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Registration number: 09456506

Prepared for the registrar

Wellsway Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2023

 

Wellsway Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 7

 

Wellsway Limited

Company Information

Director

Mr J S Cheema

Registered office

213 St John Street
St. John Street
London
EC1V 4LY

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Wellsway Limited

(Registration number: 09456506)
Balance Sheet as at 30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

112,534

167,414

Current assets

 

Stocks

132,256

95,391

Debtors

5

451,372

300,906

Cash at bank and in hand

 

25,638

181

 

609,266

396,478

Creditors: Amounts falling due within one year

6

(439,831)

(323,717)

Net current assets

 

169,435

72,761

Net assets

 

281,969

240,175

Capital and reserves

 

Called up share capital

4

4

Profit and loss account

281,965

240,171

Shareholders' funds

 

281,969

240,175

For the financial year ending 30 September 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 1 May 2024
 


Mr J S Cheema
Director

 

Wellsway Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 September 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:
213 St John Street
St. John Street
London
EC1V 4LY
England

 

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 and after eliminating sales within the company.

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.

 

Wellsway Limited

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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.

Depreciation

Asset class

Depreciation method and rate

Plant and machinery

25% on cost

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2015, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

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.

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

 

Wellsway Limited

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

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


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

 

Wellsway Limited

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

 

4

Intangible assets

Goodwill
 £

Cost

At 1 October 2022

548,800

At 30 September 2023

548,800

Amortisation

At 1 October 2022

381,386

Amortisation charge

54,880

At 30 September 2023

436,266

Carrying amount

At 30 September 2023

112,534

At 30 September 2022

167,414

 

5

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

17,591

60,024

Amounts owed by related parties

8

421,838

231,047

Other debtors

 

11,943

9,835

   

451,372

300,906

 

6

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

137,499

107,457

Amounts due to related parties

8

188,215

72,058

Social security and other taxes

 

-

2,147

Outstanding defined contribution pension costs

 

71

408

Other creditors

 

1,188

50,820

Accrued expenses

 

2,730

12,346

Corporation tax liability

110,128

78,481

 

439,831

323,717

 

Wellsway Limited

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

 

7

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

Ordinary A shares of £1 each

1

1

1

1

Ordinary B shares of £1 each

1

1

1

1

 

4

4

4

4

The different classes of shares referred to above carry separate rights to dividends, but in all other significant respects, rank pari passu.

 

8

Related party transactions

Summary of transactions with other related parties

Wellsway Holdings Ltd
(Parent company of Wellsway Ltd)
As at the balance sheet date the company owed Wellsway Holdings Ltd £8,553 (2022 - £72,058). There are no fixed repayment terms and no interest is charged on the loan.

Allcures PLC
(Companies for which JS Cheema is a current shareholder and director)
As at the balance sheet date the company was owed £421,838 by Allcures plc (2022 - £231,047). There are no fixed repayment terms and no interest is charged on the loan.

Preddy Newco Limited
(Companies for which JS Cheema is a current shareholder and director)
As at the balance sheet date the company owed Preddy Newco Limited £105,917 (2022 - £nil). There are no fixed repayment terms and no interest is charged on the loan.

Allkare Limited
(Companies for which JS Cheema is a current shareholder and director)
As at the balance sheet date the company owed Allkare Limited £20,000 (2022 - £nil). There are no fixed repayment terms and no interest is charged on the loan.

Knightnoise Limited
(Companies for which JS Cheema is a current shareholder and director)
As at the balance sheet date the company owed Knightnoise Limited £46,745 (2022 - £nil). There are no fixed repayment terms and no interest is charged on the loan.

Wellbrooke Limited
(Companies for which JS Cheema is a current shareholder and director)
As at the balance sheet date the company owed Wellbrooke Limited £7,000 (2022 - £nil). There are no fixed repayment terms and no interest is charged on the loan.