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Company registration number: 04212440
Devoncraft UK Limited
Unaudited filleted financial statements
31 May 2023
DEVONCRAFT UK LIMITED
STATEMENT OF FINANCIAL POSITION
31 MAY 2023
2023 2022
Note £ £ £ £
Fixed assets
Intangible assets 5 883 1,083
Tangible assets 6 156,242 149,853
_______ _______
157,125 150,936
Current assets
Stocks 509,498 354,410
Debtors 7 419,993 673,251
Cash at bank and in hand 845,460 619,509
_______ _______
1,774,951 1,647,170
Creditors: amounts falling due
within one year 8 ( 358,772) ( 371,971)
_______ _______
Net current assets 1,416,179 1,275,199
_______ _______
Total assets less current liabilities 1,573,304 1,426,135
Provisions for liabilities ( 24,302) ( 16,487)
_______ _______
Net assets 1,549,002 1,409,648
_______ _______
Capital and reserves
Called up share capital 9 27 29
Capital redemption reserve 10 73 71
Profit and loss account 10 1,548,902 1,409,548
_______ _______
Shareholders funds 1,549,002 1,409,648
_______ _______
For the year ending 31 May 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 financial statements for the year in question in accordance with section 476;
- The director acknowledges their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
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 comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 27 November 2023 , and are signed on behalf of the board by:
C Wensley
Director
Company registration number: 04212440
DEVONCRAFT UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 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 Devoncraft Uk Ltd, Diptford, Totnes, Devon, TQ9 7NG.
Principal activity
The principal activity of the company is that of wholesale of hand-craft wooden gifts.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and 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 measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
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.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership 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.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Operating leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more epresentative of the time pattern in which economic benefits from the leased assets are consumed.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
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:
Trademarks - 10% 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 are subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
Freehold land - Not depreciated
Freehold/ Leasehold properties - 10% straight line
Plant and machinery - 15% reducing balance
Fittings fixtures and equipment - 15% reducing balance
Motor vehicles - 25% reducing balance
Computers - 33% straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
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. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
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 with original maturities of three months or less and bank overdrafts. 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. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
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 in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company 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 theend 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. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 10 (2022: 11 ).
5. Intangible assets
Other Total
£ £
Cost
At 1 June 2022 and 31 May 2023 1,998 1,998
_______ _______
Amortisation
At 1 June 2022 915 915
Charge for the year 200 200
_______ _______
At 31 May 2023 1,115 1,115
_______ _______
Carrying amount
At 31 May 2023 883 883
_______ _______
At 31 May 2022 1,083 1,083
_______ _______
6. Tangible assets
Land and buildings Plant and machinery Total
£ £ £
Cost
At 1 June 2022 96,515 228,383 324,898
Additions - 50,882 50,882
_______ _______ _______
At 31 May 2023 96,515 279,265 375,780
_______ _______ _______
Depreciation
At 1 June 2022 30,771 144,274 175,045
Charge for the year 4,367 40,126 44,493
_______ _______ _______
At 31 May 2023 35,138 184,400 219,538
_______ _______ _______
Carrying amount
At 31 May 2023 61,377 94,865 156,242
_______ _______ _______
At 31 May 2022 65,744 84,109 149,853
_______ _______ _______
7. Debtors
2023 2022
£ £
Trade debtors 145,422 197,561
Other debtors 274,571 475,690
_______ _______
419,993 673,251
_______ _______
8. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 11,251 64,809
Trade creditors 58,810 96,341
Accruals and deferred income 24,458 26,822
Social security and other taxes 180,515 153,546
Other creditors 83,738 30,453
_______ _______
358,772 371,971
_______ _______
The loans and borrowings relates to a loan from the managing trustees of Devoncraft UK Limited Executive Pension Scheme to Devoncraft UK Limited .It is agreed that Devoncraft UK Limited will re-pay the principal money on demand to the managing trustees in quarterly repayments within 5 years at an interest rate of 5% per annum.The loan is secured on a charge over the assets of the company.
9. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares of £ 1.00 each 2 2 4 4
Ordinary A shares of £ 1.00 each 20 20 20 20
Ordinary B shares of £ 1.00 each 5 5 5 5
_______ _______ _______ _______
27 27 29 29
_______ _______ _______ _______
On 16/12/22 the company purchased 2 ordinary £1 shares of its own share capital for £113.323.
10. Reserves
Profit and loss account:This reserve records retained earnings and accumulated losses.
11. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 40,109 40,109
Later than 1 year and not later than 5 years 32,891 72,891
_______ _______
73,000 113,000
_______ _______
12. Other financial commitments
The company has entered into an agreement to purchase its remaining 2 ordinary shares. The agreement is to be paid in equal instalments over the next two years. The total amount due is £344,708 (2022 - £458,031).
13. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2023
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Director ( 24,497) ( 89,382) 37,791 ( 76,088)
_______ _______ _______ _______
2022
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
Director ( 11,315) ( 41,249) 28,067 ( 24,497)
_______ _______ _______ _______