Company Registration No. 04231192 (England and Wales)
GENERAL DISTRIBUTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
PAGES FOR FILING WITH REGISTRAR
GENERAL DISTRIBUTION LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
GENERAL DISTRIBUTION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2018
31 December 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Intangible assets
4
98,958
28,495
Tangible assets
5
8,763
738
107,721
29,233
Current assets
Stocks
34,568
28,238
Debtors
6
698,763
561,081
Cash at bank and in hand
129,101
66,443
862,432
655,762
Creditors: amounts falling due within one year
7
(1,155,157)
(1,042,973)
Net current liabilities
(292,725)
(387,211)
Total assets less current liabilities
(185,004)
(357,978)
Creditors: amounts falling due after more than one year
8
(320,638)
-
Net liabilities
(505,642)
(357,978)
Capital and reserves
Called up share capital
9
1,000
1,000
Profit and loss reserves
10
(506,642)
(358,978)
Total equity
(505,642)
(357,978)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
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 29 July 2019 and are signed on its behalf by:
A Brotherton-Ratcliffe
Director
Company Registration No. 04231192
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
- 2 -
1
Accounting policies
Company information
General Distribution Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Paxton House, Home Farm Road, Brighton, East Sussex, BN1 9HU.
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
At the balance sheet date, the company's liabilities exceeded its assets. The company is dependent upon the continued financial support of
family members of
one of its directors, A Brotherton Ratcliffe who ha
ve
confirmed that
t
he
y
will continue to give financial support to the company for at least twelve months from the date of signing these financial statements.
T
he directors
therefore
consider it appropriate to prepare the financial statements on a going concern basis.
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.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
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.
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:
Development Costs
33% straight line
1.6
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.
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 3 -
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
33% 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
.
1.7
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.
1.8
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.
1.9
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.
1.10
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.
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.
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.
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.
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
- 4 -
1.11
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.
1.12
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Related party transactions
The company has taken advantage of the exemption in Financial Reporting Standard
102
from disclosing transactions with other wholly owned subsidiaries of Paxton Access Group Limited.
2
Auditor's remuneration
2018
2017
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
2,000
2,000
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 7 (2017 - 7).
4
Intangible fixed assets
Other
£
Cost
At 1 January 2018
35,257
Additions
92,891
At 31 December 2018
128,148
Amortisation and impairment
At 1 January 2018
6,761
Amortisation charged for the year
22,429
At 31 December 2018
29,190
Carrying amount
At 31 December 2018
98,958
At 31 December 2017
28,495
5
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2018
-
1,155
1,155
Additions
8,777
-
8,777
At 31 December 2018
8,777
1,155
9,932
Depreciation and impairment
At 1 January 2018
-
417
417
Depreciation charged in the year
367
385
752
At 31 December 2018
367
802
1,169
Carrying amount
At 31 December 2018
8,410
353
8,763
At 31 December 2017
-
738
738
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 6 -
6
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
127,633
76,474
Amounts owed by group undertakings
533,234
451,809
Other debtors
20,632
15,534
681,499
543,817
2018
2017
Amounts falling due after more than one year:
£
£
Deferred tax asset
17,264
17,264
Total debtors
698,763
561,081
Trade debtors disclosed above are measured at amortised cost.
7
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
49,362
-
Trade creditors
55,912
21,642
Taxation and social security
12,776
12,881
Other creditors
1,037,107
1,008,450
1,155,157
1,042,973
8
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
320,638
-
The bank loan of £370,000 is secured by way of a debenture in favour of HSBC Bank comprising a fixed and floating charge over all the assets and undertakings of the company.
9
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
GENERAL DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
- 7 -
10
Profit and loss reserves
2018
2017
£
£
At the beginning of the year
(358,978)
(325,929)
Loss for the year
(147,664)
(33,049)
At the end of the year
(506,642)
(358,978)
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Mr Michael Macefield.
The auditor was Humphrey & Co Audit Services Ltd.
12
Related party transactions
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts due to related parties
£
£
Other related parties
1,000,000
1,000,000
Related party loans are interest free and have no set repayment date.
13
Parent company
The immediate and ultimate parent company is
Paxton Access Group Limited
, a company registered in England and Wales whose registered office is Paxton House, Home Farm Road, Brighton, BN1 9HU.
Paxton Access Group Limited
is the parent undertaking of the largest and smallest group of undertakings to consolidate these financial statements. Copies of the group financial statements can be obtained from Companies House.