Registrar
Registration number:
for the Year Ended
Flag Paints Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Flag Paints Limited
Company Information
Directors |
M J Noon |
Company secretary |
H Hart |
Registered office |
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Bankers |
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Accountants |
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Flag Paints Limited
(Registration number: 00353436)
Balance Sheet as at 31 May 2022
Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
15,000 |
15,000 |
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Capital redemption reserve |
45,236 |
45,236 |
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Revaluation reserve |
102,337 |
104,676 |
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Profit and loss account |
1,744,095 |
1,460,307 |
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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:
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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
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Flag Paints Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022
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:
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
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Tangible assets |
Leasehold property |
Motor vehicles |
Plant and machinery |
Fixtures and fittings |
Total |
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Cost or valuation |
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At 1 June 2021 |
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Additions |
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At 31 May 2022 |
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Depreciation |
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At 1 June 2021 |
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Charge for the year |
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At 31 May 2022 |
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Carrying amount |
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At 31 May 2022 |
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At 31 May 2021 |
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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
Investments |
2022 |
2021 |
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Shares in group undertakings |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 June 2021 |
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Provision |
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At 1 June 2021 |
- |
At 31 May 2022 |
- |
Carrying amount |
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At 31 May 2022 |
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At 31 May 2021 |
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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 |
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2022 |
2021 |
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Subsidiary undertakings |
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8 Springfield road, Springfield industrial estate, Burnham On Crouch, Essex, CM0 8UA |
Ordinary £1 |
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Stocks |
2022 |
2021 |
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Raw materials and consumables |
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Debtors |
2022 |
2021 |
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Trade debtors |
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Other debtors |
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Prepayments |
7,338 |
5,712 |
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Flag Paints Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022
Creditors |
Creditors: amounts falling due within one year
2022 |
2021 |
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Due within one year |
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Loans and borrowing |
- |
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Trade creditors |
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Social security and other taxes |
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Other creditors |
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Corporation tax |
66,238 |
106,657 |
Accruals and deferred income |
28,052 |
67,843 |
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Due after one year |
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Preference shares |
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Loans and borrowings |
- |
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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
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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15,000 |
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15,000 |
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 £