SUPREME SAUSAGES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
PAGES FOR FILING WITH REGISTRAR
Company Registration No. 04504474 (England and Wales)
SUPREME SAUSAGES LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
The following pages do not form part of the statutory financial statements
Detailed trading and profit and loss account
-
SUPREME SAUSAGES LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF SUPREME SAUSAGES LIMITED FOR THE YEAR ENDED 31 JANUARY 2020
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Supreme Sausages Limited for the year ended 31 January 2020 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance
.
This report is made solely to the Board of Directors of Supreme Sausages Limited, as a body, in accordance with the terms of our engagement letter dated 24 October 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Supreme Sausages Limited
and state those matters that we have agreed to state to the Board of Directors of Supreme Sausages Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Supreme Sausages Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Supreme Sausages Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and profit
of Supreme Sausages Limited. You consider that Supreme Sausages Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Supreme Sausages Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
..............................................................
Date: ..........................
Charterhouse (Accountants) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
SUPREME SAUSAGES LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2020
31 January 2020
- 2 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
214,561
168,074
Current assets
Stocks
22,030
27,797
Debtors
5
237,408
142,720
Cash at bank and in hand
3,850
3,800
263,288
174,317
Creditors: amounts falling due within one year
6
(342,923)
(258,387)
Net current liabilities
(79,635)
(84,070)
Total assets less current liabilities
134,926
84,004
Creditors: amounts falling due after more than one year
7
(89,165)
(44,297)
Provisions for liabilities
8
(40,767)
(31,934)
Net assets
4,994
7,773
Capital and reserves
Called up share capital
9
2
2
Profit and loss reserves
4,992
7,771
Total equity
4,994
7,773
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 January 2020 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
and in accordance with the provisions of FRS 102 Section 1A - small entities.
SUPREME SAUSAGES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2020
31 January 2020
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 29 January 2021 and are signed on its behalf by:
J K Garnish
Director
Company Registration No. 04504474
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
- 4 -
1
Accounting policies
Company information
Supreme Sausages Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
166 College Road, Harrow, Middlesex, HA1 1RA.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for
the sale of sausages
in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Income is recognised in the period to which it relates.
1.3
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2003,
has been
amortised evenly over its estimated useful life of ten years.
1.4
Tangible fixed assets
Tangible fixed assets
are 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:
Factory re-fit
5% on cost
Plant and machinery
25% on reducing balance
Fixtures, fittings & equipment
25% on reducing balance
Motor vehicles
25% on reducing balance
Office equipment
25% on reducing balance
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
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.
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 5 -
1.6
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.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors
and
bank loans,
are
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. If not, they are presented
as non-current liabilities.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences
.
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.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 6 -
1.10
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 14 (2019 - 14)
Total
14
14
3
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2019 and 31 January 2020
71,416
Amortisation and impairment
At 1 February 2019 and 31 January 2020
71,416
Carrying amount
At 31 January 2020
-
At 31 January 2019
-
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Office equipment
Total
£
£
£
£
Cost
At 1 February 2019
154,533
371,584
42,319
568,436
Additions
-
96,835
633
97,468
At 31 January 2020
154,533
468,419
42,952
665,904
Depreciation and impairment
At 1 February 2019
84,996
282,977
32,389
400,362
Depreciation charged in the year
7,727
40,613
2,641
50,981
At 31 January 2020
92,723
323,590
35,030
451,343
Carrying amount
At 31 January 2020
61,810
144,829
7,922
214,561
At 31 January 2019
69,537
88,607
9,930
168,074
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts. The net carrying value as at 31 January 2020 in respect of such assets amounted to £118,570 (2019: £68,958). The depreciation charge in respect of such assets amounted to £39,523 (2019: £14,455).
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
72,797
31,831
Other debtors
164,611
110,889
237,408
142,720
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 8 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
92,011
62,360
Trade creditors
166,310
126,905
Corporation tax
7,828
2,136
Other taxation and social security
27,873
28,064
Other creditors
48,901
38,922
342,923
258,387
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
89,165
44,297
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
40,767
31,934
2020
Movements in the year:
£
Liability at 1 February 2019
31,934
Charge to profit or loss
8,833
Liability at 31 January 2020
40,767
9
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
SUPREME SAUSAGES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 9 -
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:
2020
2019
£
£
3,965
3,965
11
Directors' transactions
Included within other debtors is £121,398 (2019: £57,356) owed to the company by the directors as at the balance sheet date. The maximum amount overdrawn during the year was £145,385 (2019: £112,423).
Interest of £2,650 (2019: £2,288) was charged in the year on the overdrawn balance at the official HM Revenue & Customs rate for beneficial loans.