DAVID_SIMS_PHOTOGRAPHY_LT - Accounts
DAVID_SIMS_PHOTOGRAPHY_LT - Accounts
Company Registration No. 03870972 (England and Wales)
FOR THE YEAR ENDED 31 DECEMBER 2013
COMPANY INFORMATION
Director
Company number
Registered office
Auditors
Business address
70 Rochester Place
London
NW1 9JX
CONTENTS
Page
Director's report
1 - 2
Independent auditors' report
3 - 4
Profit and loss account
5
Statement of total recognised gains and losses
6
Balance sheet
7
Cash flow statement
8
Notes to the financial statements
9 - 18
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 1 -
The director presents her report and financial statements for the year ended 31 December 2013.
Principal activities and review of the business
The director considers that the results for the year and the financial position at the end of the year were satisfactory.
The review is consistent with the size and non-complex nature of the business. The main activities of the company remain the same, that of photography.
Trading performance was broadly in line with budgetary expectations.
Sales have decreased compared to the previous year with total turnover for the year being £6,690,132 (2012 - £7,647,605). The gross margin position remains satisfactory at £4,261,399 (2012 - £4,519,947) or 63.7% (2012 - 59.1%).
Operating profit has decreased to £3,350,939 from £3,534,422, and profit before tax and dividends has decreased to £3,400,420 from £3,541,833. The company has maintained it's dividend payment policy and the profit after tax and dividends of £2,049,930 (2012 - £2,305,209) has been retained and added to reserves.
There will continue to be risks and uncertainties in the market and the company is aware that any plans for the future strategic development of the business may be subject to unforeseen future events outside of its control.
Results and dividends
The results for the year are set out on page 5.
Ordinary dividends paid to directors during the year totalled £555,000 (2012 - £361,500).
Director
The following director has held office since 1 January 2013:
Auditors
In accordance with the company's articles, a resolution proposing that Edwards Chartered Accountants be reappointed as auditors of the company will be put at a General Meeting.
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 2 -
Statement of director's responsibilities
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
On behalf of the board
Director
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF DAVID SIMS PHOTOGRAPHY LTD
- 3 -
We have audited the financial statements of David Sims Photography Ltd for the year ended 31 December 2013 set out on pages 5 to 18. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of director and auditors
As explained more fully in the Director's Responsibilities Statement set out on pages 1 - 2, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the company's affairs as at 31 December 2013 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF DAVID SIMS PHOTOGRAPHY LTD
- 4 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
for and on behalf of Edwards Chartered Accountants
Chartered Accountants
Statutory Auditor
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 5 -
2013
2012
Notes
£
£
Turnover
2
Cost of sales
(2,428,733 )
(3,127,658 )
Gross profit
Administrative expenses
(835,299 )
(925,982 )
Other operating income
(75,161 )
(59,543 )
Operating profit
3
Investment income
4
Other interest receivable and similar income
4
Interest payable and similar charges
5
(806 )
(782 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
6
(795,490 )
(875,124 )
Profit for the year
15
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED 31 DECEMBER 2013
- 6 -
2013
2012
Notes
£
£
Profit for the financial year
Unrealised (deficit)/surplus on trade investment
-
Total recognised gains and losses relating to the year
BALANCE SHEET
AS AT
31 DECEMBER 2013
- 7 -
2013
2012
Notes
£
£
£
£
Fixed assets
Tangible assets
8
Investments
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one year
11
(779,326 )
(1,340,487 )
Net current assets
Total assets less current liabilities
Provisions for liabilities
12
Deferred tax liability
(27,561 )
(21,842 )
Capital and reserves
Called up share capital
14
Profit and loss account
15
Shareholders' funds
16
Approved by the Board and authorised for issue on 30 September 2014
Director
Company Registration No. 03870972
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2013
- 8 -
2013
2012
Notes
£
£
£
£
Net cash inflow from operating activities
20
2,798,967
3,261,915
Returns on investments and servicing of finance
Interest received
50,287
8,193
Interest paid
(806)
(782)
Net cash inflow for returns on investments and servicing of finance
49,481
7,411
Taxation
(969,093 )
(1,021,948 )
Capital expenditure and financial investment
Payments to acquire tangible assets
(89,865)
(333,083)
Payments to acquire investments
(446,710)
(1,243,620)
Receipts from sales of tangible assets
11,667
-
Receipts from sales of investments
444,722
96
Net cash outflow for capital expenditure
(80,186)
(1,576,607)
Equity dividends paid
(555,000)
(361,500)
Net cash inflow before management of liquid resources and financing
Increase in cash in the year
21, 22
309,271
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
- 9 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Land and buildings Freehold
Fixtures, fittings & equipment
Motor vehicles
1.5
Investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.6
Pensions
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.7
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.8
Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 10 -
2
Turnover
Geographical market
Turnover
2013
2012
£
£
United Kingdom
1,005,655
1,345,758
United States
5,351,423
5,465,474
Europe
333,054
836,373
3
Operating profit
2013
2012
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Loss on disposal of tangible assets
1,908
1,035
Loss on foreign exchange transactions
Auditors' remuneration (including expenses and benefits in kind)
4
Investment income
2013
2012
£
£
Income from fixed asset investments
Bank interest
Other interest
50,287
8,193
5
Interest payable
2013
2012
£
£
On bank loans and overdrafts
-
On overdue tax
806
763
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 11 -
6
Taxation
2013
2012
£
£
Domestic current year tax
U.K. corporation tax
Adjustment for prior years
(229 )
-
Total current tax
Deferred tax
Origination and reversal of timing differences
5,719
(2,876)
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 23.00% (2012 - 24.00%)
Effects of:
Non deductible expenses
Capital allowances
(4,538)
3,366
Change in tax rate
7,674
27,960
Current tax charge for the year
7
Dividends
2013
2012
£
£
Ordinary interim paid
555,000
361,500
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 12 -
8
Tangible fixed assets
Land and buildings Freehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2013
Additions
-
-
Disposals
-
-
(18,100 )
(18,100 )
At 31 December 2013
-
Depreciation
At 1 January 2013
On disposals
-
-
(4,525 )
(4,525 )
Charge for the year
-
At 31 December 2013
-
Net book value
At 31 December 2013
-
At 31 December 2012
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 13 -
9
Fixed asset investments
Listed investments
£
Cost
At 1 January 2013
1,243,524
Additions
446,711
Disposals
(444,722)
At 31 December 2013
1,245,513
Net book value
At 31 December 2013
At 31 December 2012
Market value
£
At 31 December 2013
1,246,012
At 31 December 2012
1,244,478
Holdings of more than 20%
The company holds more than 20% of the share capital of the following companies:
Company
Country of registration or
Shares held
incorporation
Class
%
Subsidiary undertakings
Ordinary
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows:
Capital and reserves
Profit/(loss) for the year
2013
2013
Principal activity
£
£
1
-
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 14 -
10
Debtors
2013
2012
£
£
Trade debtors
Corporation tax
-
Other debtors
Prepayments and accrued income
11
Creditors: amounts falling due within one year
2013
2012
£
£
Trade creditors
Corporation tax
Other taxes and social security costs
Other creditors
Accruals and deferred income
12
Provisions for liabilities
Deferred tax liability
£
Balance at 1 January 2013
21,842
Profit and loss account
Balance at 31 December 2013
The deferred tax liability is made up as follows:
2013
2012
£
£
Accelerated capital allowances
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 15 -
13
Pension and other post-retirement benefit commitments
Defined contribution
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £nil (2012 - £300,000). Contributions totalling £nil (2012 - £nil) were payable to the fund at the year end and are included in creditors..
2013
2012
£
£
Contributions payable by the company for the year
-
14
Share capital
2013
2012
£
£
Allotted, called up and fully paid
15
Statement of movements on profit and loss account
Profit and loss
account
account
£
Balance at 1 January 2013
Profit for the year
Dividends paid
(555,000 )
Balance at 31 December 2013
16
Reconciliation of movements in shareholders' funds
2013
2012
£
£
Profit for the financial year
Dividends
(555,000 )
(361,500 )
Net addition to shareholders' funds
Opening shareholders' funds
Closing shareholders' funds
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 16 -
17
Director's remuneration
2013
2012
£
£
Remuneration for qualifying services
Company pension contributions to defined contribution schemes
-
5,028
335,992
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2012 - 1).
18
Employees
Number of employees
The average monthly number of employees (including directors) during the year was:
2013
2012
Number
Number
7
4
Employment costs
2013
2012
£
£
Wages and salaries
Social security costs
Other pension costs
-
19
Control
The ultimate controlling party is D Sims, by virtue of his 100% shareholding.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
- 17 -
20
Reconciliation of operating profit to net cash outflow from operating activities
2013
2012
£
£
Operating profit
Depreciation of tangible assets
75,078
65,852
Loss on disposal of tangible assets
(Increase)/decrease in debtors
(385,119)
390,717
Decrease in creditors within one year
(243,839)
(730,111)
Net cash inflow from operating activities
2,798,967
3,261,915
21
Analysis of net funds
1 January 2013
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
1,244,169
-
Net funds
1,244,169
-
22
Reconciliation of net cash flow to movement in net funds
2013
2012
£
£
Increase in cash in the year
Movement in net funds in the year
1,244,169
309,271
Opening net funds
1,723,715
Closing net funds
23
Related party relationships and transactions
Loans to directors
Transactions in relation to loans with directors during the year are outlined in the table below:
Description
% Rate
Opening Balance
Amounts Advanced
Interest Charged
Amounts Repaid
Closing Balance
£
£
£
£
£
D Sims - Loan
4.00
551,213
1,253,936
37,433
(555,000)
1,287,582
551,213
1,253,936
37,433
(555,000)
1,287,582
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2013
23
Related party relationships and transactions
(Continued)
- 18 -
Dividends to Directors
The following directors were paid dividends during the year as outlined in the table below:
2013
2012
£
£
D Sims
555,000
361,500
555,000
361,500
During the year the company made a loan of £300,000 to Art House Agency Limited, a company in which D Sims is a director and shareholder. No interest was charged in respect of this loan. The amount due from Art House Agency Limited in respect of this loan at the balance sheet date and included in other debtors is £300,000 (2012 - £nil).
During the year the company made sales of £814,823 (2012 - £930,341) to Art House Agency Limited. The amount due from Art House Agency at the balance sheet date and included in trade debtors is £132,851 (2012 - £339,052).
During the year the company made purchases of £166,739 (2012 - £16,622) from Art House Agency Limited. The amount due to Art House Agency at the balance sheet date and included in trade creditors is £89,725 (2012 - £624).
All of the above transactions were made at arms length and on normal commercial terms. No amounts were written off during the year in respect of the above transactions.
During the year a loan of £30,000 due to Blown Rose Limited, a dissolved company in which D Sims was a director and shareholder, was written off. As the company has ceased to exist the loan was no longer repayable.
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2013
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2013
2013
2012
£
£
£
£
Turnover
Sales
6,690,132
7,647,605
Cost of sales
Contract labour
101,292
237,069
Direct costs
2,106,499
2,890,589
Wages and salaries (excl. N.I.)
197,318
-
Employer's N.I. contributions
23,624
-
(2,428,733 )
(3,127,658 )
Gross profit
63.70%
59.10%
Administrative expenses
(835,299)
(925,982)
3,426,100
3,593,965
Other operating income
Exchange (losses)/gains
(75,161)
(59,543)
Operating profit
Other interest receivable and similar income
Bank interest received
6,834
1,924
Other interest received
37,433
4,838
Interest on tax refund - received
128
473
Income from investments
Listed investment interest received
5,892
958
Interest payable
Bank interest paid
-
19
Interest on overdue tax paid
806
763
(806 )
(782 )
Profit before taxation
50.83%
46.31%
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2013
2013
2012
£
£
Administrative expenses
Wages and salaries
181,745
181,614
Directors' remuneration
4,200
4,200
Employer's N.I. contributions
21,797
14,629
Directors' pension costs
-
300,000
Staff training and welfare
10,981
2,570
Rates and utilities
15,841
17,077
Studio rent
24,044
12,424
Insurance
7,756
7,213
Light and heat
6,893
5,256
Cleaning
5,516
3,245
Office and archiving expenses
26,675
17,634
Repairs and maintenance
5,313
21,854
Printing, postage and stationery
10,665
4,219
Advertising
33,717
534
Courier and delivery charges
6,429
5,331
Telephone
36,712
26,429
Computer running costs
21,066
9,697
Equipment hire and purchase
21,460
10,599
Books and research
15,375
4,892
Motor running expenses
505
4,164
Travelling expenses
138,549
77,191
Entertaining
35,816
25,436
Legal fees and consultancy
68,046
31,914
Bookkeeping
27,000
28,113
Accountancy
24,354
25,039
Audit fees
8,000
8,000
Bank charges
8,943
7,721
Bad and doubtful debts
13,800
-
Sundry expenses
5,860
1,142
Connected company loan written off
(30,000)
-
Charitable donations
350
110
Subscriptions
905
848
Depreciation on freehold property
11,000
11,000
Depreciation on equipment
64,078
50,327
Depreciation on motor vehicles
-
4,525
Loss on disposal of fixed assets
1,908
1,035