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Registration number: 11641063

Carpet Factory Frome Limited

Annual Report and Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Carpet Factory Frome Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

Carpet Factory Frome Limited

Company Information

Director

E J King

Registered office

Unit 7
Wallbridge Mills
Frome
Somerset
BA11 5JZ

Accountants

Burton Sweet Limited
Chartered Accountants and Business Advisors
Cooper House
Lower Charlton Estate
Shepton Mallet
Somerset
BA4 5QE

 

Carpet Factory Frome Limited

(Registration number: 11641063)
Balance Sheet
31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

12,000

Tangible assets

5

22,619

30,908

 

22,619

42,908

Current assets

 

Stocks

6

24,568

24,568

Debtors

7

29,080

26,231

Cash at bank and in hand

 

-

4,464

 

53,648

55,263

Creditors: Amounts falling due within one year

8

(120,173)

(88,435)

Net current liabilities

 

(66,525)

(33,172)

Total assets less current liabilities

 

(43,906)

9,736

Creditors: Amounts falling due after more than one year

8

(30,720)

(44,876)

Net liabilities

 

(74,626)

(35,140)

Capital and reserves

 

Called up share capital

100

100

Retained earnings

(74,726)

(35,240)

Shareholders' deficit

 

(74,626)

(35,140)

 

Carpet Factory Frome Limited

(Registration number: 11641063)
Balance Sheet
31 December 2023

For the financial year ending 31 December 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 her 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.

Approved and authorised by the director on 20 September 2024
 

.........................................
E J King
Director

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 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:
Unit 7
Wallbridge Mills
Frome
Somerset
BA11 5JZ

These financial statements were authorised for issue by the director on 20 September 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 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 that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis. During the year the company experienced some unexpected difficult trading conditions. Since that time they have undertaken a review of the business and put in place strategies to turn the business round.

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

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 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

The tax expense for the period comprises tax. Tax is recognised in profit or loss, 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 corporation 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.

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

Fixtures & Fittings

20% Straight Line

Motor Vehicles

25% Reducing Balance

Office Equipment

25% Reducing Balance

Goodwill

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 amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Asset class

Amortisation method and rate

Goodwill

10% Straight Line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold and services performed in the ordinary course of business and 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 and are recognised at transaction price. 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.

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.

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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 - 6).

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 January 2023

20,000

20,000

At 31 December 2023

20,000

20,000

Amortisation

At 1 January 2023

8,000

8,000

Impairment

12,000

12,000

At 31 December 2023

20,000

20,000

Carrying amount

At 31 December 2023

-

-

At 31 December 2022

12,000

12,000

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

5

Tangible assets

Fixtures and fittings
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

3,790

2,062

56,284

62,136

At 31 December 2023

3,790

2,062

56,284

62,136

Depreciation

At 1 January 2023

3,009

1,305

26,914

31,228

Charge for the year

758

189

7,342

8,289

At 31 December 2023

3,767

1,494

34,256

39,517

Carrying amount

At 31 December 2023

23

568

22,028

22,619

At 31 December 2022

781

757

29,370

30,908

6

Stocks

2023
£

2022
£

Other inventories

24,568

24,568

7

Debtors

2023
£

2022
£

Trade debtors

21,550

19,522

Other debtors

-

300

Prepayments

7,530

6,409

29,080

26,231

 

Carpet Factory Frome Limited

Notes to the Unaudited Financial Statements
Year Ended 31 December 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

53,605

23,678

Trade creditors

 

45,938

43,842

Taxation and social security

 

16,772

14,478

Accruals and deferred income

 

1,330

1,210

Other creditors

 

2,528

5,227

 

120,173

88,435

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

30,720

44,876

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

10,187

17,795

Hire purchase contracts

20,533

27,081

30,720

44,876

Current loans and borrowings

2023
£

2022
£

Bank borrowings

7,609

9,034

Bank overdrafts

3,547

-

Hire purchase contracts

7,045

7,132

Other borrowings

35,404

7,512

53,605

23,678