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Registration number: 06664351

Mediterranean Linens Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2023

 

Mediterranean Linens Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3 to 4

Notes to the Unaudited Financial Statements

5 to 10

 

Mediterranean Linens Limited

Company Information

Director

Mr A S Ahmed

Registered office

Enterprise House Billington Road Industrial Estate
Billington Road
Burnley
Lancashire
BB11 5UB

Accountants

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

 

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Mediterranean Linens Limited
for the Year Ended 31 March 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Mediterranean Linens Limited for the year ended 31 March 2023 as set out on pages 3 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Mediterranean Linens Limited, as a body. Our work has been undertaken solely to prepare for your approval the accounts of Mediterranean Linens Limited and state those matters that we have agreed to state to the Board of Directors of Mediterranean Linens Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Mediterranean Linens Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Mediterranean Linens Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Mediterranean Linens Limited. You consider that Mediterranean Linens Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Mediterranean Linens Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Hargreaves Brown & Benson
Chartered Accountants
1 Bond Street
Colne
Lancashire
BB8 9DG

28 March 2024

 

Mediterranean Linens Limited

(Registration number: 06664351)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

2,478,565

2,485,203

Current assets

 

Stocks

5

933,191

675,029

Debtors

6

1,124,491

1,228,490

Cash at bank and in hand

 

1,603

8,590

 

2,059,285

1,912,109

Creditors: Amounts falling due within one year

7

(1,332,459)

(1,229,183)

Net current assets

 

726,826

682,926

Total assets less current liabilities

 

3,205,391

3,168,129

Creditors: Amounts falling due after more than one year

7

(3,745,456)

(3,732,563)

Provisions for liabilities

201,515

206,070

Net liabilities

 

(338,550)

(358,364)

Capital and reserves

 

Called up share capital

150,000

150,000

Profit and loss account

(488,550)

(508,364)

Shareholders' deficit

 

(338,550)

(358,364)

 

Mediterranean Linens Limited

(Registration number: 06664351)
Balance Sheet as at 31 March 2023

For the financial year ending 31 March 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.

Approved and authorised by the director on 28 March 2024
 

.........................................
Mr A S Ahmed
Director

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 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:
Enterprise House Billington Road Industrial Estate
Billington Road
Burnley
Lancashire
BB11 5UB

These financial statements were authorised for issue by the director on 28 March 2024.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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 company is reliant upon the support of its director. The director has a reasonable expectation that the company has adequate resources available to continue in operational existence for the foreseeable future, thus he continues to adopt the going concern basis of accounting in preparing the annual financial statements.

The director has agreed not to seek repayment of director loans until the company has sufficient funds to do so.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 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

Plant and machinery

20% reducing balance

Fixtures and fittings

15% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, 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.

Trade 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.

Trade 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.

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 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.

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.

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 6 (2022 - 8).

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 April 2022

2,442,402

133,549

2,575,951

At 31 March 2023

2,442,402

133,549

2,575,951

Depreciation

At 1 April 2022

-

90,751

90,751

Charge for the year

-

6,635

6,635

At 31 March 2023

-

97,386

97,386

Carrying amount

At 31 March 2023

2,442,402

36,163

2,478,565

At 31 March 2022

2,442,402

42,801

2,485,203

Included within the net book value of land and buildings above is £2,442,402 (2022 - £2,442,402) in respect of freehold land and buildings.
 

5

Stocks

2023
£

2022
£

Other inventories

933,191

675,029

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

6

Debtors

2023
£

2022
£

Trade debtors

966,475

1,071,586

Prepayments

9,016

7,904

Other debtors

149,000

149,000

1,124,491

1,228,490

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

594,066

96,448

Trade creditors

 

20,057

281,401

Taxation and social security

 

236,854

186,381

Accruals and deferred income

 

6,480

8,795

Other creditors

 

475,002

656,158

 

1,332,459

1,229,183

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

2,315,522

2,432,676

Other non-current financial liabilities

 

1,429,934

1,299,887

 

3,745,456

3,732,563

 

Mediterranean Linens Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

8

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

776,308

895,690

Other borrowings

1,539,214

1,536,986

2,315,522

2,432,676

2023
£

2022
£

Current loans and borrowings

Bank borrowings

132,652

96,448

Bank overdrafts

461,414

-

594,066

96,448

9

Related party transactions

10

Parent and ultimate parent undertaking

The company's immediate parent is Linen Supply Group Ltd, incorporated in England and Wales.

 The ultimate controlling party is director Mr A S Ahmed.