Fosters Distributors Limited Company Accounts

FOSTERS DISTRIBUTORS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07363563

FOSTERS DISTRIBUTORS LIMITED

Filleted Unaudited Financial Statements

28 February 2017

FOSTERS DISTRIBUTORS LIMITED

Financial Statements

Year Ended 28 February 2017

Contents	Pages

Officers and professional advisers	1

Statement of financial position	2 to 3

Notes to the financial statements	4 to 10

FOSTERS DISTRIBUTORS LIMITED

Officers and Professional Advisers

The board of directors	Mr J F Armstrong
	Mr A J Armstrong

Registered office	MBL House
	16 Edward Court
	George Richards Way
	Altrincham
	Cheshire
	WA14 5GL

Accountants	M B L
	Chartered Accountants
	MBL House
	16 Edward Court
	Altrincham Bus. Park
	Altrincham
	Cheshire
	WA14 5GL

FOSTERS DISTRIBUTORS LIMITED

Statement of Financial Position

28 February 2017

	2017		2016
Note	£	£	£

Fixed assets

Intangible assets	5	211,139	10,585
Tangible assets	6	68,972	64,381
		---------	--------
		280,111	74,966

Current assets

Stocks		272,479	338,145
Debtors	7	353,195	449,771
Cash at bank and in hand		9,654	13,245
		---------	---------
		635,328	801,161

Creditors: amounts falling due within one year	8	802,581		723,017
		---------		---------
Net current (liabilities)/assets			( 167,253)	78,144
			---------	---------
Total assets less current liabilities			112,858	153,110

Creditors: amounts falling due after more than one year	9		295,344	151,875

Provisions

Taxation including deferred tax	( 2,045)	8,389
	---------	---------
Net liabilities	( 180,441)	( 7,154)
	---------	---------

Capital and reserves

Called up share capital	100	100
Profit and loss account	( 180,541)	( 7,254)
	---------	-------
Members deficit	( 180,441)	( 7,154)
	---------	-------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 28 February 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

FOSTERS DISTRIBUTORS LIMITED

Statement of Financial Position (continued)

28 February 2017

These financial statements were approved by the board of directors and authorised for issue on 21 December 2017 , and are signed on behalf of the board by:

Mr A J Armstrong

Director

Company registration number: 07363563

FOSTERS DISTRIBUTORS LIMITED

Notes to the Financial Statements

Year Ended 28 February 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is MBL House, 16 Edward Court, George Richards Way, Altrincham, Cheshire, WA14 5GL.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102 Section 1A, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The balance sheet shows a deficit amounting to £180,441. The directors have pledged their continuing support to the company and for this reason the directors consider that it is appropriate for the financial statements to be prepared on the going concern basis.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 March 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 13.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied relating to the sale of tobacco products, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Trademarks and product design	-	10% and 20% straight line respectively

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 estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Website development	-	33% straight line
Fixtures & fittings	-	20% straight line
Equipment	-	20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship (see hedge accounting policy). Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 2 (2016: 2 ).

5. Intangible assets

	Development costs
	£
Cost
At 1 March 2016	33,674
Additions	212,424
	---------
At 28 February 2017	246,098
	---------
Amortisation
At 1 March 2016	23,089
Charge for the year	11,870
	---------
At 28 February 2017	34,959
	---------
Carrying amount
At 28 February 2017	211,139
	---------
At 29 February 2016	10,585
	---------

6. Tangible assets

	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 March 2016	10,350	3,364	71,461	85,175
Additions	–	–	24,262	24,262
	--------	-------	--------	---------
At 28 February 2017	10,350	3,364	95,723	109,437
	--------	-------	--------	---------
Depreciation
At 1 March 2016	9,100	2,019	9,675	20,794
Charge for the year	1,250	673	17,748	19,671
	--------	-------	--------	---------
At 28 February 2017	10,350	2,692	27,423	40,465
	--------	-------	--------	---------
Carrying amount
At 28 February 2017	–	672	68,300	68,972
	--------	-------	--------	---------
At 29 February 2016	1,250	1,345	61,786	64,381
	--------	-------	--------	---------

7. Debtors

	2017	2016
	£	£
Trade debtors	266,512	305,947
Other debtors	86,683	143,824
	---------	---------
	353,195	449,771
	---------	---------

The debtors above include the following amounts falling due after more than one year:

	2017	2016
	£	£
Other debtors	22,969	–
	--------	----

The company utilises an invoice discounting facility. At the balance sheet date trade debts of £266,512 (2016 - £305,947) were held under the invoice discounting facility.

8. Creditors: amounts falling due within one year

	2017	2016
	£	£
Bank loans and overdrafts	180,032	218,773
Trade creditors	311,084	250,822
Corporation tax	–	892
Social security and other taxes	33,845	12,486
Other creditors	277,620	240,044
	---------	---------
	802,581	723,017
	---------	---------

Overdrafts comprise of amounts owed to Aldermore Invoice Finance who are the company's invoice discounter.

9. Creditors: amounts falling due after more than one year

	2017	2016
	£	£
Other creditors	295,344	151,875
	---------	---------

10. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2017	2016
	£	£
Not later than 1 year	21,058	22,898
Later than 1 year and not later than 5 years	–	4,883
	--------	--------
	21,058	27,781
	--------	--------

11. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2017
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr A J Armstrong	138,393	–	( 138,393)	–
	---------	----	---------	----

	2016
	Balance brought forward	Advances/ (credits) to the directors	Amounts repaid	Balance outstanding
	£	£	£	£
Mr A J Armstrong	195	138,198	–	138,393
	----	---------	----	---------

The advances were interest free, repayable on demand and the company held no security in their respect. The company owed Mr. J. Armstrong £25,315 and Mr. A. Armstrong £17,204 at the year end.

12. Related party transactions

Mr A J Armstrong and Mr J F Armstrong have provided personal guarantees in respect of certain loans to the company.

13. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 March 2015.

No transitional adjustments were required in equity or profit or loss for the year.