Reane Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06896580 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2019

FOR

REANE LTD

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R Patel

A Patel

SECRETARY:

R Patel

REGISTERED OFFICE:

T/a Savages Pharmacy

22 Station Road

Burnham-On-Crouch

Essex

CMO 8BQ

REGISTERED NUMBER:

06896580 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2

Charnwood Edge Business Park

Syston Road

Leicester

LE7 4UZ

FIXED ASSETS

Intangible assets

4

-

146,978

Tangible assets

5

115,293

102,375

Investments

6

38,592

37,092

153,885

286,445

CURRENT ASSETS

Stocks

219,266

183,355

Debtors

7

442,116

333,479

Cash at bank and in hand

30,745

408

692,127

517,242

CREDITORS

Amounts falling due within one year

8

(487,783

)

(487,882

)

NET CURRENT ASSETS

204,344

29,360

TOTAL ASSETS LESS CURRENT LIABILITIES

358,229

315,805

CREDITORS

Amounts falling due after more than one year

9

(29,579

)

(110,705

)

NET ASSETS

328,650

205,100

CAPITAL AND RESERVES

Called up share capital

11

134

100

Retained earnings

328,516

205,000

SHAREHOLDERS' FUNDS

328,650

205,100

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 June 2020 and were signed on its behalf by:

A Patel - Director

1.	STATUTORY INFORMATION

Reane Ltd is a limited company, registered in England and Wales. Its registered office address is and the 22

Station Road, Burnham-On-Crouch, Essex, CM0 8BW registered number is 06896580.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

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

value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of goods

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods

have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it

is probable that the economic benefits associated with the transaction will flow to the entity and the costs

incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised

evenly over its estimates useful life of 10 years.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off

the cost less estimated residual value of each asset over its expected useful life, as follows:

Leasehold improvements

2% straight line

Plant and machinery

25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds

and the carrying value of the asset, and is credited or charged to profit and loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based

on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and

attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an

enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise

the asset and settle the liability simultaneously.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have

been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

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.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the

arrangement constitutes a financing transaction, where the transaction is measured at the present value of the

future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related

parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction,

where the debt instrument is measured at the present value of the future payments discounted at a market rate

of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less

any impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 30 (2018 - 32 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 November 2018

and 31 October 2019

826,751

AMORTISATION

At 1 November 2018

679,773

Charge for year

146,978

At 31 October 2019

826,751

NET BOOK VALUE

At 31 October 2019

-

At 31 October 2018

146,978

5.	TANGIBLE FIXED ASSETS

Leasehold

Plant and

improvements

machinery

Totals

£

£

£

COST

At 1 November 2018

74,471

176,168

250,639

Additions

9,477

17,042

26,519

At 31 October 2019

83,948

193,210

277,158

DEPRECIATION

At 1 November 2018

7,995

140,269

148,264

Charge for year

1,679

11,922

13,601

At 31 October 2019

9,674

152,191

161,865

NET BOOK VALUE

At 31 October 2019

74,274

41,019

115,293

At 31 October 2018

66,476

35,899

102,375

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 November 2018

37,092

Additions

1,500

At 31 October 2019

38,592

NET BOOK VALUE

At 31 October 2019

38,592

At 31 October 2018

37,092

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

426,859

315,040

Other debtors

10,520

16,085

Prepayments and accrued income

4,737

2,354

442,116

333,479

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

72,212

103,864

Other loans

23,160

23,160

Trade creditors

330,400

330,394

Corporation tax

49,706

15,867

Directors' current accounts

9,805

12,097

Accruals and deferred income

2,500

2,500

487,783

487,882

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans

-

74,860

Other loans

29,579

35,845

29,579

110,705

10.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

72,125

165,629

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

7,600

Ordinary A

0.01

76

76

2,400

Ordinary B

0.01

24

24

3,400

Ordinary C

0.01

34

-

134

100

3,400 Ordinary C shares of 0.01 each were allotted and fully paid for cash at par during the year.

12.	OTHER FINANCIAL COMMITMENTS

Operating lease commitments not included in the balance sheet amount to £346,500 (2018 £378,000).