Solway Direct Limited - Period Ending 2020-12-31

Solway Direct Limited

Contents

Pages

Balance sheet	1 to 2
Notes to the financial statements	3 to 7

Solway Direct Limited

Balance Sheet as at 31 December 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	-	3,790
Current assets
Stocks	5	-	49,893
Debtors	6	221,410	280,244
Cash at bank and in hand		1,128	30,004
		222,538	360,141
Creditors: Amounts falling due within one year	7	(99,944)	(255,589)
Net current assets		122,594	104,552
Total assets less current liabilities		122,594	108,342
Provisions for liabilities		-	(720)
Net assets		122,594	107,622
Capital and reserves
Called up share capital		30,000	30,000
Profit and loss account		92,594	77,622
Shareholders' funds		122,594	107,622

Solway Direct Limited

Balance Sheet as at 31 December 2020 (continued)

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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 28 September 2021
 

.........................................

Mr R Hiddleston
Director

Company registration number: 05485119

Solway Direct Limited

Notes to the financial statements for the 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:
Dalmar House
Barras Lane Estate
Dalston
Carlisle
CA5 7NY
 

These financial statements were authorised for issue by the director on 28 September 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 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

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

Solway Direct Limited

Notes to the financial statements for the Year Ended 31 December 2020 (continued)

2	ACCOUNTING POLICIES (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

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 sales/value added tax, returns, rebates and discounts.

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.

Tax

The tax expense for the period comprises deferred 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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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
Plant and machinery	20% reducing balance

Solway Direct Limited

Notes to the financial statements for the Year Ended 31 December 2020 (continued)

2	ACCOUNTING POLICIES (continued)

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
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
 Recognition and measurement
Basic financial instruments are initially recognised at the transaction price.
 Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

 

3	STAFF NUMBERS

The average number of persons employed by the company (including the director) during the year, was 2 (2019 - 2).

Solway Direct Limited

Notes to the financial statements for the Year Ended 31 December 2020 (continued)

4	TANGIBLE ASSETS

	Office equipment  £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2020	1,864	35,309	37,173
Disposals	-	(35,309)	(35,309)
At 31 December 2020	1,864	-	1,864
Depreciation
At 1 January 2020	1,864	31,519	33,383
Eliminated on disposal	-	(31,519)	(31,519)
At 31 December 2020	1,864	-	1,864
Carrying amount
At 31 December 2020	-	-	-
At 31 December 2019	-	3,790	3,790

5

STOCKS

	2020 £	2019 £
Stocks	-	49,893

6

DEBTORS

	2020 £	2019 £
Trade debtors	-	19,403
Amounts owed by group undertakings	184,218	230,617
Other debtors	37,192	30,224
	221,410	280,244

Solway Direct Limited

Notes to the financial statements for the Year Ended 31 December 2020 (continued)

7

CREDITORS

Creditors: amounts falling due within one year

	2020 £	2019 £
Due within one year
Trade creditors	5,503	173,977
Accruals and deferred income	90,338	63,390
Other creditors	4,103	18,222
	99,944	255,589