,866
|
|
Cost of stocks recognised as an expense
|
|
|
6,334,946
|
5,169,416
|
|
Fees payable for the audit of the financial statements
|
|
|
3,000
|
3,000
|
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
6.
Auditors remuneration
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Fees payable to Robert S Boys Ltd
|
|
|
|
|
Fees payable for the audit of the financial statements
|
|
3,000
|
3,000
|
|
|
|
_______
|
_______
|
|
Fees payable to the company's auditor and its associates for other services:
|
|
|
|
|
Other non-audit services
|
|
5,100
|
4,400
|
|
|
|
_______
|
_______
|
|
|
|
|
|
7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
|
|
|
2017
|
2016
|
|
Staff
|
|
738
|
588
|
|
Management
|
|
28
|
25
|
|
|
|
_______
|
_______
|
|
|
|
766
|
613
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The aggregate payroll costs incurred during the year were:
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Wages and salaries
|
|
5,396,004
|
4,343,837
|
|
Social security costs
|
|
215,030
|
169,045
|
|
Other pension costs
|
|
28,533
|
102,258
|
|
|
|
_______
|
_______
|
|
|
|
5,639,567
|
4,615,140
|
|
|
|
_______
|
_______
|
|
|
|
|
|
8.
Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Remuneration
|
|
24,505
|
23,584
|
|
Company contributions to pension schemes in respect of qualifying services
|
|
3,722
|
83,702
|
|
|
|
_______
|
_______
|
|
|
|
28,227
|
107,286
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The number of directors who accrued benefits under company pension plans was as follows:
|
|
|
2017
|
2016
|
|
|
|
Number
|
Number
|
|
Defined contribution plans
|
|
2
|
2
|
|
|
|
_______
|
_______
|
|
|
|
|
|
9.
Other interest receivable and similar income
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Bank deposits
|
|
1,149
|
1,308
|
|
Other interest receivable and similar income
|
|
5
|
-
|
|
|
|
_______
|
_______
|
|
|
|
1,154
|
1,308
|
|
|
|
_______
|
_______
|
|
|
|
|
|
10.
Interest payable and similar expenses
|
|
|
|
2017
|
2016
|
|
|
|
|
£
|
£
|
|
Bank loans and overdrafts
|
|
|
6,198
|
-
|
|
Other interest payable and similar expenses
|
|
|
-
|
173
|
|
|
|
|
_______
|
_______
|
|
|
|
|
6,198
|
173
|
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
11.
Tax on profit
Major components of tax expense
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Current tax:
|
|
|
|
|
UK current tax expense
|
|
120,986
|
186,036
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
Deferred tax:
|
|
|
|
|
Origination and reversal of timing differences
|
|
16,756
|
98
|
|
|
|
_______
|
_______
|
|
Tax on profit
|
|
137,742
|
186,134
|
|
|
|
_______
|
_______
|
|
|
|
|
|
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2016: higher than) the
standard rate of corporation tax in the UK
of
19.00
% (2016: 20.00%).
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Profit before taxation
|
|
457,770
|
918,113
|
|
|
|
_______
|
_______
|
|
|
|
|
|
|
Profit multiplied by rate of tax
|
|
86,976
|
183,623
|
|
Effect of expenses not deductible for tax purposes
|
|
(
502)
|
1,123
|
|
Effect of capital allowances and depreciation
|
|
32,962
|
(
12,083)
|
|
Loss/(profit) on sale of fixed assets in excess of balancing allowance
|
|
-
|
13,373
|
|
Change of rate from 20.00% to 19.00% (2016 - 20.00% to 20.00%)
|
|
1,550
|
-
|
|
|
|
_______
|
_______
|
|
Tax on profit
|
|
120,986
|
186,036
|
|
|
|
_______
|
_______
|
|
|
|
|
|
12.
Dividends
Equity dividends
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)
|
|
227,500
|
190,000
|
|
|
|
_______
|
_______
|
|
|
|
|
|
13.
Intangible assets
|
|
Goodwill
|
Franchise fees
|
Total
|
|
|
|
|
|
£
|
£
|
£
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
At 1 January 2017
|
377,688
|
195,000
|
572,688
|
|
|
|
|
Additions
|
950,000
|
-
|
950,000
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2017
|
1,327,688
|
195,000
|
1,522,688
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
Amortisation
|
|
|
|
|
|
|
|
At 1 January 2017
|
377,688
|
93,250
|
470,938
|
|
|
|
|
Charge for the year
|
211,111
|
12,000
|
223,111
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2017
|
588,799
|
105,250
|
694,049
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
Carrying amount
|
|
|
|
|
|
|
|
At 31 December 2017
|
738,889
|
89,750
|
828,639
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2016
|
-
|
101,750
|
101,750
|
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
14.
Tangible assets
|
|
Plant and machinery
|
Fixtures, fittings and equipment
|
Computer equipment
|
Total
|
|
|
|
|
|
£
|
£
|
£
|
£
|
|
|
|
|
Cost
|
|
|
|
|
|
|
|
|
At 1 January 2017
|
2,880,529
|
95,392
|
12,270
|
2,988,191
|
|
|
|
|
Additions
|
2,323,121
|
-
|
-
|
2,323,121
|
|
|
|
|
Disposals
|
(
475,407)
|
(
4,661)
|
-
|
(
480,068)
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2017
|
4,728,243
|
90,731
|
12,270
|
4,831,244
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
At 1 January 2017
|
1,410,883
|
87,600
|
10,931
|
1,509,414
|
|
|
|
|
Charge for the year
|
336,041
|
1,169
|
268
|
337,478
|
|
|
|
|
Disposals
|
(
325,099)
|
(
4,261)
|
-
|
(
329,360)
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2017
|
1,421,825
|
84,508
|
11,199
|
1,517,532
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
Carrying amount
|
|
|
|
|
|
|
|
|
At 31 December 2017
|
3,306,418
|
6,223
|
1,071
|
3,313,712
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
At 31 December 2016
|
1,469,646
|
7,792
|
1,339
|
1,478,777
|
|
|
|
|
|
_______
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
|
|
|
15.
Stocks
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Raw materials
|
|
97,350
|
62,159
|
|
|
|
_______
|
_______
|
|
|
|
|
|
16.
Debtors
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Trade debtors
|
|
1,442
|
323
|
|
Prepayments and accrued income
|
|
77,268
|
60,245
|
|
Other debtors
|
|
6,759
|
55,246
|
|
|
|
_______
|
_______
|
|
|
|
85,469
|
115,814
|
|
|
|
_______
|
_______
|
|
|
|
|
|
17.
Investments
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Other investments
|
|
10,000
|
8,750
|
|
|
|
_______
|
_______
|
|
|
|
|
|
18.
Creditors: amounts falling due within one year
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Bank loans and overdrafts
|
|
397,760
|
-
|
|
Trade creditors
|
|
1,536,401
|
575,593
|
|
Accruals and deferred income
|
|
320,483
|
278,007
|
|
Corporation tax
|
|
120,517
|
186,036
|
|
Social security and other taxes
|
|
291,900
|
429,585
|
|
Director loan accounts
|
|
169,991
|
197,742
|
|
Other creditors
|
|
13,908
|
2,478
|
|
|
|
_______
|
_______
|
|
|
|
2,850,960
|
1,669,441
|
|
|
|
_______
|
_______
|
|
|
|
|
|
19.
Creditors: amounts falling due after more than one year
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Bank loans and overdrafts
|
|
1,187,171
|
-
|
|
|
|
_______
|
_______
|
|
|
|
|
|
20.
Provisions
|
|
Deferred tax (note 21)
|
Other provisions
|
Total
|
|
|
|
|
£
|
£
|
£
|
|
|
|
At 1 January 2017
|
178,019
|
14,000
|
192,019
|
|
|
|
Additions
|
16,756
|
-
|
16,756
|
|
|
|
Unused amounts reversed
|
-
|
(
2,690)
|
(
2,690)
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
At 31 December 2017
|
194,775
|
11,310
|
206,085
|
|
|
|
|
_______
|
_______
|
_______
|
|
|
|
|
|
|
|
|
|
21.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Included in provisions (note 20)
|
|
194,775
|
178,019
|
|
|
|
_______
|
_______
|
|
|
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
|
|
2017
|
2016
|
|
|
|
£
|
£
|
|
Accelerated capital allowances
|
|
194,775
|
178,019
|
|
|
|
_______
|
_______
|
|
|
|
|
|
22.
Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £
28,533
(2016: £
102,258
).
23.
Called up share capital
Issued, called up and fully paid
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
No
|
|
£
|
|
No
|
|
£
|
|
Ordinary shares
shares of £
1.00 each
|
|
100
|
|
100
|
|
100
|
|
100
|
|
|
|
_______
|
|
_______
|
|
_______
|
|
_______
|
|
|
|
|
|
|
|
|
|
|
24.
Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses.
25.
Related party transactions
During the year the company paid £170,625 to Mr
S Williams
and £56,875 to Mrs V E Williams
in dividends.
26.
Controlling party
Mr S Williams,
a director and majority shareholder, is considered to have a controlling interest in the company.