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COMPANY REGISTRATION NUMBER: 08375333
Morecambe Bay Wines Limited
Filleted Unaudited Financial Statements
For the year to
31 January 2023
Morecambe Bay Wines Limited
Statement of Financial Position
31 January 2023
2023
2022
Note
£
£
£
Fixed assets
Intangible assets
5
545,484
606,093
Tangible assets
6
256,734
301,777
----------
----------
802,218
907,870
Current assets
Stocks
966,885
1,296,461
Debtors
7
1,464,462
1,426,150
Cash at bank and in hand
101,481
137,294
-------------
-------------
2,532,828
2,859,905
Creditors: amounts falling due within one year
8
1,958,423
2,234,018
-------------
-------------
Net current assets
574,405
625,887
-------------
-------------
Total assets less current liabilities
1,376,623
1,533,757
Creditors: amounts falling due after more than one year
9
736,058
942,834
Provisions
Taxation including deferred tax
19,659
-------------
-------------
Net assets
620,906
590,923
-------------
-------------
Morecambe Bay Wines Limited
Statement of Financial Position (continued)
31 January 2023
2023
2022
Note
£
£
£
Capital and reserves
Called up share capital
1
1
Profit and loss account
620,905
590,922
----------
----------
Shareholders funds
620,906
590,923
----------
----------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
For the year ending 31st January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- 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 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements were approved by the board of directors and authorised for issue on 19 October 2023 , and are signed on behalf of the board by:
Mr P M Cross
Director
Company registration number: 08375333
Morecambe Bay Wines Limited
Notes to the Financial Statements
Year ended 31st January 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Morecambe Bay Wines, Newgate, White Lund Industrial Estate, Morecambe, Lancashire, LA3 3PT, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Goodwill
Acquired goodwill is written off in equal instalments over its estimated useful economic life.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
20% reducing balance
Fixtures and fittings
-
20% reducing balance
Motor vehicles
-
25% reducing balance
Computer equipment
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis 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 and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 46 (2022: 36 ).
5. Intangible assets
Goodwill
£
Cost
At 1st February 2022 and 31st January 2023
606,093
----------
Amortisation
Charge for the year
60,609
----------
At 31st January 2023
60,609
----------
Carrying amount
At 31st January 2023
545,484
----------
At 31st January 2022
606,093
----------
6. Tangible assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1st February 2022
188,191
204,839
217,103
16,128
626,261
Additions
10,459
3,121
12,557
2,888
29,025
Disposals
( 23,995)
( 23,995)
----------
----------
----------
---------
----------
At 31st January 2023
198,650
207,960
205,665
19,016
631,291
----------
----------
----------
---------
----------
Depreciation
At 1st February 2022
90,187
107,671
112,733
13,893
324,484
Charge for the year
20,179
19,795
25,244
1,257
66,475
Disposals
( 16,402)
( 16,402)
----------
----------
----------
---------
----------
At 31st January 2023
110,366
127,466
121,575
15,150
374,557
----------
----------
----------
---------
----------
Carrying amount
At 31st January 2023
88,284
80,494
84,090
3,866
256,734
----------
----------
----------
---------
----------
At 31st January 2022
98,004
97,168
104,370
2,235
301,777
----------
----------
----------
---------
----------
7. Debtors
2023
2022
£
£
Trade debtors
967,342
1,004,392
Amounts owed by group undertakings
214,341
211,231
Prepayments and accrued income
25,913
30,928
Other debtors
256,866
179,599
-------------
-------------
1,464,462
1,426,150
-------------
-------------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
548,374
299,071
Trade creditors
874,302
893,775
Accruals and deferred income
27,062
70,383
Social security and other taxes
166,163
358,293
Obligations under finance leases and hire purchase contracts
55,603
47,240
Director loan accounts
249,205
210,789
Other creditors
37,714
354,467
-------------
-------------
1,958,423
2,234,018
-------------
-------------
An invoice financing balance of £465,548 (2022: £229,582) is secured by a fixed and floating charge over the assets of the company. Obligations under finance leases of £55,604 (2022: £47,240) as due within one year are secured against the relevant tangible fixed asset of the company. Other loans of £153,507 (2022: £233,842) as due within one year are secured by personal guarantees given by the directors.
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
40,007
147,993
Obligations under finance leases and hire purchase contracts
99,374
157,512
Other creditors
596,677
637,329
----------
----------
736,058
942,834
----------
----------
Obligations under finance leases of £99,374 (2022: £157,512) as due after one year are secured against the relevant tangible fixed asset of the company. Other loans of £40,007 (2022: 147,993) as due after one year are secured by personal guarantees given by the directors. The total amount of money invested by Ms Qi An as a director's loan is £200,000 (2022: £200,000). This balance is included within other creditors. The total amount of money invested by Ms Lu Shen as a director's loan is £200,000 (2022: £200,000). This balance is included within other creditors.
10. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
62,234
25,834
Later than 1 year and not later than 5 years
72,201
49,502
----------
---------
134,435
75,336
----------
---------
11. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr P M Cross
( 210,789)
( 33,521)
( 244,310)
Mr L J Cross
( 4,895)
( 4,895)
----------
---------
----------
( 210,789)
( 38,416)
( 249,205)
----------
---------
----------
2022
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr P M Cross
( 216,081)
5,292
( 210,789)
Mr L J Cross
----------
-------
----------
( 216,081)
5,292
( 210,789)
----------
-------
----------