Company Registration No. SC430601 (Scotland)
FLAVOURLY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
FLAVOURLY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
FLAVOURLY LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
16,200
-
Tangible assets
4
2,432
1,989
Current assets
Stocks
-
40,834
Debtors
5
298,979
12,795
Cash at bank and in hand
430,995
894,770
729,974
948,399
Creditors: amounts falling due within one year
6
(488,015)
(175,580)
Net current assets
241,959
772,819
Total assets less current liabilities
260,591
774,808
Creditors: amounts falling due after more than one year
7
-
(736,611)
Net assets
260,591
38,197
Capital and reserves
Called up share capital
8
215
215
Share premium account
638,914
638,914
Capital contribution
729,411
-
Profit and loss reserves
(1,107,949)
(600,932)
Total equity
260,591
38,197
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
FLAVOURLY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
For the financial year ended 31 December 2017 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.
The financial statements were approved by the board of directors and authorised for issue on 20 July 2018 and are signed on its behalf by:
Mr A Sheikh
Director
Company Registration No. SC430601
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 3 -
1
Accounting policies
Company information
Flavourly Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
45a/2 George Street, Edinburgh, EH2 2HT.
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
Prior period error
The prior period comparatives have been restated due to a reclassification between share capital and share premium. The total of these reclassifications is £72 as detailed in note 10. There has been no effect on the profit and loss account.
1.3
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
Its parent company also continues to support the company's operational existence and t
hus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Reporting period
The prior period represents the 16 months from 1 September 2015 to 31 December 2016. Therefore, the comparatives are not entirely comparable.
1.5
Turnover
Turnover is
measured
at the fair value of the consideration received or receivable for goods
supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on the 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.
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.7
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 10 years.
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 4 -
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost 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:
Computers
33% straight line
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.10
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.
The company operates a consignment stock model whereby a third party legally owns and accepts the risk and reward associated with the stock until the point of sale which is fulfilled by the company. The closing stock at the year ended 31 December 2017 is therefore nil.
1.11
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
.
1.12
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.
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
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
.
1.13
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.14
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.
1.15
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred
. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 6 -
1.16
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 6 (2016 - 4).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2017
-
Additions
18,000
At 31 December 2017
18,000
Amortisation
At 1 January 2017
-
Amortisation charged for the year
1,800
At 31 December 2017
1,800
Carrying amount
At 31 December 2017
16,200
At 31 December 2016
-
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2017
3,569
Additions
1,692
At 31 December 2017
5,261
Depreciation
At 1 January 2017
1,580
Depreciation charged in the year
1,249
At 31 December 2017
2,829
Carrying amount
At 31 December 2017
2,432
At 31 December 2016
1,989
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
82,907
289
Other debtors
216,072
12,506
298,979
12,795
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
335,597
93,027
Other taxation and social security
20,535
35,415
Other creditors
131,883
47,138
488,015
175,580
7
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
-
736,611
FLAVOURLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 8 -
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
20,296,583 A Ordinary shares of 0.001p each
203
203
1,196,547 B Investment shares of 0.001p each
12
12
215
215
9
Related party transactions
The company has taken advantage of the exemption available in FRS 102 from the requirement to disclose related party transactions with wholly owned group companies.
10
Prior period adjustment
Changes to the balance sheet
At 31 December 2016
As previously reported
Adjustment
As restated
£
£
£
Net assets
38,197
-
38,197
Capital and reserves
Share capital
143
72
215
Share premium
638,986
(72)
638,914
Total equity
38,197
-
38,197