Metal Supermarkets Franchising UK Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07688413 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

FOR

METAL SUPERMARKETS FRANCHISING UK

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr A M Arminen

Mr C A M Henniker

Mr G S Schober

SECRETARY:

Mr A J Sibson

REGISTERED OFFICE:

Suites 1 & 2

Blaby Business Centre

33 Leicester Road

Blaby, Leicester

Leicestershire

LE8 4GR

REGISTERED NUMBER:

07688413 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2

Charnwood Edge Business Park

Syston Road

Leicester

LE7 4UZ

FIXED ASSETS

Intangible assets

4

660

1,612

Tangible assets

5

9,369

11,007

Investments

6

168,167

168,167

178,196

180,786

CURRENT ASSETS

Debtors

7

107,667

198,356

Cash at bank

2,000

3,882

109,667

202,238

CREDITORS

Amounts falling due within one year

8

(347,427

)

(471,230

)

NET CURRENT LIABILITIES

(237,760

)

(268,992

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(59,564

)

(88,206

)

PROVISIONS FOR LIABILITIES

9

(1,650

)

(1,050

)

NET LIABILITIES

(61,214

)

(89,256

)

CAPITAL AND RESERVES

Called up share capital

20,000

20,000

Retained earnings

(81,214

)

(109,256

)

SHAREHOLDERS' FUNDS

(61,214

)

(89,256

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 September 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 April 2021 and were signed on its behalf by:

Mr G S Schober - Director

1.	STATUTORY INFORMATION

Metal Supermarkets Franchising UK Limited is a limited company, limited by shares, registered in England and Wales. Its registered office address is Suite 1 & 2 Blaby Business Centre, 33 Leicester Road, Blaby, Leicester, LE8 4GR and the registered number is 07688413.

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.

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by the Companies Act 2006 not to prepare group accounts.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents amounts receivable for royalties and franchise fees net of VAT and trade discounts. The franchise is invoiced on the last working day of each month with royalty revenue based on their sales and recognised when invoiced.

Intangible fixed assets

Amortisation is calculated so as to write off the cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Franchise licence - 10% straight line

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Office equipment - 33% straight line

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments 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.

Provisions

Provisions for dilapidations are recognised on a lease by lease basis and are based on the companies best estimate of the likely committed cash outflow.

Going concern

The directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of the overdraft facility by the company's bankers. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2019 - 3 ) .

4.	INTANGIBLE FIXED ASSETS

Licences

£

COST

At 1 October 2019

and 30 September 2020

9,520

AMORTISATION

At 1 October 2019

7,908

Amortisation for year

952

At 30 September 2020

8,860

NET BOOK VALUE

At 30 September 2020

660

At 30 September 2019

1,612

5.	TANGIBLE FIXED ASSETS

Office

Equipment

£

COST

At 1 October 2019

19,489

Additions

3,260

At 30 September 2020

22,749

DEPRECIATION

At 1 October 2019

8,482

Charge for year

4,898

At 30 September 2020

13,380

NET BOOK VALUE

At 30 September 2020

9,369

At 30 September 2019

11,007

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 October 2019

and 30 September 2020

168,167

NET BOOK VALUE

At 30 September 2020

168,167

At 30 September 2019

168,167

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

6,876

12,820

Amounts owed by group undertakings

99,458

183,087

Prepayments and accrued income

1,333

2,449

107,667

198,356

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade creditors

391

1,773

Amounts owed to group undertakings

288,245

436,455

Social security and other taxes

4,681

2,768

VAT

4,552

3,327

Other creditors

767

450

Brand fund

21,244

18,770

Accruals and deferred income

27,547

7,687

347,427

471,230

9.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Other provisions

Dilapidations

1,650

1,050

10.	FINANCIAL COMMITMENTS

Operating lease commitments not included in the balance sheet amount to £8,100 (2019 - £9,100)

11.	POST BALANCE SHEET EVENTS

During the year, the world has suffered a COVID-19 outbreak and there has been volatility in the economy as a result. The directors have considered the effect that this may have on the company, and although unclear what impact this will have in the longer term, the company is currently experiencing a positive start to the 2021 financial year. An estimate of the financial effect cannot therefore be made at this stage. The directors have assessed the above and consider the company to be a going concern.