Scale Distribution Ltd - Period Ending 2022-05-31

Scale Distribution Ltd

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 7

Scale Distribution Ltd

Company Information

Director

Mr D A Day

Company secretary

Mr P E Day

Registered office

Regency House Regent Road Kirkdale Liverpool L5 9SR

Scale Distribution Ltd

(Registration number: 04019294)
Balance Sheet as at 31 May 2022

	Note	2022 £	2021 £
Fixed assets
Tangible assets	4	1,547	3,092
Current assets
Debtors	5	236,916	162,492
Cash at bank and in hand		350,610	258,766
		587,526	421,258
Creditors: Amounts falling due within one year	6	(82,923)	(11,048)
Net current assets		504,603	410,210
Net assets		506,150	413,302
Capital and reserves
Called up share capital	7	1,350,000	1,350,000
Retained earnings		(843,850)	(936,698)
Shareholders' funds		506,150	413,302

For the financial year ending 31 May 2022 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. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 23 February 2023
 

......................................... Mr D A Day Director

Scale Distribution Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

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:
Regency House
Regent Road
Kirkdale
Liverpool
L5 9SR
United Kingdom

These financial statements were authorised for issue by the director on 23 February 2023.

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

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.

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

Scale Distribution Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

Tax

The tax expense for the period comprises 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 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:

Asset class	Depreciation method and rate
Land and buildings leasehold	Over the term of the lease
Fixtures, fittings & equipment	20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Scale Distribution Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

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

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 in the company's balance sheet 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including 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. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 4 (2021 - 5).

Scale Distribution Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 June 2021	142,613	3,901	146,514
At 31 May 2022	142,613	3,901	146,514
Depreciation
At 1 June 2021	140,745	2,677	143,422
Charge for the year	934	611	1,545
At 31 May 2022	141,679	3,288	144,967
Carrying amount
At 31 May 2022	934	613	1,547
At 31 May 2021	1,868	1,224	3,092

Included within the net book value of land and buildings above is £934 (2021 - £1,868) in respect of short leasehold land and buildings.
 

5

Debtors

Current	2022 £	2021 £
Trade debtors	85,320	30,398
Prepayments	12,354	3,846
Other debtors	139,242	128,248
	236,916	162,492

Scale Distribution Ltd

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

6

Creditors

Creditors: amounts falling due within one year

	2022 £	2021 £
Due within one year
Trade creditors	10,062	6,319
Taxation and social security	12,696	-
Accruals and deferred income	60,165	4,729
	82,923	11,048

7	Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
540,000 Ordinary A Shares of £1 each	540,000	540,000	540,000	540,000
540,000 Ordinary B Shares of £1 each	540,000	540,000	540,000	540,000
270,000 Ordinary C Shares of £1 each	270,000	270,000	270,000	270,000
	1,350,000	1,350,000	1,350,000	1,350,000

8	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2022 £	2021 £
Not later than one year	847	848

The amount of non-cancellable operating lease payments recognised as an expense during the year was £10,159 (2021 - £10,179).