Purple Line Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04348026 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2020

FOR

PURPLE LINE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

J M Harrison

REGISTERED OFFICE:

Peninsula Business Centre

Wherstead

Ipswich

Suffolk

IP9 2BB

REGISTERED NUMBER:

04348026 (England and Wales)

ACCOUNTANTS:

Walter Wright

Chartered Accountants

89 High Street

Hadleigh

Ipswich

Suffolk

IP7 5EA

FIXED ASSETS

Intangible assets

4

82,291

71,105

Tangible assets

5

694,834

658,653

777,125

729,758

CURRENT ASSETS

Stocks

1,763,475

1,580,885

Debtors

6

1,031,633

824,129

Cash at bank and in hand

306,383

235,462

3,101,491

2,640,476

CREDITORS

Amounts falling due within one year

7

551,078

666,451

NET CURRENT ASSETS

2,550,413

1,974,025

TOTAL ASSETS LESS CURRENT LIABILITIES

3,327,538

2,703,783

CREDITORS

Amounts falling due after more than one year

8

(271,734

)

(34,082

)

PROVISIONS FOR LIABILITIES

(6,000

)

-

NET ASSETS

3,049,804

2,669,701

CAPITAL AND RESERVES

Called up share capital

10,100

10,100

Retained earnings

3,039,704

2,659,601

SHAREHOLDERS' FUNDS

3,049,804

2,669,701

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2020 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 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 Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 21 July 2020 and were signed by:

J M Harrison - Director

1.	STATUTORY INFORMATION

Purple Line 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.	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 represents the sale of goods, is recognised on dispatch, and disclosed net of discounts, returns and

value added tax.

Amortisation of intangible fixed assets

Patents are amortised over 20 years on cost.

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

-

33% on cost, 25% on reducing balance and 15% on reducing balance

The directors consider that the freehold property is maintained in such a state of repair that its residual value is

at least equal to the net book value. As a result the corresponding depreciation would not be material and

therefore is not charged in the profit & loss account. The directors perform an annual impairment review to

ensure that the recoverable amount is not lower than the carrying value.

Government grants

Grants are recognised in profit or loss on a systematic basis over the periods in which the entity recognises

expenses for the related costs for which the grants are intended to compensate, which in the case of grants

related to assets requires setting up the grant as deferred income and releasing this over the life of the asset.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2019 - 18 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 February 2019

98,906

Additions

20,631

At 31 January 2020

119,537

AMORTISATION

At 1 February 2019

27,801

Charge for year

9,445

At 31 January 2020

37,246

NET BOOK VALUE

At 31 January 2020

82,291

At 31 January 2019

71,105

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 February 2019

569,582

263,380

832,962

Additions

-

74,719

74,719

Disposals

-

(18,000

)

(18,000

)

At 31 January 2020

569,582

320,099

889,681

DEPRECIATION

At 1 February 2019

2,782

171,527

174,309

Charge for year

878

31,464

32,342

Eliminated on disposal

-

(11,804

)

(11,804

)

At 31 January 2020

3,660

191,187

194,847

NET BOOK VALUE

At 31 January 2020

565,922

128,912

694,834

At 31 January 2019

566,800

91,853

658,653

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

858,083

710,423

Other debtors

173,550

113,706

1,031,633

824,129

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loan

77,000

33,139

Trade creditors

264,336

280,267

Taxation and social security

13,474

15,536

Other creditors

196,268

337,509

551,078

666,451

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loan

260,794

-

Other creditors

10,940

34,082

271,734

34,082

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loan

337,794

-

The bank loan is secured by a mortgage deed over freehold property at Unit 6 Peninsula Business Centre,

Wherstead, Ipswich dated 29/3/19 and there is a Debenture dated 5/5/20 with a floating charge over all the

property of the company.