Espresso Services (UK) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC436485 (Scotland)

Unaudited Financial Statements

for the Year Ended 31 May 2021

for

Espresso Services (UK) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

S D Martin

Mrs M W Martin

D T Martin

REGISTERED OFFICE:

Unit 58 Elderpark Workspace

100 Elderpark Street

Glasgow

G51 3TR

REGISTERED NUMBER:

SC436485 (Scotland)

ACCOUNTANTS:

Gillespie & Anderson

Chartered Accountants

147 Bath Street

Glasgow

G2 4SN

FIXED ASSETS

Tangible assets

4

34,243

24,500

CURRENT ASSETS

Stocks

253,315

123,007

Debtors

5

52,461

27,096

Cash at bank

32,949

31,515

338,725

181,618

CREDITORS

Amounts falling due within one year

6

285,984

140,074

NET CURRENT ASSETS

52,741

41,544

TOTAL ASSETS LESS CURRENT LIABILITIES

86,984

66,044

CREDITORS

Amounts falling due after more than one year

7

(53,396

)

(37,959

)

PROVISIONS FOR LIABILITIES

(5,831

)

(3,559

)

NET ASSETS

27,757

24,526

CAPITAL AND RESERVES

Called up share capital

104

104

Retained earnings

27,653

24,422

27,757

24,526

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 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 Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 February 2022 and were signed on its behalf by:

D T Martin - Director

1.	STATUTORY INFORMATION

Espresso Services (UK) Limited is a private company, limited by shares, registered in Scotland. The company's registered number is SC436485 and its registered office address is Unit 58 Elderpark Workspace, 100 Elderpark Street, Glasgow, G51 3TR.

The presentation currency of the financial statements is the Pound Sterling (£) which is the functional currency of the company.

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.

Going Concern

The financial statements are prepared on the going concern basis of accounting as, in the opinion of the directors, there are no matters of material uncertainty which cast doubt on the company's ability to continue.

Despite the ongoing issues of the Covid-19 pandemic and the lockdown restrictions, the management have continued operations throughout this period in compliance with covid regulations. They have accessed all available support which has been available at local and national levels. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Significant judgements and estimates

The Directors have made judgements, estimates and assumptions that affect the amounts reported within the financial statements during the year. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. The Directors' estimates, assumptions and judgements that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the financial statements are addressed and detail is provided in the associated notes.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

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

Motor vehicles - 20% reducing balance

Equipment - 20% reducing balance

Government grants

Grants are recognised when the company has complied with the attaching conditions and there is reasonable assurance that the grants will be received. They are measured at fair value. Grants relating to revenue are recognised in income on a systematic basis over the period or periods in which the entity recognises the related costs for which the grant is intended to compensate.

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Stocks

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

Financial instruments

The company has no complex financial instruments but does hold basic financial instruments of; cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

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.

Employment benefits

The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

Provision for liabilities

A provision for liabilities is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated readily. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2020 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 June 2020

55,464

Additions

20,220

Disposals

(8,720

)

At 31 May 2021

66,964

DEPRECIATION

At 1 June 2020

30,964

Charge for year

8,648

Eliminated on disposal

(6,891

)

At 31 May 2021

32,721

NET BOOK VALUE

At 31 May 2021

34,243

At 31 May 2020

24,500

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 June 2020

and 31 May 2021

21,142

DEPRECIATION

At 1 June 2020

7,611

Charge for year

2,706

At 31 May 2021

10,317

NET BOOK VALUE

At 31 May 2021

10,825

At 31 May 2020

13,531

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

50,199

26,863

Other debtors

2,262

233

52,461

27,096

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

6,667

-

Hire purchase contracts

2,895

2,784

Trade creditors

174,052

41,085

Taxation and social security

64,859

70,211

Other creditors

37,511

25,994

285,984

140,074

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

43,333

25,000

Hire purchase contracts

10,063

12,959

53,396

37,959

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

3,333

-

Hire purchase

96

189

3,429

189

The bank loan relates to a Coronavirus Business Interruption Loan with Royal Bank of Scotland. During the year, the loan was refinanced with Royal Bank of Scotland as part of a new £50,000 loan under the Bounce Back Loan Scheme. The 'Bounce Back Loan' is due to be repaid within six years, including an initial repayment holiday of one year. Interest on the 'Bounce Back Loan' is 2.5% per year with the UK Government paying the interest for the first year.

8.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

12,958

15,743

PayPal working capital loan

22,643

-

35,601

15,743

The hire purchase liability is secured over the assets to which they relate.

The PayPal working capital loan is secured over future PayPal sale receipts.

9.	RELATED PARTY DISCLOSURES

During the year, total dividends of £3,000 (2020 - £2,000) were paid to the directors .