Exchange Supplies Limited - Period Ending 2020-12-31

Exchange Supplies Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 10

Exchange Supplies Limited

Company Information

Director

Mr Andrew James Preston

Registered office

1 Great Western Industrial Centre Dorchester Dorset DT1 1RD

Accountants

PKF Francis Clark Chartered Accountants Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW

Exchange Supplies Limited

Balance Sheet

31 December 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	5	146,460	120,436
Current assets
Stocks	6	679,202	874,018
Debtors	7	504,358	508,294
Cash at bank and in hand		758,519	477,728
		1,942,079	1,860,040
Creditors: Amounts falling due within one year	8	(302,644)	(198,681)
Net current assets		1,639,435	1,661,359
Total assets less current liabilities		1,785,895	1,781,795
Provisions for liabilities		(24,309)	(21,062)
Net assets		1,761,586	1,760,733
Capital and reserves
Called up share capital	9	8,700	10,200
Share premium reserve		28,500	28,500
Capital redemption reserve		1,500	-
Profit and loss account		1,722,886	1,722,033
Shareholders' funds		1,761,586	1,760,733

Exchange Supplies Limited

Balance Sheet

31 December 2020

For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 26 August 2021
 

......................................... Mr Andrew James Preston Director

Company Registration Number: 04549601

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1 Great Western Industrial Centre
Dorchester
Dorset
DT1 1RD

These financial statements were authorised for issue by the director on 26 August 2021.

2	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.

Statement of compliance

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 Section 1A and the Companies Act 2006. There is no material impact on the reported financial position and financial performance.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

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 after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

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.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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
Tooling equipment	33% straight line basis
Fixtures and equipment	33%, 25% and 100% straight line basis
Motor vehicles and cycles	25% and 100% straight line basis
Office equipment	25% straight line basis
Computer equipment	25% and 100% straight line basis
Property improvements	33% straight line basis

Research and development

Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with expected future sales from the relate project.

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
Patents	10% straight line
Webshop software	20% straight line

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.

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

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.

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.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Cash and bank balances.
 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.


 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 27 (2019 - 26).

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

4	Intangible assets

	Goodwill  £	Trademarks, patents and licenses  £	Software development costs  £	Total £
Cost or valuation
At 1 January 2020	60,000	14,953	197,442	272,395
Disposals	(60,000)	(14,953)	-	(74,953)
At 31 December 2020	-	-	197,442	197,442
Amortisation
At 1 January 2020	60,000	14,953	197,442	272,395
Amortisation eliminated on disposals	(60,000)	(14,953)	-	(74,953)
At 31 December 2020	-	-	197,442	197,442
Carrying amount
At 31 December 2020	-	-	-	-

The aggregate amount of research and development expenditure recognised as an expense during the period is £4,898 (2019 - £32,766).
 

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

6

Stocks

	2020 £	2019 £
Other inventories	679,202	874,018

7

Debtors

	2020 £	2019 £
Trade debtors	360,410	363,552
Prepayments	39,060	38,576
Other debtors	104,888	106,166
	504,358	508,294

Details of non-current trade and other debtors

£78,124 (2019 -£78,260) of other debtors is classified as non current. The amount is for container deposits (US$100,000).

8

Creditors

Creditors: amounts falling due within one year

	2020 £	2019 £
Due within one year
Trade creditors	190,335	167,959
Taxation and social security	66,717	18,591
Accruals and deferred income	39,368	12,131
Other creditors	6,224	-
	302,644	198,681

Exchange Supplies Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2020

9	Share capital

		2020		2019
	No.	£	No.	£
Ordinary A Shares of £1 each	5,100	5,100	5,100	5,100
Ordinary B Shares of £1 each	3,400	3,400	3,400	3,400
Ordinary C Shares of £1 each	200	200	200	200
Ordinary G Shares of £1 each	-	-	1,500	1,500
	8,700	8,700	10,200	10,200

During the year the company purchased the 1,500 £1 Ordinary G shares for a consideration of £30,000. The shares were subsequently cancelled.

10	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 £61,800 (2019 - £91,800).