Nova of London Limited - Limited company accounts 18.2

REGISTERED NUMBER: 01497069 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

FOR

NOVA OF LONDON LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

A P S Chawla

S S Chawla

SECRETARY:

S S Chawla

REGISTERED OFFICE:

191 - 193 Commercial Road

London

E1 2BT

REGISTERED NUMBER:

01497069 (England and Wales)

AUDITORS:

Sinclair Mckinsley Limited

Chartered Certified Accountant

Registered Auditor

Sinkot House

211 Station Road

Harrow

HA1 2TP

The directors present their strategic report for the year ended 30 June 2018.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

The company's turnover decreased by 0.01% from £27,390,892 to £27,166,136. The company's gross profit margin

increased to 23.86% this year versus 22.36% last year. Although there has been a small reduction in turnover this year

the successful control of costs during the year, whilst being challenging in the current climate, and hence the gross profit

margin increased. The market conditions are expected to continue to be very competitive but the directors are optimistic

that the company will be able to maintain its current performance and possibly improve upon it in 2019.

The directors are continuously monitoring the potential risks and uncertainty to the business in order to take the

necessary mitigating steps to maintain the company's competitive edge.

ON BEHALF OF THE BOARD:

S S Chawla - Secretary

29 March 2019

The directors present their report with the financial statements of the company for the year ended 30 June 2018.

DIVIDENDS

The directors have recommended interim dividends totalling £7,000 per share. No final dividend is proposed.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2017 to the date of this report.

A P S Chawla

S S Chawla

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Sinclair Mckinsley Limited, are deemed re-appointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

S S Chawla - Secretary

29 March 2019

Opinion

We have audited the financial statements of Nova of London Limited (the 'company') for the year ended 30 June 2018

which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity,

Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of

significant accounting policies. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial

Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting

Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30 June 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude

that there is a material misstatement of this other information, we are required to report that fact. We have nothing to

report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and

for such internal control as the directors determine necessary to enable the preparation of financial statements that are

free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Rajesh Chechani (Senior Statutory Auditor)

for and on behalf of Sinclair Mckinsley Limited

Chartered Certified Accountant

Registered Auditor

Sinkot House

211 Station Road

Harrow

HA1 2TP

29 March 2019

TURNOVER

3

27,166,136

27,390,892

Cost of sales

20,238,641

21,266,883

GROSS PROFIT

6,927,495

6,124,009

Administrative expenses

3,261,458

3,198,279

3,666,037

2,925,730

Other operating income

51,417

40,576

OPERATING PROFIT

6

3,717,454

2,966,306

Interest receivable and similar income

216,859

213,774

3,934,313

3,180,080

Interest payable and similar expenses

8

20,804

56,971

PROFIT BEFORE TAXATION

3,913,509

3,123,109

Tax on profit

9

751,060

619,233

PROFIT FOR THE FINANCIAL YEAR

3,162,449

2,503,876

PROFIT FOR THE YEAR

3,162,449

2,503,876

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,162,449

2,503,876

FIXED ASSETS

Tangible assets

11

366,926

427,601

Investments

12

7,067,613

7,067,613

7,434,539

7,495,214

CURRENT ASSETS

Stocks

13

3,274,821

2,973,621

Debtors

14

6,553,764

8,406,782

Cash at bank and in hand

9,399,849

4,714,841

19,228,434

16,095,244

CREDITORS

Amounts falling due within one year

15

2,598,986

1,774,732

NET CURRENT ASSETS

16,629,448

14,320,512

TOTAL ASSETS LESS CURRENT LIABILITIES

24,063,987

21,815,726

CREDITORS

Amounts falling due after more than one year

16

(551,213

)

(761,103

)

PROVISIONS FOR LIABILITIES

19

(11,395

)

(15,693

)

NET ASSETS

23,501,379

21,038,930

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

23,501,279

21,038,830

SHAREHOLDERS' FUNDS

23,501,379

21,038,930

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

S S Chawla - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2016

100

19,134,954

19,135,054

Changes in equity

Dividends

-

(600,000

)

(600,000

)

Total comprehensive income

-

2,503,876

2,503,876

Balance at 30 June 2017

100

21,038,830

21,038,930

Changes in equity

Dividends

-

(700,000

)

(700,000

)

Total comprehensive income

-

3,162,449

3,162,449

Balance at 30 June 2018

100

23,501,279

23,501,379

Cash flows from operating activities

Cash generated from operations

1

5,753,066

2,651,787

Interest paid

(20,804

)

(56,971

)

Tax paid

(373,365

)

(838,110

)

Loan

-

14,905

Net cash from operating activities

5,358,897

1,771,611

Cash flows from investing activities

Purchase of tangible fixed assets

(24,960

)

(130,859

)

Purchase of fixed asset investments

-

(1,645,039

)

Sale of tangible fixed assets

-

7,000

Fixed asset investment repayments

-

607,861

Interest received

216,859

213,774

Net cash from investing activities

191,899

(947,263

)

Cash flows from financing activities

Loan repayments in year

(209,890

)

(291,631

)

Equity dividends paid

(700,000

)

(600,000

)

Net cash from financing activities

(909,890

)

(891,631

)

Increase/(decrease) in cash and cash equivalents

4,640,906

(67,283

)

Cash and cash equivalents at beginning of year

2

4,714,841

4,782,124

Cash and cash equivalents at end of year

2

9,355,747

4,714,841

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

£

£

Profit before taxation

3,913,509

3,123,109

Depreciation charges

85,635

73,615

Profit on disposal of fixed assets

-

(555

)

Finance costs

20,804

56,971

Finance income

(216,859

)

(213,774

)

3,803,089

3,039,366

(Increase)/decrease in stocks

(301,200

)

380,387

Decrease in trade and other debtors

1,853,018

205,209

Increase/(decrease) in trade and other creditors

398,159

(973,175

)

Cash generated from operations

5,753,066

2,651,787

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Year ended 30 June 2018

30.6.18

1.7.17

£

£

Cash and cash equivalents

9,399,849

4,714,841

Bank overdrafts

(44,102

)

-

9,355,747

4,714,841

Year ended 30 June 2017

30.6.17

1.7.16

£

£

Cash and cash equivalents

4,714,841

4,782,135

Bank overdrafts

-

(11

)

4,714,841

4,782,124

1.	STATUTORY INFORMATION

Nova of London 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

Straight line over 10 years

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

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.

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.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market for the year ended 30 June 2018 is given below:

£

UK Sales

20,968,942

EU Sales

5,115,402

Non EU Sales

1,081,792

27,166,136

This analysis is not considered to be applicable to the year ended 30 June 2017.

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

1,372,513

1,328,297

Social security costs

116,580

110,554

Other pension costs

11,448

8,657

1,500,541

1,447,508

The average number of employees during the year was as follows:

2018

2017

Selling and distribution

58

55

Administration

6

6

64

61

5.	DIRECTORS' EMOLUMENTS

2018

2017

£

£

Directors' remuneration

57,200

57,700

Directors' pension contributions to money purchase schemes

316

-

The total benefits in kind received by the directors during the year was £20,121 (2017: £17,807).

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2018

2017

£

£

Depreciation - owned assets

85,635

73,614

Profit on disposal of fixed assets

-

(555

)

Auditors' remuneration

5,000

5,000

Foreign exchange differences

(17,193

)

(19,756

)

Operating lease rentals - land & buildings

428,000

470,400

7.	EXCEPTIONAL ITEMS

2018

2017

£

£

Bad debts

(172,357

)

(31,983

)

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank loan interest

20,804

43,061

Interest on overdue tax

-

13,910

20,804

56,971

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

755,358

623,365

Deferred tax

(4,298

)

(4,132

)

Tax on profit

751,060

619,233

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2018

2017

£

£

Profit before tax

3,913,509

3,123,109

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 19.750%)

743,567

616,814

Effects of:

Expenses not deductible for tax purposes

3,345

1,974

Depreciation in excess of capital allowances

8,446

4,577

capital allowance

Deferred tax

(4,298

)

(4,132

)

Total tax charge

751,060

619,233

10.

DIVIDENDS

2018

2017

£

£

Ordinary shares of £1 each

Interim

700,000

600,000

11.	TANGIBLE FIXED ASSETS

Improvements

Short

to

Plant and

leasehold

property

machinery

£

£

£

COST

At 1 July 2017

679,635

217,825

13,500

Additions

-

-

5,000

At 30 June 2018

679,635

217,825

18,500

DEPRECIATION

At 1 July 2017

671,570

77,997

11,098

Charge for year

4,289

20,677

1,851

At 30 June 2018

675,859

98,674

12,949

NET BOOK VALUE

At 30 June 2018

3,776

119,151

5,551

At 30 June 2017

8,065

139,828

2,402

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 July 2017

267,274

204,764

1,382,998

Additions

19,960

-

24,960

At 30 June 2018

287,234

204,764

1,407,958

DEPRECIATION

At 1 July 2017

152,760

41,972

955,397

Charge for year

18,119

40,699

85,635

At 30 June 2018

170,879

82,671

1,041,032

NET BOOK VALUE

At 30 June 2018

116,355

122,093

366,926

At 30 June 2017

114,514

162,792

427,601

12.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 July 2017

and 30 June 2018

7,067,613

NET BOOK VALUE

At 30 June 2018

7,067,613

At 30 June 2017

7,067,613