Company Registration No. 03128147 (England and Wales)
STEPHEN HUGHES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
STEPHEN HUGHES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
STEPHEN HUGHES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
719,431
693,784
Investments
4
4,800
4,800
724,231
698,584
Current assets
Stocks
1,322,219
1,427,856
Debtors
5
236,536
322,545
Cash at bank and in hand
84,202
96,922
1,642,957
1,847,323
Creditors: amounts falling due within one year
6
(2,211,186)
(2,345,753)
Net current liabilities
(568,229)
(498,430)
Total assets less current liabilities
156,002
200,154
Creditors: amounts falling due after more than one year
7
(365,964)
(373,163)
Provisions for liabilities
(40,000)
-
Net liabilities
(249,962)
(173,009)
Capital and reserves
Called up share capital
8
15,000
15,000
Own shares
10,000
10,000
Profit and loss reserves
(274,962)
(198,009)
Total equity
(249,962)
(173,009)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
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 and signed by the director and authorised for issue on 5 September 2018
Mr S Hughes
Director
Company Registration No. 03128147
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 2 -
1
Accounting policies
Company information
Stephen Hughes Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2nd Floor Frigate House, Quay Parade, SWANSEA, UK, SA1 1SR.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts receivable for goods during the year, exclusive of Value Added Tax 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
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.
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 Leasehold
20%
Fixtures, fittings & equipment
10%
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
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies (Continued)
- 3 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
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.
1.7
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies (Continued)
- 4 -
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.
1.9
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.
1.10
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.11
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income 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 asset are consumed.
1.12
The company entered into transactions with related parties during the year. The related parties consist of fellow group companies where the transactions and balances are eliminated upon consolidation in the consolidated accounts of the holding company Jawos (Holdings) Limited. The company has taken advantage of the exemption under FRS 102 not to disclose such transactions.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 18 (2016 - 8).
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 5 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2017
5,676
876,640
882,316
Additions
-
104,539
104,539
At 31 December 2017
5,676
981,179
986,855
Depreciation and impairment
At 1 January 2017
5,131
183,402
188,533
Depreciation charged in the year
109
78,782
78,891
At 31 December 2017
5,240
262,184
267,424
Carrying amount
At 31 December 2017
436
718,995
719,431
At 31 December 2016
545
693,239
693,784
4
Fixed asset investments
2017
2016
£
£
Investments
4,800
4,800
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 January 2017 & 31 December 2017
4,800
Carrying amount
At 31 December 2017
4,800
At 31 December 2016
4,800
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 6 -
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Other debtors
236,536
322,545
6
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loans and overdrafts
12,000
9,579
Trade creditors
101,630
535,004
Amounts due to group undertakings
1,943,190
1,689,156
Other taxation and social security
66,275
16,161
Other creditors
88,091
95,853
2,211,186
2,345,753
Included in bank loans, is an amount owed to Finance Wales Limited of £12,000 (2016: £9,579). This loan is secured by a fixed and floating charge over the assets of the company.
7
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loans
42,557
54,967
Other creditors
323,407
318,196
365,964
373,163
Included in bank loans, is an amount owed to Finance Wales Limited of £42,557 (2016: £54,967). This loan is secured by a fixed and floating charge over the assets of the company.
Included in other creditors is an amount due to Jawos (Swansea) Limited for £323,407 (2016 :£318,196). This loan is secured by a fixed and floating charge over the assets of the company. Its repayable over 5 years and at an interest rate of 3.25%.
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
15,000 Ordinary shares of £1 each
15,000
15,000
15,000
15,000
STEPHEN HUGHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 7 -
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Matthew Thomas.
The auditor was MHA Broomfield Alexander.
10
Financial commitments, guarantees and contingent liabilities
Lloyds Bank Plc. holds a fixed and floating charge over the assets of the company in respect of outstanding liabilities across the Group.
11
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:
2017
2016
£
£
823,775
980,172
12
Controlling party
The company is a wholly owned subsidiary and the ultimate parent company is Jawos (Holdings) Limited, a company incorporated in England and Wales.
The ultimate controlling party is Mr S Hughes, director and majority shareholder.
13
Related party transactions
The following amounts were outstanding at the reporting end date:
2017
2016
Amounts owed to related parties
£
£
Other related parties
-
4,073
The following amounts were outstanding at the reporting end date:
2016
Balance
Amounts owed in previous period
£
Other related parties
104,886