Elite Hair & Beauty (North East) Limited Company accounts

ELITE HAIR & BEAUTY (NORTH EAST) LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 5542869

Elite Hair & Beauty (North East) Limited

Unaudited Financial Statements

31 March 2020

Elite Hair & Beauty (North East) Limited

Financial Statements

Year ended 31 March 2020

Contents	Page

Director's report	1

Statement of income and retained earnings	2

Statement of financial position	3

Notes to the financial statements	5

The following pages do not form part of the financial statements

Accountants report to the director on the preparation of the unaudited statutory financial statements	11

Elite Hair & Beauty (North East) Limited

Director's Report

Year ended 31 March 2020

The director presents her report and the unaudited financial statements of the company for the year ended 31 March 2020 .

Director

The director who served the company during the year was as follows:

Miss G Snowball

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 28 July 2020 and signed on behalf of the board by:

Miss G Snowball
Director

Registered office:

2 Carlton Terrace

Newcastle Upon Tyne

NE2 4PD

Elite Hair & Beauty (North East) Limited

Statement of Income and Retained Earnings

Year ended 31 March 2020

	2020	2019
Note	£	£
Turnover	393,832	433,758

Cost of sales	85,947	79,535
	---------	---------
Gross profit	307,885	354,223

Administrative expenses	372,627	394,672
Other operating income	19,500	13,858
	---------	---------
Operating loss	( 45,242)	( 26,591)

		---------	---------
Loss before taxation	5	( 45,242)	( 26,591)

Tax on loss	( 380)	( 370)
	--------	--------
Loss for the financial year and total comprehensive income	( 44,862)	( 26,221)
	--------	--------

Retained losses at the start of the year	( 41,551)	( 15,330)
	--------	--------
Retained losses at the end of the year	( 86,413)	( 41,551)
	--------	--------

All the activities of the company are from continuing operations.

Elite Hair & Beauty (North East) Limited

Statement of Financial Position

31 March 2020

	2020		2019
Note	£	£	£

Fixed assets

Tangible assets	6		21,221	17,567

Current assets

Stocks		16,870	33,745
Debtors	7	26,815	22,560
Cash at bank and in hand		10,915	9,864
		--------	--------
		54,600	66,169

Creditors: amounts falling due within one year	8	23,184		32,083
		--------		--------
Net current assets			31,416	34,086
			--------	--------
Total assets less current liabilities			52,637	51,653

Creditors: amounts falling due after more than one year	9		136,954	90,728

Provisions

Taxation including deferred tax	2,092	2,472
	---------	--------
Net liabilities	( 86,409)	( 41,547)
	---------	--------

Capital and reserves

Called up share capital	4	4
Profit and loss account	( 86,413)	( 41,551)
	--------	--------
Shareholders deficit	( 86,409)	( 41,547)
	--------	--------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

For the year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Elite Hair & Beauty (North East) Limited

Statement of Financial Position (continued)

31 March 2020

These financial statements were approved by the board of directors and authorised for issue on 28 July 2020 , and are signed on behalf of the board by:

Miss G Snowball
Director

Company registration number: 5542869

Elite Hair & Beauty (North East) Limited

Notes to the Financial Statements

Year ended 31 March 2020

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Carlton Terrace, Newcastle Upon Tyne, NE2 4PD.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

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

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	10% reducing balance
Fixtures and fittings	-	10% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either 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.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 24 (2019: 27 ).

5. Profit before taxation

Profit before taxation is stated after charging:

	2020	2019
	£	£
Depreciation of tangible assets	1,997	1,947
	-------	-------

6. Tangible assets

	Plant and machinery	Fixtures and fittings	Total
	£	£	£
Cost
At 1 April 2019	28,185	37,638	65,823
Additions	–	5,651	5,651
	--------	--------	--------
At 31 March 2020	28,185	43,289	71,474
	--------	--------	--------
Depreciation
At 1 April 2019	19,865	28,391	48,256
Charge for the year	833	1,164	1,997
	--------	--------	--------
At 31 March 2020	20,698	29,555	50,253
	--------	--------	--------
Carrying amount
At 31 March 2020	7,487	13,734	21,221
	--------	--------	--------
At 31 March 2019	8,320	9,247	17,567
	--------	--------	--------

7. Debtors

	2020	2019
	£	£
Trade debtors	22,560	22,560
Other debtors	4,255	–
	--------	--------
	26,815	22,560
	--------	--------

8. Creditors: amounts falling due within one year

	2020	2019
	£	£
Social security and other taxes	19,917	24,947
Other creditors	3,267	7,136
	--------	--------
	23,184	32,083
	--------	--------

9. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans and overdrafts	136,954	90,728
	---------	--------

10. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company:

	2020
	Balance brought forward	Advances/ (credits) to the director	Balance outstanding
	£	£	£
Mr M T Murdoch	–	–	–
Miss D J Hopper	–	–	–
	----	----	----
	–	–	–
	----	----	----

	2019
	Balance brought forward	Advances/ (credits) to the director	Balance outstanding
	£	£	£
Mr M T Murdoch	2,955	( 2,955)	–
Miss D J Hopper	73,809	( 73,809)	–
	--------	--------	----
	76,764	( 76,764)	–
	--------	--------	----

11. Related party transactions

The company was under the control of Miss G Snowball throughout the current year. Miss Snowball is the managing director. No transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard for Smaller entities.

Elite Hair & Beauty (North East) Limited

Management Information

Year ended 31 March 2020

The following pages do not form part of the financial statements.

Elite Hair & Beauty (North East) Limited

Accountants Report to the Director on the Preparation of the Unaudited Statutory Financial Statements of Elite Hair & Beauty (North East) Limited

Year ended 31 March 2020

As described on the statement of financial position, the director of the company is responsible for the preparation of the financial statements for the year ended 31 March 2020, which comprise the statement of income and retained earnings, statement of financial position and the related notes. You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.

GOLDSBOROUGH ACCOUNTANTS LTD. Accountants

93 Collingwood Street Coundon Bishop Auckland Co.Durham DL14 8LH

28 July 2020