Agwood Limited - Accounts to registrar

AGWOOD LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

Page

Company Information

1

Abridged Statement of Financial Position

2

to

3

Notes to the Financial Statements

4

to

8

DIRECTOR:

I P Wood

REGISTERED OFFICE:

Delandale House

37 Old Dover Road

Canterbury

Kent

CT1 3JF

REGISTERED NUMBER:

04520631 (England and Wales)

ACCOUNTANTS:

Wilkins Kennedy LLP

Delandale House

37 Old Dover Road

Canterbury

Kent

CT1 3JF

BANKERS:

Barclays Bank PLC

Ashford Business Centre

86 High Street

Ashford

Kent

TN24 8TL

SOLICITORS:

Beadle Pitt and Gottschalk

1 St. Margaret's Street

Canterbury

Kent

CT1 2TT

FIXED ASSETS

Tangible assets

4

139,089

153,685

CURRENT ASSETS

Stocks

1,971,948

1,632,884

Debtors

568,747

977,701

Prepayments and accrued income

85,898

77,217

Cash at bank and in hand

1,676

1,002

2,628,269

2,688,804

CREDITORS

Amounts falling due within one year

1,798,390

1,918,369

NET CURRENT ASSETS

829,879

770,435

TOTAL ASSETS LESS CURRENT
LIABILITIES

968,968

924,120

CREDITORS

Amounts falling due after more than one
year

5

(21,193

)

(32,633

)

PROVISIONS FOR LIABILITIES

(26,893

)

(29,709

)

ACCRUALS AND DEFERRED INCOME

(59,990

)

(34,559

)

NET ASSETS

860,892

827,219

CAPITAL AND RESERVES

Called up share capital

1,000

Retained earnings

859,892

826,219

SHAREHOLDERS' FUNDS

860,892

827,219

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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.

All the members have consented to the preparation of an abridged Statement of Financial Position for the year ended 31 December 2016 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 5 March 2017 and were signed by:

I P Wood - Director

1.	STATUTORY INFORMATION

Agwood 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.

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 transitioned from previously extant Financial Reporting Standard for Smaller Entities to Section

1A of FRS 102 as at 1 January 2016. The introduction of Section 1A of FRS 102 has had no significant impact

on the accounting policies adopted by the company.

The financial statements are produced in sterling (£) which is also the functional currency for the company and

rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented unless otherwise stated.

After reviewing the company's forecasts and projections and taking into account the economic conditions and

possible changes in trading performance, the officers of the company have a reasonable expectation that the

company has adequate resources to continue in operational existence for the foreseeable future. The company

therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of trade discounts and

value added tax. Turnover includes revenue earned from the sale of goods and from the rendering of services.

The policies adopted for the recognition of turnover are as follows:

Sale of goods:

Turnover from the sale of wholegoods is recognised when the significant risks and rewards of ownership of the

goods has transferred to the buyer. The amount of turnover can be measured reliably, as it is probable that the

economic benefits associated with the transaction will flow to the company and the costs incurred or to be

incurred in respect of the transaction can be measured reliably.

Rendering of services:

Turnover from servicing and warranty work is recognised by reference to the stage of completion of the activity.

The stage of completion of the activity is measured by comparing the costs incurred for the work performed to

date to the total estimated costs of the activity. Turnover is only recognised to the extent of recoverable expenses

when the outcome of an activity cannot be estimated reliably.

Interest income:

Interest income is recognised using the effective interest method (the true value of the amount receivable during

the year).

Bonuses and incentives:

Turnover from bonuses and incentives are recognised in the period to which the target driven bonus or incentive

is achieved.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

10% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Equipment

-

33% on reducing balance

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Costs includes

all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and

condition.

Cost of parts stocks is calculated using the average price method and are fully written down after 36 months of

inactivity. Work in progress is the value of labour applied to parts being used for partially completed workshop

repairs and maintenance work.

Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

Financial instruments are classified, and accounted for, according to the substance of the contractual

arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract

that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the

current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax

rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax represents the future tax consequences of transactions and events recognised in the financial

statements of current and previous periods. It is recognised in respect of all timing differences, with certain

exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated

in the financial statements that arise from the inclusion of income and expense in tax assessments in periods

different from those in which they are recognised in the financial statements. Unrelieved tax losses and other

deferred tax assets are recognised only 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

balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued

non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that

apply to the sale of the asset.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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

lease.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the

balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where

material, provisions are calculated on a discounted basis.

Trade and other receivables

Trade and other receivables are measured at transaction price less any impairment unless the arrangement

constitutes a financing transaction in which case the transaction is measured at the present value of the future

receipts discounted at the prevailing market rate of interest . Loans are initially measured at fair value and are

subsequently measured at amortised cost using the effective interest method less any impairment.

Trade and other payables

Trade and other payables are measured at their transaction price unless the arrangement constitutes a financing

transaction in which case the transaction is measured at present value of future payments discounted at prevailing

market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs.

They are subsequently measured at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 January 2016

464,773

Additions

31,012

Disposals

(4,913

)

At 31 December 2016

490,872

DEPRECIATION

At 1 January 2016

311,089

Charge for year

45,151

Eliminated on disposal

(4,457

)

At 31 December 2016

351,783

NET BOOK VALUE

At 31 December 2016

139,089

At 31 December 2015

153,684

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1 January 2016

156,562

Additions

22,342

At 31 December 2016

178,904

DEPRECIATION

At 1 January 2016

65,224

Charge for year

4,491

Transfer to ownership

18,848

At 31 December 2016

88,563

NET BOOK VALUE

At 31 December 2016

90,341

At 31 December 2015

91,338

5.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2016

2015

£

Hire purchase contracts (see note 6)

21,193

32,633

6.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2016

2015

£

Gross obligations repayable:

Within one year

27,771

36,291

Between one and five years

22,031

34,201

49,802

70,492

Finance charges repayable:

Within one year

1,784

2,594

Between one and five years

838

1,568

2,622

4,162

Net obligations repayable:

Within one year

25,987

33,697

Between one and five years

21,193

32,633

47,180

66,330

Non-cancellable operating

leases

2016

2015

£

Between one and five years

59,660

94,342

7.	SECURED DEBTS

The following secured debts are included within creditors:

2016

2015

£

Hire purchase contracts

47,180

66,330

8.	CAPITAL COMMITMENTS

The company has sold items of machinery to a finance company where there is a possibility that the finance

company may request the company to buy back those items of machinery at some point in the future. At

31 December 2016 the liability was estimated to be £319,000 (2015 - £252,000).

9.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

I P Wood has given personal guarantees in respect of the company's bank borrowings and to two of the

company's suppliers.

10.	ULTIMATE CONTROLLING PARTY

The company was under the control of I P Wood, the sole director and shareholder, throughout the period.