Apache Vape Limited
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Notes to the Financial Statements |
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Year ended 28 February 2020
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1 |
Accounting policies |
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Basis of preparation |
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The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
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The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. |
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The financial statements are prepared in sterling, which is the functional currency of the entity. |
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Revenue recognition |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and Value Added Tax.
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Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
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Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. |
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Tangible fixed assets |
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Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
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An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
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Depreciation |
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Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
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Leasehold land and buildings |
10% straight line |
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Plant and equipment |
15% reducing balance |
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Fixtures and fittings |
15% reducing balance |
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Impairment of fixed assets |
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A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
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For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. |
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For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
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Financial instruments |
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A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. |
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Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
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Debt instruments are subsequently measured at amortised cost. |
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Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. |
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Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
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Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. |
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Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
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For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
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Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2020 |
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2019 |
Number |
Number |
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Average number of persons employed by the company |
19 |
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19 |
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3 |
Intangible fixed assets |
Brand |
£ |
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Cost |
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At 1 March 2019 |
- |
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Additions |
207,857 |
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Disposals |
- |
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At 28 February 2020 |
207,857 |
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Amortisation |
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At 1 March 2019 |
- |
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Provided during the year |
- |
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At 28 February 2020 |
- |
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Net book value |
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At 28 February 2020 |
207,857 |
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At 28 February 2019 |
- |
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4 |
Tangible fixed assets |
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Leashold property |
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Plant and machinery etc |
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Total |
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£ |
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£ |
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£ |
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Cost |
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At 1 March 2019 |
44,142 |
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291,577 |
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335,719 |
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Additions |
- |
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324,724 |
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324,724 |
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At 28 February 2020 |
44,142 |
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616,301 |
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660,443
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Depreciation |
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At 1 March 2019 |
7,034 |
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45,381 |
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52,415 |
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Charge for the year |
4,414 |
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30,800 |
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35,214 |
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At 28 February 2020 |
11,448 |
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76,181 |
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87,629
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Net book value |
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At 28 February 2020 |
32,694 |
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540,120 |
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572,814 |
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At 28 February 2019 |
37,108 |
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246,196 |
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283,304 |
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5 |
Debtors |
2020 |
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2019 |
£ |
£ |
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Trade debtors |
268,625 |
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212,195 |
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VAT |
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15,724 |
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24,747 |
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Other debtors |
105,829 |
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114,549 |
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390,178 |
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351,491 |
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6 |
Creditors: amounts falling due within one year |
2020 |
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2019 |
£ |
£ |
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Bank loans and overdrafts |
401,089 |
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490,295 |
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Obligations under finance lease and hire purchase contracts |
- |
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7,006 |
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Trade creditors |
600,874 |
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359,045 |
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Taxation and social security costs |
- |
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47,161 |
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Accruals |
5,000 |
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5,000 |
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Other creditors |
6,879 |
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3,952 |
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1,013,842 |
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912,459 |
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7 |
Creditors: amounts falling due after one year |
2020 |
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2019 |
£ |
£ |
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Other loans |
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974,049 |
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826,238 |
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Director's current account |
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- |
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(9,198) |
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974,049 |
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817,040 |
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8 |
Loans to/(from) directors |
B/fwd |
Paid |
Repaid |
C/fwd |
£ |
£ |
£ |
£ |
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Mr S Ryan
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Interest free loan repayable on demand
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(9,198) |
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- |
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9,198 |
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- |
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(9,198) |
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- |
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9,198 |
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- |
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9 |
Controlling party |
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Von Ryan Limited holds 100% of the share capital of Apache Vape Limited. The registered office of Von Ryan Limited is Unit 1 Elagh Business Park, Cosquin, Derry, BT48 8QH.
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10 |
Other information |
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Apache Vape Limited is a private company limited by shares and incorporated in Northern Ireland. Its registered office is: |
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Unit 1 Elagh Busines Park |
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Coshquin |
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Derry |
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BT48 8QH |
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11 |
Going concern |
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These financial statements have been prepared on the going concern basis as the creditors included in "other loans" in the creditors due after more than one year have confirmed their continued support for at least a period of 12 months from the date of these financial statements. |