Vision Profiles Ltd Company accounts

Vision Profiles Ltd Company accounts

VISION PROFILES LTD - Company Information

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COMPANY REGISTRATION NUMBER: 3704000
Vision Profiles Ltd
Financial Statements
31 December 2018
Vision Profiles Ltd
Financial Statements
Year ended 31 December 2018
Contents
Page
Strategic report
1
Director's report
2
Independent auditor's report to the members
4
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11
Vision Profiles Ltd
Strategic Report
Year ended 31 December 2018
The director presents his strategic report for the year ended 31 December 2018. Vision Profiles Limited is a private company limited by shares incorporated in England , United Kingdom . The address of the registered office is given below. The nature of the company's operations and principal activities are that of aluminium stockists, fabricators and commissioned agents for sales of extruded aluminium.. Business Review Vision Profiles Limited specialises in the supply, stockholding and machining of a bespoke range of high quality extruded aluminium profiles. As the sole agent in the UK for Aluminios Cortizo (Europe's leading extrusion manufacturer and finisher), the company can compete on quality at the highest level. The Company works to provide bespoke aluminium solutions for its customers compared to its competitors, whilst ensuring it remains competitive on price. Principal risks and uncertainties There are a number of risks and uncertainties affecting the company, principally competitive pressures, legislation and regulation and the state of the general economy. Development and performance The company has established a new technical department to aid its clients an continued to increase turnover, tonnage and profit. The directors are satisfied that the accounts as set out give an adequate review of the company's activities during the year and of its position at the year end. Financial key performance indicators The Companies key performance indicator is growth in the number of tonnes sold. 2018 2017 Turnover £9.351m £8.723m Gross Margin 26.5% 27.3% Number of tonnes sold 1,796 Future development The director does not anticipate any significant changes in the company's activities and is confident that the company is in a strong position at the year-end and will be able to take any suitable opportunities as they arise.
This report was approved by the board of directors on 27 June 2019 and signed on behalf of the board by:
Mr A.C Grady
Director
Registered office:
Unit K
Quedgeley West Business Park
Bristol Road
Gloucestershire
GL2 4PA
Vision Profiles Ltd
Director's Report
Year ended 31 December 2018
The director presents his report and the financial statements of the company for the year ended 31 December 2018 .
Director
The director who served the company during the year was as follows:
Mr A.C Grady
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Disclosure of information in the strategic report
In accordance with section 414c(11) of the Companies Act 2006 information relating to the business review and to the principal risks and uncertainties of the company have been included in the strategic report on page 1.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is 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. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 27 June 2019 and signed on behalf of the board by:
Mr A.C Grady
Director
Registered office:
Unit K
Quedgeley West Business Park
Bristol Road
Gloucestershire
GL2 4PA
Vision Profiles Ltd
Independent Auditor's Report to the Members of Vision Profiles Ltd
Year ended 31 December 2018
Opinion
We have audited the financial statements of Vision Profiles Ltd (the 'company') for the year ended 31 December 2018 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 31 December 2018 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the director has 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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.
Opinions 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report 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 director's report. We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 an auditor's report 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.
NICOLAS MICHAEL FCA
(Senior Statutory Auditor)
For and on behalf of
Elliott Bunker Limited
Chartered Accountants & statutory auditor
61 Macrae Road
Ham Green
Bristol
BS20 0DD
27 June 2019
Vision Profiles Ltd
Statement of Comprehensive Income
Year ended 31 December 2018
2018
2017
Note
£
£
Turnover
4
9,351,007
8,723,430
Cost of sales
6,875,454
6,338,766
------------
------------
Gross profit
2,475,553
2,384,664
Distribution costs
139,914
141,976
Administrative expenses
1,648,656
1,593,718
------------
------------
Operating profit
5
686,983
648,970
Other interest receivable and similar income
8
1,790
395
Interest payable and similar expenses
9
46,265
44,654
------------
------------
Profit before taxation
642,508
604,711
Tax on profit
10
127,999
120,557
---------
---------
Profit for the financial year and total comprehensive income
514,509
484,154
---------
---------
All the activities of the company are from continuing operations.
Vision Profiles Ltd
Statement of Financial Position
31 December 2018
2018
2017
Note
£
£
Fixed assets
Tangible assets
12
3,310,021
3,448,370
Current assets
Stocks
13
1,547,587
1,355,207
Debtors
14
1,323,935
920,883
Cash at bank and in hand
219,274
432,836
------------
------------
3,090,796
2,708,926
Creditors: amounts falling due within one year
15
2,064,999
1,885,143
------------
------------
Net current assets
1,025,797
823,783
------------
------------
Total assets less current liabilities
4,335,818
4,272,153
Creditors: amounts falling due after more than one year
16
1,130,556
1,252,778
Provisions
Taxation including deferred tax
17
100,673
117,203
------------
------------
Net assets
3,104,589
2,902,172
------------
------------
Capital and reserves
Called up share capital
21
29,600
30,361
Share premium account
22
–
20,203
Capital redemption reserve
22
33,967
33,206
Profit and loss account
22
3,041,022
2,818,402
------------
------------
Shareholders funds
3,104,589
2,902,172
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 27 June 2019 , and are signed on behalf of the board by:
Mr A.C Grady
Director
Company registration number: 3704000
Vision Profiles Ltd
Statement of Changes in Equity
Year ended 31 December 2018
Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
£
At 1 January 2017
32,867
86,733
30,700
2,688,776
2,839,076
Profit for the year
484,154
484,154
--------
--------
--------
------------
------------
Total comprehensive income for the year
–
–
–
484,154
484,154
Dividends paid and payable
11
–
–
–
( 275,500)
( 275,500)
Redemption of shares
( 2,506)
( 66,530)
2,506
( 79,028)
( 145,558)
--------
--------
--------
------------
------------
Total investments by and distributions to owners
( 2,506)
( 66,530)
2,506
( 354,528)
( 421,058)
At 31 December 2017
30,361
20,203
33,206
2,818,402
2,902,172
Profit for the year
514,509
514,509
--------
--------
--------
------------
------------
Total comprehensive income for the year
–
–
–
514,509
514,509
Dividends paid and payable
11
–
–
–
( 266,400)
( 266,400)
Redemption of shares
( 761)
( 20,203)
761
( 25,489)
( 45,692)
----
--------
----
---------
---------
Total investments by and distributions to owners
( 761)
( 20,203)
761
( 291,889)
( 312,092)
--------
--------
--------
------------
------------
At 31 December 2018
29,600
–
33,967
3,041,022
3,104,589
--------
--------
--------
------------
------------
Vision Profiles Ltd
Statement of Cash Flows
Year ended 31 December 2018
2018
2017
£
£
Cash flows from operating activities
Profit for the financial year
514,509
484,154
Adjustments for:
Depreciation of tangible assets
148,836
135,008
Other interest receivable and similar income
( 1,790)
( 395)
Interest payable and similar expenses
46,265
44,654
Gains on disposal of tangible assets
–
( 2,360)
Tax on profit
127,999
120,557
Accrued (income)/expenses
( 1,683)
7,400
Changes in:
Stocks
( 192,380)
143,158
Trade and other debtors
( 403,052)
72,622
Trade and other creditors
216,141
140,940
---------
------------
Cash generated from operations
454,845
1,145,738
Interest paid
( 46,265)
( 44,654)
Interest received
1,790
395
Tax paid
( 171,010)
( 112,039)
---------
------------
Net cash from operating activities
239,360
989,440
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 12,987)
( 394,512)
Proceeds from sale of tangible assets
2,500
5,000
---------
------------
Net cash used in investing activities
( 10,487)
( 389,512)
---------
------------
Cash flows from financing activities
Purchase of own shares
( 45,692)
( 145,558)
Proceeds from borrowings
( 130,343)
( 126,355)
Dividends paid
( 266,400)
( 275,500)
---------
------------
Net cash used in financing activities
( 442,435)
( 547,413)
---------
------------
Net (decrease)/increase in cash and cash equivalents
( 213,562)
52,515
Cash and cash equivalents at beginning of year
432,836
380,321
---------
---------
Cash and cash equivalents at end of year
219,274
432,836
---------
---------
Vision Profiles Ltd
Notes to the Financial Statements
Year ended 31 December 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 Unit K, Quedgeley West Business Park, Bristol Road, Gloucestershire, GL2 4PA.
2. Statement of compliance
These financial statements have been prepared in compliance with 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.
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.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
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 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.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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:
Buildings
-
2% straight line
Plant and machinery
-
10% straight line
Fixtures and fittings
-
20% straight line
Equipment
-
33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2018
2017
£
£
Sale of goods
9,006,046
8,412,161
Commissions
344,961
311,269
------------
------------
9,351,007
8,723,430
------------
------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2018
2017
£
£
United Kingdom
8,777,518
8,412,161
Overseas
573,489
311,269
------------
------------
9,351,007
8,723,430
------------
------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2018
2017
£
£
Depreciation of tangible assets
148,836
135,008
Gains on disposal of tangible assets
–
( 2,360)
Operating lease rentals
85,107
84,381
Fees payable for the audit of the financial statements
5,000
–
---------
---------
6. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2018
2017
No.
No.
Production staff
25
26
Administrative staff
27
25
----
----
52
51
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2018
2017
£
£
Wages and salaries
1,231,169
1,180,820
Social security costs
121,830
114,614
Other pension costs
30,230
19,557
------------
------------
1,383,229
1,314,991
------------
------------
7. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2018
2017
£
£
Remuneration
13,361
13,979
--------
--------
8. Other interest receivable and similar income
2018
2017
£
£
Interest on cash and cash equivalents
1,790
395
-------
----
9. Interest payable and similar expenses
2018
2017
£
£
Interest on banks loans and overdrafts
45,372
44,654
Other interest payable and similar charges
893
–
--------
--------
46,265
44,654
--------
--------
10. Tax on profit
Major components of tax expense
2018
2017
£
£
Current tax:
UK current tax expense
144,529
97,210
Deferred tax:
Origination and reversal of timing differences
( 16,530)
23,347
---------
---------
Tax on profit
127,999
120,557
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2017: higher than) the standard rate of corporation tax in the UK of 19 % (2017: 19.25 %).
2018
2017
£
£
Profit on ordinary activities before taxation
642,508
604,711
---------
---------
Profit on ordinary activities by rate of tax
122,077
116,386
Effect of expenses not deductible for tax purposes
4,247
3,287
Effect of capital allowances and depreciation
1,675
883
Rounding on tax charge
–
1
---------
---------
Tax on profit
127,999
120,557
---------
---------
11. Dividends
2018
2017
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
266,400
275,500
---------
---------
12. Tangible assets
Freehold property
Plant and machinery
Fixtures and fittings
Equipment
Total
£
£
£
£
£
Cost
At 1 January 2018
2,868,861
1,080,313
45,592
79,165
4,073,931
Additions
1,982
1,343
718
8,944
12,987
Disposals
–
( 5,942)
–
–
( 5,942)
------------
------------
--------
--------
------------
At 31 December 2018
2,870,843
1,075,714
46,310
88,109
4,080,976
------------
------------
--------
--------
------------
Depreciation
At 1 January 2018
118,741
410,043
28,233
68,544
625,561
Charge for the year
36,040
92,258
8,539
11,999
148,836
Disposals
–
( 3,442)
–
–
( 3,442)
------------
------------
--------
--------
------------
At 31 December 2018
154,781
498,859
36,772
80,543
770,955
------------
------------
--------
--------
------------
Carrying amount
At 31 December 2018
2,716,062
576,855
9,538
7,566
3,310,021
------------
------------
--------
--------
------------
At 31 December 2017
2,750,120
670,270
17,359
10,621
3,448,370
------------
------------
--------
--------
------------
13. Stocks
2018
2017
£
£
Raw materials and consumables
1,547,587
1,355,207
------------
------------
14. Debtors
2018
2017
£
£
Trade debtors
1,026,512
867,757
Prepayments and accrued income
63,214
44,836
Director's loan account
234,209
–
Other debtors
–
8,290
------------
---------
1,323,935
920,883
------------
---------
15. Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
122,222
122,222
Payments received on account
219,716
430,464
Trade creditors
1,136,042
753,069
Accruals and deferred income
12,267
13,950
Corporation tax
144,525
171,006
Social security and other taxes
430,227
380,834
Director loan accounts
–
8,121
Other creditors
–
5,477
------------
------------
2,064,999
1,885,143
------------
------------
The bank loan is secured on the company's assets.
16. Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
1,130,556
1,252,778
------------
------------
The bank loan is secured on the company's assets.
Included within creditors: amounts falling due after more than one year is an amount of £641,667 (2017: £763,889) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
The bank loan was renewed in March 2019 for another 5 years. 50% of the loan is payable in quarterly instalments and the balance on maturity. The interest rate is fixed at 4%.
17. Provisions
Deferred tax (note 18)
£
At 1 January 2018
117,203
Charge against provision
( 16,530)
---------
At 31 December 2018
100,673
---------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2018
2017
£
£
Included in provisions (note 17)
100,673
117,203
---------
---------
The deferred tax account consists of the tax effect of timing differences in respect of:
2018
2017
£
£
Accelerated capital allowances
100,673
117,203
---------
---------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 30,230 (2017: £ 19,557 ).
20. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2018
2017
£
£
Financial assets that are debt instruments measured at amortised cost
Trade debtors
1,026,512
867,757
Director's loan account
234,209
–
Other debtors
–
8,290
------------
---------
1,260,721
876,047
------------
---------
Financial liabilities measured at amortised cost
Bank loans and overdrafts
1,252,778
1,375,000
Payments on account
219,716
430,464
Trade creditors
1,136,042
753,069
Director's loan account
–
8,121
Other creditors
–
5,477
------------
------------
2,608,536
2,572,131
------------
------------
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.
21. Called up share capital
Issued, called up and fully paid
2018
2017
No.
£
No.
£
Ordinary 'A' shares of £ 1 each
29,400
29,400.00
29,400
29,400.00
Ordinary 'B' shares of £ 1 each
100
100.00
100
100.00
Ordinary 'C' shares of £ 1 each
–
–
761
761.00
Ordinary 'D' shares of £ 1 each
100
100.00
100
100.00
--------
------------
--------
------------
29,600
29,600.00
30,361
30,361.00
--------
------------
--------
------------
The number of shares outstanding at the year end date for all other classes of shares is consistent with the prior year.
The Ordinary 'A' and the Ordinary 'C' shares have full voting rights at general meeting of the company. The Ordinary 'B' and Ordinary 'D' shares have no voting rights at general meetings of the company. Dividends will fluctuate depending on results.
22. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2018
2017
£
£
Not later than 1 year
72,315
78,189
Later than 1 year and not later than 5 years
83,151
140,034
---------
---------
155,466
218,223
---------
---------
24. Director's advances, credits and guarantees
The director's loan is repayable on demand and interest is payable at HMRC's 'official rate' of interest.