REGISTERED NUMBER: 10187877 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 May 2018

for

72 HAIR LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Directors:

Mr G M Green

Mr G G A Dionisi

Mr M J Green

Mr N L Green

Registered office:

305 Regents Park Road

Finchley

London

N3 1DP

Registered number:

10187877 (England and Wales)

Accountants:

Haines Watts

Chartered Accountants

305 Regents Park Road

Finchley

London

N3 1DP

Current assets

Stocks

4

49,759

43,915

Debtors

5

102,068

91,272

Cash at bank and in hand

12,012

7,578

163,839

142,765

Creditors

Amounts falling due within one year

6

244,757

200,542

Net current liabilities

(80,918

)

(57,777

)

Total assets less current liabilities

(80,918

)

(57,777

)

Capital and reserves

Called up share capital

7

300

300

Retained earnings

(81,218

)

(58,077

)

Shareholders' funds

(80,918

)

(57,777

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors on 3 December 2018 and were signed on its behalf by:

Mr G G A Dionisi - Director

Mr G M Green - Director

1.	Statutory information

72 Hair Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Accounting policies

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has net current liabilities of £80,918 (2017: £57,777) and relies on the support of its director to

ensure it meets its liabilities as they fall due. On this basis, the director considers it appropriate to prepare the

financial statements on the going concern basis. The financial statements do not include any adjustments that

would result from a withdrawal of this support by the director.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires

management to make estimates and judgement that affect the reported amounts of assets and liabilities as well

as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of

revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out

by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as

possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is

carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are

as accurate as possible, there remains a risk that the provisions do not match the level of debts which

ultimately prove to be uncollectable.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a

party to the contractual provisions of the instrument.

Trade debtors and creditor are classified as basic financial instruments and measured at initial recognition at

transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective

interest rate method. A provision is established when there is objective evidence that the company will not be

able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank

and bank overdrafts which are integral part of the company’s cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the

substance of the contractual arrangements entered into and the definitions of a financial liability and an equity

instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company

after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds

received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

3.	Employees and directors

The average number of employees during the year was 7 (2017 - 7 ) .

4.

Stocks

2018

2017

£

£

Stocks

49,759

43,915

5.

Debtors: amounts falling due within one year

2018

2017

£

£

Trade debtors

36,956

44,611

Other debtors

65,112

46,661

102,068

91,272

6.

Creditors: amounts falling due within one year

2018

2017

£

£

Trade creditors

214,977

167,945

Taxation and social security

3,108

485

Other creditors

26,672

32,112

244,757

200,542

7.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

300

Ordinary

£1

300

300

8.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the year ended 31 May 2018 and the period

ended 31 May 2017:

2018

2017

£

£

Directors Current Account

Balance outstanding at start of year

35,809

-

Amounts advanced

9,562

35,809

Amounts repaid

(35,809

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

9,562

35,809

9.	Related party disclosures

Included above in Other creditors is an amount of £7,195 (2017 - £29,112) owed to a related limited company.

Included above in Trade debtors is an amount of £31,592 (2017 - £31,592) owed from a related limited

company.

Included above in Trade creditors is an amount of £189,333 (2017 - £156,412) owed to a related limited

company.

During the year, the company sold goods of £Nil (2017 - £26,528) to a related limited company.

During the year, the company made purchases of £32,024 (2017 - £136,603) from a related limited company.

These transactions were carried out on an arms length basis.

The companies are related by virtue of having common directors and shareholders.