South West Laundry Ltd - Accounts to registrar - small 17.2

REGISTERED NUMBER: 07190330 (England and Wales)

SOUTH WEST LAUNDRY LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2017

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

W Retallack

C A Retallack

J A Perkin

REGISTERED OFFICE:

Units U to W

St Erth Industrial Estate

Rose-An-Grouse, Canonstown

HAYLE

Cornwall

TR27 6LP

REGISTERED NUMBER:

07190330 (England and Wales)

ACCOUNTANTS:

Mark Holt & Co Limited

Chartered Accountants

7 Sandy Court

Ashleigh Way

Langage Business Park

Plymouth

Devon

PL7 5JX

FIXED ASSETS

Intangible assets

5

122,811

160,011

Tangible assets

6

3,734,017

1,836,128

3,856,828

1,996,139

CURRENT ASSETS

Stocks

5,940

15,203

Debtors

588,370

260,392

Cash at bank and in hand

110,226

170,725

704,536

446,320

CREDITORS

Amounts falling due within one year

1,302,538

593,573

NET CURRENT LIABILITIES

(598,002

)

(147,253

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,258,826

1,848,886

CREDITORS

Amounts falling due after more than one year

(1,148,689

)

(394,463

)

PROVISIONS FOR LIABILITIES

(283,504

)

(201,374

)

NET ASSETS

1,826,633

1,253,049

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

1,826,533

1,252,949

1,826,633

1,253,049

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2017 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 Balance Sheet for the year ended 28 February 2017 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 19 September 2017 and were signed on its behalf by:

W Retallack - Director

1.	STATUTORY INFORMATION

South West Laundry Ltd 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.	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.

This is the first year FRS 102 Section 1A has been applied. There has been no impact of applying Financial Reporting

Standard 102.

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.

Turnover

Turnover represents sales from the washing and dry cleaning of textile fur products, net of value added tax. Turnover is

recognised when the services have been provided.

The Company recognises revenue when the following conditions are satisfied:

i. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods or services;

ii. the Company retains neither continuing managerial involvement to the degree associated with ownership nor effective

control over the goods or services sold;

iii. the amount of revenue can be measured reliably;

iv. it is probable that the economic benefits associated with the transaction can be measured reliably.

Interest receivable

Interest income is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of ten years.

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.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the

original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and any

borrowing costs capitalised.

Depreciation and residual values

Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or

valuation, less estimated residual value, of each asset over its expected useful life as follows:

Short leasehold

- Straight line over 6 years

Plant and machinery

- at varying rates on cost

Motor vehicles

- Straight line over 4 years

Within plant and machinery are a batch washer which is being depreciated straight line over 16 years and linen which is

being depreciated straight line over 5 years. All other items within plant and machinery are depreciated straight line over

20 years.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

The effect of any changes is accounted for prospectively.

Repairs and maintenance costs are expensed as incurred.

Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference

between the net disposal proceeds and the carrying amount is recognised in profit or loss.

Government grants

Deferred government grants in respect of capital expenditure intended to develop the trade and assets of the company are

treated as deferred income and are credited to the profit and loss account on a straight line basis over 20 years.

Government grant assistance of a revenue nature is credited to the profit and loss account in the same period as the related

expenditure.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

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

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers whether the

arrangement is, or contains, a lease based on the substances of the arrangement.

Finance leased-assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.

Finance leases are capitalised at commencement of the lease as assets at their value of the lease asset or, if lower, the

present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate

cannot be determined the Company's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating

and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for

impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. .Lease payments are

apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a

constant rate of charge on the balance of the capital repayments outstanding.

Operating leased assets

Leases that do no transfer all the risks and rewards of ownership are classified as operating leases. Payments under

operating leases are charged to the profit and loss account 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. The assets of the scheme are held separately from those of

the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss

account.

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances, are initially recognised at transaction

price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of

the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of

impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present

value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised

in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the

impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount

would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or

loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or

(b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control the

asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third

party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and loans from fellow group

companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where

the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from

suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are

presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured

at amortised cost using the effective interest method:

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged,

cancelled or expires.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 48 .

5.	INTANGIBLE FIXED ASSETS

Totals

£

COST

At 1 March 2016

and 28 February 2017

372,000

AMORTISATION

At 1 March 2016

211,989

Amortisation for year

37,200

At 28 February 2017

249,189

NET BOOK VALUE

At 28 February 2017

122,811

At 29 February 2016

160,011

6.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 March 2016

3,071,723

Additions

2,439,177

Disposals

(1,315

)

At 28 February 2017

5,509,585

DEPRECIATION

At 1 March 2016

1,235,595

Charge for year

539,980

Eliminated on disposal

(7

)

At 28 February 2017

1,775,568

NET BOOK VALUE

At 28 February 2017

3,734,017

At 29 February 2016

1,836,128

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1 March 2016

316,241

Additions

1,332,750

At 28 February 2017

1,648,991

DEPRECIATION

At 1 March 2016

19,892

Charge for year

67,825

At 28 February 2017

87,717

NET BOOK VALUE

At 28 February 2017

1,561,274

At 29 February 2016

296,349

7.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2017

2016

£

£

Net obligations repayable:

Within one year

542,377

84,339

Between one and five years

1,010,085

125,465

1,552,462

209,804

Non-cancellable operating

leases

2017

2016

£

£

Within one year

85,000

71,833

Between one and five years

198,333

240,000

283,333

311,833

8.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdraft

-

15,054

Bank loans

6,582

31,919

Other loans

55,031

108,406

Hire purchase contracts

1,552,462

209,804

1,614,075

365,183

Amounts owing on hire purchase contracts are secured on the individual assets to which they relate.

9.	POST BALANCE SHEET EVENTS

On 24 March 2017, the company experienced a fire at its premises. The directors have used this event as an opportunity to

redesign and reconfigure the company's premises in order to improve efficiency and to enable the company to continue to

grow long into the future.