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Filleted

Registration number: 08876281

Down to Earth (Wales) Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

Down to Earth (Wales) Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 9

 

Down to Earth (Wales) Ltd

Company Information

Director

Mr R A Davies

Registered office

Gelli Oer
Pontyates
Llanelli
SA15 5UB

Accountants

LHP Carmarthen
Chartered Certified Accountants
Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

 

Down to Earth (Wales) Ltd

(Registration number: 08876281)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

39,157

18,906

Current assets

 

Stocks

6

2,000

500

Debtors

7

20,708

8,966

 

22,708

9,466

Creditors: Amounts falling due within one year

8

(35,268)

(20,650)

Net current liabilities

 

(12,560)

(11,184)

Total assets less current liabilities

 

26,597

7,722

Creditors: Amounts falling due after more than one year

8

(13,334)

-

Net assets

 

13,263

7,722

Capital and reserves

 

Called up share capital

50

100

Capital redemption reserve

50

-

Profit and loss account

13,163

7,622

Total equity

 

13,263

7,722

For the financial year ending 28 February 2023 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.

 

Down to Earth (Wales) Ltd

(Registration number: 08876281)
Balance Sheet as at 28 February 2023

Approved and authorised by the director on 14 November 2023
 

.........................................
Mr R A Davies
Director

   
     
 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

1

General information

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

The address of its registered office is:
Gelli Oer
Pontyates
Llanelli
SA15 5UB

These financial statements were authorised for issue by the director on 14 November 2023.

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.

Going concern

The financial statements have been prepared on a going concern basis.

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 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.

 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

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

Motor vehicles

20% reducing balance basis

Plant and machinery

20% reducing balance basis

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.

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.

 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

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 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 5 (2022 - 5).

4

Profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

6,197

4,502

 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

5

Tangible assets

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2022

6,344

38,491

44,835

Additions

-

32,660

32,660

Disposals

-

(10,400)

(10,400)

At 28 February 2023

6,344

60,751

67,095

Depreciation

At 1 March 2022

3,293

22,636

25,929

Charge for the year

458

5,738

6,196

Eliminated on disposal

-

(4,187)

(4,187)

At 28 February 2023

3,751

24,187

27,938

Carrying amount

At 28 February 2023

2,593

36,564

39,157

At 28 February 2022

3,051

15,855

18,906

6

Stocks

2023
£

2022
£

Work in progress

2,000

500

7

Debtors

2023
£

2022
£

Trade debtors

15,564

7,592

Provision for impairment of debtors

-

(354)

Other debtors

5,144

1,728

20,708

8,966

 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

10

21,804

7,366

Trade creditors

 

6,605

3,726

Taxation and social security

 

398

742

Other related parties

 

6,170

5,780

Outstanding defined contribution pension costs

 

291

298

Corporation tax liability

 

-

2,451

Other creditors

 

-

287

 

35,268

20,650

Due after one year

 

Loans and borrowings

10

13,334

-

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

13,334

-

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

A Ordinary of £1 each

50

50

50

50

B Ordinary of £1 each

50

50

50

50

 

100

100

100

100

 

Down to Earth (Wales) Ltd

Notes to the Financial Statements for the Year Ended 28 February 2023

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

HP and finance lease liabilities

13,334

-

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

17,994

7,366

HP and finance lease liabilities

3,810

-

21,804

7,366

11

Related party transactions

Transactions with directors

2023

At 1 March 2022
£

Other payments made to company by director
£

At 28 February 2023
£

Mr S P Worthington

Interest free loan with no fixed repayments

(390)

390

-

       
     

Mr R A Davies

Interest free loan with no fixed repayments

(5,390)

(780)

(6,170)

       
     

 

2022

At 1 March 2021
£

Other payments made to company by director
£

At 28 February 2022
£

Mr S P Worthington

Interest free loan with no fixed repayments

(11,726)

11,336

(390)

       
     

Mr R A Davies

Interest free loan with no fixed repayments

(5,712)

322

(5,390)