Vista Labels Ltd
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Notes to the Accounts |
for the year ended 31 December 2016
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1 |
Accounting policies |
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Basis of preparation |
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The accounts 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) and are in respect of the 12 months ended 31 December 2016 with comparatives for the 12 months ended 31 December 2105. This basis has been adopted by the board as a result of its forward review of the company's activities for the next year. The board believes this basis is acceptable for at least the next 12 months.
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Intangible fixed assets - Goodwill |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. Created goodwill is however not included.
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Tangible fixed assets and Depreciation |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
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Plant and machinery |
6 - 33% |
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Motor vehicles |
20% |
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Computer |
33.33% |
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During the current and previous year the lives of plant and machinery has been reassessed and some items extended, which is considered acceptable due to the quality, maintenance and current residual value of machinery. |
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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 is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Work in progress is valued by the Directors at direct cost and attributable productive overheads.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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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 |
Interest payable |
2016 |
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2015 |
£ |
£ |
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Directors Self Administered Pension Scheme loan |
- |
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- |
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Hire purchase / other |
4,321 |
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8,307 |
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Interest payable |
4,321 |
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8,307 |
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3 |
Taxation |
2016 |
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2015 |
£ |
£ |
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UK corporation tax (2015 after £40 overprovision re 2014) |
36,700 |
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77,960 |
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Deferred tax |
(8,535) |
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50,000 |
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28,165 |
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127,960 |
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4 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 January 2016 |
226,300 |
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At 31 December 2016 |
226,300 |
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Amortisation |
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At 1 January 2016 |
225,600 |
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At 31 December 2016 |
225,600 |
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Net book value |
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At 31 December 2016 |
700 |
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At 31 December 2015 |
700 |
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The company purchased the goodwill of Columbia Print on 30th March 2007 for £205,000 plus legal costs £4,300. A further amount of £17,000 was paid in the year 2007/2008. Total cost £226,300. Amortisation of £105,600 has been provided to cover the write off of purchased goodwill at 31/03/08 and a further £60,000 at 31/03/09 and 31/03/10. The value of created goodwill is not included. |
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5 |
Tangible fixed assets |
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Plant and machinery etc |
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Motor vehicles |
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Total |
£ |
£ |
£ |
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Cost |
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At 1 January 2016 |
3,743,258 |
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69,951 |
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3,813,209 |
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Additions |
28,885 |
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- |
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28,885 |
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At 31 December 2016 |
3,772,143 |
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69,951 |
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3,842,094 |
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Depreciation |
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At 1 January 2016 |
2,617,160 |
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61,291 |
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2,678,451 |
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Charge for the year |
156,409 |
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6,876 |
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163,285 |
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At 31 December 2016 |
2,773,569 |
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68,167 |
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2,841,736 |
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Net book value |
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At 31 December 2016 |
998,574 |
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1,784 |
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1,000,358 |
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At 31 December 2015 |
1,126,098 |
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8,660 |
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1,134,758 |
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6 |
Debtors |
2016 |
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2015 |
£ |
£ |
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Trade debtors |
1,303,474 |
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1,794,730 |
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Other debtors |
67,408 |
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104,700 |
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1,370,882 |
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1,899,430 |
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7 |
Creditors: amounts falling due within one year |
2016 |
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2015 |
£ |
£ |
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Obligations under finance lease and hire purchase contracts |
52,916 |
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52,916 |
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Director's loan |
1,872 |
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1,735 |
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Trade creditors |
572,919 |
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713,687 |
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Corporation tax |
36,824 |
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78,000 |
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Other taxes and social security costs |
156,530 |
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196,284 |
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Other creditors |
188,094 |
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248,231 |
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1,009,155 |
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1,290,853 |
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8 |
Creditors: amounts falling due after one year |
2016 |
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2015 |
£ |
£ |
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Obligations under finance lease and hire purchase contracts |
48,115 |
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101,030 |
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Total falling due within one year |
52,916 |
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52,916 |
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Total falling due after more than one year |
48,115 |
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101,030 |
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101,031 |
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153,946 |
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These obligations are secured on the assets financed. |
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9 |
Provisions for liabilities |
2016 |
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2015 |
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Deferred taxation: |
£ |
£ |
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Accelerated capital allowances |
183,400 |
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183,400 |
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2016 |
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2015 |
£ |
£ |
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At 1 January |
at 20% |
183,400 |
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133,400 |
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Deferred tax charge in Profit and Loss Account |
50,000 |
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At 31 December |
at 20% |
183,400 |
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183,400 |
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10 |
Share capital |
Nominal Value |
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2016 Number |
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2016 |
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2015 |
£ |
£ |
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Alloted, called up and fully paid |
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Ordinary shares |
£1 each |
1970 |
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1,970 |
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1,970 |
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11 |
Share premium |
2016 |
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2015 |
£ |
£ |
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At 1 January 2016 |
30 |
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30 |
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At 31 December 2016 |
30 |
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30 |
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12 |
Dividends |
2016 |
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2015 |
£ |
£ |
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Dividends for which the company became liable during the year: |
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Dividends paid |
140,000 |
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100,000 |
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13 |
The Related Party Transactions |
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The related party transactions were as follows: |
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The balance on the Directors' loan relates to D Grice, arising mainly from business mileage for the company in his personal vehicle, offset by expense payments on his behalf (see note 7). |
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There was a credit balance owing to D Grice of £1,735 at 31 December 2015. This has increased to £1,872 at 31st December 2016 |
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The company pays for the preparation of accounts services with regard to the Directors' Self Administered Pension Scheme of £1,695 (Dec 2015 £1,695) and also the cost of pension advising services of Lindley Trustees of £1,900 (Dec 2015 £1,722). |
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During the period four properties were rented by Directors' Self Administered Pension Plan to the company at market rent £85,004 + VAT p.a. (Dec 2015 £85,004 + VAT) (paid monthly). |
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Dividends paid in the year are paid in the proportion of shares held by the Director, D Grice and his wife. |
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7 |
Controlling party |
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The ultimate controlling party is Mr D Grice.
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8 |
Other information |
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Vista Labels Ltd is a private company limited by shares and incorporated in England. Its registered office is: Vista House, 349 Hempshaw Lane, Stockport, CHESHIRE SK1 4NB |