Company Registration No. SC289094 (Scotland)
DFC OILFIELD SUPPLIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
PAGES FOR FILING WITH REGISTRAR
DFC OILFIELD SUPPLIES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
DFC OILFIELD SUPPLIES LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2020
31 January 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
571,596
591,187
Current assets
Stocks
2,977,488
4,255,424
Debtors
5
410,088
646,816
Cash at bank and in hand
10,172
124,403
3,397,748
5,026,643
Creditors: amounts falling due within one year
6
(1,357,134)
(3,081,985)
Net current assets
2,040,614
1,944,658
Total assets less current liabilities
2,612,210
2,535,845
Creditors: amounts falling due after more than one year
7
(170,214)
(196,280)
Net assets
2,441,996
2,339,565
Capital and reserves
Called up share capital
8
500
500
Capital redemption reserve
500
500
Profit and loss reserves
2,440,996
2,338,565
Total equity
2,441,996
2,339,565
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
DFC OILFIELD SUPPLIES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2020
31 January 2020
- 2 -
For the financial year ended 31 January 2020 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 28 January 2021
Mr Dean Foster
Director
Company Registration No. SC289094
DFC OILFIELD SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
- 3 -
1
Accounting policies
Company information
DFC Oilfield Supplies Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Brodies House, 31-33 Union Grove, Aberdeen, AB10 6SD and the business address is DFC House, Claymore Drive, Bridge of Don, Aberdeen, AB23 8DG.
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
Turnover
Turnover
when recognised
represents amounts receivable for goods and services net of VAT and trade discounts
.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.
1.4
Tangible fixed assets
Tangible fixed assets
are initially and subsequently measured at cost, 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:
Land and buildings Freehold
- 2.5% straight line
Plant and machinery
- 25% reducing balance
Computer equipment
- 25% reducing balance
Motor vehicles
- 25% reducing balance
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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).
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell
.
DFC OILFIELD SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
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.
1.7
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs
.
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
and
bank loans, 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.
1.9
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.
1.10
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.
DFC OILFIELD SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
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.
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 year was 3 (2019 - 3
).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2019 and 31 January 2020
26,500
Amortisation and impairment
At 1 February 2019 and 31 January 2020
26,500
Carrying amount
At 31 January 2020
-
At 31 January 2019
-
DFC OILFIELD SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2019
671,349
128,725
800,074
Additions
-
6,000
6,000
Disposals
-
(8,613)
(8,613)
At 31 January 2020
671,349
126,112
797,461
Depreciation and impairment
At 1 February 2019
107,552
101,335
208,887
Depreciation charged in the year
16,784
8,222
25,006
Eliminated in respect of disposals
-
(8,028)
(8,028)
At 31 January 2020
124,336
101,529
225,865
Carrying amount
At 31 January 2020
547,013
24,583
571,596
At 31 January 2019
563,797
27,390
591,187
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
392,684
625,289
Corporation tax recoverable
-
3,005
Other debtors
17,404
18,522
410,088
646,816
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
177,161
196,583
Trade creditors
275,822
1,372,880
Corporation tax
35,920
25,000
Other taxation and social security
1,307
12,659
Other creditors
866,924
1,474,863
1,357,134
3,081,985
Bank loans and overdrafts are secured by a floating charge over all the company assets.
DFC OILFIELD SUPPLIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 7 -
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
170,214
196,280
Creditors which fall due after five years are as follows:
2020
2019
£
£
Payable by instalments
56,644
87,259
8
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
500 Ordinary shares of £1 each
500
500