Swag Distribution Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 07971000 (England and Wales)

SWAG DISTRIBUTION LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

5

DIRECTORS:

J M Johansen-Berg

R W Lancaster

N Ridgard

J E Davidson

REGISTERED OFFICE:

31 St. John's

Worcester

Worcestershire

WR2 5AG

BUSINESS ADDRESS:

Amber Way

Halesowen Industrial Park

Halesowen

West Midlands

B62 8AY

REGISTERED NUMBER:

07971000 (England and Wales)

SENIOR STATUTORY AUDITOR:

Gavin Gardiner

AUDITORS:

Gardiner Fosh

Chartered Accountants

31 St John's

Worcester

Worcestershire

WR2 5AG

FIXED ASSETS

Intangible assets

4

2,084

2,725

Tangible assets

5

-

-

2,084

2,725

CURRENT ASSETS

Debtors

6

191,082

640,336

Cash at bank

22,798

32,196

213,880

672,532

CREDITORS

Amounts falling due within one year

7

185,115

458,203

NET CURRENT ASSETS

28,765

214,329

TOTAL ASSETS LESS CURRENT LIABILITIES

30,849

217,054

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Retained earnings

20,849

207,054

SHAREHOLDERS' FUNDS

30,849

217,054

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 August 2023 and were signed on its behalf by:

J E Davidson - Director

1.	STATUTORY INFORMATION

Swag Distribution 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.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with FRS 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 have been prepared under the historical cost convention and the principal accounting policies are set out below.

Going concern

The company is part of a group which, due to difficult post Balance sheet trading conditions has been loss making due to the combination of unwinding of historically high shipping fees on FOB stock, increased paid marketing spend following the transition of the web platform and a difficult economic backdrop compounded by an overstocked market and price inflation. Despite these challenges the Group has managed to pay down all existing bank debt for which a cross guarantee is in place as shown in Note 9 but it has been unable to refinance that debt as at the date of signing of these financial statements.

Whilst Management continues to seek appropriate funding options for the Group they have put together a prudent forecast which reduces costs and leverages the efficiencies that the new warehouse facility provides based on the current economic conditions. This forecast shows that the Group can continue to operate for the foreseeable future based on the pledged support of key creditors, through the provision of payment plans to support the business without the need of additional funding.

Were economic conditions to worsen materially and key creditors forced to withdraw their support that may cast doubt on the Group's ability to continue as a going concern if appropriate funding support had not been secured at that time.

At the time of approving the financial statements however, the directors have a reasonable expectation that the company has adequate resource and expertise to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

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

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.

Development costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

33% on cost

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

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2022 - 5 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2022

and 31 March 2023

3,206

AMORTISATION

At 1 April 2022

481

Charge for year

641

At 31 March 2023

1,122

NET BOOK VALUE

At 31 March 2023

2,084

At 31 March 2022

2,725

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2022

and 31 March 2023

2,313

DEPRECIATION

At 1 April 2022

and 31 March 2023

2,313

NET BOOK VALUE

At 31 March 2023

-

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

31,987

157,984

Amounts owed by group undertakings

158,041

482,352

Other debtors

1,054

-

191,082

640,336

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

4,838

13,029

Amounts owed to group undertakings

10,519

285,519

Taxation and social security

94,652

70,674

Other creditors

75,106

88,981

185,115

458,203

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

9.	ULTIMATE CONTROLLING PARTY