REGISTERED NUMBER: 03748887 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 May 2017

for

A & D Sales Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D Ormrod

Mrs A J Wallwork

SECRETARY:

D Hindle

REGISTERED OFFICE:

Unit 4a Peel Industrial Estate

Peel House, Peel Road

Skelmersdale

Lancashire

WN8 9PT

REGISTERED NUMBER:

03748887 (England and Wales)

ACCOUNTANTS:

McEwan Wallace Limited

68 Argyle Street

Birkenhead

CH41 6AF

FIXED ASSETS

Tangible assets

4

92,055

115,858

CURRENT ASSETS

Stocks

5

1,177,902

1,332,668

Debtors

6

569,283

565,092

Cash at bank and in hand

32,105

48,698

1,779,290

1,946,458

CREDITORS

Amounts falling due within one year

7

509,107

580,581

NET CURRENT ASSETS

1,270,183

1,365,877

TOTAL ASSETS LESS CURRENT LIABILITIES

1,362,238

1,481,735

CREDITORS

Amounts falling due after more than one year

8

(21,202

)

(30,986

)

PROVISIONS FOR LIABILITIES

(16,483

)

(20,821

)

NET ASSETS

1,324,553

1,429,928

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

1,324,551

1,429,926

SHAREHOLDERS' FUNDS

1,324,553

1,429,928

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2017 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 12 December 2017 and were signed on its behalf by:

Mrs A J Wallwork - Director

D Ormrod - Director

1.	STATUTORY INFORMATION

A & D Sales 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.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances. The company

makes estimates and assumptions concerning the future.

The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying

amounts of assets and liabilities within the next financial year are discussed below;

When an asset is purchased it is categorised into an asset class, the depreciation policy of each class estimates the

economic life of all assets within the class.

The depreciation policy of each asset class is determined by management and reviewed regularly for

appropriateness. The depreciation policy adopted is based on historical experience as well as considering the

future events which may impact the useful economic life of all assets within each class, such as changes in

market demands.

In addition FRS 102 requires an entity to assess at each reporting date whether there is any indication that assets

within a class may be impaired i.e. the recoverable amount of the asset is less than the carrying amount. If any

such indication exists, management are required to estimate the recoverable amount of the individual assets

concerned.

Management judgement is applied to determine if revenue and costs should be recognised in the current period.

Changes in accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below.

These financial statements for the year ended 31 December 2016 are the first financial statements that comply

with FRS102 Section 1A for small entities. The date of transition is 1 January 2015.

The transition to FRS 102 Section 1A for small entities has resulted in a small number of changes in accounting

policies to those used previously.

Turnover

Income is recognised on an accruals basis according to delivery of the services supplied.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

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

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Basic financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, and

directors' loans.

Directors' loans (being repayable on demand), trade debtors and trade creditors are measured at the undiscounted

amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective

evidence of impairment. If objective evidence of impairment is found, an impairment loss in recognised in the

Statement of Income and Retained Earnings.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 June 2016

and 31 May 2017

63,004

220,232

30,413

DEPRECIATION

At 1 June 2016

54,735

128,396

23,391

Charge for year

2,200

18,367

1,053

At 31 May 2017

56,935

146,763

24,444

NET BOOK VALUE

At 31 May 2017

6,069

73,469

5,969

At 31 May 2016

8,269

91,836

7,022

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2016

and 31 May 2017

9,750

24,404

347,803

DEPRECIATION

At 1 June 2016

4,266

21,157

231,945

Charge for year

1,371

812

23,803

At 31 May 2017

5,637

21,969

255,748

NET BOOK VALUE

At 31 May 2017

4,113

2,435

92,055

At 31 May 2016

5,484

3,247

115,858

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

Plant and

machinery

£

COST

At 1 June 2016

and 31 May 2017

70,938

DEPRECIATION

At 1 June 2016

14,188

Charge for year

11,350

At 31 May 2017

25,538

NET BOOK VALUE

At 31 May 2017

45,400

At 31 May 2016

56,750

5.

STOCKS

31.5.17

31.5.16

£

£

Stocks

1,177,902

1,332,668

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.17

31.5.16

£

£

Trade debtors

339,332

410,548

Other debtors

32,294

-

Directors' current accounts

190,534

137,308

VAT

7,123

14,506

Prepayments

-

2,730

569,283

565,092

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.17

31.5.16

£

£

Bank loans and overdrafts

171,051

54,068

Hire purchase contracts (see note 9)

9,786

9,786

Trade creditors

219,223

342,752

Tax

62,629

66,705

Social security and other taxes

14,094

19,047

Other creditors

841

778

Accrued expenses

31,483

87,445

509,107

580,581

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.5.17

31.5.16

£

£

Hire purchase contracts (see note 9)

21,202

30,986

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31.5.17

31.5.16

£

£

Gross obligations repayable:

Within one year

11,283

11,283

Between one and five years

24,446

35,728

35,729

47,011

Finance charges repayable:

Within one year

1,497

1,497

Between one and five years

3,244

4,742

4,741

6,239

Net obligations repayable:

Within one year

9,786

9,786

Between one and five years

21,202

30,986

30,988

40,772

The company committed to a lease agreement on 1 March 2017 for a Ford Mondeo. The term of the agreement is

36 months, leaving £5,712 to be paid within 1 year and the remaining £9,996 to be paid within 2-5 years.

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.5.17

31.5.16

£

£

Bank overdrafts

171,051

54,068

Hire purchase contracts

30,988

40,772

202,039

94,840

The bank overdrafts are secured by a mortgage debenture over the assets of the company and by personal

guarantees from the directors, D Ormrod and Mrs A J Wallwork, for £88,000.

Hire purchase contracts are secured on the assets concerned.

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 May 2017 and

31 May 2016:

31.5.17

31.5.16

£

£

D Ormrod

Balance outstanding at start of year

72,955

(9,614

)

Amounts advanced

44,225

87,646

Amounts repaid

(11,995

)

(5,077

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

105,185

72,955

Mrs A J Wallwork

Balance outstanding at start of year

64,353

(7,223

)

Amounts advanced

28,730

74,742

Amounts repaid

(7,734

)

(3,166

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

85,349

64,353

At 31 May 2017, D Ormrod, director, owed the company £105,185 (2016 - £72,955). No interest has been

charged on the directors loan account balance (2016 - £478).

At 31 May 2017, Mrs A J Wallwork, director, owed the company £85,349 (2016 - £64,353). No interest has

been charged on the directors loan account balance (2016 - £362).

These advances are unsecured and have no formal repayment schedule.

12.	RELATED PARTY DISCLOSURES

During the year, total dividends of £340,760 (2016 - £336,110) were paid to the directors .

The company operates from a property owned by the directors' father. Rent of £60 per annum is paid.