Company registration number SC564817 (Scotland)
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
42,478
46,221
Current assets
Stocks
182,731
124,754
Debtors
5
56,141
45,218
Cash at bank and in hand
13,912
238,872
183,884
Creditors: amounts falling due within one year
6
(137,883)
(103,896)
Net current assets
100,989
79,988
Total assets less current liabilities
143,467
126,209
Creditors: amounts falling due after more than one year
7
(45,879)
(63,091)
Provisions for liabilities
(8,070)
(8,782)
Net assets
89,518
54,336
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
89,418
54,236
Total equity
89,518
54,336
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 31 December 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.
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 16 September 2022 and are signed on its behalf by:
Mr N Barclay
Director
Company Registration No. SC564817
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Furniture Factory Clearance Centre Limited is a private company limited by shares incorporated in Scotland on 3 May 2017. The registered office and business address can be found on the Company Information page.
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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for furniture net of VAT. Turnover is recognised on dispatch of goods.
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 equipment
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
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 cost and replacement 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.
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.5
Cash at bank and in hand
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 current liabilities.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.6
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.
1.7
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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.8
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.
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
1.9
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 in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
4
4
4
Tangible fixed assets
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2021
11,556
1,958
47,040
60,554
Additions
5,450
1,182
6,632
At 31 December 2021
17,006
3,140
47,040
67,186
Depreciation and impairment
At 1 January 2021
5,470
1,463
7,400
14,333
Depreciation charged in the year
1,759
688
7,928
10,375
At 31 December 2021
7,229
2,151
15,328
24,708
Carrying amount
At 31 December 2021
9,777
989
31,712
42,478
At 31 December 2020
6,086
495
39,640
46,221
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
6,104
Other debtors
56,091
38,318
Prepayments and accrued income
50
796
56,141
45,218
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
9
140
Hire purchase
8
9,714
9,359
Other borrowings
9
7,241
3,967
Trade creditors
58,909
42,996
Corporation tax
18,126
2,247
Other taxation and social security
8,605
11,906
Other creditors
28,925
30,643
Accruals and deferred income
6,223
2,778
137,883
103,896
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Hire purchase
45,879
63,091
8
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
9,714
9,359
In two to five years
23,344
33,058
33,058
42,417
Hire purchase payments represent amounts payable by the company for motor vehicles.
The hire purchase liabilities of £33,058 (2020: £42,417) are secured over the assets to which they relate.
FURNITURE FACTORY CLEARANCE CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
9
Loans and overdrafts
2021
2020
£
£
Bank overdrafts
140
Other loans
7,241
3,967
7,381
3,967
Payable within one year
7,381
3,967
The overdraft facility is secured by a floating charge over all the property or undertaking of the company.
10
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
55
55
55
55
Ordinary B shares of £1 each
45
45
45
45
100
100
100
100
11
Related party transactions
During the year, purchases of £31,428 (2020: £31,506) were made to companies which Mr N Barclay is a director. A balance of £7,260 (2020: £10,548) was owed to these companies at 31 December 2021.
12
Directors' transactions
Dividends totalling £40,000 (2020 : £52,000) were paid in the year in respect of shares held by the company directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' Loan Accounts
2.00
38,017
58,640
759
(41,325)
56,091
38,017
58,640
759
(41,325)
56,091