Registered number
01313470
Majestic Shower Company Limited
Unaudited Filleted Accounts
31 December 2017
Majestic Shower Company Limited
Registered number: 01313470
Balance Sheet
as at 31 December 2017
Notes 2017 2016
£ £
Fixed assets
Tangible assets 3 436,296 399,721
Investments 4 353,750 753,750
790,046 1,153,471
Current assets
Stocks 916,302 727,044
Debtors 5 1,183,151 1,090,958
Cash at bank and in hand 48,949 391
2,148,402 1,818,393
Creditors: amounts falling due within one year 6 (1,189,116) (1,145,736)
Net current assets 959,286 672,657
Total assets less current liabilities 1,749,332 1,826,128
Creditors: amounts falling due after more than one year 7 (341,003) (433,269)
Provisions for liabilities (54,516) -
Net assets 1,353,813 1,392,859
Capital and reserves
Called up share capital 92 92
Share premium 8 8
Profit and loss account 1,353,713 1,392,759
Shareholders' funds 1,353,813 1,392,859
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
T King
Director
Approved by the board on 5 September 2018
Majestic Shower Company Limited
Notes to the Accounts
for the year ended 31 December 2017
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Leasehold land and buildings over the lease term
Plant and machinery 15% on Cost
Fixtures, fittings, and office equipment 25% on cost
Computer software over 8 years from when operational
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2017 2016
Number Number
Average number of persons employed by the company 53 47
3 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 January 2017 75,880 642,157 73,521 791,558
Additions 4,275 86,258 29,735 120,268
Disposals (41,298) - (20,710) (62,008)
At 31 December 2017 38,857 728,415 82,546 849,818
Depreciation
At 1 January 2017 23,554 339,539 28,744 391,837
Charge for the year 6,718 37,351 21,712 65,781
On disposals (24,011) - (20,085) (44,096)
At 31 December 2017 6,261 376,890 30,371 413,522
Net book value
At 31 December 2017 32,596 351,525 52,175 436,296
At 31 December 2016 52,326 302,618 44,777 399,721
4 Investments
Investments in
subsidiary
undertakings
£
Cost
At 1 January 2017 753,750
Revaluation (400,000)
At 31 December 2017 353,750
Historical cost
At 1 January 2017 753,750
At 31 December 2017 753,750
During the year the Company received dividend of £400,000 from the subsidiary and in view of this the directors have reduced the value of this investment to £353,750, which they believe is the fair value of the investment.
5 Debtors 2017 2016
£ £
Trade debtors 759,060 795,324
Amounts owed by group undertakings and undertakings in which the company has a participating interest 33,872 34,997
Corporation tax 237,597 94,025
Deferred tax asset - 19,585
Other debtors 152,622 147,027
1,183,151 1,090,958
Amounts due after more than one year included above 60,256 60,256
6 Creditors: amounts falling due within one year 2017 2016
£ £
Bank loans and overdrafts 12,314 54,273
Amounts owed under invoice discounting 401,213 -
Obligations under finance lease and hire purchase contracts 101,585 88,984
Trade creditors 347,830 265,713
Amounts owed to group undertakings and undertakings in which the company has a participating interest - 400,000
Taxation and social security costs 159,852 208,767
Loan 40,000 35,000
Other creditors 126,322 92,999
1,189,116 1,145,736
The amounts owed under invoice discounting are secured by a fixed and floating charge on the company's assets.
7 Creditors: amounts falling due after one year 2017 2016
£ £
Obligations under finance lease and hire purchase contracts 61,003 118,269
Other creditors 280,000 315,000
341,003 433,269
8 Loans 2017 2016
£ £
Creditors include:
Instalments falling due for payment after more than five years - 210,000
9 Other financial commitments 2017 2016
£ £
Total future minimum payments under non-cancellable operating leases: 608,602 1,128,016
Operating lease amounts payable within:
One year 133,044 172,476
Two - five years 395,308 543,385
After five years 80,250 412,155
10 Loans to directors
Description and conditions B/fwd Paid Repaid C/fwd
£ £ £ £
J C King - chairman resigned 1/5/17
Loan 227,563 4,591 - 232,154
227,563 4,591 - 232,154
The company had made a provision against this loan of £232,154 (2016: £227,563).
11 Related party transactions
During the year the company has made interest free unsecured loans to a company controlled by a director of £39,612 (2016: £nil). A provision of £39,612 has been made against this loan.
12 Controlling party
The controlling party is T King.
13 Other information
Majestic Shower Company Limited is a private company limited by shares and incorporated in England. Its registered office is:
2 North Place
Edinburgh Way
Harlow
Essex
CM20 2SL
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