Display Refrigeration Hire Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04294590 (England and Wales)

Unaudited Financial Statements

for the Year Ended 30 September 2021

for

DISPLAY REFRIGERATION HIRE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M A Febery

N Febery

REGISTERED OFFICE:

Unit A

Centurion House

Olympus Business Park

Quedgeley

Gloucester

GL2 4NF

REGISTERED NUMBER:

04294590 (England and Wales)

ACCOUNTANTS:

Haines Watts

Chartered Accountants

Bath House

6-8 Bath Street

Bristol

BS1 6HL

FIXED ASSETS

Intangible assets

4

(2,444

)

(4,398

)

Tangible assets

5

479,601

396,217

477,157

391,819

CURRENT ASSETS

Debtors

6

457,804

503,840

Cash at bank

489,078

286,895

946,882

790,735

CREDITORS

Amounts falling due within one year

7

(359,134

)

(400,077

)

NET CURRENT ASSETS

587,748

390,658

TOTAL ASSETS LESS CURRENT LIABILITIES

1,064,905

782,477

CREDITORS

Amounts falling due after more than one year

8

(113,476

)

(123,325

)

PROVISIONS FOR LIABILITIES

(84,585

)

(66,707

)

NET ASSETS

866,844

592,445

CAPITAL AND RESERVES

Called up share capital

87

87

Capital redemption reserve

15

15

Retained earnings

866,742

592,343

SHAREHOLDERS' FUNDS

866,844

592,445

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 and authorised for issue by the Board of Directors and authorised for issue on 19 March 2022 and were signed on its behalf by:

M A Febery - Director

1.	COMPANY INFORMATION

Display Refrigeration Hire Limited 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

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

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant financial information in making their assessment. In particular, in response to the COVID-19 pandemic, the directors have taken into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Revenue is recognised at the point of delivery of the hired goods and services.

Goodwill

Negative goodwill has arisen because the fair value of assets acquired exceeds the fair value of the consideration paid. Negative goodwill is recognised on the balance sheet and amortised alongside the assets acquired. The period chosen for writing off goodwill is 3 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

All fixed assets are initially recorded at cost.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Leasehold Property - 10% straight line over 120 months

Hire Equipment - 25% straight line over 48 months

Motor Vehicles - 25% straight line over 48 months

Computers & Office Equipment - 25% straight line over 48 months

Cold Rooms - 20% straight line over 60 months

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire.

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 shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period on a straight line basis where this is not materially different to the sum of the digits basis. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2020 - 13 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 October 2020

and 30 September 2021

(5,864

)

AMORTISATION

At 1 October 2020

(1,466

)

Charge for year

(1,954

)

At 30 September 2021

(3,420

)

NET BOOK VALUE

At 30 September 2021

(2,444

)

At 30 September 2020

(4,398

)

5.	TANGIBLE FIXED ASSETS

Short

Cold

Hire

leasehold

rooms

equipment

£

£

£

COST

At 1 October 2020

45,865

47,805

1,267,238

Additions

14,863

4,693

170,533

Disposals

-

(6,469

)

(204,581

)

At 30 September 2021

60,728

46,029

1,233,190

DEPRECIATION

At 1 October 2020

32,941

5,576

1,013,617

Charge for year

2,978

8,503

96,774

Eliminated on disposal

-

(1,594

)

(200,901

)

At 30 September 2021

35,919

12,485

909,490

NET BOOK VALUE

At 30 September 2021

24,809

33,544

323,700

At 30 September 2020

12,924

42,229

253,621

Plant,

Computer

and

Office

Motor

Equipment

vehicles

Totals

£

£

£

COST

At 1 October 2020

84,031

259,744

1,704,683

Additions

2,073

56,381

248,543

Disposals

(500

)

-

(211,550

)

At 30 September 2021

85,604

316,125

1,741,676

DEPRECIATION

At 1 October 2020

80,406

175,926

1,308,466

Charge for year

1,626

46,317

156,198

Eliminated on disposal

(94

)

-

(202,589

)

At 30 September 2021

81,938

222,243

1,262,075

NET BOOK VALUE

At 30 September 2021

3,666

93,882

479,601

At 30 September 2020

3,625

83,818

396,217

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

Motor

vehicles

£

COST

At 1 October 2020

127,964

Additions

56,381

Transfer to ownership

(87,451

)

At 30 September 2021

96,894

DEPRECIATION

At 1 October 2020

81,031

Charge for year

33,030

Transfer to ownership

(83,564

)

At 30 September 2021

30,497

NET BOOK VALUE

At 30 September 2021

66,397

At 30 September 2020

46,933

6.

DEBTORS

2021

2020

£

£

Amounts falling due within one year:

Trade debtors

323,540

473,810

Other debtors

9,283

6,595

Tax

26,000

-

Prepayments and accrued income

13,497

12,888

372,320

493,293

Amounts falling due after more than one year:

Other debtors

5,484

10,547

Directors' loan accounts

80,000

-

85,484

10,547

Aggregate amounts

457,804

503,840

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

30,000

7,500

Hire purchase contracts

24,215

20,233

Trade creditors

135,825

214,914

Tax

91,689

36,595

Social security and other taxes

5,208

4,972

VAT

38,389

28,733

Company credit card

1,485

402

Directors' current accounts

167

22

Accruals and deferred income

32,156

86,706

359,134

400,077

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans - 1-2 years

30,000

30,000

Bank loans - 2-5 years

50,000

82,500

Hire purchase contracts

33,476

10,825

113,476

123,325

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Hire purchase contracts

57,691

31,058

The hire purchase liability is secured over the asset to which it relates.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 September 2021 and 30 September 2020:

2021

2020

£

£

M A Febery

Balance outstanding at start of year

(22

)

(129

)

Amounts advanced

99,945

69,932

Amounts repaid

(60,075

)

(69,825

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

39,848

(22

)

N Febery

Balance outstanding at start of year

-

-

Amounts advanced

93,385

-

Amounts repaid

(53,400

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

39,985

-

11.	RELATED PARTY DISCLOSURES

During the year loans of £40,000 each were advanced to Mr M Febery and Mrs N Febery. Interest is being charged at 2.25% and the loans have no fixed date of repayment.