South West Laundry Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07190330 (England and Wales)

SOUTH WEST LAUNDRY LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

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

85,611

122,811

Tangible assets

6

6,567,523

3,734,017

6,653,134

3,856,828

CURRENT ASSETS

Stocks

13,292

5,940

Debtors

7

572,493

588,370

Cash at bank and in hand

572,277

110,226

1,158,062

704,536

CREDITORS

Amounts falling due within one year

8

2,234,721

1,302,538

NET CURRENT LIABILITIES

(1,076,659

)

(598,002

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,576,475

3,258,826

CREDITORS

Amounts falling due after more than one year

9

(1,056,599

)

(1,148,689

)

PROVISIONS FOR LIABILITIES

(396,000

)

(283,504

)

NET ASSETS

4,123,876

1,826,633

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

4,123,776

1,826,533

SHAREHOLDERS' FUNDS

4,123,876

1,826,633

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2018 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 21 August 2018 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.

Turnover

Turnover represents sales from the processing of laundry and linen hire, 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 is linen which is being depreciated straight line over 5 years. All other items within plant and

machinery are depreciated straight line over 16-20 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.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have

suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset

is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is

reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its

recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been

recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair

value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less

any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured

initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest

method.

Government grants

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

either treated as deferred income and are credited to the profit and loss account on a straight line basis over the useful life

of the relevant asset, or they are netted off of the cost of the fixed asset thereby reducing the depreciation charge.

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

related expenditure is incurred.

Stocks

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

items.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past

reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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. If and when all conditions for retaining tax allowances for the cost of

a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated 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.

The tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the

transaction that resulted in the tax expense (income).

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 a hire purchase, finance lease or an operating lease based on the substances of the arrangement.

Hire purchase

Assets obtained under hire purchase contracts are capitalised in the balance sheet and depreciated over their estimated

useful lives. Assets are assessed for impairment at each reporting date. The corresponding liability to the hirer is included

in the statement of financial position as a hire purchase obligation.

Hire purchase payments are apportioned between the interest element and the reduction of the hire purchase obligation

using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the liability.

Hire purchase charges are deducted in measuring profit or loss.

Finance leases

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

leases.

Assets held under finance leases are recognized initially at the fair value of the leased asset (or, if lower, the present value

of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the

statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and

reduction of the lease obligation using the effective interest method so as to achieve a constant rate of interest on the

remaining balance of the liability. Finance charges are deducted in measuring profit or loss.

Assets held under finance leases are included in tangible fixed assets and 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.

Operating leases

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.

Employee benefits

Short-term employee benefits and contributions to defined contribution plans are recognised as an expense in the period in

which they are incurred.

Provisions for liabilities

Provisions are recognised when the Company has a present (legal or constructive) obligation as a result of a past event; it is

probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be

estimated reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at

the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is

recognised at present value using a pre-tax discount rate. The unwinding of the discount is recognised as a finance cost in

profit or loss in the period it arises.

The Company recognises a provision for annual leave accrued by employees for services rendered in the current period,

and which employees are entitled to carry forward and use within the next 12 months, measured at the salary cost payable

for the period of absence.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 66 (2017 - 48 ) .

5.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 March 2017

and 28 February 2018

372,000

AMORTISATION

At 1 March 2017

249,189

Amortisation for year

37,200

At 28 February 2018

286,389

NET BOOK VALUE

At 28 February 2018

85,611

At 28 February 2017

122,811

6.	TANGIBLE FIXED ASSETS

Short

Plant and

Motor

leasehold

machinery

vehicles

Totals

£

£

£

£

COST

At 1 March 2017

4,341

5,188,003

317,241

5,509,585

Additions

217,714

5,176,205

70,811

5,464,730

Disposals

(1,400

)

(2,273,292

)

-

(2,274,692

)

At 28 February 2018

220,655

8,090,916

388,052

8,699,623

DEPRECIATION

At 1 March 2017

3,893

1,720,053

51,622

1,775,568

Charge for year

17,470

795,906

80,785

894,161

Eliminated on disposal

(952

)

(536,677

)

-

(537,629

)

At 28 February 2018

20,411

1,979,282

132,407

2,132,100

NET BOOK VALUE

At 28 February 2018

200,244

6,111,634

255,645

6,567,523

At 28 February 2017

448

3,467,950

265,619

3,734,017

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

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 March 2017

1,331,750

317,241

1,648,991

Additions

2,085,128

70,811

2,155,939

Disposals

(1,290,000

)

-

(1,290,000

)

At 28 February 2018

2,126,878

388,052

2,514,930

DEPRECIATION

At 1 March 2017

36,095

51,622

87,717

Charge for year

82,615

80,785

163,400

Eliminated on disposal

(31,094

)

-

(31,094

)

At 28 February 2018

87,616

132,407

220,023

NET BOOK VALUE

At 28 February 2018

2,039,262

255,645

2,294,907

At 28 February 2017

1,295,655

265,619

1,561,274

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

470,289

320,366

Other debtors

102,204

268,004

572,493

588,370

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

-

6,582

Hire purchase contracts and finance leases (see note 10)

463,675

542,377

Trade creditors

1,423,024

425,321

Taxation and social security

169,989

177,956

Other creditors

178,033

150,302

2,234,721

1,302,538

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Hire purchase contracts and finance leases (see note 10)

1,056,599

1,010,085

Other creditors

-

138,604

1,056,599

1,148,689

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

Finance leases

2018

2017

2018

2017

£

£

£

£

Net obligations repayable:

Within one year

449,513

542,377

14,162

-

Between one and five years

1,007,031

1,010,085

49,568

-

1,456,544

1,552,462

63,730

-

Non-cancellable operating

leases

2018

2017

£

£

Within one year

196,300

85,000

Between one and five years

764,233

198,333

In more than five years

629,625

-

1,590,158

283,333

11.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

-

6,582

Other loans

-

55,031

Hire purchase contracts and finance leases

1,520,274

1,552,462

1,520,274

1,614,075

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

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 28 February 2018 and 28 February 2017:

2018

2017

£

£

W Retallack

Balance outstanding at start of year

-

-

Amounts advanced

36,221

-

Amounts repaid

(427

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

35,794

-

C A Retallack

Balance outstanding at start of year

-

-

Amounts advanced

4,042

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

4,042

-

J A Perkin

Balance outstanding at start of year

-

-

Amounts advanced

14,354

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

14,354

-

The loan accounts were cleared on 1 March 2018 by way of dividend.