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Registration number: 01174802

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2022

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

Company Information

Director

Mr A N Weatherley

Company secretary

Mrs E Weatherley

Registered office

Unit 7 Tees Court
Wallis Road
Skippers Lane Industrial Estate
Middlesbrough
TS6 6DX

Accountants

Goldstrong Accountants Ltd
Chartered Accountants
55 Heaton Road
Grange Park
Billingham
Cleveland
TS23 3GP

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

(Registration number: 01174802)
Balance Sheet as at 31 July 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

4

5,126

6,407

Tangible assets

5

71,020

87,727

 

76,146

94,134

Current assets

 

Stocks

6

4,000

4,000

Debtors

7

64,783

37,915

Cash at bank and in hand

 

105,038

50,459

 

173,821

92,374

Creditors: Amounts falling due within one year

8

(118,034)

(72,809)

Net current assets

 

55,787

19,565

Total assets less current liabilities

 

131,933

113,699

Creditors: Amounts falling due after more than one year

8

(51,170)

(64,149)

Provisions for liabilities

(13,494)

(16,668)

Net assets

 

67,269

32,882

Capital and reserves

 

Called up share capital

9

100

100

Capital redemption reserve

35

35

Retained earnings

67,134

32,747

Shareholders' funds

 

67,269

32,882

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

(Registration number: 01174802)
Balance Sheet as at 31 July 2022

For the financial year ending 31 July 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 his 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 7 September 2022
 

.........................................
Mr A N Weatherley
Director

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

1

General information

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

The address of its registered office is:
Unit 7 Tees Court
Wallis Road
Skippers Lane Industrial Estate
Middlesbrough
TS6 6DX

These financial statements were authorised for issue by the director on 7 September 2022.

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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.

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and Machinery

20% reducing balance basis

Motor vehicles

25% reducing balance basis

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10% straight line method

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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. Accounts payable 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.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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.

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 7 (2021 - 7).

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 August 2021

12,812

12,812

At 31 July 2022

12,812

12,812

Amortisation

At 1 August 2021

6,405

6,405

Amortisation charge

1,281

1,281

At 31 July 2022

7,686

7,686

Carrying amount

At 31 July 2022

5,126

5,126

At 31 July 2021

6,407

6,407

5

Tangible assets

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 August 2021

107,521

69,787

177,308

Additions

5,417

1,069

6,486

Disposals

(14,992)

-

(14,992)

At 31 July 2022

97,946

70,856

168,802

Depreciation

At 1 August 2021

31,545

58,036

89,581

Charge for the year

18,712

2,438

21,150

Eliminated on disposal

(12,949)

-

(12,949)

At 31 July 2022

37,308

60,474

97,782

Carrying amount

At 31 July 2022

60,638

10,382

71,020

At 31 July 2021

75,976

11,751

87,727

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

6

Stocks

2022
£

2021
£

Other inventories

4,000

4,000

7

Debtors

Current

2022
£

2021
£

Trade debtors

64,783

37,915

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

8

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

10

12,852

11,895

Trade creditors

 

23,855

15,733

Amounts owed to group undertakings and undertakings in which the company has a participating interest

24,034

23,928

Taxation and social security

 

13,830

4,871

Other creditors

 

43,463

16,382

 

118,034

72,809

Due after one year

 

Loans and borrowings

10

51,170

64,149

Creditors: amounts falling due after more than one year

Note

2022
£

2021
£

Due after one year

 

Loans and borrowings

10

51,170

64,149

9

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary share of £1 each

65

65

65

65

A share of £1 each

25

25

25

25

B share of £1 each

10

10

10

10

 

100

100

100

100

 

The Sign Studio (N.E.) Ltd

trading as The Sign Studio

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

10

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

29,116

38,904

Hire purchase contracts

22,054

25,245

51,170

64,149

2022
£

2021
£

Current loans and borrowings

Bank borrowings

9,661

9,400

Hire purchase contracts

3,191

2,495

12,852

11,895