Company registration number:
for the Year Ended
AVS Direct Limited
Contents
Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
AVS Direct Limited
(Registration number: 05007223)
Balance Sheet as at 31 January 2017
Note |
2017 |
2016 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
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Deferred tax liabilities |
(726) |
(1,710) |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss reserve |
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Total equity |
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AVS Direct Limited
(Registration number: 05007223)
Balance Sheet as at 31 January 2017
For the financial year ending 31 January 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
• |
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• |
The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
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Page 2
AVS Direct Limited
Statement of Changes in Equity
for the Year Ended 31 January 2017
Share capital |
Profit and loss reserve |
Total |
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At 1 February 2016 |
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Movement in year : |
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Profit for the year |
- |
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Total comprehensive income |
- |
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At 31 January 2017 |
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Share capital |
Profit and loss reserve |
Total |
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At 1 February 2015 |
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Movement in year : |
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Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
Dividends |
- |
( |
( |
Total movement for the year |
- |
(17,565) |
(17,565) |
At 31 January 2016 |
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Page 3
AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
General information |
The company is a private company limited by share capital incorporated in the United Kingdom.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 Section 1A -‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. This is the first year in which the financial statements have been prepared under FRS 102 Section 1A. There were no restatements required to the prior year as a result of transition to FRS 102.
Basis of preparation
These financial statements are presented in Sterling (£) and have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of motor vehicles and the provision of repair and servicing facilities to customers in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and is recognised when the sale or service is complete.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Page 4
AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
Asset class |
Depreciation method and rate |
Leasehold property improvements |
10% reducing balance |
Plant and machinery |
20% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for motor vehicles sold or repair and servicing facilities provided to customers in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of other stocks comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
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AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
Tangible assets |
Leasehold property improvements |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 February 2016 |
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Additions |
- |
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At 31 January 2017 |
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Depreciation |
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At 1 February 2016 |
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Charge for the year |
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At 31 January 2017 |
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Carrying amount |
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At 31 January 2017 |
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At 31 January 2016 |
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Stocks |
2017 |
2016 |
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Other stocks |
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Debtors |
2017 |
2016 |
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Trade debtors |
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Other debtors |
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Total current trade and other debtors |
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Page 7
AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
Creditors |
Note |
2017 |
2016 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Corporation tax |
14,645 |
- |
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Other creditors |
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Due after one year |
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Loans and borrowings |
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Creditors
Included with trade and other creditors are amounts totalling £173,224 (2016 - £165,818) in relation to the financing of stock purchased in the course of the company's ordinary trading activities. These amounts are secured against the assets to which they relate and are supported by a personal guarantee from the director.
Loans and borrowings |
2017 |
2016 |
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Current loans and borrowings |
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Bank borrowings |
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2017 |
2016 |
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Non-current loans and borrowings |
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Bank borrowings |
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Security has been given by the company over bank borrowings falling due in less than one year and after more than one year with an aggregate value of £17,677 (2016 - £22,917).
Financial commitments, guarantees and contingencies |
The total amount of financial commitments not included in the balance sheet is £
The amount of the commitment due within one year is £90,000 (2016 - £67,500) and the amount due within two to five years is £337,500 (2016 - £nil).
Page 8
AVS Direct Limited
Notes to the Financial Statements
for the Year Ended 31 January 2017
Related party transactions |
Transactions with directors |
Directors' remuneration
The director's remuneration for the year was as follows:
2017 |
2016 |
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Remuneration |
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Contributions paid to money purchase schemes |
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28,596 |
27,968 |
Other transactions with directors |
K B Squire is the director of the company. During the year dividends were paid to the director and his wife of £nil (2016 - £8,000).
The director and his wife have provided personal guarantees to creditors amounting to £173,224 (2016 - £165,818) and in addition to this, a personal guarantee in respect of the company's outstanding operating lease commitments.
During the year K B Squire and his wife H Squire maintained an interest free current account with the company which is repayable on demand. At the balance sheet date the amounts due to K B and H Squire was £21,927 (2016 - £16,917).
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