Factory Bargains Limited - Period Ending 2020-03-31
Factory Bargains Limited - Period Ending 2020-03-31
Registration number:
Factory Bargains Limited
for the
Year Ended 31 March 2020
Factory Bargains Limited
Contents
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Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Factory Bargains Limited
Company Information
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Director |
S Brown |
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Registered office |
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Accountants |
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Factory Bargains Limited
(Registration number: 09892354)
Balance Sheet as at 31 March 2020
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2019 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current liabilities |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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Net liabilities |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' deficit |
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For the financial year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Factory Bargains Limited
(Registration number: 09892354)
Balance Sheet as at 31 March 2020
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
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Director
Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
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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 presentation currency of the financial statements is Pound Sterling (£).
Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Accounting policies (continued) |
Going concern
The financial statements have been prepared on a going concern basis, which assumes that the company will continue to trade in operational existence for the foreseeable future. At 31 March 2020 the company had net current liabilities of £240,893 (2019 - net current liabilities of £93,874) and net liabilities of £220,825 (2019- £125,733). In addition, on 11 March 2020, COVID-19 was declared a pandemic by the World Health Organisation. Shortly thereafter the UK government issued guidance restricting movement of people to help reduce the impact of COVID-19.
The director has assessed the challenges arising from the uncertainty around the actual and potential impacts upon the company posed by COVID-19 and has taken steps to mitigate the impact including taking advantage of the Government support available to the company in particular the furlough scheme, and in the subsequent period the grants available and a Bounce Back Loan.
The other creditors include a loan owed to the director of £158,456. The director has indicated that he will not request repayment of this loan until such time as the company is a suitable position to do so and has indicated that he will continue to support the company for the foreseeable future.
The director has also taken steps to reduce the overheads of the company by closing the second trading premises which was opened during the prior year.
After considering all of the above, the director therefore feels that it is appropriate to adopt the going concern basis for preparing these financial statements.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods 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.
Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Accounting policies (continued) |
Tax
The current income 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.
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:
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Asset class |
Depreciation method and rate |
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Plant and machinery |
15% Reducing balance |
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Fixtures, fittings and office equipment |
15% Reducing balance, 33% Straight line |
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Motor vehicles |
15% Reducing balance |
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.
Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Accounting policies (continued) |
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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
Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
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Tangible assets |
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Land and buildings |
Fixtures, fittings and office equipment |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 April 2019 |
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Additions |
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At 31 March 2020 |
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Depreciation |
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At 1 April 2019 |
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Charge for the year |
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At 31 March 2020 |
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Carrying amount |
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At 31 March 2020 |
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At 31 March 2019 |
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Included within the net book value of land and buildings above is £6,743 (2019 - £6,743) in respect of short leasehold land and buildings.
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Stocks |
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2020 |
2019 |
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Closing stock |
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Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Debtors |
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2020 |
2019 |
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Prepayments |
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Other debtors |
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Creditors |
Creditors: amounts falling due within one year
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Note |
2020 |
2019 |
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Due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Accruals |
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Other creditors |
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Factory Bargains Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
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Loans and borrowings |
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2020 |
2019 |
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Non-current loans and borrowings |
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Other borrowings |
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2020 |
2019 |
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Current loans and borrowings |
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Bank overdrafts |
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Other borrowings |
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