Moseley in the South Limited 30/09/2018 iXBRL

Moseley in the South Limited 30/09/2018 iXBRL

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Company registration number: 02539090
Moseley in the South Limited
Financial statements
30 September 2018
Moseley in the South Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
Moseley in the South Limited
Directors and other information
Directors K T Moseley
M W Worth
Secretary K T Moseley
Company number 02539090
Registered office Westgate House
Royland Road
Loughborough
Leicestershire
LE11 2EH
Business address Summerfield Avenue
Chelston Business Park
Wellington
Somerset
TA21 9JF
Auditor Turner & Smith
Westgate House
Royland Road
Loughborough
Leicestershire
LE11 2EH
Bankers Barclays Bank Plc
1 Park Row
Leeds
LS1 5WU
Moseley in the South Limited
Strategic report
Year ended 30 September 2018
Business Review
The directors present a review of the development and performance of the company during the year and of its position at the year end consistent with the size and nature of the business and is written in the context of the risks and uncertainties we face.
As a motor coach distributor we continue to deal in new and used motor coaches and provide vehicle repairs, servicing and hire. No changes to those activities are proposed.
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit and return on capital employed.
The total turnover of the business decreased by £5,561,504 from £16,359,540 in 2017 to £10,798,036 in 2018. The gross profit decreased by £683,274 from £1,061,558 in 2017 to £378,284 in 2018.
There was no return on capital in 2018 compared to 7% in 2017. Return on capital employed is calculated as profit before interest and tax divided by capital employed. Capital employed constitutes total assets less current liabilities less investments, less cash plus overdrafts and other short-term borrowings.
Financial risk management objectives and policies
As for many businesses of our size, the business environment in which we operate continues to be challenging. The coach operating industry continues to face substantial regulatory changes which impact significantly onto their vehicle replacement programmes.
With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
This report was approved by the board of directors on 9 May 2019 and signed on behalf of the board by:
K T Moseley
Director
Moseley in the South Limited
Directors report
Year ended 30 September 2018
The directors present their report and the financial statements of the company for the year ended 30 September 2018.
Directors
The directors who served the company during the year were as follows:
K T Moseley
M W Worth
Dividends
The directors do not recommend the payment of a dividend.
Financial instruments
Details of financial instruments are included in note 20.
Disclosure of information in the strategic report.
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company has chosen to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 which was previously included in the Directors' Report.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report 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 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 judgments and accounting estimates that are reasonable and prudent; and
- 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.
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.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 09 May 2019 and signed on behalf of the board by:
K T Moseley
Director
Moseley in the South Limited
Independent auditor's report to the members of
Moseley in the South Limited
Year ended 30 September 2018
Opinion
We have audited the financial statements of Moseley in the South Limited for the year ended 30 September 2018 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 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 auditors 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. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2018 and of its loss 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 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has 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 directors' report. 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 the 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 directors' responsibilities statement, 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 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 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.
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. 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 auditor’s report.
Roger Neal FCA (Senior Statutory Auditor)
For and on behalf of
Turner & Smith
Accountants and Statutory Auditors
Westgate House
Royland Road
Loughborough
Leicestershire
LE11 2EH
09 May 2019
Moseley in the South Limited
Statement of income and retained earnings
Year ended 30 September 2018
2018 2017
Note £ £
Turnover 4 10,798,036 16,359,540
Cost of sales ( 10,419,752) ( 15,297,982)
_________ _________
Gross profit 378,284 1,061,558
Distribution costs ( 505,102) ( 497,555)
Administrative expenses ( 318,632) ( 216,045)
Other operating income 5 6,955 8,312
Net foreign exchange gain 261,396 20,718
_________ _________
Operating (loss)/profit 6 ( 177,099) 376,988
Other interest receivable and similar income 9 51 91
Interest payable and similar expenses 10 ( 12,853) ( 11,591)
_________ _________
(Loss)/profit before taxation ( 189,901) 365,488
Tax on (loss)/profit 11 34,523 ( 72,357)
_________ _________
(Loss)/profit for the financial year and total comprehensive income ( 155,378) 293,131
_________ _________
Retained earnings at the start of the year 4,428,368 4,135,237
_________ _________
Retained earnings at the end of the year 4,272,990 4,428,368
_________ _________
All the activities of the company are from continuing operations.
Moseley in the South Limited
Statement of financial position
30 September 2018
2018 2017
Note £ £ £ £
Fixed assets
Tangible assets 12 994,041 963,507
_________ _________
994,041 963,507
Current assets
Stocks 13 4,201,412 4,780,186
Debtors 14 338,035 1,215,296
Cash at bank and in hand 1,227,336 764,016
_________ _________
5,766,783 6,759,498
Creditors: amounts falling due
within one year 16 ( 2,412,540) ( 3,228,388)
_________ _________
Net current assets 3,354,243 3,531,110
_________ _________
Total assets less current liabilities 4,348,284 4,494,617
Provisions for liabilities 17 ( 55,294) ( 46,249)
_________ _________
Net assets 4,292,990 4,448,368
_________ _________
Capital and reserves
Called up share capital 21 9,800 9,800
Capital redemption reserve 22 10,200 10,200
Profit and loss account 22 4,272,990 4,428,368
_________ _________
Shareholders funds 4,292,990 4,448,368
_________ _________
These financial statements were approved by the board of directors and authorised for issue on 09 May 2019 , and are signed on behalf of the board by:
K T Moseley
Director
Company registration number: 02539090
Moseley in the South Limited
Statement of cash flows
Year ended 30 September 2018
2018 2017
Note £ £
Cash flows from operating activities
(Loss)/profit for the financial year ( 155,378) 293,131
Adjustments for:
Depreciation of tangible assets 34,878 74,389
Other interest receivable and similar income ( 51) ( 91)
Interest payable and similar expenses 12,853 11,591
Gain/(loss) on disposal of tangible assets 3,000 ( 50)
Tax on loss/profit ( 34,523) 72,357
Accrued expenses/(income) ( 3,593) ( 40,321)
Changes in:
Stocks 578,774 78,229
Trade and other debtors 920,829 ( 39,412)
Trade and other creditors ( 391,297) ( 1,291,378)
_________ _________
Cash generated from operations 965,492 ( 841,555)
Interest paid ( 12,853) ( 11,591)
Interest received 51 91
Tax paid ( 43,568) ( 278,203)
_________ _________
Net cash from/(used in) operating activities 909,122 ( 1,131,258)
_________ _________
Cash flows from investing activities
Purchase of tangible assets ( 145,412) ( 275,339)
Proceeds from sale of tangible assets 77,000 50
_________ _________
Net cash used in investing activities ( 68,412) ( 275,289)
_________ _________
Net increase/(decrease) in cash and cash equivalents 840,710 ( 1,406,547)
Cash and cash equivalents at beginning of year 15 (737,759) 668,788
_________ _________
Cash and cash equivalents at end of year 15 102,951 ( 737,759)
_________ _________
Moseley in the South Limited
Notes to the financial statements
Year ended 30 September 2018
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Westgate House, Royland Road, Loughborough, Leicestershire, LE11 2EH.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
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.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
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 are 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. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
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:
Freehold property - Land is not depreciated. Buildings are depreciated at 2% per annum.
Plant and machinery - 10% per annum straight line
Fittings fixtures and equipment - 20% to 33 1/3% per annum straight line
Motor vehicles - 25% per annum straight line
Coach fleet - Valuation basis
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
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. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
New vehicles and parts - Valued at the lower of cost and net realisable value. Cost of parts is computed on a first in first out basis.Used vehicles - Valued at the lower of cost and net realisable value. In respect of vehicles acquired by part exchange, cost is the lower of part exchange value or open market value atthe date of acquisition.Work in progress - Valued at the cost of materials plus mark up and chargeable hours.Net realisable value is based upon an estimated selling price less selling costs and, in the case of work in progress, less estimated costs to completion.
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 in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.Basic financial instruments are initially recognised at the transaction price, unless the arrangementconstitutes a financing transaction, where it is recognised at the present value of the future paymentsdiscounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2018 2017
£ £
Sale of goods 10,572,046 16,181,086
Rendering of services 225,990 178,454
_________ _________
10,798,036 16,359,540
_________ _________
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 10,288,036 15,584,419
Other EU Countries 510,000 775,121
_________ _________
10,798,036 16,359,540
_________ _________
5. Other operating income
2018 2017
£ £
Other operating income 6,955 8,312
_________ _________
6. Operating loss/profit
Operating loss/profit is stated after charging/(crediting):
2018 2017
£ £
Depreciation of tangible assets 34,878 74,389
(Gain)/loss on disposal of tangible assets 3,000 ( 50)
Cost of stocks recognised as an expense 9,899,619 14,642,898
Impairment of trade debtors 30,891 (978)
Operating lease rentals 26,364 36,978
Foreign exchange differences ( 261,396) ( 20,718)
Fees payable for the audit of the financial statements 13,075 12,825
_________ _________
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2018 2017
Production staff 9 10
Distribution staff 4 6
Administrative staff 4 4
_________ _________
17 20
_________ _________
The aggregate payroll costs incurred during the year were:
2018 2017
£ £
Wages and salaries 526,311 541,505
Social security costs 55,416 56,778
Other pension costs 6,388 ( 42,187)
_________ _________
588,115 556,096
_________ _________
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2018 2017
£ £
Remuneration 93,898 89,404
Company contributions to pension schemes in respect of qualifying services 1,230 ( 50,000)
_________ _________
95,128 39,404
_________ _________
9. Other interest receivable and similar income
2018 2017
£ £
Bank deposits 51 91
_________ _________
10. Interest payable and similar expenses
2018 2017
£ £
Bank loans and overdrafts 12,853 11,591
_________ _________
11. Tax on loss/profit
Major components of tax income/expense
2018 2017
£ £
UK current tax expense - 43,568
Adjustments in respect of previous periods ( 43,568) -
_________ _________
Deferred tax:
Origination and reversal of timing differences 9,045 28,789
_________ _________
Tax on loss/profit ( 34,523) 72,357
_________ _________
Reconciliation of tax income/expense
The tax assessed on the loss/profit for the year is equal to (2017: higher than) the standard rate of corporation tax in the UK of 19.00% (2017: 19.50%).
2018 2017
£ £
(Loss)/profit before taxation ( 189,901) 365,488
_________ _________
(Loss)/profit multiplied by rate of tax ( 36,081) 71,270
Adjustments in respect of prior periods ( 43,568) -
Effect of capital allowances and depreciation ( 18,027) ( 27,702)
Utilisation of tax losses 42,454 -
Unrelieved tax losses 11,654 -
Deferred taxation 9,045 28,789
_________ _________
Tax on loss/profit ( 34,523) 72,357
_________ _________
12. Tangible assets
Freehold property Coach hire fleet Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £
Cost
At 1 October 2017 890,655 385,001 192,433 53,312 1,521,401
Additions - 140,000 5,412 - 145,412
Disposals - ( 95,000) ( 7,392) - ( 102,392)
_________ _________ _________ _________ _________
At 30 September 2018 890,655 430,001 190,453 53,312 1,564,421
_________ _________ _________ _________ _________
Depreciation
At 1 October 2017 264,889 85,000 160,348 47,657 557,894
Charge for the year 14,064 10,000 6,686 4,128 34,878
Disposals - ( 15,000) ( 7,392) - ( 22,392)
_________ _________ _________ _________ _________
At 30 September 2018 278,953 80,000 159,642 51,785 570,380
_________ _________ _________ _________ _________
Carrying amount
At 30 September 2018 611,702 350,001 30,811 1,527 994,041
_________ _________ _________ _________ _________
At 30 September 2017 625,766 300,001 32,085 5,655 963,507
_________ _________ _________ _________ _________
The cost of depreciable assets included in land and buildings at 30 September 2018 amounted to£703,213 (30 September 2017 : £703,213).
13. Stocks
2018 2017
£ £
New vehicle stock 1,423,934 1,505,392
Used vehicle stock 2,292,800 2,820,400
Parts stock 484,678 454,394
_________ _________
4,201,412 4,780,186
_________ _________
14. Debtors
2018 2017
£ £
Trade debtors 271,239 1,185,763
Prepayments and accrued income 22,297 29,533
Other debtors 44,499 -
_________ _________
338,035 1,215,296
_________ _________
15. Cash and cash equivalents
2018 2017
£ £
Cash at bank and in hand 1,227,336 764,016
Bank overdrafts ( 1,124,385) ( 1,501,775)
_________ _________
102,951 ( 737,759)
_________ _________
16. Creditors: amounts falling due within one year
2018 2017
£ £
Bank loans and overdrafts 1,124,385 1,501,775
Payments received on account 7,000 137,727
Trade creditors 1,070,497 1,384,352
Accruals and deferred income 35,700 39,293
Corporation tax - 43,568
Social security and other taxes 173,793 107,548
Other creditors 1,165 14,125
_________ _________
2,412,540 3,228,388
_________ _________
The bank overdraft is secured by a debenture and legal charge over the assets of the company.
17. Provisions
Deferred tax (note 18) Total
£ £
At 1 October 2017 46,249 46,249
Charges against provisions 9,045 9,045
_________ _________
At 30 September 2018 55,294 55,294
_________ _________
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2018 2017
£ £
Included in provisions (note 17) 55,294 46,249
_________ _________
The deferred tax account consists of the tax effect of timing differences in respect of:
2018 2017
£ £
Accelerated capital allowances 55,294 46,249
_________ _________
The potential liability equals the provision and is based on a corporation tax rate of 19% (30 September 2017 : 19%).
19. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £6,388 (2017: £(42,187)).
The figure for 2017 includes £(50,000) for pensions that were reserved for in the previous year but were not subsequently paid.
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 271,239 1,185,763
Cash at bank and in hand 1,227,336 764,016
_________ _________
1,498,575 1,949,779
_________ _________
Financial liabilities measured at amortised cost
Bank and other loans 1,124,385 1,501,775
Trade creditors 1,070,497 1,384,352
Other creditors 43,865 191,145
_________ _________
2,238,747 3,077,272
_________ _________
21. Called up share capital
Issued, called up and fully paid
2018 2017
No £ No £
Ordinary shares shares of £ 1.00 each 9,800 9,800 9,800 9,800
_________ _________ _________ _________
22. Reserves
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 company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 19,595 26,999
Later than 1 year and not later than 5 years 6,541 29,515
_________ _________
26,136 56,514
_________ _________