Company registration number 14097540 (England and Wales)
SPARKS LDC LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
SPARKS LDC LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
SPARKS LDC LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
420,299
459,880
Investment property
4
260,964
420,299
720,844
Current assets
Stocks
16,412
14,124
Debtors
5
766,968
122,165
Cash at bank and in hand
318,608
411,866
1,101,988
548,155
Creditors: amounts falling due within one year
6
(325,643)
(42,817)
Net current assets
776,345
505,338
Total assets less current liabilities
1,196,644
1,226,182
Provisions for liabilities
(10,800)
(20,000)
Net assets
1,185,844
1,206,182
Capital and reserves
Called up share capital
7
162
162
Profit and loss reserves
1,185,682
1,206,020
Total equity
1,185,844
1,206,182
SPARKS LDC LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
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.
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 3 February 2025 and are signed on its behalf by:
Mrs S M Sparks
Director
Company registration number 14097540 (England and Wales)
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
Sparks LDC Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5 Longacre Way, Holbrook, Sheffield, S20 3FS.
1.1
Reporting period
The comparative financial statements cover an accounting period from incorporation on 10 May 2022 to 31 May 2023. This means that they will not be entirely comparable with the figures prepared for the year ended 31 May 2024.
1.2
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.
1.3
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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold property
5% Straight line
Plant and machinery
20% Straight line
Computers
33% Straight line
Motor vehicles
25% Reducing balance
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.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.8
Cash and cash equivalents
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.
1.9
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 including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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, 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 and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
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.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
32
31
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
3
Tangible fixed assets
Freehold property
Plant and machinery
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
271,192
316,797
2,247
139,311
729,547
Additions
20,785
1,248
20,020
42,053
Disposals
(6,200)
(16,852)
(23,052)
At 31 May 2024
271,192
331,382
3,495
142,479
748,548
Depreciation
At 1 June 2023
3,390
238,854
1,723
25,700
269,667
Depreciation charged in the year
13,560
29,205
461
28,961
72,187
Eliminated in respect of disposals
(6,200)
(7,405)
(13,605)
At 31 May 2024
16,950
261,859
2,184
47,256
328,249
Carrying amount
At 31 May 2024
254,242
69,523
1,311
95,223
420,299
At 31 May 2023
267,802
77,943
524
113,611
459,880
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
4
Investment property
2024
£
Fair value
At 1 June 2023
260,964
Disposals
(260,964)
At 31 May 2024
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
76,563
75,202
Other debtors
690,405
46,963
766,968
122,165
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
45,137
18,831
Corporation tax
9,466
Other taxation and social security
145,546
8,738
Other creditors
125,494
15,248
325,643
42,817
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A1 Ordinary Shares of 50p each
150
150
75
75
B1 Ordinary Shares of 50p each
150
150
75
75
C1 Ordinary Shares of 50p each
23
23
12
12
323
323
162
162
On incorporation 1 Ordinary £0.50 share was issued at par and fully paid up.
On 31 May 2022, 1 Ordinary £0.50 share was re-designated to 1 £0.50 B1 Ordinary share.
On 31 May 2022, 150 £0.50 A1 Ordinary shares, 150 £0.50 A2 Ordinary shares and 149 £0.50 B1 Ordinary shares, 150 £0.50 B2 Ordinary shares, 23 £0.50 C1 Ordinary shares and 23 £0.50 C2 Ordinary shares were issued at par in relation to the acquisition of the entire share capital of Goodman Sparks Limited.
On 28 June 2022, a share capital reduction took place, at which time 150 £0.50 A2 Ordinary shares, 150 £0.50 B2 Ordinary shares and 23 £0.50 C2 Ordinary shares were cancelled.
SPARKS LDC LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
210,000
210,000