The Source (Hastings) Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: 07156013 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

FOR

THE SOURCE (HASTINGS) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M Moore

R Moore

REGISTERED OFFICE:

Unit H, Drury Lane

Ponswood Industrial Estate

St Leonards on Sea

East Sussex

TN38 9BA

REGISTERED NUMBER:

07156013 (England and Wales)

ACCOUNTANTS:

OBC The Accountants Ltd

2 Upperton Gardens

Eastbourne

East Sussex

BN21 2AH

FIXED ASSETS

Intangible assets

4

189,407

194,287

Tangible assets

5

344,494

363,150

Investments

6

202

202

534,103

557,639

CURRENT ASSETS

Stocks

731,383

539,348

Debtors

7

182,564

131,211

Cash at bank and in hand

33,563

12,952

947,510

683,511

CREDITORS

Amounts falling due within one year

8

694,975

621,041

NET CURRENT ASSETS

252,535

62,470

TOTAL ASSETS LESS CURRENT LIABILITIES

786,638

620,109

CREDITORS

Amounts falling due after more than one year

9

(322,816

)

(217,556

)

PROVISIONS FOR LIABILITIES

(6,020

)

(6,020

)

NET ASSETS

457,802

396,533

CAPITAL AND RESERVES

Called up share capital

200

200

Retained earnings

457,602

396,333

457,802

396,533

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 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.

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 13 November 2017 and were signed on its behalf by:

R Moore - Director

1.	STATUTORY INFORMATION

The Source (Hastings) 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The directors have made an assessment and do not consider there to be any material uncertainties

about the company's ability to continue as a going concern. As a result they have adopted the going

concern basis of accounting.

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax and trade discounts.

Turnover is recognised when goods are despatched or when the company receives the right to

consideration.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of business in 2011. The useful

economic life was re-assessed in 2014 and the goodwill is now being amortised evenly over its

estimated useful life of six years.

Development cost of knowledge transfer partnership (ktp)

Development costs have been capitalised to reflect the long term benefit to the business. The costs are

not being amortised this year as it is unique and nothing similar exists currently in the world.

This will be reviewed in future years.

Website & Marketing database costs

The website development costs are being depreciated over their estimated useful life of twenty years.

The bespoke marketing database expenses have been spread across the two accounting periods to

which they relate.

Skatepark development

This has developed into an iconic site worldwide and currently hosts the largest international

competition attracting over £100,000 nominal sponsorship. This asset is currently being amortised over

its estimated useful life of 20 years.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Government grants

Government grants are recognised in the profit or loss on a systematic basis over the periods in which

the entity recognises expenses for the related costs for which the grants are intended to compensate,

grants related to assets are deducted from the carrying amount of asset.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 .

4.	INTANGIBLE FIXED ASSETS

Goodwill

KTP

Totals

£

£

£

COST

At 1 April 2016

400,000

-

400,000

Additions

-

43,691

43,691

At 31 March 2017

400,000

43,691

443,691

AMORTISATION

At 1 April 2016

205,713

-

205,713

Amortisation for year

48,571

-

48,571

At 31 March 2017

254,284

-

254,284

NET BOOK VALUE

At 31 March 2017

145,716

43,691

189,407

At 31 March 2016

194,287

-

194,287

5.	TANGIBLE FIXED ASSETS

Fixtures

Skatepark

Plant and

and

Development

machinery

fittings

£

£

£

COST

At 1 April 2016

252,618

7,255

20,539

Additions

-

2,105

11,984

At 31 March 2017

252,618

9,360

32,523

DEPRECIATION

At 1 April 2016

-

1,814

14,368

Charge for year

37,893

1,886

4,539

Eliminated on disposal

-

-

-

At 31 March 2017

37,893

3,700

18,907

NET BOOK VALUE

At 31 March 2017

214,725

5,660

13,616

At 31 March 2016

252,618

5,441

6,171

Motor

Website &

vehicles

Database

Totals

£

£

£

COST

At 1 April 2016

31,904

111,354

423,670

Additions

17,737

16,129

47,955

Disposals

(13,253

)

-

(13,253

)

At 31 March 2017

36,388

127,483

458,372

DEPRECIATION

At 1 April 2016

16,581

27,757

60,520

Charge for year

6,401

8,437

59,156

Eliminated on disposal

(5,798

)

-

(5,798

)

At 31 March 2017

17,184

36,194

113,878

NET BOOK VALUE

At 31 March 2017

19,204

91,289

344,494

At 31 March 2016

15,323

83,597

363,150

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

Motor

vehicles

£

COST

At 1 April 2016

31,904

Additions

17,737

Disposals

(13,253

)

At 31 March 2017

36,388

DEPRECIATION

At 1 April 2016

16,581

Charge for year

6,401

Eliminated on disposal

(5,798

)

At 31 March 2017

17,184

NET BOOK VALUE

At 31 March 2017

19,204

At 31 March 2016

15,323

6.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 April 2016

and 31 March 2017

202

NET BOOK VALUE

At 31 March 2017

202

At 31 March 2016

202

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

46,632

41,613

Other debtors

2,960

38,000

Directors' current accounts

-

7,034

Tax

-

38,764

VAT

6,361

-

Prepayments

126,611

5,800

182,564

131,211

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

127,358

97,185

Other loans

36,011

28,000

Hire purchase contracts

16,856

8,130

Trade creditors

448,758

422,437

Tax

815

-

Social security and other taxes

21,216

19,980

VAT

-

21,442

Other creditors

30,573

2,609

Directors' current accounts

3,952

11,209

Accrued expenses

9,436

10,049

694,975

621,041

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans - 1-2 years

37,500

37,500

Bank loans - 2-5 years

37,500

75,000

Other loans - 2-5 years

95,839

95,839

Hire purchase contracts

-

9,217

Import Loan Facilities

151,977

-

322,816

217,556

10.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

89,858

59,685

Bank loans

112,500

-

-

127,358

202,358

187,043

There is a debenture over the company, with fixed and floating charges over the undertakings and all

property and assets present and future.

The directors have provided personal guarantees in respect of the companies borrowings.

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2017 and

31 March 2016:

2017

2016

£

£

M Moore

Balance outstanding at start of year

-

-

Amounts advanced

50,927

-

Amounts repaid

(51,390

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(463

)

-

R Moore

Balance outstanding at start of year

-

-

Amounts advanced

81,511

-

Amounts repaid

(85,000

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(3,489

)

-

12.	RELATED PARTY DISCLOSURES

Dividends of £40,000 (2016:£89,857) were paid during the year.

13.	ULTIMATE CONTROLLING PARTY

Mr R Moore and Mr M Moore, the Directors and majority shareholders have overall control of the

company.

14.	OTHER FUNDING

The Source (Hastings) Limited have applied for a £140,000 grant from Coastal Communities Fund 4

that will subsidise the park. It was approved in this financial year but is not received until requested.

It will be drawn down between August 2017 and December 2018

15.	RESEARCH AND DEVELOPMENT CLAIM

The Source (Hastings) Ltd has incurred expenditure to the value of £43,691.32 on a project entitled

'KTP' with Brighton University. The company has instructed a research and development consultant

to review the data and draft a claim which has now been entered into the accounts. This is also

expected for the 2017 and 2018 periods.