Digital Plus Limited - Period Ending 2020-08-31
Digital Plus Limited - Period Ending 2020-08-31
Registration number:
Digital Plus Limited
for the Year Ended 31 August 2020
Digital Plus Limited
Contents
Company Information |
|
Balance Sheet |
|
Notes to the Unaudited Financial Statements |
Digital Plus Limited
Company Information
Directors |
Mrs H L Russell Mr C M Stringwell Mr O S Russell Mrs J Stringwell |
Company secretary |
Mr C M Stringwell |
Registered office |
|
Digital Plus Limited
(Registration number: 04062756)
Balance Sheet as at 31 August 2020
Note |
2020 |
2019 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Shareholders' funds |
|
|
For the financial year ending 31 August 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Digital Plus Limited
(Registration number: 04062756)
Balance Sheet as at 31 August 2020
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
......................................... |
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
General information |
The Company is a private company limited by share capital incorporated in England and Wales. Details of the registered office are shown on page 1.
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.
Basis of preparation
These financial statements have been prepared on a going concern basis, using the historical cost convention and in accordance with FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Going concern
The directors have prepared the financial statements on the going concern basis of accounting taking into account the Covid-19 (coronavirus) and the impact this has had on the performance of the business. Attention is drawn to the fact that it is not yet possible to predict the overall impact of the Covid-19 outbreak on the UK economy but as the company's principal activity is digital printing, sales have been reduced, but have not fully collapsed. These conditions represent a material uncertainty in relation to the going concern status.
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 value added tax, returns, rebates and discounts and is recognised when the amount of revenue can be reliably measured, and it is probable that future economic benefits will flow to the entity.
Government grants
Government grants in relation to revenue expenditure that has already been incurred for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which they become receivable.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Current income tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised on timing differences between taxable profits and profits reported in the financial statements. Deferred tax is recognised on all timing differences at the reporting date and is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
2 |
Accounting policies (continued) |
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 |
Freehold buildings |
2% straight line |
Plant and machinery |
20% reducing balance |
Motor vehicles |
25% reducing balance |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website, intellectual property and goodwill |
25% straight line |
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.
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
2 |
Accounting policies (continued) |
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. 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 profit or loss 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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in profit or loss and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
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.
Dividends
Dividend distribution to the Company’s shareholders is recognised in the financial statements in the reporting period in which the dividends are paid.
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
2 |
Accounting policies (continued) |
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.
Staff numbers |
The average number of persons employed by the company (including directors) in the year, was
Intangible assets |
Goodwill |
Total |
|
Cost |
||
At 1 September 2019 |
|
|
At 31 August 2020 |
|
|
Amortisation |
||
At 1 September 2019 |
|
|
At 31 August 2020 |
|
|
Carrying amount |
||
At 31 August 2020 |
- |
- |
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
Tangible assets |
Land and buildings |
Other tangible assets |
Total |
|
Cost |
|||
At 1 September 2019 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 August 2020 |
|
|
|
Depreciation |
|||
At 1 September 2019 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 August 2020 |
|
|
|
Carrying amount |
|||
At 31 August 2020 |
|
|
|
At 31 August 2019 |
|
|
|
Included within the net book value of land and buildings above is £610,352 (2019 - £620,264) in respect of freehold land and buildings.
The freehold land and buildings were revalued professionally in 2016.
If the freehold land and buildings were carried at historical cost the net book value at the balance sheet date would be £572,676 being cost £654,432 and accumulated depreciation £81,756 (2019 net book value £81,760 being cost £654,432, accumulated depreciation £72,672).
Included within the net book value of tangible fixed assets is £18,685 (2019 £146,258) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £5,340 (2019 £36,652).
Debtors |
2020 |
2019 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
45,101 |
39,509 |
|
|
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
Creditors |
Note |
2020 |
2019 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Taxation and social security |
|
|
|
Accruals and deferred income |
|
|
|
Other creditors |
|
|
|
|
|
Loans and borrowings |
2020 |
2019 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Finance lease liabilities |
|
|
|
|
2020 |
2019 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
Finance lease liabilities |
|
|
|
|
Bank borrowings and Hire Purchases
Security is given by way of a Legal Charge over the Freehold Property at Wyther Lane, Leeds. |
|
The borrowing is secured by way of a Fixed charge on all trade debts. |
Assets finanaced by Hire Purchase contracts/finanace lease are secured against the relevant assets. The amounts outstanding at the balance sheet date was £18,596 (2019 - £144,623)
There is also Fixed and floating charges over the company's property and assets.
Digital Plus Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 August 2020
8 |
Loans and borrowings (continued) |
Included in the loans and borrowings are the following amounts due after more than five years:
Bank loans repayable by instalments of £238,312.00 (2019 - £0.00) due after more than five years.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Related party transactions |
Transactions with directors |
2020 |
At 1 September 2019 |
Advances to directors |
Repayments by director |
Interest Charged |
At 31 August 2020 |
Mr O S Russell |
|||||
Cash Advance |
- |
|
( |
792 |
|
Mr C M Stringwell |
|||||
Cash Advanced |
- |
|
( |
584 |
|
Interest is charged at 2.25% on overdrawn balances throughout the year. The loans are repayable on demand.