Pencil Tree Limited Filleted accounts for Companies House (small and micro)

PENCIL TREE LIMITED - Company Information

2 false false false false false false false false false true false false false false false false No description of principal activity 2022-03-01 Sage Accounts Production Advanced 2021 - FRS102_2021 xbrli:pure xbrli:shares iso4217:GBP 08917016 2022-03-01 2023-02-28 08917016 2023-02-28 08917016 2022-02-28 08917016 2021-03-01 2022-02-28 08917016 2022-02-28 08917016 2021-02-28 08917016 core:LandBuildings core:LongLeaseholdAssets 2022-03-01 2023-02-28 08917016 core:PlantMachinery 2022-03-01 2023-02-28 08917016 core:FurnitureFittings 2022-03-01 2023-02-28 08917016 bus:LeadAgentIfApplicable 2022-03-01 2023-02-28 08917016 bus:Director1 2022-03-01 2023-02-28 08917016 bus:Director2 2022-03-01 2023-02-28 08917016 core:WithinOneYear 2023-02-28 08917016 core:WithinOneYear 2022-02-28 08917016 core:AfterOneYear 2023-02-28 08917016 core:AfterOneYear 2022-02-28 08917016 core:ShareCapital 2023-02-28 08917016 core:ShareCapital 2022-02-28 08917016 core:RetainedEarningsAccumulatedLosses 2023-02-28 08917016 core:RetainedEarningsAccumulatedLosses 2022-02-28 08917016 bus:Director1 2022-02-28 08917016 bus:Director1 2023-02-28 08917016 bus:Director2 2022-02-28 08917016 bus:Director2 2023-02-28 08917016 bus:Director1 2021-02-28 08917016 bus:Director1 2022-02-28 08917016 bus:Director2 2022-02-28 08917016 bus:Director1 2021-03-01 2022-02-28 08917016 bus:Director2 2021-03-01 2022-02-28 08917016 bus:SmallEntities 2022-03-01 2023-02-28 08917016 bus:AuditExemptWithAccountantsReport 2022-03-01 2023-02-28 08917016 bus:AbridgedAccounts 2022-03-01 2023-02-28 08917016 bus:SmallCompaniesRegimeForAccounts 2022-03-01 2023-02-28 08917016 bus:PrivateLimitedCompanyLtd 2022-03-01 2023-02-28

COMPANY REGISTRATION NUMBER: 08917016

Pencil Tree Limited

Filleted Unaudited Abridged Financial Statements

28 February 2023

Pencil Tree Limited

Abridged Financial Statements

Year ended 28th February 2023

Contents	Page

Chartered certified accountants' report to the director on the preparation of the unaudited statutory abridged financial statements of Pencil Tree Limited	1

Abridged statement of financial position	2

Notes to the abridged financial statements	4

Pencil Tree Limited

Chartered Certified Accountants' Report to the Director on the Preparation of the Unaudited Statutory Abridged Financial Statements of Pencil Tree Limited

Year ended 28th February 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the abridged financial statements of Pencil Tree Limited for the year ended 28th February 2023, which comprise the abridged statement of financial position 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 Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at www.accaglobal.com/en/member/professional-standards/rules-standards/acca-rulebook.html. Our work has been undertaken in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf.

JAY & JAY PARTNERSHIP LIMITED Chartered Certified Accountants

2 Chesterfield Buildings Westbourne Place Clifton Bristol BS8 1RU

22 August 2023

Pencil Tree Limited

Abridged Statement of Financial Position

28 February 2023

	2023	2022
Note	£	£

Fixed assets

Tangible assets	5	10,169	12,138

Current assets

Stocks	5,453	5,251
Debtors	7,218	44,827
Cash at bank and in hand	9,335	16,118
	--------	--------
	22,006	66,196

Creditors: amounts falling due within one year	20,848	19,265
	--------	--------
Net current assets	1,158	46,931
	--------	--------
Total assets less current liabilities	11,327	59,069

Creditors: amounts falling due after more than one year	11,288	13,007
	--------	--------
Net assets	39	46,062
	--------	--------

Capital and reserves

Called up share capital	1	1
Profit and loss account	38	46,061
	----	--------
Shareholders funds	39	46,062
	----	--------

These abridged financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 28th February 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its abridged financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of abridged financial statements .

All of the members have consented to the preparation of the abridged statement of financial position for the year ending 28th February 2023 in accordance with Section 444(2A) of the Companies Act 2006.

Pencil Tree Limited

Abridged Statement of Financial Position (continued)

28 February 2023

These abridged financial statements were approved by the board of directors and authorised for issue on 31 July 2023 , and are signed on behalf of the board by:

Mrs K Jackson

Director

Company registration number: 08917016

Pencil Tree Limited

Notes to the Abridged Financial Statements

Year ended 28th February 2023

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 5 Cleveland Terrace, Bath, BA1 5DF.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The abridged financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

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

Long leasehold property	-	20% straight line
Plant and machinery	-	15% reducing balance
Fixtures and fittings	-	20% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 2 (2022: 2 ).

5. Tangible assets

	£
Cost
At 1st March 2022	35,642
Additions	1,827
	--------
At 28th February 2023	37,469
	--------
Depreciation
At 1st March 2022	23,504
Charge for the year	3,796
	--------
At 28th February 2023	27,300
	--------
Carrying amount
At 28th February 2023	10,169
	--------
At 28th February 2022	12,138
	--------

6. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2023
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mrs K Jackson	20,867	6,413	( 24,671)	2,609
Mr P Jackson	20,866	6,413	( 24,670)	2,609
	--------	--------	--------	-------
	41,733	12,826	( 49,341)	5,218
	--------	--------	--------	-------

	2022
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mrs K Jackson	19,968	( 19,517)	20,416	20,867
Mr P Jackson	–	20,866	–	20,866
	--------	--------	--------	--------
	19,968	1,349	20,416	41,733
	--------	--------	--------	--------

At the beginning of the year the director, Mrs K Jackson , owed the company £20,867 and the director, Mr P Jackson , owed the company £20,866. These loans were fully repaid on 30th April 2022. The director's borrowed funds from the company between June 2022 and February 2023 and owed the company £5,218 at 28th February 2023. The directors fully repaid the loan in April 2023. Interest was charged at the official rate of 2% in March 2022.

7. Related party transactions

The premises from which the company operates are owned by the director, Mrs K Jackson . During the year the company paid rent of £7,285 (2022 - £7,585) which is below a market rate.