Olive Quimica UK Ltd - Period Ending 2016-12-31

Registration number: 07381628

Olive Quimica UK Ltd

Annual Report and Financial Statements

for the Year Ended 31 December 2016

Stubbs Parkin Limited
Chartered Accountants & Registered Auditors
55 Hoghton Street
Southport
Merseyside
PR9 0PG

Olive Quimica UK Ltd

Contents

Company Information	1
Director's Report	2
Statement of Director's Responsibilities	3
Statement of Income and Retained Earnings	4
Balance Sheet	5
Notes to the Financial Statements	6 to 13
Non-statutory pages	14 to 16

Olive Quimica UK Ltd

Company Information

Director

Mr JP Fitzsimons

Registered office

Bizhub 101-103 The Bridgewater Complex Canal Street Bootle Merseyside L20 8AH

Bankers

Barclays 335-339 Stanley road Bootle Merseyside L20 3EB

Auditors

Stubbs Parkin Limited Chartered Accountants & Registered Auditors 55 Hoghton Street Southport Merseyside PR9 0PG

Page 1

Olive Quimica UK Ltd

Director's Report for the Year Ended 31 December 2016

The director presents his report and the financial statements for the year ended 31 December 2016.

Director of the company

The director who held office during the year was as follows:

Mr JP Fitzsimons

Principal activity

The principal activity of the company is that of the sale of building mastics

Disclosure of information to the auditors

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Small companies provision statement

This report has 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.

Approved by the Board on 24 February 2017 and signed on its behalf by:

.........................................
Mr JP Fitzsimons
Director

Page 2

Olive Quimica UK Ltd

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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 he 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 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 him to ensure that the financial statements comply with the Companies Act 2006. He 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.

Page 3

Olive Quimica UK Ltd

Statement of Income and Retained Earnings for the Year Ended 31 December 2016

	Note	2016 £	2015 £
Turnover		798,365	800,980
Cost of sales		(676,790)	(664,173)
Gross profit		121,575	136,807
Administrative expenses		(171,297)	(160,059)
Operating loss		(49,722)	(23,252)
Interest payable and similar charges		(168)	81
		(168)	81
Loss before tax		(49,890)	(23,171)
Loss for the financial year		(49,890)	(23,171)
Retained earnings brought forward		(235,602)	(212,431)
Retained earnings carried forward		(285,492)	(235,602)

The notes on pages 6 to 13 form an integral part of these financial statements.

Page 4

Olive Quimica UK Ltd

(Registration number: 07381628)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Intangible assets	4	14,013	15,013
Tangible assets	5	806	619
		14,819	15,632
Current assets
Stocks	6	132,649	105,265
Debtors	7	153,935	136,970
Cash at bank and in hand		19,670	8,314
		306,254	250,549
Creditors: Amounts falling due within one year	8	(310,664)	(205,882)
Net current (liabilities)/assets		(4,410)	44,667
Net assets		10,409	60,299
Capital and reserves
Called up share capital		236,001	236,001
Share premium reserve		59,900	59,900
Profit and loss account		(285,492)	(235,602)
Total equity		10,409	60,299

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 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 24 February 2017
 

.........................................

Mr JP Fitzsimons

Director

The notes on pages 6 to 13 form an integral part of these financial statements.

Page 5

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
Bizhub 101-103
The Bridgewater Complex
Canal Street
Bootle
Merseyside
L20 8AH

These financial statements were authorised for issue by the director on 24 February 2017.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Audit report
 

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 24 February 2017 was Katharine Thompson FCA, who signed for and on behalf of Stubbs Parkin Limited.

Tangible assets

Tangible assets are stated in the statement of financial position 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
Office equipment	20% reducing balance

Page 6

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	5% 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.

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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods 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.

Page 7

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 4 (2015 - 4).

Page 8

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 January 2016	20,016	20,016
At 31 December 2016	20,016	20,016
Amortisation
At 1 January 2016	5,003	5,003
Amortisation charge	1,000	1,000
At 31 December 2016	6,003	6,003
Carrying amount
At 31 December 2016	14,013	14,013
At 31 December 2015	15,013	15,013

5	Tangible assets

	Office equipment  £	Total £
Cost or valuation
At 1 January 2016	871	871
Additions	390	390
At 31 December 2016	1,261	1,261
Depreciation
At 1 January 2016	252	252
Charge for the year	203	203
At 31 December 2016	455	455
Carrying amount
At 31 December 2016	806	806
At 31 December 2015	619	619

6

Stocks

	2016 £	2015 £
Finished goods and goods for resale	132,649	105,265

Page 9

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

7

Debtors

	Note	2016 £	2015 £
Trade debtors		151,173	136,689
Amounts owed by related parties	11	2,762	281
Total current trade and other debtors		153,935	136,970

8

Creditors

	Note	2016 £	2015 £
Due within one year
Bank loans and overdrafts	9	17,428	34,341
Trade creditors		14,799	5,050
Amounts owed to related parties	11	216,869	110,428
Taxation and social security		57,633	52,313
Other creditors		3,935	3,750
		310,664	205,882

The overdraft facility is secured by a fixed and floating charge over the assets of the company.

9	Loans and borrowings

	2016 £	2015 £
Current loans and borrowings
Bank overdrafts	17,428	34,341

10	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £37,081 (2015 - £51,122). The company also has an overdraft facility with a fixed and floating charge over assets present and future.

Page 10

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

11	Related party transactions

Transactions with directors

2016	At 1 January 2016 £	Other payments made to company by director £	At 31 December 2016 £
Mr JP Fitzsimons
	4,798	1,400	6,198

2015	At 1 January 2015 £	Other payments made to company by director £	At 31 December 2015 £
Mr JP Fitzsimons
	8,798	(4,000)	4,798

Directors' remuneration

The director's remuneration for the year was as follows:

	2016 £	2015 £
Remuneration	51,228	51,229

Page 11

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

Summary of transactions with parent

Olive Quimica S.A - parent company
Krimelte - ultimate parent company
 

Summary of transactions with entities with joint control or significant interest

Olive Quimica France - subsidiary of Olive Quimica S.A
 

Loans to related parties

2016	Entities with joint control or significant influence £
At start of period	280
Advanced	3,020
Repaid	(538)
At end of period	2,762

2015	Entities with joint control or significant influence £
At start of period	3,078
Advanced	3,338
Repaid	(6,136)
At end of period	280

Terms of loans to related parties

Amounts owed from related parties are unsecured, interest free, have no fixed date of repayment and are payable on demand.
 

Loans from related parties

2016	Parent £
At start of period	105,630
Advanced	699,071
Repaid	(594,029)
At end of period	210,672

Page 12

Olive Quimica UK Ltd

Notes to the Financial Statements for the Year Ended 31 December 2016

2015	Parent £
At start of period	233,871
Advanced	600,715
Repaid	(728,956)
At end of period	105,630

Terms of loans from related parties

Amounts owed to related parties are unsecured, interest free, have no fixed date of repayment and are payable on demand.
 

12	Parent and ultimate parent undertaking

The company's immediate parent is Olive Quimica S.A, incorporated in Spain.

 The ultimate parent is Krimelte, incorporated in Estonia.

 

13	Transition to FRS 102

These are the company's first financial statements under FRS 102 Section 1A. The company's date of transition was 1st January 2016, with the financial statements for the year ended 31st December 2015 being the last financial statements prepared under the previous accounting framework. The policies applied under the company's previous accounting framework are not materially different to FRS102 Section 1A and have not impacted on equity or profit and loss.

Page 13

Olive Quimica UK Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2016

	2016 £	2015 £
Turnover (analysed below)	798,365	800,980
Cost of sales (analysed below)	(676,790)	(664,173)
Gross profit	121,575	136,807
Gross profit (%)	15.23%	17.08%
Administrative expenses
Employment costs (analysed below)	100,819	103,900
Establishment costs (analysed below)	9,397	1,519
General administrative expenses (analysed below)	53,700	47,834
Finance charges (analysed below)	6,179	5,651
Depreciation costs (analysed below)	1,202	1,155
	(171,297)	(160,059)
Operating loss	(49,722)	(23,252)
Interest payable and similar expenses (analysed below)	(168)	81
Loss before tax	(49,890)	(23,171)

This page does not form part of the statutory financial statements.

Page 14

Olive Quimica UK Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2016

2016 £

2015 £

Turnover
Sales, UK	798,365	800,980

Cost of sales
Opening stock	105,265	62,063
Purchases	661,056	679,930
Closing stock	(132,649)	(105,265)
Freight and carriage	43,118	27,445
	676,790	664,173

Employment costs
Wages and salaries	49,359	52,671
Directors remuneration	51,228	51,229
Staff pensions (Defined contribution)	232	-
	100,819	103,900

Establishment costs
Rent and rates	8,268	894
Light, heat and power	522	-
Insurance	607	625
	9,397	1,519

General administrative expenses
Telephone and fax	1,098	889
Computer software and maintenance costs	6,814	4,679
Printing, postage and stationery	2,129	1,834
Lease of motor vehicles (Operating leases)	5,041	5,974
Sundry expenses	51	140
Travel and subsistence	15,502	13,924
Customer entertaining	1,870	668
Accountancy fees	1,735	1,650
Auditor's remuneration	2,200	2,100
Consultancy fees	6,850	14,090
Legal and professional fees	5,403	1,886
Bad debts written off	5,007	-
	53,700	47,834

Finance charges
Factoring charges	5,835	5,090
Bank charges	344	561
	6,179	5,651

This page does not form part of the statutory financial statements.

Page 15

Olive Quimica UK Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2016

Depreciation costs
Amortisation of goodwill	1,000	1,000
Depreciation of office equipment (owned)	202	155
	1,202	1,155

Interest payable and similar expenses
Foreign currency (gains)/losses	168	(81)

This page does not form part of the statutory financial statements.

Page 16