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Registered Number |
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Platts |
Chartered Accountants |
and Statutory Auditor |
Tiles & Baths Direct Limited | |||
Report and financial statements | |||
Contents | |||
Page | |||
Company information | 1 | ||
Director's report | 2 - 3 | ||
Strategic report | 4 | ||
Independent auditor's report | 5 - 6 | ||
Profit and loss account | 7 | ||
Balance sheet | 8 | ||
Cash flow statement | 9 | ||
Notes to the financial statements | 10 - 18 | ||
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Company Information |
Director |
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Secretary |
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Auditors |
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Registered office |
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Registered number |
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Registered Number | |||||||
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Director's Report | |||||||
The director presents his report and financial statements for the year ended |
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Principal activities | |||||||
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Dividends | |||||||
The director recommends a final dividend of £969,000 per ordinary share, totalling £1,938,000 (2014 - £167,000). | |||||||
Director | |||||||
The following person served as a director during the year: | |||||||
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Auditors | |||||||
The Auditors, Platts are deemed to be reappointed in accordance with an elective resolution made under section 386 of the Companies Act 1985 which continues in force under the Companies Act 2006. | |||||||
Director's responsibilities |
The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations. | |||||||
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to: | |||||||
● | select suitable accounting policies and then apply them consistently; | ||||||
● | make judgements and estimates that are reasonable and prudent; | ||||||
● | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; | ||||||
● | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. | ||||||
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The director is responsible for the maintenance and integrity of the corporate and financial information included on the company's website. It is important to bear in mind that legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. | |||||||
Disclosure of information to auditors |
The director confirms that: | |||||||
● | so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and | ||||||
● | he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. |
Strategic Report | |||||||
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, research & developments and financial instruments. | |||||||
This report was approved by the board on |
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Mr S Joel | |||||||
Director | |||||||
Tiles & Baths Direct Limited | ||||||||||
Registered Number | ||||||||||
04151664 | ||||||||||
Strategic Report | ||||||||||
Business review | ||||||||||
The results for the year are set out on page 7. The turnover has increased by 24% but there has been a slight fall in margins. The director considers the profit acheived on ordinary activities before taxation to be partcularly satisfactory given the prevailing trading conditions. Adequate finance has been obtained to take advantage of business opportunities, and the director considers the state of affairs to be satisfactory. |
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Principal risks and uncertainties | ||||||||||
The company faces a number of business risks and uncertainties due to difficult trading conditions. In view of this, the director is looking carefully at both existing and potential new markets. | ||||||||||
Future developments | ||||||||||
The director anticipates the business environment will remain competitive. He believes that the company is in a good financial position and he remains confident that the company will continue to grow, although not necessarily at the rate achieved in the current year. | ||||||||||
Research and development | ||||||||||
The company is currently not undertaking any research and development. | ||||||||||
Financial instruments | ||||||||||
The company seeks to operate within its agreed overdraft facility with the bank. Most sales are to UK customers and suppliers are based in the UK, the EU and outside the EU; the company therefore enters into hedging arrangements, specifically forward rate currency contracts in respect of risks relating to trade creditors. The company is not currently reliant on overdraft facilities from the bank and therefore has minimised its cash flow and liquidity risk. The company has tightened up controls over collection of trade debtors and has negotiated favourable terms with its suppliers. The bank is currently satisfied with the company's financial performance and the director does not think there is any risk of facilities being withdrawn. |
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This report was approved by the board on 27 January 2016 and signed on its behalf. | ||||||||||
Mr S Joel | ||||||||||
Director | ||||||||||
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Independent auditor's report | ||
to the member of Tiles & Baths Direct Limited | ||
We have audited the financial statements of Tiles & Baths Direct Limited for the year ended 30 April 2015 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). | ||
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. | ||
Respective responsibilities of directors and auditors | ||
As explained more fully in the Statement of Director's Responsibilities, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board (APB's) Ethical Standards for Auditors. | ||
Scope of the audit of the financial statements | ||
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate. | ||
Opinion on the financial statements |
In our opinion the financial statements: | ||
● | give a true and fair view of the state of the company's affairs as at 30 April 2015 and of its profit for the year then ended; | |
● | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and | |
● | have been prepared in accordance with the requirements of the Companies Act 2006. |
Opinion on other matter prescribed by the Companies Act 2006 | ||
In our opinion the information given in the Director's Report and the Strategic Report for the financial year for which the financial statements are prepared is consistent with the financial statements. | ||
Matters on which we are required to report by exception | ||
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: | ||
● | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or | |
● | the financial statements are not in agreement with the accounting records and returns; or |
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● | certain disclosures of directors’ remuneration specified by law are not made; or | |
● | we have not received all the information and explanations we require for our audit. | |
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(Senior Statutory Auditor) |
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for and on behalf of |
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Chartered Accountants |
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and Statutory Auditor |
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Profit and Loss Account | ||||||||
For the year ended |
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Notes | 2015 | 2014 | ||||||
£ | £ | |||||||
Turnover |
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Cost of sales | ( |
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Gross profit |
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Distribution costs | ( |
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Administrative expenses | ( |
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Other operating income |
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Operating profit | 3 |
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Other interest receivable and similar income | - |
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Interest payable and similar charges | 5 | - | ( |
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Profit on ordinary activities before taxation |
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Tax on profit on ordinary activities | 6 | ( |
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Profit for the financial year |
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Continuing operations | ||||||||
None of the company's activities were acquired or discontinued during the above two financial years. | ||||||||
Statement of total recognised gains and losses | ||||||||
The company has no recognised gains or losses other than the profit for the above two financial years. | ||||||||
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Balance Sheet | |||||||
As at |
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Notes | 2015 | 2014 | |||||
£ | £ | ||||||
Fixed assets | |||||||
Intangible assets | 7 |
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Tangible assets | 8 |
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Current assets | |||||||
Stocks | 9 |
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Debtors | 10 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year | 11 | ( |
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Net current assets |
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Net assets |
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Capital and reserves | |||||||
Called up share capital | 12 |
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Profit and loss account | 13 |
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Shareholder's funds | 15 |
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These financial statements were approved and authorised for issue by the Board on |
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Mr S Joel | |||||||
Director | |||||||
Company Number: 04151664 | |||||||
Tiles & Baths Direct Limited | |||||
Cash Flow Statement | |||||
For the year ended 30 April 2015 | |||||
Notes | 2015 | 2014 | |||
£ | £ | ||||
Reconciliation of operating profit to net cash | |||||
inflow from operating activities | |||||
Operating profit |
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Depreciation and amortisation | 26,236 | 93,846 | |||
Increase in stocks | (39,195) | (164,670) | |||
Decrease in debtors | 1,326,592 | 525,193 | |||
Increase in creditors | 268,831 | 137,233 | |||
Net cash inflow from operating activities | 2,672,296 | 613,836 | |||
CASH FLOW STATEMENT | |||||
Net cash inflow from operating activities | 2,672,296 | 613,836 | |||
Returns on investments and servicing of finance | 16 | - | (35) | ||
Taxation | ( |
( |
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Capital expenditure | 16 | (169,084) | (73,079) | ||
2,495,595 | 510,713 | ||||
Equity dividends paid | (1,938,000) | (167,000) | |||
557,595 | 343,713 | ||||
Increase in cash |
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Reconciliation of net cash flow to movement in net debt | |||||
Increase in cash in the period |
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Change in net debt | 17 |
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Net funds at 1 May |
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Net funds at 30 April |
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Notes to the Financial Statements | ||||||||
For the year ended |
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1 | Accounting policies | |||||||
Basis of preparation of financial statements | ||||||||
As permitted by FRS 8, exemption for wholly owned subsidiaries to not to disclose inter-group transactions has been utilised. |
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Turnover | ||||||||
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Employee benefit trust | ||||||||
Employee Benefit Trusts (EBT) are valued at cost less accumulated amortisation. Amortisation is calculated to write off the cost in equal instalments over their estimated useful lives of 80 years. The Company established a Trust with the broad objective of providing benefits to the employees and their dependants, both past and present. The Trustees operate independently of the Company and the assets of the Trust are held separately from those of the Company. In order to comply with accounting standards, the assets of the Trust are combined with those of the Company in these financial statements, except to the extent that they have been designated into sub trusts for specific employees. |
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Tangible fixed assets and depreciation | ||||||||
Tangible fixed assets are stated at cost less depreciation. Depreciation at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases: | ||||||||
Plant & machinery |
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Furniture, fittings & office equipment |
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Motor vehicle |
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Leasing commitments | ||||||||
Rentals paid under operating leases, where substantially all of the benefits of ownership remain with the lessor, are charged against profit on a straight-line basis over the lease term. | ||||||||
Stocks | ||||||||
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Costs includes all direct costs and an appropriate proportion of fixed and variable overheads. | ||||||||
Foreign currencies | ||||||||
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit. | ||||||||
2 | Turnover | |||||||
The whole of the turnover is attributable to the one principal activity of the company, that of import, wholesale and retail of flooring tiles, bathrooms and bathroom accessories. A geographical analysis of turnover is as follows: | ||||||||
2015 | 2014 | |||||||
£ | £ | |||||||
United Kingdom | 8,623,350 | 7,083,108 | ||||||
Europe | 27,010 | - | ||||||
Non European | 106,322 | - | ||||||
8,756,682 | 7,083,108 | |||||||
3 | Operating profit | 2015 | 2014 | |||||
£ | £ | |||||||
The Operating profit is stated after charging: | ||||||||
Depreciation of owned fixed assets |
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Amortisation |
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Director's emoluments | 137,297 | 95,902 | ||||||
Operating lease rentals - plant and machinery | 9,100 | 14,980 | ||||||
Operating lease rentals - other | 262,414 | 209,052 | ||||||
Auditors' remuneration for audit services |
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Employer financed retirement benefit scheme contribution | - | 760,200 | ||||||
4 | Staff costs | 2015 | 2014 | |||||
£ | £ | |||||||
Wages and salaries |
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Social security costs |
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Average number of employees during the year | Number | Number | ||||||
Office and administration | 6 | 6 | ||||||
Selling & distribution | 21 | 20 | ||||||
27 | 26 | |||||||
5 | Interest payable and similar charges | 2015 | 2014 | |||||
£ | £ | |||||||
On late paid corporation tax | - | 268 | ||||||
6 | Taxation | 2015 | 2014 | |||||
£ | £ | |||||||
Analysis of charge in period | ||||||||
Current tax: | ||||||||
UK corporation tax on profits of the period |
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Tax on profit on ordinary activities |
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Factors affecting tax charge for period | ||||||||
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: | ||||||||
2015 | 2014 | |||||||
£ | £ | |||||||
Profit on ordinary activities before tax |
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Standard rate of corporation tax in the UK |
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£ | £ | |||||||
Profit on ordinary activities multiplied by the standard rate of corporation tax |
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Effects of: | ||||||||
Expenses not deductible for tax purposes |
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Capital allowances for period in excess of depreciation | ( |
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Current tax charge for period |
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7 | Intangible fixed assets | £ | ||||||
Employee benefit trust: | ||||||||
Cost | ||||||||
At 1 May 2014 |
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At 30 April 2015 |
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Amortisation | ||||||||
At 1 May 2014 |
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Provided during the year |
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At 30 April 2015 |
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Net book value | ||||||||
At 30 April 2015 |
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At 1 May 2014 |
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The capitalised cost of the Employee Benefit Trust is being written off in equal annual instalments over its estimated economic life of 80 years. | ||||||||
8 | Tangible fixed assets | |||||||
Plant & machinery | Furniture, fittings & office equipment |
Motor Vehicles |
Total | |||||
£ | £ | £ | £ | |||||
Cost | ||||||||
At 1 May 2014 |
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Additions |
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At 30 April 2015 |
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Depreciation | ||||||||
At 1 May 2014 |
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Charge for the year |
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At 30 April 2015 |
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Net book value | ||||||||
At 30 April 2015 |
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At 1 May 2014 |
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9 | Stocks | 2015 | 2014 | |||||
£ | £ | |||||||
Finished goods and goods for resale |
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Supplier payments on account | 92,680 | 99,171 | ||||||
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10 | Debtors | 2015 | 2014 | |||||
£ | £ | |||||||
Trade debtors |
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Holding company loan debtor |
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Related company loan debtors | 126,417 | 80,630 | ||||||
Other debtors |
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Director's account | 19,334 | 1,299,853 | ||||||
Prepayments and accrued income |
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11 | Creditors: amounts falling due within one year | 2015 | 2014 | |||||
£ | £ | |||||||
Payments received on account |
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Trade creditors |
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Related company loan creditor | - |
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Corporation tax |
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Other taxes and social security costs |
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Other creditors |
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Accruals and deferred income |
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12 | Share capital | Nominal | 2015 | 2015 | 2014 | |||
value | Number | £ | £ | |||||
Allotted, called up and fully paid: | ||||||||
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13 | Profit and loss account | 2015 | ||||||
£ | ||||||||
At 1 May 2014 | 1,450,572 | |||||||
Profit for the financial year |
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Dividends | ( |
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At 30 April 2015 |
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14 | Dividends | 2015 | 2014 | |||||
£ | £ | |||||||
Dividends for which the company became liable during the year: | ||||||||
Dividends paid |
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15 | Reconciliation of movement in shareholder's funds | 2015 | 2014 | |||||
£ | £ | |||||||
At 1 May |
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Profit for the financial year | 885,687 | 14,582 | ||||||
Dividends | ( |
( |
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At 30 April |
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16 | Gross cash flows | 2015 | 2014 | |||||
£ | £ | |||||||
Returns on investments and servicing of finance | ||||||||
Interest received | - | 233 | ||||||
Interest paid | - | (268) | ||||||
- | (35) | |||||||
Capital expenditure | ||||||||
Payments to acquire tangible fixed assets | (169,084) | (73,079) | ||||||
17 | Analysis of changes in net debt | |||||||
At 1 May 2014 | Cash flows | Non-cash changes | At 30 Apr 2015 | |||||
£ | £ | £ | £ | |||||
Cash at bank and in hand | 1,059,584 | 557,595 | - | 1,617,179 | ||||
Total | 1,059,584 | 557,595 | - | 1,617,179 | ||||
18 | Other financial commitments | |||||||
At the year end the company had annual commitments under non-cancellable operating leases as set out below: | ||||||||
Land and buildings | Other | |||||||
2015 | 2014 | 2015 | 2014 | |||||
£ | £ | £ | £ | |||||
Operating leases which expire: | ||||||||
within one year | - | - |
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within two to five years | - | - |
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in over five years |
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19 | Loan to director | |||||||
Description and conditions | B/fwd | Paid | Repaid | C/fwd | ||||
£ | £ | £ | £ | |||||
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The above director's current account loan is unsecured, interest free and repayable on demand. The loan was fully repaid on 7th May 2015. The above director's trade debtor customer account arose on normal commercial terms and was fully repaid on 13th January 2016. |
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20 | Related party transactions | |||||||
At the Balance Sheet date, the Company was owed an amount in the sum of £12,019 (2014 - £10,059) included within Trade Debtors from Prima Marble & Granite Limited, a Company in which Mr S Joel is a Director and Non-Controlling Shareholder and which is interest free and repayable on demand, as detailed in Note 10. At the Balance Sheet date, the Company was owed an amount in the sum of £5,826 (2014 - £2,813) from TB Direct (Holdings) Ltd, the Company's ultimate parent undertaking which has a common director and which is interest free and repayable on demand, as detailed in Note 10. At the Balance Sheet date, the Company was owed an amount in the sum of £111,246 (2014 - £62,522) from Topsy Turvy Designs Ltd, being a Company in which Mr S Joel is a Director and Shareholder and which is interest free and repayable on demand, as detailed in Note 10. |
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At the Balance Sheet date, the Company owed an amount in the sum of £22,938 (2014 - £22,127) included within Other Creditors to Prima Marble & Granite Limited, a Company in which Mr S Joel is a Director and Non-Controlling Shareholder and which is interest free and repayable on demand, as detailed in Note 11. At the Balance Sheet date, the Company owed an amount in the sum of £Nil (2014 - £59,615) to Lateral Homes Ltd, being a Company in which Mr S Joel is a Director and Shareholder and which is interest free and repayable on demand, as detailed in Note 11. |
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During the year the Company leased the business premises in the sum of £223,333 (2014 - £200,000) from Topsy Turvy Designs Limited. The business premises were then sub-leased to Prima Marble & Granite Limited in the sum of £85,561 (2014 - £76,315). The lease and sub-lease were signed on 3rd May 2005. During the year the Director rented car parks at the side and rear of the business premises to the Company in the total sum of £28,000 (2014 - £28,000) per annum. The car parks were then sub-rented to Prima Marble & Granite Limited in the sum of £13,000 (2014 - £13,000) per annum. Mr S Joel is also a Director and Shareholder of Prima Marble & Granite Limited. |
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20 | Related party transactions (Continued) | |||||||
In a previous accounting period, the Company contracted to purchase a trust interest in possession from Steven Samuel Joel an ultimate shareholder of the Company, for consideration of £600,000, payable on completion of the agreement. During the year, the Company resolved to defer completion of the contract and therefore the agreement is due to complete in three equal annual instalments, the first completion date being 1st April 2016. | ||||||||
21 | Ultimate parent undertaking and controlling party | |||||||
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