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Company registration number: 10629219
Purley Red Limited
Unaudited filleted financial statements
28 February 2024
Purley Red Limited
Contents
Statement of financial position
Notes to the financial statements
Purley Red Limited
Statement of financial position
28 February 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 7 117,000 126,000
Tangible assets 8 360,952 363,402
_______ _______
477,952 489,402
Current assets
Debtors 1112 1,014 10,600
Cash at bank and in hand 6,750 14,990
_______ _______
7,764 25,590
Creditors: amounts falling due
within one year 15 ( 45,417) ( 46,768)
_______ _______
Net current liabilities ( 37,653) ( 21,178)
_______ _______
Total assets less current liabilities 440,299 468,224
Creditors: amounts falling due
after more than one year 16 ( 409,244) ( 417,127)
_______ _______
Net assets 31,055 51,097
_______ _______
Capital and reserves
Called up share capital 27 100 100
Profit and loss account 28 30,955 50,997
_______ _______
Shareholders funds 31,055 51,097
_______ _______
For the year ending 28 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors 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 directors acknowledge 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 24 October 2024 , and are signed on behalf of the board by:
T A Popat
Director
Company registration number: 10629219
Purley Red Limited
Notes to the financial statements
Year ended 28 February 2024
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 12 Hollies Way, Thurnby, Leicester, LE7 9RJ.
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 and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
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.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
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:
Goodwill - Straight line over 20 years
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. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
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 property - Not depreciated
Fittings fixtures and equipment - 20 % reducing balance
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. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
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. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Other operating income
5. Operating loss/profit
Operating loss/profit is stated after charging/(crediting):
2024 2023
£ £
Amortisation of intangible assets 9,000 9,000
Depreciation of tangible assets 5,740 6,353
_______ _______
6. Auditors remuneration
2024 2023
£ £
7. Intangible assets
Goodwill Total
£ £
Cost
At 1 March 2023 and 28 February 2024 180,000 180,000
_______ _______
Amortisation
At 1 March 2023 54,000 54,000
Charge for the year 9,000 9,000
_______ _______
At 28 February 2024 63,000 63,000
_______ _______
Carrying amount
At 28 February 2024 117,000 117,000
_______ _______
At 28 February 2023 126,000 126,000
_______ _______
8. Tangible assets
Freehold property Fixtures, fittings and equipment Total
£ £ £
Cost
At 1 March 2023 337,989 70,485 408,474
Additions - 3,290 3,290
_______ _______ _______
At 28 February 2024 337,989 73,775 411,764
_______ _______ _______
Depreciation
At 1 March 2023 - 45,072 45,072
Charge for the year - 5,740 5,740
_______ _______ _______
At 28 February 2024 - 50,812 50,812
_______ _______ _______
Carrying amount
At 28 February 2024 337,989 22,963 360,952
_______ _______ _______
At 28 February 2023 337,989 25,413 363,402
_______ _______ _______
At 28 February 2024
At 28 February 2023
9. Investments
Cost
At 1 March 2023 and 28 February 2024
Impairment
At 1 March 2023 and 28 February 2024
Carrying amount
At 28 February 2024
At 28 February 2023
10. Stocks
2024 2023
£ £
_______ _______
11. Debtors
2024 2023
£ £
Other debtors 1,014 10,600
_______ _______
12. Debtors
Debtors include amounts of £- (2023: £-) falling due after more than one year.
13. Investments
2024 2023
£ £
14. Cash and cash equivalents
2024 2023
£ £
Cash at bank and in hand 6,750 14,990
_______ _______
15. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 12,391 16,900
Corporation tax - 5,067
Social security and other taxes 4,394 -
Other creditors 28,632 24,801
_______ _______
45,417 46,768
_______ _______
16. Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 409,244 417,127
_______ _______
17. Obligations under finance leases
18. Provisions
At 1 March 2023 and 28 February 2024
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 8,587 (2023: £ 7,287 ).
21. Share-based payments
22. Government grants
23. Financial instruments
24. Financial instruments at fair value
25. Prior period errors
26. Analysis of other comprehensive income
27. Called up share capital
28. Reserves
29. Fair value reserve
Included within other reserves is the fair value reserve as follows:
2024 2023
£ £
At start of year - -
_______ _______
At end of year - -
_______ _______
30. Cash generated from operations
£ £
Cash flows from operating activities
(Loss)/profit for the financial year ( 20,042) 7,548
Adjustments for:
Depreciation of tangible assets 5,740 6,353
Amortisation of intangible assets 9,000 9,000
Interest payable and similar expenses 27,605 15,450
Tax on loss/profit - 5,030
Accrued expenses/(income) 1,100 -
Changes in:
Trade and other receivables 9,586 ( 2,869)
Trade and other payables 4,871 ( 4,910)
_______ _______
Cash generated from operations 37,860 35,602
_______ _______
31. Non-cash transactions
32. Exceptional cash flows
33. Analysis of changes in net debt
At 1 March 2023 Cash flows At 28 February 2024
£ £ £
Cash and cash equivalents 14,990 (8,240) 6,750
Debt due within one year (18,101) 2,255 (15,846)
Debt due after one year (417,127) 7,883 (409,244)
_______ _______ _______
( 420,238) 1,898 ( 418,340)
_______ _______ _______
34. Business combinations
37. Disposals
38. Capital commitments
39. Operating leases
40. Charge on assets
41. Pension commitments
42. Other financial commitments
43. Contingent assets and liabilities
44. Events after the end of the reporting period
45. Limitation of auditors liability