Company Registration No. 05002500 (England and Wales)
ADI SUPPLY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2021
PAGES FOR FILING WITH REGISTRAR
ADI SUPPLY LIMITED
COMPANY INFORMATION
Directors
Mr D I Abbott
Mrs I Abbott
Company number
05002500
Registered office
Unit 45
Enterprise Trading Estate
Hurst Lane
Brierley Hill
West Midlands
DY5 1TX
Accountants
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
Bankers
Lloyds Bank Plc
134 High Street
Stourbridge
West Midlands
DY8 1DS
ADI SUPPLY LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
ADI SUPPLY LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF ADI SUPPLY LIMITED FOR THE YEAR ENDED 30 NOVEMBER 2021
- 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 ADI Supply Limited for the year ended 30 November 2021 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 ADI Supply Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of ADI Supply Limited and state those matters that we have agreed to state to the Board of Directors of ADI Supply 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 ADI Supply Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that ADI Supply 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 ADI Supply Limited. You consider that ADI Supply 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 ADI Supply 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.
Ormerod Rutter Limited
19 July 2022
Chartered Accountants
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
ADI SUPPLY LIMITED
BALANCE SHEET
AS AT 30 NOVEMBER 2021
30 November 2021
- 2 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
28,405
17,399
Current assets
Stocks
275,626
252,298
Debtors
4
250,831
264,042
Cash at bank and in hand
24,291
20,541
550,748
536,881
Creditors: amounts falling due within one year
5
(404,945)
(378,076)
Net current assets
145,803
158,805
Total assets less current liabilities
174,208
176,204
Creditors: amounts falling due after more than one year
6
(110,700)
(146,087)
Provisions for liabilities
7
(5,374)
(3,306)
Net assets
58,134
26,811
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
58,034
26,711
Total equity
58,134
26,811
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 30 November 2021 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.
The 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.
ADI SUPPLY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 30 NOVEMBER 2021
30 November 2021
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 19 July 2022 and are signed on its behalf by:
Mr D I Abbott
Director
Company Registration No. 05002500
ADI SUPPLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 4 -
1
Accounting policies
Company information
ADI Supply Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 45, Enterprise Trading Estate, Hurst Lane, Brierley Hill, West Midlands, DY5 1TX.
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 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 goods and services provided in the normal course of business, and is shown net of VAT. 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 the provision of services is recognised by reference to the stage of completion, when the costs incurred and costs to complete can be estimated reliably.
1.3
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:
Plant and machinery
25% on cost
Fixtures and fittings
20% on reducing balance
Office and computer equipment
33% and 25% on reducing balance
Motor vehicles
25% on reducing balance
1.4
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.
ADI SUPPLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.5
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 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.
1.6
Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
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 the profit and loss account 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 asset are consumed.
ADI SUPPLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.9
Government grants
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.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.10
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 are included in the profit and loss account for the period.
1.11
Sales invoices factored are included under trade debtors in the balance sheet until paid. The related factoring loan balance is included within other creditors.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 6 (2020 - 4).
3
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Office and computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2020
17,577
18,936
19,065
9,488
65,066
Additions
20,010
20,010
At 30 November 2021
17,577
38,946
19,065
9,488
85,076
Depreciation and impairment
At 1 December 2020
9,840
15,727
15,614
6,486
47,667
Depreciation charged in the year
2,713
4,644
896
751
9,004
At 30 November 2021
12,553
20,371
16,510
7,237
56,671
Carrying amount
At 30 November 2021
5,024
18,575
2,555
2,251
28,405
At 30 November 2020
7,737
3,209
3,451
3,002
17,399
ADI SUPPLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
3
Tangible fixed assets
(Continued)
- 7 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Motor vehicles
2,251
3,002
4
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
250,801
262,873
Other debtors
30
1,169
250,831
264,042
5
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
10,000
Trade creditors
141,298
160,285
Taxation and social security
15,944
23,419
Other creditors
237,703
194,372
404,945
378,076
6
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
35,000
50,000
Other creditors
75,700
96,087
110,700
146,087
7
Provisions for liabilities
2021
2020
£
£
Deferred tax liabilities
5,374
3,306
ADI SUPPLY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2021
- 8 -
8
Secured debts
The following secured debts are included within creditors:
2021
2020
£
£
Hire purchase contracts
1,595
3,634
Bank loans
45,000
50,000
Factoring account
188,672
154,226
235,267
207,860
Hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by way of a government-backed guarantee.
All monies due or to become due from the company to the factoring company, Optimum Finance, are secured against trade debtors.
9
Called up share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
80 Ordinary A of £1 each
80
70
20 Ordinary B of £1 each
20
30
100
100
During the year, the company passed an ordinary resolution to convert 10 Ordinary B £1 shares into 10 Ordinary A £1 shares. The rights and privileges attached to these shares remain unaltered.
10
Ultimate controlling party
The ultimate controlling party is Mr D I Abbott.