Company Registration No. 07816055 (England and Wales)
2PURE PRODUCTS (DISTRIBUTION) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2PURE PRODUCTS (DISTRIBUTION) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
2PURE PRODUCTS (DISTRIBUTION) LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
3,253
3,903
Tangible assets
4
23,812
16,976
27,065
20,879
Current assets
Stocks
85,250
83,972
Debtors
5
573,208
497,919
Cash at bank and in hand
34,053
14,648
692,511
596,539
Creditors: amounts falling due within one year
6
(363,019)
(358,872)
Net current assets
329,492
237,667
Total assets less current liabilities
356,557
258,546
Creditors: amounts falling due after more than one year
7
(17,500)
(27,500)
Net assets
339,057
231,046
Capital and reserves
Called up share capital
181
181
Capital redemption reserve
3
3
Profit and loss reserves
338,873
230,862
Total equity
339,057
231,046
2PURE PRODUCTS (DISTRIBUTION) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023
31 October 2023
- 2 -
For the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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 directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 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.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 22 July 2024 and are signed on its behalf by:
Dr P Nichols
Director
Company registration number 07816055 (England and Wales)
2PURE PRODUCTS (DISTRIBUTION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
1
Accounting policies
Company information
2Pure Products (Distribution) Limited is a private company limited by shares incorporated in England and Wales, registered number 07816055. The registered office is 32 Portland Terrace, Jesmond, Newcastle upon Tyne, NE2 1QP. The place of business is Eltringham Works, Prudhoe, NE42 6LP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has cash resources and relies on cash introduced by the directors and a bank loan. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements. true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
10% straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
15% reducing balance
Motor vehicles
20% reducing balance
2PURE PRODUCTS (DISTRIBUTION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Stocks
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2PURE PRODUCTS (DISTRIBUTION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
The company has entered into invoice discounting agreements in respect of its trade debtors. The financial statements disclose the gross amount of the recoverable debts within trade debtors, with the corresponding liability for proceeds received within bank loans and overdrafts. Invoice discounting charges are included within the profit and loss as they accrue.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
8
3
Intangible fixed assets
Other
£
Cost
At 1 November 2022 and 31 October 2023
6,504
Amortisation and impairment
At 1 November 2022
2,601
Amortisation charged for the year
650
At 31 October 2023
3,251
Carrying amount
At 31 October 2023
3,253
At 31 October 2022
3,903
2PURE PRODUCTS (DISTRIBUTION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2022
33,469
Additions
10,261
At 31 October 2023
43,730
Depreciation and impairment
At 1 November 2022
16,493
Depreciation charged in the year
3,425
At 31 October 2023
19,918
Carrying amount
At 31 October 2023
23,812
At 31 October 2022
16,976
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
536,376
436,692
Other debtors
30,000
39,000
Prepayments and accrued income
6,832
22,227
573,208
497,919
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
167,425
157,305
Taxation and social security
58,848
38,214
Other creditors
47,820
103,498
Accruals and deferred income
78,926
49,855
363,019
358,872
The bank loan is secured by a fixed and floating charge dated 1 July 2016 over the Company's assets.
Included within other creditors is £45,511 (2022: £101,714) relating to an invoice discounting facility.
2PURE PRODUCTS (DISTRIBUTION) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
17,500
27,500
The bank loan is secured by a fixed and floating charge dated 1 July 2016 over the Company's assets.
8
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,210
5,224
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
9
Related party transactions
Transactions with related parties
During the period fees of £94,620 (2022 - £Nil) were charged by a company in which Dr P P Nichols is a director.
Included within Trade Creditors is £3,320 (2022 - £Nil) due to a company in which Dr P P Nichols is a director.