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Registrar

Registration number: 00353436

Flag Paints Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 May 2024

 

Flag Paints Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Flag Paints Limited

Company Information

Directors

M J Noon

Company secretary

H Hart

Registered office

8 Springfield Road
Springfield Industrial Estate
Burnham on Crouch
Essex
CM0 8UA

Bankers

Barclays Bank Plc
60 High Street
Maldon
Essex
CM9 5PR

Accountants

Lambert Chapman LLP
Chartered Accountants
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Flag Paints Limited

(Registration number: 00353436)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

407,315

444,279

Investments

5

1

1

 

407,316

444,280

Current assets

 

Stocks

6

400,853

337,123

Debtors

7

231,846

215,349

Cash at bank and in hand

 

1,434,457

1,242,903

 

2,067,156

1,795,375

Creditors: Amounts falling due within one year

8

(245,852)

(167,011)

Net current assets

 

1,821,304

1,628,364

Total assets less current liabilities

 

2,228,620

2,072,644

Creditors: Amounts falling due after more than one year

8

(50)

(50)

Provisions for liabilities

(20,640)

(26,786)

Net assets

 

2,207,930

2,045,808

Capital and reserves

 

Called up share capital

9

15,000

15,000

Capital redemption reserve

45,236

45,236

Revaluation reserve

96,785

99,590

Retained earnings

2,050,909

1,885,982

Shareholders' funds

 

2,207,930

2,045,808

For the financial year ended 31 May 2024 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 Profit and Loss Account.

 

Flag Paints Limited

(Registration number: 00353436)
Balance Sheet as at 31 May 2024

Approved and authorised by the director on 30 August 2024
 

.........................................
M J Noon
Director

   
     
 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office and the principal place of business is: 8 Springfield Road, Springfield Industrial Estate, Burnham on Crouch, Essex, CM0 8UA.

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.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of paints and waxes in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

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

Tax is recognised in the profit and loss account, 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 on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Leasehold property is valued at the revalued amount and not cost.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their estimated useful life as follows:

Asset class

Depreciation method and rate

Leasehold property

Over the term of the lease

Plant and machinery

20% Reducing balance method

Fixtures and fittings

20% Reducing balance method

Motor vehicles

25% Reducing balance method

Investments

Investments are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and deposits.

Trade debtors

Trade debtors are amounts due from customers for paints and waxes sold in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. 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. Trade creditors 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.

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.

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.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Share capital

Ordinary shares are classified as equity.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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 10 (2023 - 11).

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

4

Tangible assets

Leasehold property
£

Motor vehicles
 £

Plant and machinery
 £

Fixtures and fittings
 £

Total
£

Cost or valuation

At 1 June 2023

334,149

66,950

249,937

145,348

796,384

Additions

-

239

3,070

517

3,826

Disposals

-

-

(44,555)

(29,261)

(73,816)

At 31 May 2024

334,149

67,189

208,452

116,604

726,394

Depreciation

At 1 June 2023

30,850

-

215,515

105,740

352,105

Charge for the year

8,568

16,792

7,075

7,991

40,426

Eliminated on disposal

-

-

(44,511)

(28,941)

(73,452)

At 31 May 2024

39,418

16,792

178,079

84,790

319,079

Carrying amount

At 31 May 2024

294,731

50,397

30,373

31,814

407,315

At 31 May 2023

303,299

66,950

34,422

39,608

444,279


Revaluations
The leasehold property class of fixed assets was revalued on 20 August 2019 by Whybrow Chartered Surveyors who are external to the company. The basis of this valuation was on an open market basis. This class of assets has a current value of £294,731 (2023 - £303,299) and a carrying amount at historical cost of £288,165 (2023 - £288,165). The depreciation on this historical cost would be £108,312 (2023 - £102,549).
 

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

5

Investments

2024
£

2023
£

Shares in group undertakings

1

1

Subsidiaries

£

Cost or valuation

At 1 June 2023

1

Provision

At 1 June 2023

-

At 31 May 2024

-

Carrying amount

At 31 May 2024

1

At 31 May 2023

1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Flag Brand Products Limited

8 Springfield road, Springfield industrial estate, Burnham On Crouch, Essex, CM0 8UA

Ordinary £1

100%

100%

         

6

Stocks

2024
£

2023
£

Raw materials and consumables

400,853

337,123

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

7

Debtors

2024
£

2023
£

Trade debtors

223,469

207,643

Prepayments

8,377

7,496

Other debtors

-

210

231,846

215,349

8

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Due within one year

Trade creditors

129,337

51,725

Taxation and social security

77,592

75,530

Accruals and deferred income

38,334

36,695

Other creditors

589

3,061

245,852

167,011

Creditors: amounts falling due after more than one year

2024
£

2023
£

Due after one year

Preference shares

50

50

The long term debt is represented by 50 preference shares of £1 each. Dividends are payable in respect of each financial year of a cash sum equal to 7.5 % of the net profits of the company and its subsidiaries.
The preference shares rank both as regards dividends and capital in priority to the ordinary shares. In the event of a winding up of the company, the holders of preference shares shall be entitled to have surplus assets applied, first in paying off the capital paid upon the preference shares held by them, secondly in paying off the arrears (if any) of the preference share dividends, thirdly in paying any accrued preference share dividend, fourthly in paying off the capital paid upon the ordinary shares and finally any remaining assets in the proportions of 7.5% to the preference shareholder and 92.5% to the ordinary shareholder.

 

Flag Paints Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

9

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

15,000

15,000

15,000

15,000

       

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £351,750 (2023 - £361,800). The financial commitments are in respect of operating leases.