SGD (South West) Ltd - Period Ending 2017-07-31

Registration number: 04832450

SGD (South West) Ltd

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 July 2017

HSJ Accountants Ltd
Severn House
Hazell Drive
Newport
South Wales
NP10 8FY

SGD (South West) Ltd

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Statement of Changes in Equity	5
Notes to the Financial Statements	6 to 10

SGD (South West) Ltd

Company Information

Directors

Mr JJ Witts Mrs NJ Alexander Mr DN Witts-Price

Company secretary

Mrs BJ Witts

Registered office

Unit 5 Melyn Mair Business Park Wentloog Avenue Cardiff South Glamorgan CF3 2EX

Accountants

HSJ Accountants Ltd Severn House Hazell Drive Newport South Wales NP10 8FY

Page 1

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
SGD (South West) Ltd
for the Year Ended 31 July 2017

As described on the balance sheet you are responsible for the compilation of the accounts for the year ended 31 July 2017, as set out on pages 3 to 10, and you consider that the company is exempt from an audit. In accordance with your instructions we have compiled the unaudited accounts from the accounting records and from information and explanations supplied to us.

HSJ Accountants Ltd
Severn House
Hazell Drive
Newport
South Wales
NP10 8FY

30 April 2018

Page 2

SGD (South West) Ltd

(Registration number: 04832450)
Balance Sheet as at 31 July 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	4	658	1,047
Current assets
Stocks	5	10,865	-
Debtors	6	160,296	169,142
Cash at bank and in hand		-	30,742
		171,161	199,884
Creditors: Amounts falling due within one year	7	(185,036)	(166,679)
Net current (liabilities)/assets		(13,875)	33,205
Net (liabilities)/assets		(13,217)	34,252
Capital and reserves
Called up share capital	9	1,200	1,000
Share premium reserve		29,850	29,850
Profit and loss account		(44,267)	3,402
Total equity		(13,217)	34,252

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 3

SGD (South West) Ltd

(Registration number: 04832450)
Balance Sheet as at 31 July 2017

For the financial year ending 31 July 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 Board on 30 April 2018 and signed on its behalf by:
 

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

Mrs NJ Alexander

Director

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 4

SGD (South West) Ltd

Statement of Changes in Equity for the Year Ended 31 July 2017

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 August 2016	1,000	29,850	3,402	34,252
Loss for the year	-	-	(47,669)	(47,669)
Total comprehensive income	-	-	(47,669)	(47,669)
New share capital subscribed	200	-	-	200
At 31 July 2017	1,200	29,850	(44,267)	(13,217)

	Share capital £	Share premium £	Profit and loss account £	Total £
At 1 August 2015	1,000	29,850	(69,139)	(38,289)
Profit for the year	-	-	72,541	72,541
Total comprehensive income	-	-	72,541	72,541
At 31 July 2016	1,000	29,850	3,402	34,252

The notes on pages 6 to 10 form an integral part of these financial statements.

Page 5

SGD (South West) Ltd

Notes to the Financial Statements for the Year Ended 31 July 2017

1	General information

The company registration number is: 04832450

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

The address of its registered office is:
Unit 5 Melyn Mair Business Park
Wentloog Avenue
Cardiff
South Glamorgan
CF3 2EX

These financial statements were authorised for issue by the Board on 30 April 2018.

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.

Going concern

The financial statements have been prepared on a going concern basis. The company balance sheet is showing negative reserves at the year end. However, the directors forecast that, with the continued support of SGD Group Ltd, of which the company is wholly owned subsidiary, the company will be capable of meeting its day to day working capital requirements and to continue trading in foreseeable future. Moreover, the directors of SGD Group Ltd remain fully committed to the company. For the reasons, the directors consider the going concern basis to be appropriate.

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
Fixtures and fittings	20% Straight line

Page 6

SGD (South West) Ltd

Notes to the Financial Statements for the Year Ended 31 July 2017

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 or services performed in the ordinary course of business.

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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 or services that have been acquired in the ordinary course of business 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.

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.

Page 7

SGD (South West) Ltd

Notes to the Financial Statements for the Year Ended 31 July 2017

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2016 - 3).

4	Tangible assets

	Fixtures and fittings £	Total £
Cost or valuation
At 1 August 2016	5,272	5,272
At 31 July 2017	5,272	5,272
Depreciation
At 1 August 2016	4,226	4,226
Charge for the year	388	388
At 31 July 2017	4,614	4,614
Carrying amount
At 31 July 2017	658	658
At 31 July 2016	1,047	1,047

5

Stocks

	2017 £	2016 £
Finished goods and goods for resale	10,865	-

6

Debtors

	Note	2017 £	2016 £
Trade debtors		109,484	169,142
Amounts owed by group undertakings and undertakings in which the company has a participating interest	10	48,248	-
Other debtors		2,564	-
		160,296	169,142

Page 8

SGD (South West) Ltd

Notes to the Financial Statements for the Year Ended 31 July 2017

7

Creditors

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	8	48,051	-
Trade creditors		102,821	123,750
Amounts owed to group undertakings	10	29,164	12,490
Taxation and social security		-	8,665
Other creditors		5,000	21,774
		185,036	166,679

8	Loans and borrowings

	2017 £	2016 £
Current loans and borrowings
Bank overdrafts	48,051	-

Bank borrowings

Bank overdraft, which is secured and repayable on demand.The carrying amount at year end is £48,051 (2016 - £Nil).

9	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary A shares of £1 each	900	900	800	800
Ordinary B shares of £1 each	300	300	200	200
	1,200	1,200	1,000	1,000

New shares allotted

During the year 100 Ordinary A shares having an aggregate nominal value of £100 were allotted for an aggregate consideration of £100.

During the year 100 Ordinary B shares having an aggregate nominal value of £100 were allotted for an aggregate consideration of £100.

Page 9

SGD (South West) Ltd

Notes to the Financial Statements for the Year Ended 31 July 2017

10	Related party transactions

Summary of transactions with parent

SGD Group Ltd
 Relationship: Holding Company
  During the year, SGD (South West) Ltd (the company) incurred management fees of £77,708 (2016 - £41,008) from SGD Group Ltd. At the balance sheet date the amount due from SGD Group Ltd was £48,248 (2016 - £nil).

Summary of transactions with subsidiaries

SGD Security Ltd
 Relationship: Fellow Subsidiary
  During the year, SGD (South West) Ltd (the company) purchased goods and sen/ices from SGD Security Ltd amounting to £439,089 (2016 - £233,721). The company also sold goods and services to SGD Security Ltd amounting to £500 (2016 - £1,463). These transactions were considered to be at arm's length and therefore included at the appropriate market value. The amounts due to SGD Security Ltd in respect of the above trading activity was £86,677 (2016 - £79,117).

In addition to the above transactions, the company exchanged funds with SGD Security Ltd to facilitate working capital management. At the balance sheet date the amount due to SGD Security Ltd was £25,998 (2016 - £12,435).

Summary of transactions with other related parties

ADC Fire Systems Ltd
 Relationship: Fellow Subsidiary
During the year, SGD (South West) Ltd (the company) sold goods and services to ADC Fire Systems Ltd amounting to £707 (2016 - £Nil) and purchased goods and services from ADC Fire Systems Ltd, amounting to £237,962 (2016 - £188,290). These transactions were considered to be at arm's length and therefore included at the appropriate market value. The amounts due to ADC Fire Systems Ltd in respect of the above trading activity was £21,118 (2016 - £44,607).

In addition to the above transactions, the company exchanged funds with ADC Fire Systems Ltd to facilitate working capital management. At the balance sheet date the amount due to ADC Fire Systems Ltd was £3,166 (2016 - £55).
 

11	Transition to FRS 102

These financial statements for the year ended 31st July 2017 are the first financial statements that comply with FRS 102 Section 1A small entities. The date of transition is 1st August 2015.

The transition to FRS 102 Section 1A small entities has resulted in no changes to the accounting policies to those used previously.

Page 10