WILDAX CONVERSIONS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
PAGES FOR FILING WITH REGISTRAR
WILDAX CONVERSIONS LIMITED
COMPANY INFORMATION
Directors
Mr D.P. Wildman
Mr N. Rousseau
Mr P. Rousseau
Company number
05695324 (England and Wales)
Registered office
Unit G9 Lock View
Lowfields Business Park
Elland
HX5 9HD
Auditor
Ashworth Moulds
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
WILDAX CONVERSIONS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
WILDAX CONVERSIONS LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2020
31 August 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,815,522
378,208
Current assets
Stocks
934,722
803,422
Debtors
4
443,878
477,893
Cash at bank and in hand
237,180
724,650
1,615,780
2,005,965
Creditors: amounts falling due within one year
5
(2,112,229)
(1,114,968)
Net current (liabilities)/assets
(496,449)
890,997
Total assets less current liabilities
1,319,073
1,269,205
Creditors: amounts falling due after more than one year
6
-
(4,914)
Provisions for liabilities
Deferred tax liability
28,382
24,131
(28,382)
(24,131)
Net assets
1,290,691
1,240,160
Capital and reserves
Called up share capital
7
1,002
1,002
Profit and loss reserves
1,289,689
1,239,158
Total equity
1,290,691
1,240,160
The notes on pages 3 - 8 form an integral part of these financial statements.
The directors of the company have 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.
WILDAX CONVERSIONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2020
31 August 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 January 2021 and are signed on its behalf by:
Mr D.P. Wildman
Director
Company Registration No. 05695324
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
- 3 -
1
Accounting policies
Company information
WildAx Conversions Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Unit G9 Lock View, Lowfields Business Park, Elland, HX5 9HD.
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
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided 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.
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.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion.
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:
Freehold land and buildings
Nil
Plant and equipment
15% straight line
Fixtures and fittings
15% reducing balance
Computers
25% straight line
Motor vehicles
25% reducing balance
Hire Vehicles
10% straight line
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 4 -
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Cost is determined using the first in, first (FIFO) Method.
The cost of finished goods and work in progress 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, 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
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.
A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors) or an equity instrument (such as ordinary or preference shares).
Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.
All the company's financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.
Amortised cost:
the original transaction value, less amounts settled, less any adjustment for impairment.
Effective interest method:
where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.
Derecognition of financial assets
Financial assets cease to be recognised only when the contractual rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.
Financial liabilities cease to be recognised when and only when the company's obligations are discharged, cancelled, or they expire.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 5 -
Current tax
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 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.
D
eferred 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
reserves
, in which case the deferred tax is also dealt with in
reserves.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
1
Accounting policies
(Continued)
- 6 -
1.13
Government grants are recognised at the fair value of the asset received 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.
Government grants relating to the Coronavirus Job Retention Scheme are recognised as other income in the period to which the employee costs are recognised by the relevant furlough period.
1.14
Research expenditure is written off against profits in the year in which it is incurred.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
59
54
3
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2019
-
120,270
33,259
319,179
472,708
Additions
1,422,077
45,525
-
295,763
1,763,365
Disposals
-
-
-
(287,341)
(287,341)
At 31 August 2020
1,422,077
165,795
33,259
327,601
1,948,732
Depreciation and impairment
At 1 September 2019
-
45,873
23,298
25,329
94,500
Depreciation charged in the year
-
24,501
1,495
35,139
61,135
Eliminated in respect of disposals
-
-
-
(22,425)
(22,425)
At 31 August 2020
-
70,374
24,793
38,043
133,210
Carrying amount
At 31 August 2020
1,422,077
95,421
8,466
289,558
1,815,522
At 31 August 2019
-
74,397
9,961
293,850
378,208
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 7 -
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
63,529
206,438
Corporation tax recoverable
66,926
-
Other debtors
903
1,803
Prepayments and accrued income
312,520
269,652
443,878
477,893
5
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Obligations under finance leases
5,616
8,424
Trade creditors
718,511
522,657
Amounts due to group undertakings
1,300,406
150,406
Corporation tax
-
(3,717)
Other taxation and social security
37,539
64,926
Other creditors
17,877
82,131
Accruals and deferred income
32,280
290,141
2,112,229
1,114,968
The finance lease is secured against the asset to which it relates.
6
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Obligations under finance leases
-
4,914
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,002 Ordinary Shares of £1 each
1,002
1,002
WILDAX CONVERSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2020
- 8 -
8
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 James Lye BA(Hons) FCA.
The auditor was Ashworth Moulds.
9
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
£
£
26,250
131,250
10
Events after the reporting date
In early 2020 the Coronavirus pandemic (Covid-19) spread to the UK and in March 2020 the UK Government announced measures to mitigate the spread in the UK, including social distancing and a "lockdown".
As a consequence the company's trading has been affected from late March 2020 and continues to be affected after the year end.
The company took advantage of the Government's financial support packages, including the Job Retention Scheme (Furlough Scheme). Despite the financial support it is considered that there will continue to be some adverse financial impact on the company in the financial year 2020/21. The financial effect cannot be reliably estimated given the uncertainties, notably the extent of the "lockdown" together with the potential resurgence of the virus.
11
Parent company
SOFINARO SAS is the parent undertaking of the smallest group for which consolidated financial statements are drawn up of which WildAx Conversions Limited is a member. It's registered office address is SOFINARO SAS, Route de Bretagne, CS 20019, F-53100 Mayenne, France.