Company Registration No. 03212465 (England and Wales)
CROWN LABELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
PAGES FOR FILING WITH REGISTRAR
CROWN LABELS LIMITED
COMPANY INFORMATION
Directors
Mr J P Board
Mr C R Board
Secretary
Mrs B L Board
Company number
03212465
Registered office
Unit 2
Nash Road
Park Farm North
Redditch
Worcestershire
B98 7AS
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
National Westminster Bank Plc
231/235 Stratford Road
Shirley
Solihull
West Midlands
B90 3AJ
CROWN LABELS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
CROWN LABELS LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF CROWN LABELS LIMITED FOR THE YEAR ENDED 28 FEBRUARY 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 Crown Labels Limited for the year ended 28 February 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.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Crown Labels Limited, as a body, in accordance with
our
terms
of
engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Crown Labels Limited
and state those matters that we have agreed to state to the Board of Directors of Crown Labels Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Crown Labels Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Crown Labels Limited 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 Crown Labels Limited. You consider that Crown Labels Limited 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 Crown Labels Limited. 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.
Ormerod Rutter Limited
26 July 2019
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
CROWN LABELS LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2019
28 February 2019
- 2 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
27,194
32,133
Tangible assets
4
223,900
244,906
251,094
277,039
Current assets
Stocks
15,498
16,178
Debtors
5
1,031,070
1,028,612
Cash at bank and in hand
12,136
235,759
1,058,704
1,280,549
Creditors: amounts falling due within one year
6
(713,382)
(968,779)
Net current assets
345,322
311,770
Total assets less current liabilities
596,416
588,809
Creditors: amounts falling due after more than one year
7
-
(16,742)
Provisions for liabilities
9
(34,771)
(40,322)
Net assets
561,645
531,745
Capital and reserves
Called up share capital
10
110
110
Profit and loss reserves
561,535
531,635
Total equity
561,645
531,745
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 28 February 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
CROWN LABELS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 28 FEBRUARY 2019
28 February 2019
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 26 July 2019 and are signed on its behalf by:
Mr J P Board
Director
Company Registration No. 03212465
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 4 -
1
Accounting policies
Company information
Crown Labels Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit 2, Nash Road, Park Farm North, Redditch, Worcestershire, B98 7AS.
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 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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
.
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.
Revenue from the provision of services is recognised by reference to the stage of completion, when the costs incurred and costs to complete can be estimated reliably.
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 ten years.
1.4
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:
Website
20% on cost
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies
(Continued)
- 5 -
1.5
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:
Leasehold improvements
10% on reducing balance
Plant and machinery
20% on reducing balance
Fixtures, fittings & equipment
20% on reducing balance
Motor vehicles
20% on 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
.
1.6
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.
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.
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
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
1
Accounting policies
(Continued)
- 6 -
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 asset are consumed.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 18 (2018 - 16).
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 7 -
3
Intangible fixed assets
Goodwill
Website
Total
£
£
£
Cost
At 1 March 2018
69,387
2,000
71,387
Additions - separately acquired
-
3,000
3,000
At 28 February 2019
69,387
5,000
74,387
Amortisation and impairment
At 1 March 2018
38,854
400
39,254
Amortisation charged for the year
6,939
1,000
7,939
At 28 February 2019
45,793
1,400
47,193
Carrying amount
At 28 February 2019
23,594
3,600
27,194
At 28 February 2018
30,533
1,600
32,133
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2018
80,166
517,373
48,449
11,000
656,988
Additions
6,770
10,296
-
12,250
29,316
At 28 February 2019
86,936
527,669
48,449
23,250
686,304
Depreciation and impairment
At 1 March 2018
41,698
323,977
35,407
11,000
412,082
Depreciation charged in the year
4,525
40,740
2,607
2,450
50,322
At 28 February 2019
46,223
364,717
38,014
13,450
462,404
Carrying amount
At 28 February 2019
40,713
162,952
10,435
9,800
223,900
At 28 February 2018
38,468
193,396
13,042
-
244,906
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
128,268
160,335
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 8 -
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
691,439
789,043
Amounts owed by group undertakings
329,678
236,349
Other debtors
9,953
3,220
1,031,070
1,028,612
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
485,202
590,052
Corporation tax
88,416
78,540
Other taxation and social security
59,970
54,269
Other creditors
79,794
245,918
713,382
968,779
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
-
16,742
8
Secured debts
The following secured debts are included within creditors:
2019
2018
£
£
Hire purchase contracts
16,742
75,347
Factoring account
17,385
148,793
34,127
224,140
Hire purchase contracts are secured against the assets to which they relate.
All monies due or to become due from the company to the factoring company, Royal Bank of Scotland, are secured against trade debtors.
CROWN LABELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2019
- 9 -
9
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
34,771
40,322
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary A of £1 each
100
100
5 Ordinary B of £1 each
5
5
5 Ordinary C of £1 each
5
5
110
110
11
Related party transactions
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
12
Control
Ultimate parent company
The ultimate parent company is
Crown Label Holdings
Limited, a company registered in England and Wales
.
Ultimate controlling party
There is no ultimate controlling party due to no controlling majority in the ultimate parent company.