Morale Home Furnishings UK Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC276175 (Scotland)

Financial Statements

for the Year Ended 31 December 2019

for

Morale Home Furnishings UK Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

Mr K M Ali

Mr O F Ali

Mr B K Ali

Mr L Ali

Mr S T Ali

Mr U Ali

Mr T M Ali

SECRETARY:

Mr K M Ali

REGISTERED OFFICE:

24 Watt Road

Hillington Industrial Estate

Glasgow

G52 4RY

REGISTERED NUMBER:

SC276175 (Scotland)

ACCOUNTANTS:

O'Haras Chartered Accountants

Radleigh House

1 Golf Road

Clarkston

Glasgow

G76 7HU

FIXED ASSETS

Property, plant and equipment

4

13,164

16,240

CURRENT ASSETS

Inventories

864,000

900,452

Debtors

5

374,032

829,049

Cash at bank

44,463

1,259

1,282,495

1,730,760

CREDITORS

Amounts falling due within one year

6

569,581

1,014,595

NET CURRENT ASSETS

712,914

716,165

TOTAL ASSETS LESS CURRENT LIABILITIES

726,078

732,405

CREDITORS

Amounts falling due after more than one year

7

(511,890

)

(511,900

)

PROVISIONS FOR LIABILITIES

(1,751

)

(4,334

)

NET ASSETS

212,437

216,171

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

212,337

216,071

SHAREHOLDERS' FUNDS

212,437

216,171

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 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 December 2020 and were signed on its behalf by:

Mr K M Ali - Director

1.	STATUTORY INFORMATION

Morale Home Furnishings UK Limited is a private company, limited by shares , registered in Scotland. 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.

Going concern

The directors are satisfied that the Company will have access to sufficient funds to ensure that all liabilities will be met as they fall due over a period of at least 12 months from the approval date of these financial statements. Consequently, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue

Turnover represents the amounts received for the provision of home furnishings, excluding value added tax and trade discounts.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Computer equipment

-

20% on reducing balance

Inventories

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

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

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.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

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 12 (2018 - 14 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2019

13,423

45,492

51,498

110,413

Additions

-

-

215

215

At 31 December 2019

13,423

45,492

51,713

110,628

DEPRECIATION

At 1 January 2019

10,857

40,793

42,523

94,173

Charge for year

513

940

1,838

3,291

At 31 December 2019

11,370

41,733

44,361

97,464

NET BOOK VALUE

At 31 December 2019

2,053

3,759

7,352

13,164

At 31 December 2018

2,566

4,699

8,975

16,240

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

4,552

3,518

Other debtors

369,480

825,531

374,032

829,049

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

20,191

191,030

Trade creditors

231,267

423,914

Taxation and social security

52,534

45,286

Other creditors

265,589

354,365

569,581

1,014,595

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Other creditors

511,890

511,900

8.	SECURED DEBTS

The Royal Bank of Scotland PLC holds a floating charge over all the property or undertaking of the company. The Royal Bank of Scotland PLC also hold standard security over the properties at 20, 22 & 24 Watt Road, Hillington.