| Livefoods Direct Limited |
| Notes to the Accounts |
| for the year ended 30 June 2018 |
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| 1 |
Accounting policies |
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Basis of preparation |
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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). |
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Going concern |
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The company has made a loss after tax of £1,087 for the year ended 30 June 2018. The company had net current assets, excluding amounts owed by group undertakings, of £73,232 at 30 June 2018 and corresponding net assets of £490,155. In preparing the financial statements the directors have taken into account the cross guarantee in place for the loans held by its parent company, Livefoods Holdings (Yorkshire) Limited. The amount owed by the parent at 30 June 2018 was £353,571. The directors have produced group trading and cash flow forecasts for the period to 30 June 2019 indicating an improvement in profitability and balance sheet liquidity and the ability for the company to pay its obligations as they fall due. Going forwards the directors are constantly reviewing their business plan and with prudent management of cash resources they are working towards further improvement in their balance sheet liquidity position to secure the future financial health of the company. Accordingly, the directors believe the goin |
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Turnover |
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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. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
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Tangible fixed assets |
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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: |
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Freehold buildings |
over 50 years |
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Plant and machinery |
15% reducing balance |
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Motor vehicles |
25% reducing balance |
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Refrigeration rooms |
15% reducing balance |
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Stocks |
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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. |
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Debtors |
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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. |
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Creditors |
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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. |
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Taxation |
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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. |
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Provisions |
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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. |
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Foreign currency translation |
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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. |
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Leased assets |
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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. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2018 |
|
2017 |
| Number |
Number |
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Average number of persons employed by the company |
36 |
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36 |
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| 3 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
|
Cost |
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At 1 July 2017 |
441,589 |
|
622,764 |
|
162,782 |
|
1,227,135 |
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Disposals |
- |
|
- |
|
(45,313) |
|
(45,313) |
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At 30 June 2018 |
441,589 |
|
622,764 |
|
117,469 |
|
1,181,822 |
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Depreciation |
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At 1 July 2017 |
65,718 |
|
566,345 |
|
148,152 |
|
780,215 |
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Charge for the year |
3,273 |
|
10,352 |
|
2,964 |
|
16,589 |
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On disposals |
- |
|
- |
|
(41,312) |
|
(41,312) |
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At 30 June 2018 |
68,991 |
|
576,697 |
|
109,804 |
|
755,492 |
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Net book value |
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At 30 June 2018 |
372,598 |
|
46,067 |
|
7,665 |
|
426,330 |
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At 30 June 2017 |
375,871 |
|
56,419 |
|
14,630 |
|
446,920 |
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| 4 |
Debtors |
2018 |
|
2017 |
| £ |
£ |
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Trade debtors |
71,643 |
|
109,762 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
1,430,242 |
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1,474,857 |
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Other debtors |
100,717 |
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62,489 |
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1,602,602 |
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1,647,108 |
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Amounts due after more than one year included above |
1,430,242 |
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1,474,857 |
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| 5 |
Creditors: amounts falling due within one year |
2018 |
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2017 |
| £ |
£ |
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Obligations under finance lease and hire purchase contracts |
2,324 |
|
2,324 |
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Trade creditors |
146,084 |
|
144,105 |
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Taxation and social security costs |
131,152 |
|
161,665 |
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Other creditors |
28,031 |
|
33,152 |
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|
307,591 |
|
341,246 |
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| 6 |
Creditors: amounts falling due after one year |
2018 |
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2017 |
| £ |
£ |
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Obligations under finance lease and hire purchase contracts |
378 |
|
2,708 |
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| 7 |
Fair value reserve |
2018 |
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2017 |
| £ |
£ |
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At 1 July 2017 |
42,721 |
|
42,721 |
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At 30 June 2018 |
42,721 |
|
42,721 |
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| 8 |
Pension commitments |
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The company operates a defined contribution pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £11,818(2017 £15,435). Contributions totalling £Nil (2017 £Nil) were payable to the fund at the year end and are included in creditors. |
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| 9 |
Other financial commitments |
2018 |
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2017 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
|
8,647 |
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8,647 |
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| 10 |
Contingent liabilities |
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The company provides security, by a cross guarantee, for the loans held by its parent company, Livefoods Holdings (Yorkshire) Limited from Yorkshire Bank by way of a fixed charge over its freehold property. The amount owed at 30 June 2018 was £353,571 (2017 £290,882). |
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| 11 |
Related party transactions |
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The company is a 100% subsidiary of Livefoods Holdings (Yorkshire) Limited. As permitted by FRS 102 these financial statements do not disclose transactions with the parent undertaking where 90% or more of the voting rights are held within the group. |
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| 12 |
Ultimate parent undertaking and controlling party |
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The parent undertaking is Livefoods Holdings (Yorkshire) Limited, a company incorporated in Great Britain. Livefoods Holdings (Yorkshire) Limited is the largest and smallest group of undertakings for which group accounts are drawn up. Group accounts are available from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. |
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The ultimate controlling party is D Jackson. |
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| 13 |
Other information |
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Livefoods Direct Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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North Anston Industrial Estate |
|
Houghton Road |
|
North Anston |
|
Sheffield |
|
S25 4JJ |
