| Condor Group Limited |
| Notes to the Accounts |
| for the year ended 30 September 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). The accounts have been prepared in sterling which is the functional currency of the company. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable in the normal course of business, net of discounts and rebates and value added taxes. 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 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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Leasehold land and buildings |
20% reducing balance |
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Plant and machinery |
20% reducing balance |
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Fixtures, fittings, tools and equipment |
20% reducing balance |
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Investments |
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Listed investments are initially measured at cost. Subsequently they are measured at fair value thought profit and loss. Fair value of listed investments is based on quoted market prices. Changes in fair value are included in the profit and loss account. |
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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. Display and marketing costs are expensed as incurred. |
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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. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Assets held under finance leases are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Equity instruments |
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Equity instruments issued by the company are recorded at fair value of the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
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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 |
35 |
|
37 |
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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 October 2017 |
193,063 |
|
490,105 |
|
132,486 |
|
815,654 |
|
Additions |
- |
|
22,860 |
|
- |
|
22,860 |
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Disposals |
- |
|
- |
|
(24,650) |
|
(24,650) |
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At 30 September 2018 |
193,063 |
|
512,965 |
|
107,836 |
|
813,864 |
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Depreciation |
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At 1 October 2017 |
189,156 |
|
439,047 |
|
81,570 |
|
709,773 |
|
Charge for the year |
781 |
|
14,783 |
|
12,660 |
|
28,224 |
|
On disposals |
- |
|
- |
|
(22,114) |
|
(22,114) |
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At 30 September 2018 |
189,937 |
|
453,830 |
|
72,116 |
|
715,883 |
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Net book value |
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At 30 September 2018 |
3,126 |
|
59,135 |
|
35,720 |
|
97,981 |
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At 30 September 2017 |
3,907 |
|
51,058 |
|
50,916 |
|
105,881 |
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| 4 |
Investments |
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| Other |
| investments |
| £ |
|
Cost |
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At 1 October 2017 |
52,711 |
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Additions |
474 |
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Revaluation |
5,088 |
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At 30 September 2018 |
58,273 |
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Historical cost |
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At 1 October 2017 |
11,710 |
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At 30 September 2018 |
12,184 |
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| 5 |
Debtors |
2018 |
|
2017 |
| £ |
£ |
|
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Trade debtors |
2,772,005 |
|
2,644,867 |
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Tax and social security |
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|
51,113 |
|
- |
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Other debtors |
76,914 |
|
261,031 |
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2,900,032 |
|
2,905,898 |
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| 6 |
Creditors: amounts falling due within one year |
2018 |
|
2017 |
| £ |
£ |
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Bank loans and overdrafts |
1,638,085 |
|
1,223,128 |
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Obligations under finance lease and hire purchase contracts |
4,001 |
|
6,525 |
|
Invoice discounting facility |
256,827 |
|
141,438 |
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Trade creditors |
3,497,289 |
|
3,210,238 |
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Taxation and social security costs |
16,424 |
|
84,525 |
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Other creditors |
812,993 |
|
932,933 |
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|
6,225,619 |
|
5,598,787 |
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| 7 |
Creditors: amounts falling due after one year |
2018 |
|
2017 |
| £ |
£ |
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|
Bank loans |
275,000 |
|
375,000 |
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Obligations under finance lease and hire purchase contracts |
3,375 |
|
7,054 |
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|
278,375 |
|
382,054 |
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| 8 |
Loans |
2018 |
|
2017 |
| £ |
£ |
|
Creditors include: |
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Secured bank loans |
2,169,911 |
|
1,734,639 |
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There is a fixed and floating charge over the assets of the company in respect of bank loans and overdrafts of £1,913,085 (2017: £1,593,199). Amounts advanced under an invoice discounting facility with a balance of £256,827 at 30 September 2018 ( 2017: £141,440) are secured by a fixed charge over trade debtors and a floating charge. Hire purchase obligations totalling £7,376 (2017: £13,579) are secured on the assets under hire purchase. |
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| 9 |
Provisions for liabilities |
2018 |
|
2017 |
| £ |
£ |
|
|
Deferred tax liabilities |
9,198 |
|
7,921 |
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| 10 |
Other financial commitments |
2018 |
|
2017 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
|
93,305 |
|
44,162 |
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| 11 |
Loans (from)/to directors |
|
Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
| £ |
£ |
£ |
£ |
|
N V Bhoja |
|
Loan (from)/to director |
(1,887) |
|
(132,172) |
|
130,001 |
|
(4,058) |
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|
(1,887) |
|
(132,172) |
|
130,001 |
|
(4,058) |
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| 12 |
Related party transactions |
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During the year Condor Group Holdings Ltd, the parent company, received a dividend of £130,001 (2017:£166,000) from the company. |
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A personal guarantee of £55,000 (2016:£55,000) has been given by N V Bhoja as part of the security provided in respect of the company's bank loan facility. |
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A guarantee of £880,000 (2016:£500,000) has been provided by another company in which N V Bhoja is a director, secured by a charge over that company's assets, in respect of the company's bank facilities. |
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| 13 |
Controlling party |
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The company's immediate and ultimate parent undertaking is Condor Group Holdings Ltd, a company incorporated in the United Kingdon registered at 700 Great Cambridge Road, Enfield, Middlesex, EN13EA. No consolidated accounts are required to be prepared for the group. |
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The company's ultimate controlling party is N V Bhoja, a director. |
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| 14 |
Other information |
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Condor Group Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is: |
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Condor House |
|
700 Great Cambridge Road |
|
Enfield |
|
Middlesex |
|
EN1 3EA |
