Company Registration No. 07139195 (England and Wales)
SUGARFLAIR COLOURS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
PAGES FOR FILING WITH REGISTRAR
SUGARFLAIR COLOURS LIMITED
COMPANY INFORMATION
Directors
Mrs KN Tinsley
Mr A Tinsley
Company number
07139195
Registered office
2a Armstrong Road
Manor Trading Estate
Benfleet
Essex
SS7 4PW
Accountants
Rickard Luckin Limited
Aquila House
Waterloo Lane
Chelmsford
Essex
CM1 1BN
SUGARFLAIR COLOURS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
SUGARFLAIR COLOURS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2016
31 December 2016
- 1 -
2016
2015
Notes
£
£
£
£
Fixed assets
Goodwill
3
665,833
1,165,208
Tangible assets
4
392,198
348,934
Investments
5
-
5,000
1,058,031
1,519,142
Current assets
Stocks
421,157
453,001
Debtors
7
589,966
704,737
Cash at bank and in hand
3,074,583
2,326,660
4,085,706
3,484,398
Creditors: amounts falling due within one year
8
(303,997)
(411,157)
Net current assets
3,781,709
3,073,241
Total assets less current liabilities
4,839,740
4,592,383
Provisions for liabilities
(20,139)
(38,386)
Net assets
4,819,601
4,553,997
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
4,819,501
4,553,897
Total equity
4,819,601
4,553,997
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 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
he directors acknowledge their responsibilities for complying with the requirements of the Act 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 .
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.
SUGARFLAIR COLOURS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2016
31 December 2016
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 May 2017 and are signed on its behalf by:
Mrs KN Tinsley
Mr A Tinsley
Director
Director
Company Registration No. 07139195
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
- 3 -
1
Accounting policies
Company information
Sugarflair Colours Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
2a Armstrong Road, Manor Trading Estate, Benfleet, Essex, SS7 4PW.
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.
These financial statements for the year ended 31 December 2016
are the
first
financial statements of Sugarflair Colours Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2015. An explanation of how transition to FRS 102 has affected the reported financial position and financial performance is given in note 13.
1.2
Turnover
Turnover represents amounts receivable for goods net of VAT and trade discounts.
1.3
Intangible fixed assets - goodwill
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 8 years.
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 8 years.
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.
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
10 years straight line
Plant and machinery
20% reducing balance
Motor vehicles
25% reducing balance
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 4 -
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.
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. 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.
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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
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. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
1
Accounting policies
(Continued)
- 5 -
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.
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. 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.
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.
1.10
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.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 12 (2015 - 14).
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2016 and 31 December 2016
3,995,000
Amortisation and impairment
At 1 January 2016
2,829,792
Amortisation charged for the year
499,375
At 31 December 2016
3,329,167
Carrying amount
At 31 December 2016
665,833
At 31 December 2015
1,165,208
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2016
311,513
109,225
420,738
Additions
37,302
95,681
132,983
Disposals
-
(38,058)
(38,058)
At 31 December 2016
348,815
166,848
515,663
Depreciation and impairment
At 1 January 2016
31,151
40,653
71,804
Depreciation charged in the year
34,882
28,176
63,058
Eliminated in respect of disposals
-
(11,397)
(11,397)
At 31 December 2016
66,033
57,432
123,465
Carrying amount
At 31 December 2016
282,782
109,416
392,198
At 31 December 2015
280,362
68,572
348,934
5
Fixed asset investments
2016
2015
£
£
Investments
-
5,000
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2016
5,000
Disposals
(5,000)
At 31 December 2016
-
Carrying amount
At 31 December 2016
-
At 31 December 2015
5,000
6
Financial instruments
2016
2015
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
582,286
695,031
Carrying amount of financial liabilities
Measured at amortised cost
13,524
29,501
7
Debtors
2016
2015
Amounts falling due within one year:
£
£
Trade debtors
156,264
232,234
Amounts due from group undertakings
425,322
461,225
Other debtors
8,380
11,278
589,966
704,737
8
Creditors: amounts falling due within one year
2016
2015
£
£
Corporation tax
218,421
334,297
Other taxation and social security
72,052
47,359
Other creditors
13,524
29,501
303,997
411,157
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 8 -
9
Provisions for liabilities
2016
2015
£
£
Deferred tax liabilities
20,139
38,386
20,139
38,386
10
Called up share capital
2016
2015
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
11
Related party transactions
Companies under common control
During the year the
company occupied a property owned by a company under common control. Rent has been paid on the property.
The company has made a loan to a company under common control. No interest is due on the loan.
At the balance sheet date the amount due from
the company under common control
was £
425,322
(2015 - £461,255)
.
12
Controlling party
The company was owned by the directors until 27 November 2016. From 28 November 2016 the company is a fully owned subsidiary of Sugarflair Group Ltd.
The company is ultimately controlled by the directors.
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
- 9 -
13
Reconciliations on adoption of FRS 102
Reconciliation of equity
At 1 January 2015
At 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
£
£
£
Fixed assets
Goodwill
1,664,583
-
1,664,583
1,165,208
-
1,165,208
Tangible assets
50,600
-
50,600
348,934
-
348,934
Investments
5,100
-
5,100
5,000
-
5,000
1,720,283
-
1,720,283
1,519,142
-
1,519,142
Current assets
Stocks
256,882
-
256,882
453,001
-
453,001
Debtors
123,935
-
123,935
704,737
-
704,737
Bank and cash
1,467,397
-
1,467,397
2,326,660
-
2,326,660
1,848,214
-
1,848,214
3,484,398
-
3,484,398
Creditors due within one year
Taxation
(245,428)
-
(245,428)
(381,656)
-
(381,656)
Other creditors
(308,660)
-
(308,660)
(29,501)
-
(29,501)
(554,088)
-
(554,088)
(411,157)
-
(411,157)
Net current assets
1,294,126
-
1,294,126
3,073,241
-
3,073,241
Total assets less current liabilities
3,014,409
-
3,014,409
4,592,383
-
4,592,383
Provisions for liabilities
Deferred tax
1
-
(5,886)
(5,886)
-
(38,386)
(38,386)
Net assets
3,014,409
(5,886)
3,008,523
4,592,383
(38,386)
4,553,997
Capital and reserves
Share capital
100
-
100
100
-
100
Profit and loss
1
3,014,309
(5,886)
3,008,423
4,592,283
(38,386)
4,553,897
Total equity
3,014,409
(5,886)
3,008,523
4,592,383
(38,386)
4,553,997
SUGARFLAIR COLOURS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2016
13
Reconciliations on adoption of FRS 102
(Continued)
- 10 -
Reconciliation of profit for the financial period
Year ended 31 December 2015
Previous UK GAAP
Effect of
transition
FRS 102
Notes
£
£
£
Turnover
4,704,286
-
4,704,286
Cost of sales
(1,527,680)
-
(1,527,680)
Gross profit
3,176,606
-
3,176,606
Distribution costs
(63,966)
-
(63,966)
Administrative expenses
(835,630)
-
(835,630)
Operating profit
2,277,010
-
2,277,010
Interest receivable and similar income
4,917
-
4,917
Interest payable and similar expenses
(7)
-
(7)
Amounts written off investments
344
-
344
Profit before taxation
2,282,264
-
2,282,264
Taxation
(539,290)
(32,500)
(571,790)
Profit for the financial period
1,742,974
(32,500)
1,710,474
Notes to reconciliations on adoption of FRS 102
1. Adjustments have been made to recognise deferred tax in respect of accelerated capital allowances not previously recognised.
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