Ron Ramsdens Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00672165 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 January 2020

for

Ron Ramsdens Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D B Ramsden

N R Ramsden

SECRETARY:

Mrs L J Metcalf

REGISTERED OFFICE:

Adam Smith Street

Grimsby

North East Lincs

DN31 1SJ

REGISTERED NUMBER:

00672165 (England and Wales)

BANKERS:

HSBC Bank PLC

55 Victoria Street

Grimsby

North East Lincs

DN31 1UX

FIXED ASSETS

Intangible assets

4

1,771

2,571

Tangible assets

5

1,017,148

1,051,522

Investments

6

31,672

29,193

Investment property

7

127,454

127,454

1,178,045

1,210,740

CURRENT ASSETS

Stocks

441,163

486,740

Debtors

8

42,328

54,431

Cash in hand

33,186

12,585

516,677

553,756

CREDITORS

Amounts falling due within one year

9

1,470,743

1,504,695

NET CURRENT LIABILITIES

(954,066

)

(950,939

)

TOTAL ASSETS LESS CURRENT LIABILITIES

223,979

259,801

CREDITORS

Amounts falling due after more than one year

10

(273,646

)

(336,577

)

PROVISIONS FOR LIABILITIES

(5,250

)

-

NET LIABILITIES

(54,917

)

(76,776

)

CAPITAL AND RESERVES

Called up share capital

16,000

16,000

Retained earnings

(70,917

)

(92,776

)

SHAREHOLDERS' FUNDS

(54,917

)

(76,776

)

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 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 9 November 2020 and were signed on its behalf by:

N R Ramsden - Director

1.	STATUTORY INFORMATION

Ron Ramsdens 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.

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 as modified by the revaluation of certain assets.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

The Company has transferred the significant risks and rewards of ownership to the buyer.

The Company retains neither the continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.

The amount of revenue can be measured reliably

It is probable that the Company will receive the consideration due under the transaction

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business has been amortised evenly over its estimated useful life.

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.

Patents and licences are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and an accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Land and buildings

-

at varying rates on cost

Plant and machinery

-

25% on cost and at varying rates on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the income statement.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Goods for resale are stated at the lower of cost and net realiable value, being the estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stocks. Cost is based on the cost of purchase on a first in, first out basis.

At each reporting date, finished goods for resale are assessed for impairment. If goods for resale are impaired, the carrying amounts are reduced to selling price less costs to complete and sell. The impairment is recognised immediately in the income statement.

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.

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.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the income statement when they fall due. Amounts not paid are shown in other creditors as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits within financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 57 (2019 - 46 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 February 2019

and 31 January 2020

4,400

AMORTISATION

At 1 February 2019

1,829

Charge for year

800

At 31 January 2020

2,629

NET BOOK VALUE

At 31 January 2020

1,771

At 31 January 2019

2,571

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 February 2019

1,426,755

304,902

1,731,657

Additions

11,778

59,756

71,534

At 31 January 2020

1,438,533

364,658

1,803,191

DEPRECIATION

At 1 February 2019

552,652

127,483

680,135

Charge for year

53,914

51,994

105,908

At 31 January 2020

606,566

179,477

786,043

NET BOOK VALUE

At 31 January 2020

831,967

185,181

1,017,148

At 31 January 2019

874,103

177,419

1,051,522

Included in cost of land and buildings is freehold land of £ 81,109 (2019 - £ 81,109 ) which is not depreciated.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 February 2019

24,850

Transfer to ownership

(24,850

)

At 31 January 2020

-

DEPRECIATION

At 1 February 2019

22,263

Transfer to ownership

(22,263

)

At 31 January 2020

-

NET BOOK VALUE

At 31 January 2020

-

At 31 January 2019

2,587

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST OR VALUATION

At 1 February 2019

29,193

Revaluations

2,479

At 31 January 2020

31,672

NET BOOK VALUE

At 31 January 2020

31,672

At 31 January 2019

29,193

Cost or valuation at 31 January 2020 is represented by:

Other

investments

£

Valuation in 2016

(6,071

)

Valuation in 2017

1,792

Valuation in 2018

2,467

Valuation in 2019

1,943

Valuation in 2020

2,479

Cost

29,062

31,672

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2019

and 31 January 2020

127,454

NET BOOK VALUE

At 31 January 2020

127,454

At 31 January 2019

127,454

In 2016, property was purchased as an investment property. This property was valued by the directors at £127,454.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.20

31.1.19

£

£

Trade debtors

25,605

37,851

Other debtors

16,723

16,580

42,328

54,431

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.20

31.1.19

£

£

Bank loans and overdrafts

1,032,115

1,150,722

Hire purchase contracts

-

2,918

Trade creditors

256,991

226,687

Taxation and social security

85,690

62,446

Other creditors

95,947

61,922

1,470,743

1,504,695

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.20

31.1.19

£

£

Bank loans

273,646

336,577

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

11,266

46,329

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.1.20

31.1.19

£

£

Bank overdrafts

959,553

1,078,160

Bank loans

346,208

409,139

Hire purchase contracts

-

2,918

1,305,761

1,490,217

Bank loans and overdrafts are secured by way of a floating charge on the Company's assets and fixed charges on its freehold land and its leasehold property and over all its book debts. The bank also holds an unlimited Multilateral Guarantee between D B Ramsden & Company Limited, Ron Ramsden Limited, George Street Builders Limited, Ramsden Holdings Limited and Re-Scan Limited dated 3 January 2013, as approved by the board on 6 March 2013.

At the balance sheet date the total of the contingent liability under the guarantee was £2,760,955 (2019: £2,119,080).

12.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £21,657 (2019: £18,234). Contributions totalling £Nil (2019: £2,581) were payable to the fund at the reporting date and are included in creditors.

13.	RELATED PARTY DISCLOSURES

During the year the company had the following related party transactions:

31.01.20

31.01.19

£

£

Purchases made

1,960,023

1,171,097

Amounts owed (to)/from

(1,912

)

(2,922

)

Sale of land and buildings

Nil

320,000

The related parties are companies of which Mr N Ramsden is also a director.

14.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is N R Ramsden.