SGD (South West) Ltd - Period Ending 2018-07-31

Registration number: 04832450

SGD (South West) Ltd

Filleted Annual Report and Unaudited Abridged Financial Statements

for the Year Ended 31 July 2018

HSJ Accountants Ltd
Severn House
Hazell Drive
Newport
South Wales
NP10 8FY

SGD (South West) Ltd

Contents

Company Information	1
Abridged Balance Sheet	2 to 3
Notes to the Abridged Financial Statements	4 to 7

SGD (South West) Ltd

Company Information

Directors

Mr DN Witts-Price Mr Jeffrey John Witts Mrs NJ Alexander

Company secretary

Mrs BJ Witts

Registered office

Unit 5 Melyn Mair Business Park Wentloog Avenue Cardiff South Glamorgan CF3 2EX

Accountants

HSJ Accountants Ltd Severn House Hazell Drive Newport South Wales NP10 8FY

Page 1

SGD (South West) Ltd

(Registration number: 04832450)
Abridged Balance Sheet as at 31 July 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	1,006	658
Current assets
Stocks	5	10,865	10,865
Debtors		146,360	160,296
		157,225	171,161
Creditors: Amounts falling due within one year		(145,796)	(180,036)
Net current assets/(liabilities)		11,429	(8,875)
Total assets less current liabilities		12,435	(8,217)
Accruals and deferred income		(5,000)	(5,000)
Net assets/(liabilities)		7,435	(13,217)
Capital and reserves
Called up share capital	6	1,200	1,200
Share premium reserve		29,850	29,850
Profit and loss account		(23,615)	(44,267)
Total equity		7,435	(13,217)

The notes on pages 4 to 7 form an integral part of these abridged financial statements.

Page 2

SGD (South West) Ltd

(Registration number: 04832450)
Abridged Balance Sheet as at 31 July 2018

For the financial year ending 31 July 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

All of the company’s members have consented to the preparation of an Abridged Balance Sheet in accordance with Section 444(2A) of the Companies Act 2006.

Approved and authorised by the Board on 30 April 2019 and signed on its behalf by:
 

.........................................

Mrs NJ Alexander
Director

The notes on pages 4 to 7 form an integral part of these abridged financial statements.

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SGD (South West) Ltd

Notes to the Abridged Financial Statements for the Year Ended 31 July 2018

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 5 Melyn Mair Business Park
Wentloog Avenue
Cardiff
South Glamorgan
CF3 2EX

These financial statements were authorised for issue by the Board on 30 April 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These abridged financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These abridged financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis. The company balance sheet is showing negative profit and loss reserves at the year end. However, the directors forecast that, with the continued support of SGD Group Ltd, of which the company is wholly owned subsidiary, the company will be capable of meeting its day to day working capital requirements and to continue trading in foreseeable future. Moreover, the directors of SGD Group Ltd remain fully committed to the company. For the reasons, the directors consider the going concern basis to be appropriate.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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SGD (South West) Ltd

Notes to the Abridged Financial Statements for the Year Ended 31 July 2018

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	20% Straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Page 5

SGD (South West) Ltd

Notes to the Abridged Financial Statements for the Year Ended 31 July 2018

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2017 - 3).

4	Tangible assets

	Fixtures and fittings £	Total £
Cost or valuation
At 1 August 2017	5,272	5,272
Additions	830	830
At 31 July 2018	6,102	6,102
Depreciation
At 1 August 2017	4,614	4,614
Charge for the year	482	482
At 31 July 2018	5,096	5,096
Carrying amount
At 31 July 2018	1,006	1,006
At 31 July 2017	658	658

5

Stocks

	2018 £	2017 £
Finished goods and goods for resale	10,865	10,865

Page 6

SGD (South West) Ltd

Notes to the Abridged Financial Statements for the Year Ended 31 July 2018

6	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary A of £1 each	900	900	900	900
Ordinary B of £1 each	300	300	300	300
	1,200	1,200	1,200	1,200

7	Related party transactions

Summary of transactions with parent

SGD Group Ltd
 
During the year the company incurred management charges for SGD Group Ltd totalling £118,899 (2017 - £77,708). The company also exchanged funds with SGD Group Ltd to facilitate working capital management. At the balance date the amount due from SGD Group Ltd was £48,248 (2017 - £Nil).
 

Summary of transactions with other related parties

ADC Fire Systems Ltd
 
During the year, SGD (South West) Ltd (the company) sold goods and services to ADC Fire Systems Ltd amounting to £7,971 (2017 - £707) and purchased goods and services from ADC Fire Systems Ltd, amounting to £240,634 (2017 - £237,962). The amount due to the company included within debtors was £3,000 (2017 - £Nil), the amount due to ADC Fire Systems Ltd included in creditors was £22,722 (2017 - £21,118).

In addition to the above transactions, the company exchanged funds with ADC Fire Systems Ltd to facilitate working capital management. At the balance sheet date the amount due to ADC Fire Systems Ltd was £2,150 (2017 - £3,166).

SGD Security Ltd

During the year, SGD (South West) Ltd (the company) sold goods and services to SGD Security Ltd amounting to £2,500 (2017 - £1,463) and purchased goods and services from SGD Security Ltd, amounting to £394,188 (2017 - £233,721). The amount due to the company included within debtors was £3,000 (2017 - £Nil), the amount due to SGD Security Ltd included in creditors was £30,668 (2017 - £79,1777)

In addition to the above the company exchanged funds with SGD Security Ltd to facilitate working capital management. At the balance sheet date, the amount due to SGD Security Ltd was £29,450 (2017 - £Nil).
 

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