Company Registration No. 04623498 (England and Wales)
MADSON BLACK LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
MADSON BLACK LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
20,514
18,190
Current assets
Stocks
300,655
218,786
Debtors
4
57,396
48,994
Cash at bank and in hand
351,632
127
709,683
267,907
Creditors: amounts falling due within one year
5
(673,927)
(191,161)
Net current assets
35,756
76,746
Total assets less current liabilities
56,270
94,936
Creditors: amounts falling due after more than one year
6
-
(56,001)
Provisions for liabilities
(3,898)
(3,453)
Net assets
52,372
35,482
Capital and reserves
Called up share capital
7
6,000
1,001
Profit and loss reserves
46,372
34,481
Total equity
52,372
35,482
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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 period 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.
MADSON BLACK LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
31 December 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 2 April 2020 and are signed on its behalf by:
Mr I J Hall
Director
Company Registration No. 04623498
MADSON BLACK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2019
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2018
1,001
60,451
61,452
Period ended 28 February 2019:
Loss and total comprehensive income for the period
-
(17,470)
(17,470)
Dividends
-
(8,500)
(8,500)
Balance at 28 February 2019
1,001
34,481
35,482
Period ended 31 December 2019:
Profit and total comprehensive income for the period
-
32,341
32,341
Issue of share capital
7
5,400
-
5,400
Dividends
-
(20,450)
(20,450)
Reduction of shares
7
(401)
-
(401)
Balance at 31 December 2019
6,000
46,372
52,372
MADSON BLACK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2019
- 4 -
1
Accounting policies
Company information
Madson Black Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
10 Murdock Road, Bicester, Oxon, OX26 4PP.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
A key risk to the future continued going concern of the company are the risks and uncertainties as to the impact of the Covid-19 outbreak in the UK. As at the date of approving these accounts the director has assessed the impact of Covid-19 and is satisfied that these
financial statements
continue to be prepared on a going concern basis.
1.3
Reporting period
The accounting period for these financial statements has been shortened to 9 month to become the period ended 31 December 2019, at the wishes of the director . T
he comparative amounts presented in the
se
financial statements (including the
related notes)
therefore
are not entirely comparable
, as they are for a 12 month period.
1.4
Turnover
Turnover represents net invoiced sales of goods and or services (excluding VAT).
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.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
25% Reducing Balance
Motor vehicles
25% Straight Line
MADSON BLACK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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
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.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.8
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 balance sheet 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 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.
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 are
initially recognised at transaction
price
.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
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.
MADSON BLACK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 6 -
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.9
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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled
. Deferred tax is charged or credited in the profit and loss
.
Deferred tax liabilities relate to taxes levied by the same tax authority.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
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 are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 3 (2019 - 7).
MADSON BLACK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2019
- 7 -
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 March 2019
65,065
Additions
6,473
At 31 December 2019
71,538
Depreciation and impairment
At 1 March 2019
46,875
Depreciation charged in the period
4,149
At 31 December 2019
51,024
Carrying amount
At 31 December 2019
20,514
At 28 February 2019
18,190
4
Debtors
2019
2019
Amounts falling due within one year:
£
£
Trade debtors
8,743
41,306
Corporation tax recoverable
-
4,845
Amounts owed by group undertakings
48,653
-
Other debtors
-
2,843
57,396
48,994
5
Creditors: amounts falling due within one year
2019
2019
£
£
Trade creditors
30,878
28,223
Corporation tax
21,373
15,463
Other taxation and social security
148,661
135,869
Other creditors
473,015
11,606
673,927
191,161
MADSON BLACK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2019
- 8 -
6
Creditors: amounts falling due after more than one year
2019
2019
£
£
Other creditors
-
56,001
7
Called up share capital
2019
2019
£
£
Ordinary share capital
Issued and fully paid
5,000 (2019: 600) Ordinary shares of £1 each
5,000
600
0 (2019: 400) Ordinary A shares of £1 each
-
400
0 (2019: 1) Ordinary B share of £1 each
-
1
1,000 (2019: 0) Ordinary C shares of £1 each
1,000
-
6,000
1,001
4,400 ordinary and 1,000 ordinary C shares were allotted at par value, £1 per share, on 9 October 2019.
The company purchased, and subsequently cancelled, 400 ordinary A and 1 ordinary B of its own shares at par value on 13 December 2019.
8
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated for an average term of 9 years and rentals are fixed for an average of 3 years with an option to extend for a further 3 years at the prevailing market rate.