Company Registration No. 06004883 (England and Wales)
HADLEY CARE LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
HADLEY CARE LTD
CONTENTS
Page
Accountants' report
1
Balance sheet
2
Notes to the financial statements
3 - 7
HADLEY CARE LTD
ACCOUNTANTS' REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF HADLEY CARE LTD FOR THE YEAR ENDED 31 OCTOBER 2019
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Hadley Care Ltd for the year ended 31 October 2019 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us
.
This report is made solely to the Board of Directors of Hadley Care Ltd, as a body, in accordance with the terms of our engagement letter dated 30 November 2015. Our work has been undertaken solely to prepare for your approval the financial statements of Hadley Care Ltd
and state those matters that we have agreed to state to the Board of Directors of Hadley Care Ltd, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Hadley Care Ltd and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Hadley Care Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit
of Hadley Care Ltd. You consider that Hadley Care Ltd is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Hadley Care Ltd. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Baldwins
2 March 2020
Lime Court
Pathfields Business Park
South Molton
Devon
EX36 3LH
HADLEY CARE LTD
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 2 -
2019
2018
Notes
£
£
£
£
Current assets
Stocks
2,495
2,370
Debtors
4
1,287,737
1,226,423
Cash at bank and in hand
264,273
188,530
1,554,505
1,417,323
Creditors: amounts falling due within one year
5
(225,581)
(212,649)
Net current assets
1,328,924
1,204,674
Capital and reserves
Called up share capital
6
100
100
Profit and loss reserves
7
1,328,824
1,204,574
Total equity
1,328,924
1,204,674
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 year ended 31 October 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 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 and signed by the director and authorised for issue on 2 March 2020
Mr C Stevens
Director
Company Registration No. 06004883
HADLEY CARE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
1
Accounting policies
Company information
Hadley Care Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Jevington Hall, Rectory Road, Combe Martin, Ilfracombe, Devon, United Kingdom, EX34 0NS.
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.
These financial statements for the year ended 31 October 2019
are the
first
financial statements of Hadley Care Ltd prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 November 2017. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
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.
1.3
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:
Fixtures, fittings & equipment
25% 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
.
1.4
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.
HADLEY CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 4 -
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.
1.5
Cash at bank and in hand
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.
1.6
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.
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.
Financial liabilities classified as payable within one year are not amortised.
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.
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.
1.7
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.
HADLEY CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 5 -
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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 75 (2018 - 80).
3
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 November 2018 and 31 October 2019
4,933
Depreciation and impairment
At 1 November 2018 and 31 October 2019
4,933
Carrying amount
At 31 October 2019
-
At 31 October 2018
-
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
19,520
11,225
Other debtors
1,268,217
1,215,198
1,287,737
1,226,423
HADLEY CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 6 -
5
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
103,676
103,355
Corporation tax
29,145
22,872
Other taxation and social security
17,710
18,062
Other creditors
5,720
7,757
Accruals and deferred income
69,330
60,603
225,581
212,649
Natwest Westminster Bank Plc has a fixed and floating charge which covers all the property or undertaking of Hadley Care Ltd
Hadley Care Ltd has given a guarantee supported by a debenture over £800,000 loan taken out by a connected company, in which the shareholder is also a shareholder of the company. This loan was taken out as part of the business finance restructure.
6
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
7
Profit and loss reserves
2019
2018
£
£
At the beginning of the year
1,204,576
1,107,070
Profit for the year
124,251
97,506
At the end of the year
1,328,827
1,204,576
8
Related party transactions
At 31 October 2019 the company was owed £1,190,379 (2018 £1,143,541) by a connected company in which the shareholder is also a shareholder. No interest is charged on this loan.
During the year the shareholder continued to finance the company through a loan account. At 31 October 2019 the shareholder owed the company £1,102 (2018 the company owed the shareholder £510).
During the year the company paid a market rent of £4,000 to the shareholder in respect of office premises owed by the shareholder and occupied by the company.
Hadley Care Ltd has given a guarantee supported by debenture over a £800,000 loan taken out by a connected company in which the shareholder is also a shareholder. This loan was taken out as part of the business finance restructure.
HADLEY CARE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 7 -
9
Controlling interest
The company was controlled by Mrs S Stevens, by virtue of her 100% shareholding in the company.
10
Directors' transactions
Hadley Care Ltd has given a guarantee supported by a debenture over a £1,200,000 loan taken out by the shareholder and her husband. This loan was taken out as part of the business finance restructure.