Metal Supermarkets Franchising UK Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07688413 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2018

FOR

METAL SUPERMARKETS FRANCHISING UK

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr A M Arminen

Mr C A M Henniker

Mr G S Schober

SECRETARY:

Mr A J Sibson

REGISTERED OFFICE:

Suites 1 & 2

Blaby Business Centre

33 Leicester Road

Blaby, Leicester

Leicestershire

LE8 4GR

REGISTERED NUMBER:

07688413 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2

Charnwood Edge Business Park

Syston Road

Leicester

LE7 4UZ

FIXED ASSETS

Intangible assets

4

2,564

3,516

Tangible assets

5

2,277

1,051

Investments

6

168,167

168,167

173,008

172,734

CURRENT ASSETS

Debtors

7

248,300

167,687

Cash at bank and in hand

1,923

1,903

250,223

169,590

CREDITORS

Amounts falling due within one year

8

(527,765

)

(464,115

)

NET CURRENT LIABILITIES

(277,542

)

(294,525

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(104,534

)

(121,791

)

PROVISIONS FOR LIABILITIES

9

(450

)

(2,975

)

NET LIABILITIES

(104,984

)

(124,766

)

CAPITAL AND RESERVES

Called up share capital

20,000

20,000

Retained earnings

(124,984

)

(144,766

)

SHAREHOLDERS' FUNDS

(104,984

)

(124,766

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 15 February 2019 and were signed on its behalf by:

Mr G S Schober - Director

1.	STATUTORY INFORMATION

Metal Supermarkets Franchising UK Limited is a limited company, limited by shares, registered in England and

Wales. Its registered office address is Suite 1 & 2 Blaby Business Centre, 33 Leicester Road, Blaby, Leicester,

LE8 4GR and the registered number is 07688413.

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.

Group accounts

The financial statements present information about the company as an individual undertaking and not about its

group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore

taken advantage of the exemptions provided by the Companies Act 2006 not to prepare group accounts.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents amounts receivable for royalties and franchise fees net of VAT and trade discounts. The

franchise is invoiced on the last working day of each month with royalty revenue based on their sales and

recognised when invoiced.

Intangible fixed assets

Amortisation is calculated so as to write off the cost less depreciation. Depreciation is provided at rates

calculated to write off the cost less estimated residual value of each asset over its expected useful life, as

follows:

Franchise licence - 10% straight line

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off

the cost less estimated residual value of each asset over its expected useful life, as follows:

Office equipment - 33% straight line

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12

‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the

contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there

is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis

or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction

price including transaction costs and are subsequently carried at amortised cost using the effective interest

method unless the arrangement constitutes a financing transaction, where the transaction is measured at the

present value of the future receipts discounted at a market rate of interest. Financial assets classified as

receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets

of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference

shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes

a financing transaction, where the debt instrument is measured at the present value of the future payments

discounted at a market rate of interest. Financial liabilities classified as payable within one year are not

amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or

less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or

cancelled.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have

been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of

exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at

the date of the transaction. All differences are taken to profit and loss account.

Operating leases

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

lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments

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.

Provisions

Provisions for dilapidations are recognised on a lease by lease basis and are based on the companies best

estimate of the likely committed cash outflow.

Going concern

The directors consider it appropriate to prepare the financial statements on the going concern basis. In particular

the group borrowings included within liabilities due within one year of £451,999 will not be called for payment

until cashflow allows. The financial statements do not include any adjustments that would result from a

withdrawal of the overdraft facility by the company's bankers. The directors have a reasonable expectation that

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

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks,

other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank

overdrafts are shown within borrowings in current liabilities.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2017 - 3 ) .

4.	INTANGIBLE FIXED ASSETS

Licences

£

COST

At 1 October 2017

and 30 September 2018

9,520

AMORTISATION

At 1 October 2017

6,004

Amortisation for year

952

At 30 September 2018

6,956

NET BOOK VALUE

At 30 September 2018

2,564

At 30 September 2017

3,516

5.	TANGIBLE FIXED ASSETS

Office

Equipment

£

COST

At 1 October 2017

6,525

Additions

2,185

At 30 September 2018

8,710

DEPRECIATION

At 1 October 2017

5,474

Charge for year

959

At 30 September 2018

6,433

NET BOOK VALUE

At 30 September 2018

2,277

At 30 September 2017

1,051

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 October 2017

and 30 September 2018

168,167

NET BOOK VALUE

At 30 September 2018

168,167

At 30 September 2017

168,167

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

11,122

9,127

Amounts owed by group undertakings

234,528

149,790

Other debtors

-

5,979

Prepayments and accrued income

2,650

2,791

248,300

167,687

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

997

653

Amounts owed to group undertakings

508,093

451,999

Social security and other taxes

3,167

2,978

VAT

2,415

-

Other creditors

331

1,959

Brand fund

4,171

-

Accruals and deferred income

8,591

6,526

527,765

464,115

9.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Other provisions

Dilapidations

450

2,975

10.	FINANCIAL COMMITMENTS

Operating lease commitments not included in the balance sheet amount to £9,100 (2017 - £0)