Homespares Centres Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00762971 (England and Wales)

Strategic Report,

Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2017

for

Homespares Centres Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Balance Sheet

5

Notes to the Financial Statements

6

DIRECTORS:

J M Farnworth

Mrs J Farnworth

D J Farnworth

D A Fisher

A Swarsbrick

SECRETARY:

J M Farnworth

REGISTERED OFFICE:

Harewood House

Union Road

Bolton

Lancashire

BL2 2HE

REGISTERED NUMBER:

00762971 (England and Wales)

AUDITORS:

Crossley & Davis

Chartered Accountants and Registered Auditor

52 Chorley New Road

Bolton

Greater Manchester

BL1 4AP

The directors present their strategic report for the year ended 31 December 2017.

REVIEW OF BUSINESS

Homespares Centres Limited is currently implementing a process of significant change following the departure of the

previous managing director. John Farnworth has returned to the business as Managing Director supported by the

founder of the company, Douglas Farnworth. This has stabilised the company allowing them, with the support of the

core team, to begin implementing processes to turnaround the company and restore value to its balance sheet.

David Fisher and Andrew Swarsbrick have joined the board and will support the long-term commitment of John and

Doug. The company is already benefiting from the introduction of sophisticated new stock and financial systems.

The group shareholders have pledged to continue to support the trading companies and are satisfied that a

turnaround is being achieved. They have complete confidence in the businesses, the well-established brands and

strategic relationships built up over many years.

PRINCIPAL RISKS AND UNCERTAINTIES

Due to the nature of the business the company carries an extensive range of products. The company also has a varied

range of customers. Stock is largely financed by the continued support of the other group companies.

The company has a cash flow and currency risk. The directors review and agree policies for managing all risks within

the business.

ON BEHALF OF THE BOARD:

J M Farnworth - Director

26 September 2018

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the company is the wholesale of general domestic spare parts and domestic appliances and

retail sales to the general public.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this

report.

J M Farnworth

Mrs J Farnworth

D J Farnworth

Other changes in directors holding office are as follows:

K L Whitehead - resigned 18 July 2017

D A Fisher and A Swarsbrick were appointed as directors after 31 December 2017 but prior to the date of this report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors

must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of

affairs of the company and of the profit or loss of the company for that period. In preparing these financial

statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible

for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies

Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought

to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish

that the company's auditors are aware of that information.

AUDITORS

The auditors, Crossley & Davis, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

J M Farnworth - Director

26 September 2018

FIXED ASSETS

Intangible assets

4

48,173

71,303

Tangible assets

5

63,066

47,950

111,239

119,253

CURRENT ASSETS

Stocks

1,305,659

1,420,199

Debtors

6

877,450

1,036,283

Cash at bank and in hand

66

2,032

2,183,175

2,458,514

CREDITORS

Amounts falling due within one year

7

2,920,900

2,405,376

NET CURRENT (LIABILITIES)/ASSETS

(737,725

)

53,138

TOTAL ASSETS LESS CURRENT LIABILITIES

(626,486

)

172,391

PROVISIONS FOR LIABILITIES

16,029

16,029

NET (LIABILITIES)/ASSETS

(642,515

)

156,362

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Retained earnings

(643,515

)

155,362

(642,515

)

156,362

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 26 September 2018 and were signed on its behalf by:

J M Farnworth - Director

1.	STATUTORY INFORMATION

Homespares Centres 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Preparation of consolidated financial statements

The financial statements contain information about Homespares Centres Limited as an individual company and

do not contain consolidated financial information as the parent of a group. The company is exempt under

Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as

it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its

parent, W M L Industrial Holdings Limited, Harewood House, Union Road, Bolton, Lancashire, BL2 2DT.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2007, 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.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

-

25% on cost and 10% on cost

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

Rentals paid under operating leases are charged to profit or loss 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. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 27 (2016 - 45 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 January 2017

50,000

98,869

148,869

Additions

-

1,800

1,800

Disposals

-

(3,860

)

(3,860

)

At 31 December 2017

50,000

96,809

146,809

AMORTISATION

At 1 January 2017

50,000

27,566

77,566

Charge for year

-

21,070

21,070

At 31 December 2017

50,000

48,636

98,636

NET BOOK VALUE

At 31 December 2017

-

48,173

48,173

At 31 December 2016

-

71,303

71,303

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 January 2017

1,039,219

Additions

33,545

At 31 December 2017

1,072,764

DEPRECIATION

At 1 January 2017

991,269

Charge for year

18,429

At 31 December 2017

1,009,698

NET BOOK VALUE

At 31 December 2017

63,066

At 31 December 2016

47,950

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

607,716

787,604

Amounts owed by group undertakings

197,511

197,103

Other debtors

72,223

51,576

877,450

1,036,283

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

953,160

867,582

Trade creditors

610,154

994,378

Amounts owed to group undertakings

980,214

417,631

Taxation and social security

269,025

20,079

Other creditors

108,347

105,706

2,920,900

2,405,376

8.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

953,160

867,582

The assets of the group have been pledged as security for the borrowings of the group including the bank

overdraft.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion on financial statements

Peter Shaw (Senior Statutory Auditor)

for and on behalf of Crossley & Davis

When we conducted the audit for Homespares Limited for the previous year we were unable to ascertain if

adequate records had been kept and did not receive the necessary information and explanations required for

us to give a true and fair view of the company.

Our audit opinion on the financial statements for the period ended 31 December 2016, was modified

accordingly. Our opinion on the current period's financial statements is also modified because of the possible

effect of this matter on the comparability of the current period's figures and the corresponding figures.

10.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

11.	APB ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit

returns to the tax authorities and assist with the preparation of the financial statements.

12.	ULTIMATE CONTROLLING PARTY

The controlling party is WML Industrial Holdings Limited.

The most senior parent entity producing publicly available financial statements is WML Industrial Holdings

Limited of Harewood House, Union Road, Bolton, BL2 2DT. These financial statements are available upon

request from Companies House