Folia (Europe) Ltd - Limited company accounts 11.4

REGISTERED NUMBER: 02562896 (England and Wales)

Report of the Director and

Unaudited Financial Statements for the Year Ended 30 June 2013

for

Folia (Europe) Ltd

Page

Company Information

1

Report of the Director

2

Profit and Loss Account

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTOR:

M J Wheeler

REGISTERED OFFICE:

Well End Road

Borehamwood

Hertfordshire

WD6 5NZ

REGISTERED NUMBER:

02562896 (England and Wales)

ACCOUNTANTS:

Hardcastle Burton LLP

Lake House

Market Hill

Royston

Hertfordshire

SG8 9JN

The director presents his report with the financial statements of the company for the year ended 30 June 2013.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the wholesale and supply of horticultural

products and services.

DIRECTORS

M J Wheeler has held office during the whole of the period from 1 July 2012 to the date of this report.

Other changes in directors holding office are as follows:

Mrs S L Wheeler - resigned 30 May 2013

M Farrant - appointed 4 July 2012 - resigned 27 March 2013

C J Partridge - appointed 11 June 2013 - resigned 29 June 2013

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Report of the Director 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

of 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 judgements 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 him 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.

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

to small companies.

ON BEHALF OF THE BOARD:

M J Wheeler - Director

4 July 2014

TURNOVER

1,232,290

1,457,863

Cost of sales

916,772

1,006,175

GROSS PROFIT

315,518

451,688

Administrative expenses

350,742

417,209

OPERATING (LOSS)/PROFIT

2

(35,224

)

34,479

Interest payable and similar charges

8,611

8,993

(LOSS)/PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

(43,835

)

25,486

Tax on (loss)/profit on ordinary activities

3

2,228

7,390

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(46,063

)

18,096

FIXED ASSETS

Tangible assets

5

242,606

194,432

CURRENT ASSETS

Stocks

245,558

285,129

Debtors

6

251,513

183,965

Cash at bank and in hand

687

25,371

497,758

494,465

CREDITORS

Amounts falling due within one year

7

598,360

486,951

NET CURRENT (LIABILITIES)/ASSETS

(100,602

)

7,514

TOTAL ASSETS LESS CURRENT LIABILITIES

142,004

201,946

CREDITORS

Amounts falling due after more than one year

8

(129,011

)

(91,218

)

PROVISIONS FOR LIABILITIES

11

(11,501

)

(9,273

)

NET ASSETS

1,492

101,455

CAPITAL AND RESERVES

Called up share capital

12

1,000

1,000

Profit and loss account

13

492

100,455

SHAREHOLDERS' FUNDS

1,492

101,455

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2013.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2013 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the director on 4 July 2014 and were signed by:

M J Wheeler - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements - going concern

The company has net current liabilities at the end of the year. The director believes that the company can

continue to trade on the basis of future profitability which will generate future cash and from support from the

directors when necessary. For these reasons the accounts have been drawn up on a going concern basis.

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

in accordance with the lease term

Plant and machinery etc

-

20% on reducing balance

Stocks

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

moving items.

Deferred tax

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

sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

2.	OPERATING (LOSS)/PROFIT

The operating loss (2012 - operating profit) is stated after charging/(crediting):

30.6.13

30.6.12

£

£

Depreciation - owned assets

24,996

19,619

Depreciation - assets on hire purchase contracts

6,777

5,712

Loss/(profit) on disposal of fixed assets

2,678

(2,319

)

Foreign exchange differences

8,772

(22,878

)

Directors' remuneration and other benefits etc

56,035

67,921

3.

TAXATION

Analysis of the tax charge

The tax charge on the loss on ordinary activities for the year was as follows:

30.6.13

30.6.12

£

£

Current tax:

UK corporation tax

-

1,854

Deferred tax

2,228

5,536

Tax on (loss)/profit on ordinary activities

2,228

7,390

4.

DIVIDENDS

30.6.13

30.6.12

£

£

Ordinary shares of £1 each

Interim

53,900

7,225

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 July 2012

135,866

216,965

352,831

Additions

-

93,123

93,123

Disposals

-

(46,677

)

(46,677

)

At 30 June 2013

135,866

263,411

399,277

DEPRECIATION

At 1 July 2012

31,497

126,902

158,399

Charge for year

6,794

24,979

31,773

Eliminated on disposal

-

(33,501

)

(33,501

)

At 30 June 2013

38,291

118,380

156,671

NET BOOK VALUE

At 30 June 2013

97,575

145,031

242,606

At 30 June 2012

104,369

90,063

194,432

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 July 2012

47,479

Additions

84,258

Transfer to ownership

(19,300

)

At 30 June 2013

112,437

DEPRECIATION

At 1 July 2012

23,070

Charge for year

6,777

Transfer to ownership

(13,292

)

At 30 June 2013

16,555

NET BOOK VALUE

At 30 June 2013

95,882

At 30 June 2012

24,409

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.13

30.6.12

£

£

Trade debtors

202,181

167,799

Other debtors

6,336

6,335

Directors' loan accounts

36,981

-

Prepayments and accrued income

6,015

9,831

251,513

183,965

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.13

30.6.12

£

£

Bank loans and overdrafts

12,709

10,150

Hire purchase contracts

24,933

6,531

Trade creditors

423,538

284,041

Tax

1,906

1,854

Social security and other taxes

87,179

105,767

Other creditors

41,427

50,790

Directors' loan accounts

-

7,534

Accruals and deferred income

6,668

20,284

598,360

486,951

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.13

30.6.12

£

£

Bank loans - 1-2 years

10,150

10,150

Bank loans - 2-5 years

30,450

30,450

Bank loans more 5 yr by instal

27,066

37,217

Hire purchase contracts

61,345

13,401

129,011

91,218

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

27,066

37,217

9.	OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

30.6.13

30.6.12

£

£

Expiring:

In more than five years

10,000

10,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.13

30.6.12

£

£

Bank loans

77,816

87,967

11.	PROVISIONS FOR LIABILITIES

30.6.13

30.6.12

£

£

Deferred tax

11,501

9,273

Deferred

tax

£

Balance at 1 July 2012

9,273

Movement

2,228

Balance at 30 June 2013

11,501

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.6.13

30.6.12

value:

£

£

1,000

Ordinary

£1

1,000

1,000

13.

RESERVES

Profit

and loss

account

£

At 1 July 2012

100,455

Deficit for the year

(46,063

)

Dividends

(53,900

)

At 30 June 2013

492

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

15.	RELATED PARTY DISCLOSURES

Folia Green Limited

a company in which Mr M Wheeler is a director

During the year Folia Green Ltd made sales to the company.

30.6.13

30.6.12

£

£

Amount due to related party at the balance sheet date

2,530

1,486

Alpha Zeta Limited

A company controlled by a relative of M Wheeler

During a prior year Alpha Zeta Limited made an unsecured, interest free loan with no fixed date for repayment.

30.6.13

30.6.12

£

£

Amount due to related party at the balance sheet date

28,596

34,596

M J Wheeler

Director

Dividends to the value of £53,900 were paid during the year.

30.6.13

30.6.12

£

£

Amount due from related party at the balance sheet date

36,981

-

16.	ULTIMATE CONTROLLING PARTY

The controlling party is M J Wheeler.