General Information
Evolve Hair Professionals Ltd is a private company, limited by shares, registered in England and Wales, registration number 06770779, registration address 17a Gosport Lane, Lyndhurst, Hampshire, SO43 7BP.
The presentation currency is £ sterling.
1. |
Accounting policies
Significant accounting policies
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland (as applied to small entities by Section 1A of the standard)
Turnover
Turnover comprises the invoiced value of goods and services supplied by the company, net of Value Added Tax and trade discounts.
Cost of sales
The cost of sales is the accumulated total of all costs used to create a product or service, which has been sold.
Government grants
Government grants received are credited to deferred income. Grants towards capital expenditure are released to the income statement over the expected useful life of the assets. Grants received towards revenue expenditure are released to the income statement as the related expenditure is incurred.
Finance lease and hire purchase charges
The finance element of the rental payment is charged to the income statement on a straight line basis.
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 balance sheet date.
Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.
Intangible assets
Intangible assets (including purchased goodwill and patents) are amortised at rates calculated to write off the assets on a straight line basis over their estimated useful economic lives. Impairment of intangible assets is only reviewed where circumstances indicate that the carrying value of an asset may not be fully recoverable.
Goodwill
Acquired goodwill is stated at cost less amortisation. Amortisation is calculated on a straight line basis over the estimated expected useful economic life of the goodwill of years.
Tangible fixed assets
Tangible fixed assets, other than freehold land, are stated at cost or valuation less depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:
Motor Vehicles |
25% Reducing Balance
|
Fixtures and Fittings |
25% Reducing Balance
|
Plant and Machinery |
12.5% Reducing Balance
|
Assets on finance lease and hire purchase
Assets held under finance lease or hire purchase contracts i.e. those contracts where substantially all the risks and rewards of ownership have passed to the company, are included in the appropriate category of tangible fixed assets and depreciated over the shorter of the lease term and their estimated expected useful lives.
Future obligations under such contracts are included in creditors net of the finance charge allocated to future periods.
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items.
Financial instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
When a financial asset or financial liability is recognised initially, the entity shall measure it at the transaction price unless the arrangement constitutes, in effect, a financing transaction. An arrangement constitutes a financing transaction if payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
At the end of each reporting period, an entity shall measure all financial instruments which constitute a financing arrangement at fair value and recognise changes in fair value in profit or loss.
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2. |
Average number of employees
Average number of employees during the year was 3 (2021 : 2).
|
3. |
Intangible fixed assets
Cost |
Goodwill |
|
Total |
|
£ |
|
£ |
At 01 April 2021 |
1,000 |
|
1,000 |
Additions |
- |
|
- |
Disposals |
- |
|
- |
At 31 March 2022 |
1,000 |
|
1,000 |
Amortisation |
At 01 April 2021 |
1,000 |
|
1,000 |
Charge for year |
- |
|
- |
On disposals |
- |
|
- |
At 31 March 2022 |
1,000 |
|
1,000 |
Net book values |
At 31 March 2022 |
- |
|
- |
At 31 March 2021 |
- |
|
- |
|
4. |
Tangible fixed assets
Cost or valuation |
Plant and Machinery |
|
Fixtures and Fittings |
|
Motor Vehicles |
|
Total |
|
£ |
|
£ |
|
£ |
|
£ |
At 01 April 2021 |
5,074 |
|
5,486 |
|
- |
|
10,560 |
Additions |
- |
|
- |
|
28,760 |
|
28,760 |
Disposals |
- |
|
- |
|
- |
|
- |
At 31 March 2022 |
5,074 |
|
5,486 |
|
28,760 |
|
39,320 |
Depreciation |
At 01 April 2021 |
5,074 |
|
1,562 |
|
- |
|
6,636 |
Charge for year |
- |
|
981 |
|
1,797 |
|
2,778 |
On disposals |
- |
|
- |
|
- |
|
- |
At 31 March 2022 |
5,074 |
|
2,543 |
|
1,797 |
|
9,414 |
Net book values |
Closing balance as at 31 March 2022 |
- |
|
2,943 |
|
26,963 |
|
29,906 |
Opening balance as at 01 April 2021 |
- |
|
3,924 |
|
- |
|
3,924 |
The net book value of Motor Vehicles includes £26,963 in respect of assets leased under finance leases or hire purchase contracts.
|
5. |
Stocks
|
2022 £ |
|
2021 £ |
Stocks |
3,850 |
|
4,100 |
|
3,850 |
|
4,100 |
|
6. |
Debtors: amounts falling due within one year
|
2022 £ |
|
2021 £ |
Other Debtors |
3,960 |
|
3,960 |
PAYE & Social Security |
0 |
|
160 |
Directors' Current Accounts |
5,697 |
|
25,707 |
|
9,657 |
|
29,827 |
|
7. |
Debtors: amounts falling due after one year
|
2022 £ |
|
2021 £ |
Other Debtors |
8,485 |
|
8,485 |
|
8,485 |
|
8,485 |
|
8. |
Creditors: amount falling due within one year
|
2022 £ |
|
2021 £ |
Bank Loans & Overdrafts |
5,579 |
|
4,537 |
Corporation Tax |
14,772 |
|
24,779 |
PAYE & Social Security |
91 |
|
0 |
Credit Card |
734 |
|
875 |
Pensions Payable |
54 |
|
38 |
Obligations under HP/Financial Leases |
3,124 |
|
0 |
VAT |
4,261 |
|
0 |
|
28,615 |
|
30,229 |
|
9. |
Creditors: amount falling due after more than one year
|
2022 £ |
|
2021 £ |
Bank Loans & Overdrafts |
18,634 |
|
24,213 |
Obligations Under HP/Financial Leases |
21,666 |
|
0 |
|
40,300 |
|
24,213 |
|
10. |
Provisions for liabilities
|
2022 £ |
|
2021 £ |
Deferred Tax |
491 |
|
745 |
|
491 |
|
745 |
|
11. |
Share Capital
Allotted, called up and fully paid
|
2022 £ |
|
2021 £ |
100
Ordinary shares of £1.00 each |
100 |
|
100 |
|
100 |
|
100 |
|
12. |
Related parties
During the year the company entered into the following transactions with related parties: | Transaction value - income/(expenses) | | Balance owed by/(owed to) |
---|
| 2022 £ | | 2021 £ | | 2022 £ | | 2021 £ |
---|
A McNulty | 0 | | 0 | | 5,697 | | 25,707 |
The loan is interest free with no fixed date of repayment. Fees of £2,300 (2021: £2,300) were paid to D McNulty, an officer of the company and husband of the director during the year.
|
13. |
Dividend
During the year, total dividends of £32,000 (2021 - £9,000) were paid to the directors.
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14. |
Loan
There is an outstanding unsecured loan liability of £24,213 repayable over 50 months. Interest is charged at 2.5% per annum.
Amounts due for repayment:
Less than 1 year: £5,579 (2021 - £4,537)
More than 1 year and less than 5 years: £18,634 (2021 - £24,213)
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15. |
Hire Purchase
There is an outstanding finance lease of £24,790 repayable over 47 months. Interest is charged at 6.67% per annum on the full amount of the finance lease.
Amounts due for repayment:
Less than 1 year: £3,124
More than 1 year: £21,666.
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