Sterling & Hunt Limited - Period Ending 2019-07-31

Registration number: 03286308

Sterling & Hunt Limited

Filleted Financial Statements

for the Year Ended 31 July 2019

Thompson Jenner LLP
Statutory Auditors
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

 

Sterling & Hunt Limited
(Registration number: 03286308)

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 8

Sterling & Hunt Limited
(Registration number: 03286308)

Company Information

Directors

R Marsh S M Marsh P Marsh S J Ball

Registered office

Hennock Court Hennock Road East Marsh Barton Trading Estate Exeter Devon EX2 8RU

Auditors

Thompson Jenner LLP Statutory Auditors 28 Alexandra Terrace Exmouth Devon EX8 1BD

Page 1

Sterling & Hunt Limited
(Registration number: 03286308)

Balance Sheet as at 31 July 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	3,008	4,512
Current assets
Stocks	5	101,208	40,116
Debtors	6	652,224	1,451,662
Cash at bank and in hand		73,397	83,873
		826,829	1,575,651
Creditors: Amounts falling due within one year	7	(736,339)	(1,463,913)
Net current assets		90,490	111,738
Net assets		93,498	116,250
Capital and reserves
Called up share capital		2	2
Profit and loss account		93,496	116,248
Total equity		93,498	116,250

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.

Approved and authorised by the Board on 28 July 2020 and signed on its behalf by:
 

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

S M Marsh
Director

The notes on pages 3 to 8 form an integral part of these financial statements.

Page 2

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 2019

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Hennock Court
Hennock Road East
Marsh Barton Trading Estate
Exeter
Devon
EX2 8RU

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 that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company.

Going concern

From 1 August 2020 the trading assets of Sterling & Hunt Limited will be transferred to Chatham Marine Limited. Therefore, the accounts for the current year have been prepared on a cessation basis. This has not, however, resulted in an amendment to the figures included in the accounts.

Audit report

The Independent Auditors' Report was unqualified. We draw attention to the disclosures made in the accounting policies with regards to going concern, which explain that the company plans to cease to operate on 1 August 2020 and will transfer all of its assets and liabilities to Chatham Marine Limited. Accordingly, the accounts have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter. The name of the Senior Statutory Auditor who signed the audit report on 28 July 2020 was Mr Neil Curtis, who signed for and on behalf of Thompson Jenner LLP.

Page 3

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 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.

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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

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
Motor vehicles	25% reducing balance basis

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.

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Page 4

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 2019

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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 subsequently measured at amortised cost using the effective interest method.

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.

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.

Financial instruments

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 in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.
 
 

Page 5

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 2019

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 4 (2018 - 6).

4	Tangible assets

	Motor vehicles  £	Total £
Cost or valuation
At 1 August 2018	14,260	14,260
At 31 July 2019	14,260	14,260
Depreciation
At 1 August 2018	9,748	9,748
Charge for the year	1,504	1,504
At 31 July 2019	11,252	11,252
Carrying amount
At 31 July 2019	3,008	3,008
At 31 July 2018	4,512	4,512

5

Stocks

	2019 £	2018 £
Finished goods and goods for resale	101,208	40,116

6

Debtors

	Note	2019 £	2018 £
Trade debtors		38,417	100,683
Amounts owed by group undertakings and undertakings in which the company has a participating interest		613,507	1,350,679
Other debtors		300	300
Total current trade and other debtors		652,224	1,451,662

Page 6

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 2019

7

Creditors

	Note	2019 £	2018 £
Due within one year
Loans and borrowings	8	650,577	546,955
Trade creditors		32,925	119,654
Amounts owed to group undertakings and undertakings in which the company has a participating interest		50,538	783,374
Taxation and social security		1,681	12,266
Accrued expenses		618	1,664
		736,339	1,463,913

8	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank overdrafts	650,577	546,955

The bank overdraft is secured by fixed and floating charges over the undertaking and all property and assets of the company.

9	Financial commitments, guarantees and contingencies

There is a cross guarantee for the group overdraft facility between Rainbow Club Limited, Chatham Marine Limited and Sterling & Hunt Limited.

At the balance sheet date, the company had a guarantee for £80,000 (2018 - £80,000) in favour of HMRC (with recourse).

Page 7

Sterling & Hunt Limited
(Registration number: 03286308)

Notes to the Financial Statements for the Year Ended 31 July 2019

10	Parent and ultimate parent undertaking

The company's immediate parent is Stuart Marsh Shoes Limited, incorporated in England & Wales.

  These financial statements are available upon request from Hennock Court, Hennock Road East, Marsh Barton Trading Estate, Exeter, Devon, EX2 8RU.
 

11	Non adjusting events after the financial period

From 1 August 2020 the trading assets of Sterling & Hunt Limited will be transferred to Chatham Marine Limited. The combined operating entity will be rebranded Marsh Footwear Brands Limited.

Page 8