Principle Signs and Graphics Limited - Period Ending 2020-03-31

Principle Signs and Graphics Limited

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 8

Principle Signs and Graphics Limited

(Registration number: 06872696)
Balance Sheet as at 31 March 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	118,042	30,673
Current assets
Stocks	5	19,000	20,523
Debtors	6	200,542	148,372
Cash at bank and in hand		16,358	14,496
		235,900	183,391
Creditors: Amounts falling due within one year	7	(227,824)	(149,942)
Net current assets		8,076	33,449
Total assets less current liabilities		126,118	64,122
Creditors: Amounts falling due after more than one year	7	(37,425)	(1,644)
Provisions for liabilities		(23,807)	-
Net assets		64,886	62,478
Capital and reserves
Called up share capital		100	100
Profit and loss account		64,786	62,378
Shareholders funds		64,886	62,478

Principle Signs and Graphics Limited

(Registration number: 06872696)
Balance Sheet as at 31 March 2020

For the financial 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 accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 director on 1 December 2020
 

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

Mr J J Valentine
Director

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

1	General information

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

The address of its registered office is:
Unit 14
Chorley Central Business Park
Chorley
Lancashire
PR6 0BL

These financial statements were authorised for issue by the director on 1 December 2020.

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 for the year ended 31 March 2019 comply with FRS 102 Section 1A small entities.

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.

Going concern

Due to the current unprecedented market and economic conditions in the United Kingdom and internationally, the expected impact of the COVID-19 pandemic on the Company’s operations cannot be reasonably estimated.

However, the director currently considers that the pandemic will have a limited impact on the business in the short term.

Revenue may also fall as customers are hit by the pandemic, but expenses will, likely, decrease as a result which will help to mitigate the impact on profits and the company has sufficient reserves in place to cover any deficit for at least 12 months from the date approval of these financial statements.

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.

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

Tangible assets

Tangible assets are stated in the balance sheet 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
Plant and machinery	20% Straight line
Office equipment	33,33% Straight line
Motor vehicles	25% Straight line

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

Financial instruments

Classification
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 income statement.
 
 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 9 (2019 - 7).

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

4	Tangible assets

	Plant and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 April 2019	74,646	44,944	119,590
Additions	62,755	57,000	119,755
Disposals	-	(34,699)	(34,699)
At 31 March 2020	137,401	67,245	204,646
Depreciation
At 1 April 2019	50,723	38,194	88,917
Charge for the year	14,948	12,133	27,081
Eliminated on disposal	-	(29,394)	(29,394)
At 31 March 2020	65,671	20,933	86,604
Carrying amount
At 31 March 2020	71,730	46,312	118,042
At 31 March 2019	23,923	6,750	30,673

5

Stocks

	2020 £	2019 £
Other inventories	19,000	20,523

6

Debtors

	2020 £	2019 £
Trade debtors	200,542	132,581
Other debtors	-	15,791
	200,542	148,372

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

7

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	8	10,544	22,863
Trade creditors		76,531	40,342
Taxation and social security		83,916	82,332
Other creditors		56,833	4,405
		227,824	149,942

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	8	37,425	1,644

8	Loans and borrowings

	2020 £	2019 £
Non-current loans and borrowings
Hire purchase contracts	37,425	-
Other borrowings	-	1,644
	37,425	1,644

	2020 £	2019 £
Current loans and borrowings
Hire purchase contracts	8,900	14,113
Other borrowings	1,644	8,750
	10,544	22,863

Secured creditors

The hire purchase agreements are secured on the assets to which they relate.

Principle Signs and Graphics Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

9	Related party transactions

Transactions with directors

2020	At 1 April 2019 £	Repayments by director £	At 31 March 2020 £
Mr J J Valentine
Advances to Directors	11,449	(11,449)	-
Interest charged	1,244	(1,244)	-
	12,693	(12,693)	-

2019	At 1 April 2018 £	Advances to directors £	At 31 March 2019 £
Mr J J Valentine
Advances to Directors	10,806	643	11,449
Interest charged	238	1,006	1,244
	11,044	1,649	12,693