Company registration number 01968567 (England and Wales)
UNITED EMBROIDERY COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
PAGES FOR FILING WITH REGISTRAR
UNITED EMBROIDERY COMPANY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
UNITED EMBROIDERY COMPANY LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2023
31 January 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,466
2,821
Investment properties
5
20,650,000
20,950,000
Investments
6
324,672
263,874
20,979,138
21,216,695
Current assets
Debtors
7
847,163
1,051,133
Cash at bank and in hand
564,272
297,285
1,411,435
1,348,418
Creditors: amounts falling due within one year
8
(833,873)
(717,878)
Net current assets
577,562
630,540
Total assets less current liabilities
21,556,700
21,847,235
Creditors: amounts falling due after more than one year
9
(9,343,757)
(9,399,999)
Provisions for liabilities
(812,545)
(871,828)
Net assets
11,400,398
11,575,408
Capital and reserves
Called up share capital
160,000
160,000
Revaluation reserve
10
4,072,963
4,252,364
Profit and loss reserves
7,167,435
7,163,044
Total equity
11,400,398
11,575,408
UNITED EMBROIDERY COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2023
31 January 2023
- 2 -
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 January 2023 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.
The financial statements were approved by the board of directors and authorised for issue on 25 October 2023 and are signed on its behalf by:
M D Wong
Director
Company Registration No. 01968567
UNITED EMBROIDERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
- 3 -
1
Accounting policies
Company information
United Embroidery Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Rokeby Place, LONDON, SW20 0HU.
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, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.
Revenue from contracts for the provision of rental services is recognised by reference to the date of provision of the service.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
5% Straight line
Fixtures and fittings
5% Straight line
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
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Investments are initially measured at transaction price including transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit and loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held with banks.
UNITED EMBROIDERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
1
Accounting policies
(Continued)
- 4 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are recognised at transaction price including transaction costs.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
1.9
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.
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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.11
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.
UNITED EMBROIDERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 5 -
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.
The investment properties are carried at fair value in the accounts, based on a valuation derived from independent Chartered Surveyors.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2022
294,977
Additions
1,917
At 31 January 2023
296,894
Depreciation and impairment
At 1 February 2022
292,156
Depreciation charged in the year
272
At 31 January 2023
292,428
Carrying amount
At 31 January 2023
4,466
At 31 January 2022
2,821
UNITED EMBROIDERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 6 -
5
Investment property
2023
£
Fair value
At 1 February 2022
20,950,000
Revaluations
(300,000)
At 31 January 2023
20,650,000
Investment properties comprises a number of commercial properties located in the UK. The fair value of the investment property has been arrived at on the basis of a valuation carried out at on 11 July 2023 by Aitchison Raffety Chartered Surveyors, who are not connected with the company, representing property values as at 31 January 2023. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
6
Fixed asset investments
2023
2022
£
£
Other investments
324,672
263,874
Fixed asset investments revalued
Listed investments had a historical cost of £323,649 (2022 - £323,649)
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 February 2022
263,874
Valuation changes
60,798
At 31 January 2023
324,672
Carrying amount
At 31 January 2023
324,672
At 31 January 2022
263,874
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
55,979
80,085
Other debtors
791,184
971,048
847,163
1,051,133
UNITED EMBROIDERY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023
- 7 -
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
47
47
Trade creditors
123,894
22,873
Taxation and social security
13,635
24,784
Other creditors
696,297
670,174
833,873
717,878
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
9,343,757
9,399,999
Notwithstanding the fact that there are no formal terms in place, the £9,343,757 (2022 - £9,399,999) due to close members of the directors' family has been included in creditors: amounts falling due after more than one year on the basis that no repayments will be made within 12 months of the balance sheet date.
10
Revaluation reserve
2023
2022
£
£
At the beginning of the year
4,252,364
2,242,687
Revaluation (deficit)/surplus arising in the year
(239,201)
2,355,075
Deferred tax on revaluation of tangible assets arising in the year
59,800
(345,398)
At the end of the year
4,072,963
4,252,364
11
Financial commitments, guarantees and contingent liabilities
Legal charges are in place over properties in respect of all monies due, or to become due, from the company to the company's bankers on any account whatsoever.
12
Related party transactions
Included in creditors: amounts falling due within one year is £551,255 (2022 - £557,152) due to company directors. The loans are interest free with no formal repayment terms.
Included in creditors: amounts falling due after more than one year is £9,343,752 (2022 - £9,399,999) due to close members of the directors' family. The loan is interest free with no formal repayment terms.