Company Registration No. 03150096 (England and Wales)
HUNTER STOVES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
HUNTER STOVES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
HUNTER STOVES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
110,821
124,858
Tangible assets
4
1,656,704
1,822,196
Investments
5
75,000
75,000
1,842,525
2,022,054
Current assets
Stocks
2,008,177
2,508,960
Debtors
6
983,796
1,248,799
Cash at bank and in hand
59,013
114,235
3,050,986
3,871,994
Creditors: amounts falling due within one year
7
(1,799,401)
(2,356,260)
Net current assets
1,251,585
1,515,734
Total assets less current liabilities
3,094,110
3,537,788
Creditors: amounts falling due after more than one year
8
(450,938)
(557,424)
Provisions for liabilities
-
(75,709)
Net assets
2,643,172
2,904,655
Capital and reserves
Called up share capital
17,100
17,100
Share premium account
48,000
48,000
Profit and loss reserves
2,578,072
2,839,555
Total equity
2,643,172
2,904,655
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 31 December 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.
HUNTER STOVES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2019
31 December 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 9 November 2020 and are signed on its behalf by:
Mr S P Clatworthy
Mr P J Grimes
Director
Director
Company Registration No. 03150096
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
Hunter Stoves Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Trevilla Park, Slaughterbridge, Camelford, Cornwall, PL32 9TT.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Going concern
At the date of signing of the financial statements the company has been impacted by Government
measures taken in response to the Coronavirus outbreak. The directors have taken steps to address the financial impact of this upon the business. On the basis of the action taken and
projections prepared, the directors expect that the company has adequate resources to continue in
operating existence for the foreseeable future and have therefore prepared the financial
statements on a
going concern basis.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
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.
1.4
Research and development expenditure
Research
and development
expenditure is written off against profits in the year in which it is incurred.
1.5
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life
.
1.6
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.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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
Land: 0% per annum
Freehold buildings: 2% per annum on cost
Land and buildings Leasehold
Straight line over the term of the lease
Plant and machinery
15% per annum on written down value
Fixtures, fittings & equipment
Computers: 25% per annum on cost
Other: 25% per annum on written down value
Motor vehicles
25% per annum on cost
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
.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.8
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).
1.9
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.
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.
1.10
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.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
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.
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
1.12
Retirement benefits
The Company operates a defined contribution scheme for the benefit of its directors and employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
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 profit or loss 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
s
asset are consumed.
1.14
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.
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.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 46
(2018 - 48).
3
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2019 and 31 December 2019
246,851
241
247,092
Amortisation and impairment
At 1 January 2019
122,138
96
122,234
Amortisation charged for the year
14,013
24
14,037
At 31 December 2019
136,151
120
136,271
Carrying amount
At 31 December 2019
110,700
121
110,821
At 31 December 2018
124,713
145
124,858
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2019
768,450
2,580,661
3,349,111
Additions
618
102,859
103,477
Disposals
-
(63,653)
(63,653)
At 31 December 2019
769,068
2,619,867
3,388,935
Depreciation and impairment
At 1 January 2019
78,001
1,448,914
1,526,915
Depreciation charged in the year
26,536
206,028
232,564
Eliminated in respect of disposals
-
(27,248)
(27,248)
At 31 December 2019
104,537
1,627,694
1,732,231
Carrying amount
At 31 December 2019
664,531
992,173
1,656,704
At 31 December 2018
690,449
1,131,747
1,822,196
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
5
Fixed asset investments
2019
2018
£
£
Investment in subsidiary undertakings
75,000
75,000
In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2019 & 31 December 2019
75,000
Carrying amount
At 31 December 2019
75,000
At 31 December 2018
75,000
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
902,279
1,076,077
Other debtors
79,654
172,722
981,933
1,248,799
Deferred tax asset
1,863
-
983,796
1,248,799
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 8 -
7
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
214,345
259,706
Trade creditors
281,873
432,628
Amounts owed to group undertakings
75,000
75,000
Taxation and social security
167,057
193,871
Other creditors
1,061,126
1,395,055
1,799,401
2,356,260
lncluded within other creditors is an amount of
£378
,
908 (2018: £601
,
120
) which relates to an advance
from the company's factor
account
. This amount is secured by a fixed charge over book debts.
lncluded within other creditors are balances totalling
£84,376 (2018: £168,331)
relating to amounts
owed
under hire purchase
contracts
. Net obligations under fìnance lease and hire purchase contracts
are secured on the assets concerned.
The bank loans and overdraft are secured by a charge over freehold property, a debenture and by guarantees given by the company's director/shareholders.
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
288,723
368,569
Other creditors
162,215
188,855
450,938
557,424
Amounts included above which fall due after five years are as follows:
Payable by instalments
115,046
142,987
The long-term loans are secured by a charge over freehold property, a debenture and by guarantees given by the company's director/shareholders.
Included within other creditors are balances totalling £51,568 (2018: £72,639) relating to amounts owed under hire purchase contracts. Net obligations under finance lease and hire purchase contracts are secured on the assets concerned
HUNTER STOVES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 9 -
9
Deferred government grant income
2019
2018
£
£
Balance at 1 January 2018
116,216
121,784
Amortisation in the year
(5,569)
(5,568)
110,647
116,216
Deferred government grant income is included within other creditors in Creditors: amounts falling due after more than one year.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
Within one year
6,524
22,754
Between two and five years
10,270
-
16,794
22,754