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Registrar

Registration number: 00353436

Flag Paints Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2022

 

Flag Paints Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Flag Paints Limited

Company Information

Directors

M J Noon

Company secretary

H Hart

Registered office

8 Springfield Road
Springfield Industrial Estate
Burnham on Crouch
Essex
CM0 8UA

Bankers

Barclays Bank Plc
60 High Street
Maldon
Essex
CM9 5PR

Accountants

Lambert Chapman LLP
Chartered Accountants
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Flag Paints Limited

(Registration number: 00353436)
Balance Sheet as at 31 May 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

4

432,310

457,345

Investments

5

1

1

 

432,311

457,346

Current assets

 

Stocks

6

463,569

424,112

Debtors

7

1,075,215

1,088,204

Cash at bank and in hand

 

208,949

186,750

 

1,747,733

1,699,066

Creditors: Amounts falling due within one year

8

(239,801)

(385,593)

Net current assets

 

1,507,932

1,313,473

Total assets less current liabilities

 

1,940,243

1,770,819

Creditors: Amounts falling due after more than one year

8

(50)

(116,050)

Provisions for liabilities

(33,525)

(29,550)

Net assets

 

1,906,668

1,625,219

Capital and reserves

 

Called up share capital

9

15,000

15,000

Capital redemption reserve

45,236

45,236

Revaluation reserve

102,337

104,676

Profit and loss account

1,744,095

1,460,307

Shareholders' funds

 

1,906,668

1,625,219

For the financial year ended 31 May 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges their 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 23 August 2022
 

.........................................
M J Noon
Director

   
     
 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office and the principal place of business is: 8 Springfield Road, Springfield Industrial Estate, Burnham on Crouch, Essex, CM0 8UA.

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of paints and waxes in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

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.

Tax

Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Leasehold property is valued at the revalued amount and not cost.

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their estimated useful life as follows:

Asset class

Depreciation method and rate

Leasehold property

Over the term of the lease

Plant and machinery

20% Reducing balance method

Fixtures and fittings

20% Reducing balance method

Motor vehicles

25% Reducing balance method

Investments

Investments are stated at historical cost less provision for any diminution in value.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and deposits.

Trade debtors

Trade debtors are amounts due from customers for paints and waxes sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. 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. Cost is determined using the first-in, first-out (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, 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

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.

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.

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

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 13 (2021 - 14).

4

Tangible assets

Leasehold property
£

Motor vehicles
 £

Plant and machinery
 £

Fixtures and fittings
 £

Total
£

Cost or valuation

At 1 June 2021

315,999

70,050

249,371

138,601

774,021

Additions

4,550

1,865

2,692

9,940

19,047

At 31 May 2022

320,549

71,915

252,063

148,541

793,068

Depreciation

At 1 June 2021

14,179

16,053

199,400

87,042

316,674

Charge for the year

8,161

13,919

10,472

11,532

44,084

At 31 May 2022

22,340

29,972

209,872

98,574

360,758

Carrying amount

At 31 May 2022

298,209

41,943

42,191

49,967

432,310

At 31 May 2021

301,819

53,997

49,970

51,559

457,345


Revaluations
The leasehold property class of fixed assets was revalued on 20 August 2019 by Whybrow Chartered Surveyors who are external to the company. The basis of this valuation was on an open market basis. This class of assets has a current value of £298,209 (2021 - £301,819) and a carrying amount at historical cost of £288,165 (2021 - £288,165). The depreciation on this historical cost would be £96,786 (2021 - £91,022).
 

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

5

Investments

2022
£

2021
£

Shares in group undertakings

1

1

Subsidiaries

£

Cost or valuation

At 1 June 2021

1

Provision

At 1 June 2021

-

At 31 May 2022

-

Carrying amount

At 31 May 2022

1

At 31 May 2021

1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Flag Brand Products Limited

8 Springfield road, Springfield industrial estate, Burnham On Crouch, Essex, CM0 8UA

Ordinary £1

100%

100%

         

6

Stocks

2022
£

2021
£

Raw materials and consumables

463,569

424,112

7

Debtors

2022
£

2021
£

Trade debtors

164,174

283,500

Other debtors

903,703

798,992

Prepayments

7,338

5,712

1,075,215

1,088,204

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

8

Creditors

Creditors: amounts falling due within one year

2022
 £

2021
 £

Due within one year

Loans and borrowing

-

48,000

Trade creditors

113,888

111,675

Social security and other taxes

31,261

45,961

Other creditors

362

5,457

Corporation tax

66,238

106,657

Accruals and deferred income

28,052

67,843

239,801

385,593

Due after one year

Preference shares

50

50

Loans and borrowings

-

116,000

50

116,050


Creditors due within one year include bank loans which are secured of £nil (2021 - £48,000).

Creditors due after one year include bank loans which are secured of £nil (2021 - £116,000).

The secured loan showing due after one year in the comparative was repaid early.

The long term debt is represented by 50 preference shares of £1 each. Dividends are payable in respect of each financial year of a cash sum equal to 7.5 % of the net profits of the company and its subsidiaries.
The preference shares rank both as regards dividends and capital in priority to the ordinary shares. In the event of a winding up of the company, the holders of preference shares shall be entitled to have surplus assets applied, first in paying off the capital paid upon the preference shares held by them, secondly in paying off the arrears (if any) of the preference share dividends, thirdly in paying any accrued preference share dividend, fourthly in paying off the capital paid upon the ordinary shares and finally any remaining assets in the proportions of 7.5% to the preference shareholder and 92.5% to the ordinary shareholder.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

9

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

15,000

15,000

15,000

15,000

         

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £371,850 (2021 - £381,900). The financial commitments are in respect of operating leases.