Silverfin false 31/12/2021 31/12/2021 01/01/2021 D Lane 03/04/2001 14 August 2022 The principal activity of the Company during the financial year was the distribution of bicycles and associated products. 04159604 2021-12-31 04159604 bus:Director1 2021-12-31 04159604 2020-12-31 04159604 core:CurrentFinancialInstruments 2021-12-31 04159604 core:CurrentFinancialInstruments 2020-12-31 04159604 core:Non-currentFinancialInstruments 2021-12-31 04159604 core:Non-currentFinancialInstruments 2020-12-31 04159604 core:ShareCapital 2021-12-31 04159604 core:ShareCapital 2020-12-31 04159604 core:SharePremium 2021-12-31 04159604 core:SharePremium 2020-12-31 04159604 core:OtherCapitalReserve 2021-12-31 04159604 core:OtherCapitalReserve 2020-12-31 04159604 core:RetainedEarningsAccumulatedLosses 2021-12-31 04159604 core:RetainedEarningsAccumulatedLosses 2020-12-31 04159604 core:LandBuildings 2020-12-31 04159604 core:PlantMachinery 2020-12-31 04159604 core:Vehicles 2020-12-31 04159604 core:FurnitureFittings 2020-12-31 04159604 core:OfficeEquipment 2020-12-31 04159604 core:LandBuildings 2021-12-31 04159604 core:PlantMachinery 2021-12-31 04159604 core:Vehicles 2021-12-31 04159604 core:FurnitureFittings 2021-12-31 04159604 core:OfficeEquipment 2021-12-31 04159604 core:CurrentFinancialInstruments core:Secured 2021-12-31 04159604 core:MoreThanFiveYears 2021-12-31 04159604 core:MoreThanFiveYears 2020-12-31 04159604 bus:OrdinaryShareClass1 2021-12-31 04159604 bus:OrdinaryShareClass2 2021-12-31 04159604 core:WithinOneYear 2021-12-31 04159604 core:WithinOneYear 2020-12-31 04159604 core:BetweenOneFiveYears 2021-12-31 04159604 core:BetweenOneFiveYears 2020-12-31 04159604 2021-01-01 2021-12-31 04159604 bus:FullAccounts 2021-01-01 2021-12-31 04159604 bus:SmallEntities 2021-01-01 2021-12-31 04159604 bus:AuditExemptWithAccountantsReport 2021-01-01 2021-12-31 04159604 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 04159604 bus:Director1 2021-01-01 2021-12-31 04159604 core:PlantMachinery core:BottomRangeValue 2021-01-01 2021-12-31 04159604 core:PlantMachinery core:TopRangeValue 2021-01-01 2021-12-31 04159604 core:Vehicles core:TopRangeValue 2021-01-01 2021-12-31 04159604 core:FurnitureFittings core:TopRangeValue 2021-01-01 2021-12-31 04159604 core:OfficeEquipment core:BottomRangeValue 2021-01-01 2021-12-31 04159604 core:OfficeEquipment core:TopRangeValue 2021-01-01 2021-12-31 04159604 2020-01-01 2020-12-31 04159604 core:LandBuildings 2021-01-01 2021-12-31 04159604 core:PlantMachinery 2021-01-01 2021-12-31 04159604 core:Vehicles 2021-01-01 2021-12-31 04159604 core:FurnitureFittings 2021-01-01 2021-12-31 04159604 core:OfficeEquipment 2021-01-01 2021-12-31 04159604 core:CurrentFinancialInstruments 2021-01-01 2021-12-31 04159604 core:Non-currentFinancialInstruments 2021-01-01 2021-12-31 04159604 core:MoreThanFiveYears 2021-01-01 2021-12-31 04159604 bus:OrdinaryShareClass1 2021-01-01 2021-12-31 04159604 bus:OrdinaryShareClass1 2020-01-01 2020-12-31 04159604 bus:OrdinaryShareClass2 2021-01-01 2021-12-31 04159604 bus:OrdinaryShareClass2 2020-01-01 2020-12-31 iso4217:GBP xbrli:pure xbrli:shares

Company No: 04159604 (England and Wales)

PALIGAP LIMITED

Unaudited Financial Statements
For the financial year ended 31 December 2021
Pages for filing with the registrar

PALIGAP LIMITED

Unaudited Financial Statements

For the financial year ended 31 December 2021

Contents

PALIGAP LIMITED

COMPANY INFORMATION

For the financial year ended 31 December 2021
PALIGAP LIMITED

COMPANY INFORMATION (continued)

For the financial year ended 31 December 2021
DIRECTOR D Lane
SECRETARY K Beecham
REGISTERED OFFICE Unit 1 Armstrong Way Yate Road
Yate
Bristol
BS37 5AA
United Kingdom
COMPANY NUMBER 04159604 (England and Wales)
CHARTERED ACCOUNTANTS Bishop Fleming LLP
10 Temple Back
Bristol
BS1 6FL
PALIGAP LIMITED

STATEMENT OF FINANCIAL POSITION

As at 31 December 2021
PALIGAP LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

As at 31 December 2021
Note 2021 2020
£ £
Fixed assets
Tangible assets 3 543,966 39,436
543,966 39,436
Current assets
Stocks 1,262,719 830,576
Debtors 4 738,870 567,119
Cash at bank and in hand 4,751 161,691
2,006,340 1,559,386
Creditors
Amounts falling due within one year 5 ( 931,519) ( 459,411)
Net current assets 1,074,821 1,099,975
Total assets less current liabilities 1,618,787 1,139,411
Creditors
Amounts falling due after more than one year 6 ( 623,552) ( 352,323)
Provisions for liabilities ( 24,157) ( 6,202)
Net assets 971,078 780,886
Capital and reserves
Called-up share capital 7 140 140
Share premium account 89,991 89,991
Other reserves 29 29
Profit and loss account 880,918 690,726
Total shareholders' funds 971,078 780,886

For the financial year ending 31 December 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The financial statements of Paligap Limited (registered number: 04159604) were approved and authorised for issue by the Director on 14 August 2022. They were signed on its behalf by:

D Lane
Director
PALIGAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2021
PALIGAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2021
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Paligap Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Unit 1 Armstrong Way Yate Road, Yate, Bristol, BS37 5AA, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The director has assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Director’s Report.

The Company's forecasts and projections, taking account of the continued possible impact of COVID-19 in trading performance, show that the company should be able to operate within the level of its current facilities.

Therefore, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Land and buildings not depreciated
Plant and machinery 3 - 5 years straight line
Vehicles 4 years straight line
Fixtures and fittings 4 years straight line
Office equipment 2 - 4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either 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.

Derivative financial instruments
The Company uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Company does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the Statement of Income and Retained Earnings immediately.

The Company does not apply hedge accounting.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

2021 2020
Number Number
Monthly average number of persons employed by the Company during the year, including the director 11 12

3. Tangible assets

Land and buildings Plant and machinery Vehicles Fixtures and fittings Office equipment Total
£ £ £ £ £ £
Cost
At 01 January 2021 0 48,856 40,343 19,030 130,301 238,530
Additions 440,651 86,218 600 0 9,964 537,433
Disposals 0 0 0 ( 16,766) ( 31,230) ( 47,996)
At 31 December 2021 440,651 135,074 40,943 2,264 109,035 727,967
Accumulated depreciation
At 01 January 2021 0 42,132 37,820 19,030 100,112 199,094
Charge for the financial year 0 9,655 2,536 0 20,712 32,903
Disposals 0 0 0 ( 16,766) ( 31,230) ( 47,996)
At 31 December 2021 0 51,787 40,356 2,264 89,594 184,001
Net book value
At 31 December 2021 440,651 83,287 587 0 19,441 543,966
At 31 December 2020 0 6,724 2,523 0 30,189 39,436

4. Debtors

2021 2020
£ £
Trade debtors 658,507 534,665
Prepayments 7,712 17,291
VAT recoverable 72,651 0
Other debtors 0 15,163
738,870 567,119

Included within trade debtors is £602,686 (2020: £521,210) of debts used as security against the Company's invoice discounting facility with HSBC Invoice Finance (UK) Limited.

5. Creditors: amounts falling due within one year

2021 2020
£ £
Bank loans and overdrafts (secured £ 24,765) 132,493 177,049
Trade creditors 189,656 162
Other creditors 523,055 2,063
Accruals 42,942 46,747
Corporation tax 31,381 24,943
Other taxation and social security 10,455 199,297
Obligations under finance leases and hire purchase contracts (secured) 1,537 3,238
Derivative financial instruments 0 5,912
931,519 459,411

Amounts shown under bank loans £24,765 (2020: £nil) are secured against the freehold properties of the Company.

Obligations under finance lease and hire purchase contracts are secured upon the assets to which they relate.

HSBC Invoice Finance (UK) Limited holds a fixed charge over debts as disclosed in note 4.

6. Creditors: amounts falling due after more than one year

2021 2020
£ £
Bank loans (secured) 266,510 0
Amounts owed to director 52,694 53,807
Other loans 304,348 298,516
623,552 352,323

Amounts shown under bank loans £266,510 (2020: £nil) are secured against the freehold properties of the Company.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

2021 2020
£ £
Bank loans (secured / repayable by instalments) 158,323 0

Amounts shown under bank loans £158,323 (2020: £nil) are secured against the freehold properties of the Company.

7. Called-up share capital

2021 2020
£ £
Allotted, called-up and fully-paid
80 A ordinary shares of £ 1.00 each 80 80
60 B ordinary shares of £ 1.00 each 60 60
140 140

8. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

2021 2020
£ £
- within one year 36,292 20,655
- between one and five years 151,340 0
187,632 20,655

Pensions

The Company operates a defined contribution pension scheme for the director and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

2021 2020
£ £
Unpaid contributions due to the fund (inc. in other creditors) 1,811 2,063

9. Related party transactions

Transactions with owners holding a participating interest in the entity

2021 2020
£ £
Balance due to participating interest at the year end 220,548 298,516

The loan is interest free and there is no fixed date for repayment. The amount is included within other loans due after more than one year.

Transactions with the entity's director

2021 2020
£ £
Balance due to director at the year end 52,694 53,807

Interest is charged on the loan and there is no fixed date for repayment. The amount is included within amounts owed to director.

Other related party transactions

2021 2020
£ £
Sales 16,713 12,288
Purchases 9,401 28,734
Balance due from companies under common control at the year end 2,874 23,213

The balance is included within trade debtors.