Village Hats UK Limited - Accounts to registrar - small 16.3

REGISTERED NUMBER: 06553811 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31st December 2016

for

Village Hats UK Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

B Zales

T Belinsky

SECRETARY:

B Zales

REGISTERED OFFICE:

Sovereign House

155 High Street

Aldershot

Hampshire

GU11 1TT

REGISTERED NUMBER:

06553811 (England and Wales)

ACCOUNTANTS:

Whiteleys

Chartered Certified Accountants

Sovereign House

155 High Street

Aldershot

Hampshire

GU11 1TT

FIXED ASSETS

Intangible assets

5

3,922

4,647

Property, plant and equipment

6

19,201

15,212

23,123

19,859

CURRENT ASSETS

Inventories

702,711

649,088

Debtors

137,076

100,805

Cash at bank

133,229

82,769

973,016

832,662

CREDITORS

Amounts falling due within one year

538,506

432,063

NET CURRENT ASSETS

434,510

400,599

TOTAL ASSETS LESS CURRENT LIABILITIES

457,633

420,458

PROVISIONS FOR LIABILITIES

2,872

1,834

NET ASSETS

454,761

418,624

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

454,760

418,623

SHAREHOLDERS' FUNDS

454,761

418,624

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2016 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 of Part 15 of the Companies Act 2006 relating to small companies.

All the members have consented to the preparation of an abridged Statement of Comprehensive Income and an abridged Balance Sheet for the year ended 31st December 2016 in accordance with Section 444(2A) of the Companies Act 2006.

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 on 28th February 2017 and were signed on its behalf by:

B Zales - Director

1.	STATUTORY INFORMATION

Village Hats UK 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.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents

amounts receivable for goods supplied and services rendered, stated net of discounts and of Value

Added Tax.

The company recognises revenue when the amount of revenue can be measured reliably, when it is

probable that future economic benefits will flow to the entity.

Intangible assets

Trademarks are stated at cost less accumulated depreciation and any accumulated impairment

losses. They are amortised over their estimated life of ten years using the straight-line method.

If there is an indication that there has been a significant change in amortisation rate, useful life or

residual value of an intangible asset, the amortisation is revised prospectively to reflect the new

expectations.

Tangible fixed assets

Tangible fixed assets are carried at cost less accumulated depreciation and accumulated impairment

losses.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value,

over their estimated useful lives as follows:

Website

-

50% on cost

Equipment

-

25% on reducing balance

Computer equipment

-

50% on cost

On disposal, the difference between the net disposal proceeds and the carrying amount of the item

sold is recognised in profit or loss, and included in other operating income.

Stocks

Stocks are measured at the lower of cost and selling price less cost to complete and sell.

Cost is calculated on a first in, first out basis and includes all costs of purchase, costs of conversion

and other costs incurred in bringing the stocks to their present location and condition.

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 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.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of

the transaction.

At the end of each reporting period foreign currency monetary items are translated at the closing rate

of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling

at the date of the transaction. All differences are charged to profit or loss.

Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to

ownership. All other leases are classified as operating leases

The rights of use and obligations under finance leases are initially recognised as assets and liabilities

at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum

lease payments.

Minimum lease payments are apportioned between the finance charge and the reduction in the

outstanding liability using the effective interest rate method. The finance charge is allocated to each

period during the lease so as to produce a constant periodic rate of interest on the remaining balance

of the liability.

Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If

there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset

is depreciated over the lower of the lease term and its useful life.

Operating lease payments are recognised as an expense on a straight line basis over the lease term.

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.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of

financial assets and liabilities like trade and other accounts receivable and payable, loans from banks

and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an

impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference

between an asset's carrying amount and the present value of estimated cash flows discounted at the

asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate

for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the

difference between an asset's carrying amount and the best estimate, which is an approximation, of

the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial

position when there is an 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.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property

and equipment, are reviewed to determine whether there is an indication that an asset may be

impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group

of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated

and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the

asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit

or loss.

Inventories are also assessed for impairment at each reporting date. The carrying amount of each item

of inventory, or group of similar items, is compared with its selling price less costs to complete and sell.

If an item of inventory or group of similar items is impaired, its carrying amount is reduced to selling

price less costs to complete and sell, and an impairment loss is recognised immediately in profit or

loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related

assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount

that would have been determined had no impairment loss been recognised for the asset or group of

related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or

loss.

Provisions

Provisions are recognised when the company has a legal or constructive obligation at the reporting

date as a result of a past event, it is probable that the company will be required to settle the obligation

and the amount of the obligation can be reliably estimated.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the

reporting date.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 21 (2015 - 21 ) .

5.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1st January 2016

and 31st December 2016

7,246

AMORTISATION

At 1st January 2016

2,599

Amortisation for year

725

At 31st December 2016

3,324

NET BOOK VALUE

At 31st December 2016

3,922

At 31st December 2015

4,647

6.	PROPERTY, PLANT AND EQUIPMENT

Totals

£

COST

At 1st January 2016

157,589

Additions

30,113

At 31st December 2016

187,702

DEPRECIATION

At 1st January 2016

142,377

Charge for year

26,124

At 31st December 2016

168,501

NET BOOK VALUE

At 31st December 2016

19,201

At 31st December 2015

15,212

7.	ULTIMATE CONTROLLING PARTY

8.	SECURED CREDITORS

The bank overdraft facility is secured by the way of a fixed and floating charge over the assets of the

company.