Homespares Centres Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00762971 (England and Wales)

Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2018

for

Homespares Centres Limited

Page

Company Information

1

Report of the Directors

2

Balance Sheet

4

Notes to the Financial Statements

5

DIRECTORS:

J M Farnworth

Mrs J Farnworth

D J Farnworth

D A Fisher

A Swarsbrick

SECRETARY:

J M Farnworth

REGISTERED OFFICE:

Harewood House

Union Road

Bolton

Lancashire

BL2 2HE

REGISTERED NUMBER:

00762971 (England and Wales)

AUDITORS:

Crossley & Davis

Chartered Accountants and Registered Auditor

52 Chorley New Road

Bolton

Lancashire

BL1 4AP

The directors present their report with the financial statements of the company for the year ended 31 December 2018.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the wholesale of general domestic spare

parts and domestic appliances and retail sales to the general public.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2018 to the date of this

report.

J M Farnworth

Mrs J Farnworth

D J Farnworth

Other changes in directors holding office are as follows:

D A Fisher - appointed 31 January 2018

A Swarsbrick - appointed 31 January 2018

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Report of the Directors 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 of 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 judgements and accounting estimates that are reasonable and prudent;

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought

to have taken as a director in order to make himself or herself aware of any relevant audit information and to

establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Crossley & Davis, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to

small companies.

ON BEHALF OF THE BOARD:

J M Farnworth - Director

25 September 2019

FIXED ASSETS

Intangible assets

5

37,775

48,173

Tangible assets

6

57,662

63,066

95,437

111,239

CURRENT ASSETS

Stocks

973,617

1,305,659

Debtors

7

581,749

877,450

Cash at bank

66

66

1,555,432

2,183,175

CREDITORS

Amounts falling due within one year

8

2,939,635

2,920,900

NET CURRENT LIABILITIES

(1,384,203

)

(737,725

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,288,766

)

(626,486

)

PROVISIONS FOR LIABILITIES

16,029

16,029

NET LIABILITIES

(1,304,795

)

(642,515

)

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

(1,305,795

)

(643,515

)

(1,304,795

)

(642,515

)

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 25 September 2019 and were signed on its behalf by:

J M Farnworth - Director

1.	STATUTORY INFORMATION

Homespares Centres Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Departure from using going concern as a basis of preparation

As explained in Note 13, the company intends to transfer its trade, assets and liabilities to a fellow subsidiary

company on 31 December 2019 and has cease to trade. As required by UK accounting standards, the directors

have prepared the financial statements on the basis that the company is no longer a going concern. No

material adjustments arose as a result of ceasing to apply the going concern basis. All assets and liabilities are

intended to be transferred to the fellow subsidiary at their carrying amounts.

Preparation of consolidated financial statements

The financial statements contain information about Homespares Centres Limited as an individual company and

do not contain consolidated financial information as the parent of a group. The company is exempt under

Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as

it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of

its parent, W M L Industrial Holdings Limited, Harewood House, Union Road, Bolton, Lancashire, BL2 2DT.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

25% on cost and 10% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that

they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 26 (2017 - 27 ) .

5.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 January 2018

50,000

96,809

146,809

Additions

-

10,160

10,160

At 31 December 2018

50,000

106,969

156,969

AMORTISATION

At 1 January 2018

50,000

48,636

98,636

Charge for year

-

20,558

20,558

At 31 December 2018

50,000

69,194

119,194

NET BOOK VALUE

At 31 December 2018

-

37,775

37,775

At 31 December 2017

-

48,173

48,173

6.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2018

1,072,764

Additions

16,933

At 31 December 2018

1,089,697

DEPRECIATION

At 1 January 2018

1,009,698

Charge for year

22,337

At 31 December 2018

1,032,035

NET BOOK VALUE

At 31 December 2018

57,662

At 31 December 2017

63,066

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

357,691

607,716

Amounts owed by group undertakings

196,931

197,511

Other debtors

27,127

72,223

581,749

877,450

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

794,330

953,160

Trade creditors

456,580

610,154

Amounts owed to group undertakings

1,542,974

980,214

Taxation and social security

133,864

269,025

Other creditors

11,887

108,347

2,939,635

2,920,900

9.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdrafts

794,330

953,160

The assets of the group have been pledged as security for the borrowings of the group including the bank

overdraft.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

We draw attention to note 3 and also note 13 of the financial statements, which describes why the company

has produced these financial statements not on a going concern basis

Peter Shaw (Senior Statutory Auditor)

for and on behalf of Crossley & Davis

11.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

12.	APB ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit

returns to the tax authorities and assist with the preparation of the financial statements.

13.	POST BALANCE SHEET EVENTS

The directors are keen to see the company thrive and are currently developing a strategic plan which will see

the company merge its operations and business with another subsidiary member of the group.

The directors have concluded that the merger will have several benefits for both companies. Namely, focused

management, cost savings and greater business engagement. The merged company will retain the full support

of the Group.

The directors have reviewed the balance sheet and do not anticipate the need for any impairment. The full

trade, assets and liabilities will be transferred to the merged company

14.	ULTIMATE CONTROLLING PARTY

The controlling party is WML Industrial Holdings Limited.

The most senior parent entity producing publicly available financial statements is WML Industrial Holdings

Limited of Harewood House, Union Road, Bolton, BL2 2DT. These financial statements are available upon

request from Companies House