Olivewood Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03035126 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 August 2019

for

Olivewood Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

Mr L L Murji

Mr S Kerai

Mrs A L Murji

REGISTERED OFFICE:

Unit B2

Neptune Road

Harrow

Middlesex

HA1 4HX

REGISTERED NUMBER:

03035126 (England and Wales)

AUDITORS:

Paresh Shah Limited

Chartered Accountants and Statutory Auditors

128 Malvern Gardens

Harrow

Middlesex

HA3 9PG

ACCOUNTANTS:

L P Patel & Co

Certified Practising Accountants

164 Mollison Way

Edgware

Middlesex HA8 5QZ

The directors present their strategic report for the year ended 31 August 2019.

REVIEW OF BUSINESS

During the year, the level of business activity has decreased in a very competitive environment, with improvement in

profit margins.

PRINCIPAL RISKS AND UNCERTAINTIES

The company is not exposed to any specific risks. However, the business continues to face increasing competition from

other suppliers and this is reflected in these accounts.

Our business is also subject to stringent laws relating to pollution, health and safety, waste disposal and protection of the

environment. The company has recognised quality management systems and environmental management systems in

place as recognised trade supplier.

FUTURE DEVELOPMENTS

The company continues to take advantage of new opportunities as they emerge and the directors are always keen to

consider other alternatives to improve the company's profitability.

EMPLOYEE INVOLVEMENT

The company's policy is to consult and discuss the interests of employees with annual staff appraisals and performance

management process in place.

ON BEHALF OF THE BOARD:

Mr S Kerai - Director

26 June 2020

The directors present their report with the financial statements of the company for the year ended 31 August 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review continued to be that of Builder and Timber Merchants.

DIVIDENDS

An interim dividend of £350 per share and a final dividend of £3,600 per share was paid during the year.

DIRECTORS

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

report.

Mr L L Murji

Mr S Kerai

Mrs A L Murji

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, 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;

-	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.

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, Paresh Shah Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S Kerai - Director

26 June 2020

Opinion

We have audited the financial statements of Olivewood Limited (the 'company') for the year ended 31 August 2019

which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in

Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 August 2019 and of its profit 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

thereon.

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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have 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 Report of the Directors.

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 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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 Report of the Auditors.

Use of our report

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 a Report of the Auditors 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.

Paresh Shah (Senior Statutory Auditor)

for and on behalf of Paresh Shah Limited

Chartered Accountants and Statutory Auditors

128 Malvern Gardens

Harrow

Middlesex

HA3 9PG

26 June 2020

REVENUE

4

13,735,914

15,321,366

Cost of sales

11,044,212

12,721,965

GROSS PROFIT

2,691,702

2,599,401

Distribution costs

187,088

178,149

Administrative expenses

1,545,043

1,457,528

1,732,131

1,635,677

OPERATING PROFIT

6

959,571

963,724

Interest receivable and similar income

3,995

2,462

963,566

966,186

Interest payable and similar expenses

7

69,261

69,810

PROFIT BEFORE TAXATION

894,305

896,376

Tax on profit

8

175,709

178,806

PROFIT FOR THE FINANCIAL YEAR

718,596

717,570

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

718,596

717,570

FIXED ASSETS

Property, plant and equipment

10

3,524,587

3,259,050

CURRENT ASSETS

Inventories

11

1,278,927

1,496,354

Debtors

12

3,208,114

3,714,645

Cash at bank and in hand

1,034,968

697,521

5,522,009

5,908,520

CREDITORS

Amounts falling due within one year

13

1,760,382

2,196,790

NET CURRENT ASSETS

3,761,627

3,711,730

TOTAL ASSETS LESS CURRENT LIABILITIES

7,286,214

6,970,780

CREDITORS

Amounts falling due after more than one year

14

(2,254,278

)

(2,461,568

)

PROVISIONS FOR LIABILITIES

18

(121,167

)

(60,289

)

NET ASSETS

4,910,769

4,448,923

CAPITAL AND RESERVES

Called up share capital

19

65

65

Capital redemption reserve

20

35

35

Retained earnings

20

4,910,669

4,448,823

SHAREHOLDERS' FUNDS

4,910,769

4,448,923

The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2020 and were signed on its behalf by:

Mr S Kerai - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 September 2017

65

3,955,503

35

3,955,603

Changes in equity

Dividends

-

(224,250

)

-

(224,250

)

Total comprehensive income

-

717,570

-

717,570

Balance at 31 August 2018

65

4,448,823

35

4,448,923

Changes in equity

Dividends

-

(256,750

)

-

(256,750

)

Total comprehensive income

-

718,596

-

718,596

Balance at 31 August 2019

65

4,910,669

35

4,910,769

Cash flows from operating activities

Cash generated from operations

1

1,479,367

116,779

Interest paid

(66,726

)

(66,637

)

Interest element of hire purchase payments paid

(2,535

)

(3,173

)

Tax paid

(177,542

)

(155,815

)

Net cash from operating activities

1,232,564

(108,846

)

Cash flows from investing activities

Purchase of tangible fixed assets

(539,462

)

(88,305

)

Sale of tangible fixed assets

24,500

-

Interest received

3,995

2,462

Net cash from investing activities

(510,967

)

(85,843

)

Cash flows from financing activities

New loans in year

-

3,099,802

Loan repayments in year

(362,631

)

(3,377,442

)

Capital repayments in year

235,231

(50,363

)

Equity dividends paid

(256,750

)

(224,250

)

Net cash from financing activities

(384,150

)

(552,253

)

Increase/(decrease) in cash and cash equivalents

337,447

(746,942

)

Cash and cash equivalents at beginning of year

2

697,521

1,444,463

Cash and cash equivalents at end of year

2

1,034,968

697,521

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.8.19

31.8.18

£

£

Profit before taxation

894,305

896,376

Depreciation charges

202,937

128,933

Loss on disposal of fixed assets

46,487

-

Finance costs

69,261

69,810

Finance income

(3,995

)

(2,462

)

1,208,995

1,092,657

Decrease in inventories

217,427

71,524

Decrease/(increase) in trade and other debtors

506,531

(1,278,420

)

(Decrease)/increase in trade and other creditors

(453,586

)

231,018

Cash generated from operations

1,479,367

116,779

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of

these Statement of Financial Position amounts:

Year ended 31 August 2019

31.8.19

1.9.18

£

£

Cash and cash equivalents

1,034,968

697,521

Year ended 31 August 2018

31.8.18

1.9.17

£

£

Cash and cash equivalents

697,521

1,444,463

1.	COMPANY INFORMATION

Olivewood Limited is a private company limited by shares incorporated in England and Wales. The registered

office is at Unit B2, Neptune Road, Harrow, Middlesex, England, HA1 4HX.

The company's principal activity is disclosed in the Directors' Report.

2.	STATUTORY INFORMATION

Olivewood 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.

3.	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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

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

added taxes. Turnover is revenue earned from the sale of goods. Turnover from the sale of goods is recognised

when the significant risks and rewards of ownership of the goods have transferred to the buyer.

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.

Freehold property

-

1% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Office equipment

-

20% on reducing balance

Stocks

Inventories 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 Statement of Comprehensive

Income, 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 statement of financial position date.

Deferred tax

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

statement of financial position 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

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 profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

5.	EMPLOYEES AND DIRECTORS

31.8.19

31.8.18

£

£

Wages and salaries

549,490

513,314

Social security costs

46,624

42,097

Other pension costs

9,199

4,981

605,313

560,392

The average number of employees during the year was as follows:

31.8.19

31.8.18

Administration

5

5

Distribution

7

6

Sales

12

10

24

21

31.8.19

31.8.18

£

£

Directors' remuneration

52,287

50,908

In addition to the Director's remuneration above, the company made private medical insurance contributions for

the Directors totalling £4,473 (2018: £4,778).

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.8.19

31.8.18

£

£

Hire of plant and machinery

21,664

26,358

Depreciation - owned assets

100,552

98,061

Depreciation - assets on hire purchase contracts

102,386

30,872

Loss on disposal of fixed assets

46,487

-

Auditors' remuneration

10,750

10,250

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.8.19

31.8.18

£

£

Bank loan interest

66,726

66,637

Hire purchase

2,535

3,173

69,261

69,810

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.8.19

31.8.18

£

£

Current tax:

UK corporation tax

114,831

177,542

Deferred tax

60,878

1,264

Tax on profit

175,709

178,806

9.

DIVIDENDS

31.8.19

31.8.18

£

£

Ordinary shares of £1.00 each

Final

234,000

201,500

Interim

22,750

22,750

256,750

224,250

10.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 September 2018

3,047,814

89,917

144,862

Additions

-

47,954

6,405

Disposals

-

-

-

At 31 August 2019

3,047,814

137,871

151,267

DEPRECIATION

At 1 September 2018

182,584

46,267

88,727

Charge for year

30,479

18,321

12,508

Eliminated on disposal

-

-

-

At 31 August 2019

213,063

64,588

101,235

NET BOOK VALUE

At 31 August 2019

2,834,751

73,283

50,032

At 31 August 2018

2,865,230

43,650

56,135

Motor

Office

vehicles

equipment

Totals

£

£

£

COST

At 1 September 2018

600,151

87,990

3,970,734

Additions

479,669

5,434

539,462

Disposals

(311,715

)

-

(311,715

)

At 31 August 2019

768,105

93,424

4,198,481

DEPRECIATION

At 1 September 2018

357,701

36,405

711,684

Charge for year

130,226

11,404

202,938

Eliminated on disposal

(240,728

)

-

(240,728

)

At 31 August 2019

247,199

47,809

673,894

NET BOOK VALUE

At 31 August 2019

520,906

45,615

3,524,587

At 31 August 2018

242,450

51,585

3,259,050