EXCELSIOR_TEXTILES_LIMITE - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 30 June 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with Companies Act 2006, section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime within Part 15 of the Companies Act 2006.

Excelsior Textiles Limited (Company number:01012731) is a private company limited by shares incorporated in England and Wales. The registered office is Kenton House, 666 Kenton Road, Harrow, Middlesex, HA3 9QN.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation certain financial instruments, including those held as fixed asset investments, at fair value. The principal accounting policies adopted are set out below.

Irrespective of the problems that may have been caused by the current Covid-19 pandemic, as set out in the Directors' Report, the Directors believe that the company is experiencing good levels of sales and profitability, and that it is well placed to manage its business risks successfully. The Directors are confident that this will continue and that the company's business will not be greatly affected. Where further resources are required the Directors are prepared to provide these.true

Although the company's business model may have been affected in the subsequent period to 30 June 2021, during the current Covid-19 pandemic, the Directors consider this to be short term and are confident in improving the company's business, as the measures imposed by the Government to combat the virus are reversed and/or relaxed and the threat of Covid-19 subsides.

Accordingly at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when goods are delivered and legal title has passed.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

No depreciation is provided in respect of leasehold land and buildings on the grounds that it is immaterial.

Fixed asset investments are initially measured at cost and subsequently measured at cost or valuation, net of any impairment losses. Any fixed asset investments carried at revalued amounts are recorded at their fair value at the date of the valuation less any subsequent impairment losses. The surplus or deficit on revaluation is recognised in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets and investments to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (Net realisable value). Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

The tax expense represents the sum of the tax currently payable and deferred tax.

The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates ( and tax law) that have been enacted or substantively enacted by the end of the reporting period.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The company operates two money purchase (defined contribution) pension schemes. The pension charge represents the amounts payable by the company to the funds in respect of the year. These contributions are invested separately from the company's assets.

Rentals payable under operating leases, including any lease incentives received, where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit or loss on a straight line basis over the term of the relevant lease.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling (functional currency of the company) are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

The average monthly number of persons (including directors) employed by the company during the year was:

The Directors do not propose a final dividend.

Land and buildings represent capital costs incurred in respect of short leasehold premises.

The listed investments were valued at their open market price as at 30 June 2020, by HSBC Private Bank Limited. If the listed investments were included in the balance sheet on a historic cost basis, then the carrying amount would be £1,460,757 (2019: £1,774,191).

A provision for deferred tax in the region of £24,691(2019: £40,625) arising on the movement in fair value during the year has been made in these financial statements.

There is no material difference between the replacement cost of stocks and their balance sheet amounts.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balance (after offset) for financial reporting purposes.

The deferred tax debtor of £49,550 is expected to reverse in future years as the expected tax on listed investments increases due to further disposals. The deferred tax liability of £58 relating to accelerated capital allowances is also expected to reverse in future years as accelerated capital allowances reduce.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Like most businesses the company's trade has been impacted by the recent and rapid development of the Coronavirus (Covid-19) outbreak, and the measures introduced by the Government to reduce its spread, which included the closure of the company's retail shop, due to lockdown measures, together with strict quarantine rules imposed, not just by the UK Government, but by Governments of other countries, which has restricted travel by overseas customers, leading to a decline in the company’s business.

The Directors' have implemented all of the recommendations announced by the Government and National Health Service and are taking all necessary measures and precautions to combat the threat posed to the company's business. Whilst the Directors' remain confident of being able to manage and minimise the risk, nevertheless the Directors' expect the company's turnover in the subsequent year to 30 June 2021 to decline. Consequently, this, together with the increased Customs clearance procedures required to be undertaken post Brexit, from 1 January 2021 and the ongoing currency restrictions imposed by countries with whom the company trades, leading to overseas customers finding it more difficult to pay for goods, has disrupted and restricted the company's trade in the period post 30 June 2020. Where further resources are required the Directors' are prepared to provide these.

The financial effect of the current crisis on the eventual overall business activities cannot be estimated with reasonable certainty at this stage, due to the pace at which the Covid-19 outbreak expands and the high level of uncertainties arising from the inability to predict the outcome.

No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in financial years subsequent to the financial year ended 30 June 2020.

Dividends totalling £70,000 (2019 - £70,000) were paid in the year in respect of shares held by the company's directors.

During the year, a net decrease of £16,152 was made to the directors' loan account and the value of their loan account included in creditors at the end of the financial year stood at £277,583(2019: £293,735).

The directors of the company had no other material transactions with the company during the year other than directors emoluments as disclosed in the notes.