Crossways Animal Care Limited - Period Ending 2019-02-18

Registration number: 08914273

Crossways Animal Care Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 April 2018 to 18 February 2019

Crossways Animal Care Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

Crossways Animal Care Limited

Company Information

Directors

D R G Hillier A J Davis

Registered office

The Chocolate Factory Somerdale, Keynsham Bristol BS31 2AU

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

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Crossways Animal Care Limited

(Registration number: 08914273)
Balance Sheet as at 18 February 2019

	Note	18 February 2019  £	31 March 2018  £
Fixed assets
Intangible assets	4	357,863	420,000
Tangible assets	5	180,553	917,214
		538,416	1,337,214
Current assets
Stocks		25,037	69,004
Debtors	6	51,141	67,084
Cash at bank and in hand		898,048	82,870
		974,226	218,958
Creditors: Amounts falling due within one year	7	(1,340,269)	(295,554)
Net current liabilities		(366,043)	(76,596)
Total assets less current liabilities		172,373	1,260,618
Creditors: Amounts falling due after more than one year	7	-	(1,106,352)
Deferred tax liabilities	9	(11,016)	-
Net assets		161,357	154,266
Capital and reserves
Called up share capital	10	50	50
Capital redemption reserve		(214,099)	(214,099)
Profit and loss account		375,406	368,315
Total equity		161,357	154,266

For the financial period ending 18 February 2019 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 period 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.

The notes on pages 4 to 11 form an integral part of these financial statements.
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Crossways Animal Care Limited

(Registration number: 08914273)
Balance Sheet as at 18 February 2019

Approved and authorised by the Board on 12 September 2019 and signed on its behalf by:
 

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

A J Davis
Director

The notes on pages 4 to 11 form an integral part of these financial statements.
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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

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:
The Chocolate Factory
Somerdale, Keynsham
Bristol
BS31 2AU

The principal place of business is:
43 School Hill
Storrington
West Sussex
RH20 4NA

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 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 financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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.

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% reducing balance

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

	1 April 2018 to 18 February 2019  No.	Year ended 31 March 2018  No.
Average number of employees	30	27

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

4

Intangible assets

	Goodwill  £	Total £
Cost
At 1 April 2018	700,000	700,000
At 18 February 2019	700,000	700,000
Amortisation
At 1 April 2018	280,000	280,000
Amortisation charge	62,137	62,137
At 18 February 2019	342,137	342,137
Carrying amount
At 18 February 2019	357,863	357,863
At 31 March 2018	420,000	420,000

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 April 2018	818,742	159,553	978,295
Additions	17,100	41,135	58,235
Disposals	(772,100)	-	(772,100)
At 18 February 2019	63,742	200,688	264,430
Depreciation
At 1 April 2018	-	61,082	61,082
Charge for the year	-	22,795	22,795
At 18 February 2019	-	83,877	83,877
Carrying amount
At 18 February 2019	63,742	116,811	180,553
At 31 March 2018	818,742	98,472	917,214

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

6

Debtors

	18 February 2019  £	31 March 2018  £
Trade debtors	23,016	44,285
Other debtors	21,095	20,280
Prepayments	7,030	2,519
	51,141	67,084

7

Creditors

Creditors: amounts falling due within one year

	Note	18 February 2019  £	31 March 2018  £
Due within one year
Loans and borrowings	8	-	149,453
Trade creditors		65,322	53,409
Social security and other taxes		17,501	89,894
Outstanding defined contribution pension costs		1,581	-
Other creditors		1,173,910	2,798
Accrued expenses		45,715	-
Corporation tax liability		36,240	-
		1,340,269	295,554
Due after one year
Loans and borrowings	8	-	1,106,352

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	8	-	1,106,352

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

8

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	-	105,372
Other borrowings	-	44,081
	-	149,453

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	-	1,106,352

9

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	12,188
Short term timing differences	(1,172)
	11,016

10

Share capital

Allotted, called up and fully paid shares

	18 February 2019		31 March 2018
	No.	£	No.	£
Ordinary A shares of £1 each	40	40	40	40
Ordinary B shares of £1 each	10	10	10	10
	50	50	50	50

The different classes of shares referred to above carry separate rights to dividends but, in all other significant respects, rank pari passu.

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Crossways Animal Care Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 18 February 2019

11

Financial commitments

Operating leases

The total of future minimum lease payments is as follows:

	2019  £	2018  £
Not later than one year	9,112	6,148
Later than one year and not later than five years	29,788	23,568
	38,900	29,716

The amount of non-cancellable operating lease payments recognised as an expense during the period was £5,636 (2018 - £6,148).

12

Related party transactions

Key management personnel

Key management personnel are the former directors of the company.

Summary of transactions with key management

As at the balance sheet date, the former directors owed the company £8,200 (31 March 2018: the company owed the directors £44,081). This amount is included within other receivables (31 March 2018: other borrowings).

At the balance sheet date, property was sold to Isanam Limited, a company in which J Hoad is a director, at market value as follows:

43 School Hill, Storrington £580,000
2 & 2a Hight Street, Steyning, £175,000

The movement on the loan can be analysed as follows:
 

Transactions with directors

2019	At 1 April 2018 £	Advances to directors £	Repayments by director £	At 18 February 2019 £
J G Hoad
Amounts due to/ (from) former directors	38,681	(851,881)	805,000	(8,200)
S Hoad
Amounts due to / (from) former directors	5,400	(5,400)	-	-

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