Aura-Soma Products Limited Filleted accounts for Companies House (small and micro)

AURA-SOMA PRODUCTS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 02097549

AURA-SOMA PRODUCTS LIMITED

FILLETED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 May 2018

AURA-SOMA PRODUCTS LIMITED

STATEMENT OF FINANCIAL POSITION

31 May 2018

	2018		2017
Note	£	£	£

Fixed assets

Tangible assets	5	2,538,254	2,505,290
Investments	6	648,207	845,888
		-------------	-------------
		3,186,461	3,351,178

Current assets

Stocks		1,531,261	1,543,940
Debtors	7	3,090,706	2,698,243
Cash at bank and in hand		2,191,239	1,423,122
		-------------	-------------
		6,813,206	5,665,305

Creditors: amounts falling due within one year	8	791,296		681,730
		-------------		-------------
Net current assets			6,021,910	4,983,575
			-------------	-------------
Total assets less current liabilities			9,208,371	8,334,753

Creditors: amounts falling due after more than one year	9		160,891	236,800

Provisions

Taxation including deferred tax	39,605	1,869
	-------------	-------------
Net assets	9,007,875	8,099,822
	-------------	-------------

Capital and reserves

Called up share capital	1,848	1,848
Share premium account	741,232	741,232
Revaluation reserve	1,854,334	2,075,747
Capital redemption reserve	77	77
Profit and loss account	6,410,384	5,280,918
	-------------	-------------
Shareholders funds	9,007,875	8,099,822
	-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

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.

AURA-SOMA PRODUCTS LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

31 May 2018

These financial statements were approved by the board of directors and authorised for issue on 27 February 2019 , and are signed on behalf of the board by:

J M Booth (Chairman)

Chairman

Company registration number: 02097549

AURA-SOMA PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MAY 2018

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is South Road, Tetford, Horncastle, Lincs, LN9 6QB.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. - Significant judgements There have been no judgements that management has made in the process of applying the entity's accounting policies that have made a significant effect on the amounts recognised in the financial statements. - Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Depreciation charges The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. These are reviewed periodically by the Directors to ensure that they reflect both external and internal factors. Stock provisions Raw materials and finished goods can become subject to obsolescence. As a result it is necessary to consider the recoverability of the cost of certain stock items and the associate provisioning required. When making these assessments management considers the nature and condition of the stocks as well as considering the possible future applications. For further details refer to the stocks policy.

Revenue recognition

The turnover shown in the profit and loss account represents the value of all work done during the period, exclusive of Value Added Tax. Turnover is recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the sale have been transferred to the customer.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised. The company previously adopted a policy of revaluing freehold land and buildings and they were stated at their revalued amount less any subsequent depreciation and accumulated impairment losses. Effective from 1 June 2015 the company adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost. The difference between depreciation based on the deemed cost charged in the profit and loss account and the asset's original cost is transferred from the revaluation to retained earnings.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Property	-	2% straight line
Improvements to Leasehold Property	-	15% straight line
Plant & Machinery	-	15-25% straight line
Fixtures & Fittings	-	25% straight line
Motor Vehicles	-	15% straight line

An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.

Investments

Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. It is subsequently revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

Investments in the subsidiary company is held at cost less accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, on a first-in-first-out basis, after making due allowance for obsolete and slow moving items. Cost is based on purchase price.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

The company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the company and their measurement basis are as follows: Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments. Cash at bank is classified as a basic financial instrument and is measured at amortised cost. Financial liabilities - trade creditors, accruals and other creditors are financial instruments, and are measured at amortised cost. Taxation and social security are not included in the financial instruments disclosure definition.

Defined contribution plans

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held seperately from those of the company. The annual contributions payable are charged to the profit and loss account.

Employee benefit trust

The company has committed to making contributions to an employment benefit trust. The purpose of the trust is to provide benefits and remuneration to employees of Aura-Soma Products Limited. The assets of the trust are held separately from that of the company and are under the control of the trustees. The Trustees are appointed by the directors of Aura-Soma Products Limited.

The assets and liabilities of the trust are reflected in the company balance sheet. The asset represents a prepayment of benefits to be paid to employees of the company, by the trust at some future date and should not be viewed as a realisable asset in the event of liquidation.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 40 (2017: 41 ).

5. Tangible assets

	Freehold property	Long leasehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£	£
Cost
At 1 Jun 2017	1,845,000	973,795	1,316,697	391,788	286,962	4,814,242
Additions	–	65,830	62,819	10,975	269,247	408,871
Disposals	–	–	–	–	( 216,404)	( 216,404)
	-------------	-------------	-------------	----------	----------	-------------
At 31 May 2018	1,845,000	1,039,625	1,379,516	402,763	339,805	5,006,709
	-------------	-------------	-------------	----------	----------	-------------
Depreciation
At 1 Jun 2017	72,510	548,469	1,204,966	316,539	166,468	2,308,952
Charge for the year	36,255	149,786	32,123	11,710	26,365	256,239
Disposals	–	–	–	–	( 96,736)	( 96,736)
	-------------	-------------	-------------	----------	----------	-------------
At 31 May 2018	108,765	698,255	1,237,089	328,249	96,097	2,468,455
	-------------	-------------	-------------	----------	----------	-------------
Carrying amount
At 31 May 2018	1,736,235	341,370	142,427	74,514	243,708	2,538,254
	-------------	-------------	-------------	----------	----------	-------------
At 31 May 2017	1,772,490	425,326	111,731	75,249	120,494	2,505,290
	-------------	-------------	-------------	----------	----------	-------------

Included in Freehold Land and Buildings is land at a value of £32,250 (2017 - £32,250) which is not depreciated.

Tangible assets held at valuation

The company applied the transitional arrangements of Section 35 of FRS 102 and used a valuation as the deemed cost for certain freehold properties which were revalued 31 May 2015 by DDM Agriculture Limited, a firm of Real Estate Appraisers and Consultants, Lincolnshire, using market based evidence for properties sold in the local area. The properties are being depreciated from the valuation date. As the assets are depreciated or sold an appropriate transfer is made from the revaluation reserve to retained earnings. The carrying value at 31 May 2018 of the land and buildings valued at the date of transition to FRS 102 using the deemed cost exemption is £1,736,235 (2017 - £1,772,490). The historical cost equivalent was £515,965 (2017 - £515,965) and the revaluation element was £1,220,270 (2017 - £1,292,780).

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Plant and machinery	Motor vehicles	Total
	£	£	£
At 31 May 2018	11,749	16,740	28,489
	---------	---------	---------
At 31 May 2017	13,823	19,694	33,517
	---------	---------	---------

6. Investments

	Shares in group undertakings	Other investments other than loans	Total
	£	£	£
Cost
At 1 June 2017	745,509	844,963	1,590,472
Additions	–	4,347	4,347
Disposals	–	( 202,028)	( 202,028)
	----------	----------	-------------
At 31 May 2018	745,509	647,282	1,392,791
	----------	----------	-------------
Impairment
At 1 June 2017 and 31 May 2018	744,584	–	744,584
	----------	----------	-------------

Carrying amount
At 31 May 2018	925	647,282	648,207
	----------	----------	-------------
At 31 May 2017	925	844,963	845,888
	----------	----------	-------------

The company owns 100% of the issued share capital of Aura-Soma Limited, a dormant company registered in England & Wales, number 02903885.

Aggregate capital and reserves

	2018	2017
	£	£
Aura-Soma Limited	925	925

Other investments are in land which were valued by an Independent valuer on 25 May 2017. At 31 May 2018 the directors have reviewed these valuations and no material changes have been identified.

7. Debtors

	2018	2017
	£	£
Trade debtors	913,494	703,313
Other debtors	2,177,212	1,994,930
	-------------	-------------
	3,090,706	2,698,243
	-------------	-------------

The debtors above include the following amounts falling due after more than one year:

	2018	2017
	£	£
Other debtors	152,456	146,016
	----------	----------

8. Creditors: amounts falling due within one year

	2018	2017
	£	£
Bank loans and overdrafts	62,380	62,009
Trade creditors	219,667	165,063
Amounts owed to group undertakings and undertakings in which the company has a participating interest	925	925
Corporation tax	203,551	182,223
Social security and other taxes	51,520	51,352
Other creditors	253,253	220,158
	----------	----------
	791,296	681,730
	----------	----------

The bank loans are secured by a First Legal Charge over the Freehold Land & Buildings at South Road, Tetford, Lincolnshire. There is also a personal guarantee in place from the Directors.

The hire purchase agreements are secured on the relevant assets.

9. Creditors: amounts falling due after more than one year

	2018	2017
	£	£
Bank loans and overdrafts	157,820	220,200
Other creditors	3,071	16,600
	----------	----------
	160,891	236,800
	----------	----------

The bank loans are secured by a First Legal Charge over the Freehold Land & Buildings at South Road, Tetford, Lincolnshire. There is also a personal guarantee in place from the Directors.

The hire purchase agreements are secured on the relevant assets.

Included within creditors: amounts falling due after more than one year is an amount of £79,377 (2017 - £93,355) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date. A market rate of interest is charged on the liability.

10. Summary audit opinion

The auditor's report for the year dated 27 February 2019 was unqualified.

The senior statutory auditor was DAVID R. HILL F.C.C.A. , for and on behalf of Phoenix Business Associates Limited .

11. Directors' advances, credits and guarantees

Included within other debtors (see note 9) are loans to the directors as follows: Amounts outstanding

	2018	2017
	£	£
C G F Booth	231,944	212,129
J M Booth	260,403	276,599
	----------	----------
Total	492,347	488,728
	----------	----------

During the year, additional advances were received by C G F Booth in the form of personal expenses paid for by the company totalling £19,815 (2017 - £20,936). J M Booth also received advances in the form of personal expenses paid for by the company, totalling £58,757 (2017 - £123,154). Repayments of £9,268 (2017 - £nil) were made during the year. Royalties totalling £65,685 (2017 - £58,020) were credited to his loan account. Maximum outstanding during the year

	2018	2017
	£	£
C G F Booth	231,944	212,129
J M Booth	326,088	313,684
	----------	----------
Total	558,032	525,813
	----------	----------

Included within trade debtors are the following amounts owed by the directors: Amounts outstanding

	2018	2017
	£	£
J M Booth	879	879
	----	----

12. Related party transactions

Due to the nature of the business, there are many other entities throughout the world using the name 'Aura-Soma'. Supplies to these entities are on normal commercial terms and conditions, on an arms length basis at open market values. There are no other related party transactions which require disclosure under Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

13. Ultimate controlling party

The company is considered to be under the control of the Directors J M Booth and C G F Booth.