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Registration number: 07952397

MD Audio Solutions Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2023

 

MD Audio Solutions Limited

Contents

Statement of Financial Position

1 to 2

Notes to the Unaudited Financial Statements

3 to 12

 

MD Audio Solutions Limited

(Registration number: 07952397)
Statement of Financial Position as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

149,942

171,892

Current assets

 

Stocks

6

135,423

235,673

Debtors

7

16,563

2,161

 

151,986

237,834

Creditors: Amounts falling due within one year

8

(331,951)

(301,547)

Net current liabilities

 

(179,965)

(63,713)

Total assets less current liabilities

 

(30,023)

108,179

Creditors: Amounts falling due after more than one year

8

(66,516)

(64,005)

Provisions for liabilities

-

(4,359)

Net (liabilities)/assets

 

(96,539)

39,815

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

(96,639)

39,715

Shareholders' (deficit)/funds

 

(96,539)

39,815

For the financial year ending 30 June 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. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Statement of Comprehensive Income.

Approved and authorised by the director on 28 March 2024
 

 

MD Audio Solutions Limited

(Registration number: 07952397)
Statement of Financial Position as at 30 June 2023 (continued)


Mr M Dibley
Director

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

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:
26-28 Southernhay East
Exeter
Devon
EX1 1NS

Principal activity

The principal activity of the company is the retail sale of audio and video equipment.

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.

The financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The company meets its day to day working capital requirements through support from the director which will continue for the foreseeable future. On this basis, the director considers it appropriate to prepare the financial statements on the going concern basis.

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

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 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.

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 statement of financial position 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.

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

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

Short leasehold property

Over 10 years

Office equipment

33.33% straight line

Fixtures and fittings

25% reducing balance

Motor vehicles

25% reducing balance

Impairment

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.

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

Over 5 years

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, 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. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

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.

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

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 statement of comprehensive income 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 statement of financial position as a finance lease obligation.

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

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.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes 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.

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 5 (2022 - 4).

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2022

12,000

12,000

At 30 June 2023

12,000

12,000

Amortisation

At 1 July 2022

12,000

12,000

At 30 June 2023

12,000

12,000

Carrying amount

At 30 June 2023

-

-

5

Tangible assets

Short leasehold land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

165,499

22,161

8,721

28,121

224,502

Additions

-

-

1,108

-

1,108

At 30 June 2023

165,499

22,161

9,829

28,121

225,610

Depreciation

At 1 July 2022

16,550

16,265

7,493

12,302

52,610

Charge for the year

16,550

1,474

1,079

3,955

23,058

At 30 June 2023

33,100

17,739

8,572

16,257

75,668

Carrying amount

At 30 June 2023

132,399

4,422

1,257

11,864

149,942

At 30 June 2022

148,949

5,896

1,228

15,819

171,892

Included within the net book value of land and buildings above is £132,399 (2022 - £148,949) in respect of short leasehold land and buildings.
 

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

6

Stocks

2023
£

2022
£

Finished goods and goods for resale

135,423

235,673

7

Debtors

Note

2023
£

2022
£

Other debtors

 

7,504

-

Prepayments

 

2,529

2,161

Income tax asset

6,530

-

 

16,563

2,161

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

102,336

110,224

Trade creditors

 

84,412

68,748

Taxation and social security

 

7,851

20,567

Accruals and deferred income

 

3,428

-

Other creditors

 

133,924

102,008

 

331,951

301,547

Creditors include obligations under hire purchase contracts of £4,545 (2022 - £4,068) which are secured against the assets to which they relate.

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

66,516

64,005

Creditors include obligations under hire purchase contracts of £13,919 (2022 - £18,465) which are secured against the assets to which they relate.

9

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses.

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

10

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

27,597

45,540

Hire purchase contracts

13,919

18,465

Other borrowings

25,000

-

66,516

64,005

Current loans and borrowings

2023
£

2022
£

Bank borrowings

21,850

30,600

Bank overdrafts

50,941

75,556

Hire purchase contracts

4,545

4,068

Other borrowings

25,000

-

102,336

110,224

11

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

66,125

100,625

The amount of non-cancellable operating lease payments recognised as an expense during the year was £34,500 (2022 - £31,625).

12

Related party transactions

Transactions with the director

2023

At 1 July 2022
£

Advances to director
£

Repayments by director
£

At 30 June 2023
£

(592)

9,349

(1,253)

7,504

         
       

 

 

MD Audio Solutions Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

12

Related party transactions (continued)

2022

At 1 July 2021
£

Advances to director
£

Repayments by director
£

At 30 June 2022
£

(742)

19,150

(19,000)

(592)