Watson Gym Equipment Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06132239 (England and Wales)

Unaudited Financial Statements for the Year Ended 30 June 2021

for

WATSON GYM EQUIPMENT LTD

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

S Watson

C B Watson

SECRETARY:

C B Watson

REGISTERED OFFICE:

J6/a Imperial Way

Commerce Park

Frome

BA11 2FD

REGISTERED NUMBER:

06132239 (England and Wales)

ACCOUNTANTS:

Richardson Swift

Chartered Accountants

11 Laura Place

Bath

BA2 4BL

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Watson Gym Equipment Ltd for the year ended 30 June 2021 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Watson Gym Equipment Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Watson Gym Equipment Ltd and state those matters that we have agreed to state to the Board of Directors of Watson Gym Equipment Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Watson Gym Equipment Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Watson Gym Equipment Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Watson Gym Equipment Ltd. You consider that Watson Gym Equipment Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Watson Gym Equipment Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Richardson Swift

Chartered Accountants

11 Laura Place

Bath

BA2 4BL

28 January 2022

FIXED ASSETS

Tangible assets

4

2,954,088

1,937,424

CURRENT ASSETS

Stocks

199,415

177,096

Debtors

5

3,657,757

1,476,924

Cash at bank and in hand

833,426

1,291,706

4,690,598

2,945,726

CREDITORS

Amounts falling due within one year

6

3,296,521

2,479,268

NET CURRENT ASSETS

1,394,077

466,458

TOTAL ASSETS LESS CURRENT LIABILITIES

4,348,165

2,403,882

CREDITORS

Amounts falling due after more than one year

7

(1,597,549

)

(866,679

)

PROVISIONS FOR LIABILITIES

9

(389,595

)

(259,681

)

NET ASSETS

2,361,021

1,277,522

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

2,360,921

1,277,422

SHAREHOLDERS' FUNDS

2,361,021

1,277,522

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2021 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2022 and were signed on its behalf by:

S Watson - Director

1.	STATUTORY INFORMATION

Watson Gym Equipment Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when goods are dispatched.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

10% on cost

Plant and equipment

-

15% on reducing balance

Office equipment

-

15% on reducing balance

Website

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 tax

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid 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.

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, loans from banks and other third parties.

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 the profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount the company would receive for the asset if it were to be sold at the reporting date.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 53 (2020 - 44 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Office

property

equipment

equipment

Website

Totals

£

£

£

£

£

COST

At 1 July 2020

236,893

2,537,236

53,317

46,516

2,873,962

Additions

-

1,617,701

3,590

-

1,621,291

Disposals

-

(687,650

)

-

-

(687,650

)

At 30 June 2021

236,893

3,467,287

56,907

46,516

3,807,603

DEPRECIATION

At 1 July 2020

108,940

777,429

16,529

33,640

936,538

Charge for year

9,229

194,126

11,112

3,342

217,809

Eliminated on disposal

-

(300,832

)

-

-

(300,832

)

At 30 June 2021

118,169

670,723

27,641

36,982

853,515

NET BOOK VALUE

At 30 June 2021

118,724

2,796,564

29,266

9,534

2,954,088

At 30 June 2020

127,953

1,759,807

36,788

12,876

1,937,424

Included in cost of Freehold property is freehold land of £112,250 (2020 - £112,250) which is not depreciated.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

96,363

150,540

Amounts owed by group undertakings

3,293,402

761,298

Other debtors

267,992

565,086

3,657,757

1,476,924

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

14,595

14,595

Hire purchase contracts

474,984

223,309

Trade creditors

1,094,182

870,732

Taxation and social security

125,872

170,058

Other creditors

1,586,888

1,200,574

3,296,521

2,479,268

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

73,112

84,881

Hire purchase contracts

1,236,440

398,122

Other creditors

287,997

383,676

1,597,549

866,679

8.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

87,707

99,476

Hire purchase contracts

1,711,424

621,431

1,799,131

720,907

All monies due to Barclays Bank are secured against the freehold property and a debenture dating from 2 August 2016.

All monies due to Barclays Security Trustee Limited relate to a fixed and floating debenture charge dated 16 September 2019. The floating charge covers all property and undertakings of the company.

Hire purchase contracts are secured against the assets to which they relate.

9.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

389,595

259,681

Deferred

tax

£

Balance at 1 July 2020

259,681

Accelerated capital allowances

129,914

Balance at 30 June 2021

389,595

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

£1

100

100

11.	CRITICAL ACCOUNTING ESTIMATES AND UNCERTAINTIES

No significant judgements or key assumptions have had to be made by the directors in preparing these financial statements.