| Headline Filters Limited |
| Notes to the Accounts |
| for the year ended 30 June 2018 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006..
The presentation currency is £ sterling. |
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Revenue recognition |
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Revenue is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Revenue represents the sale of goods. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at annual rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows: |
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Freehold building |
4% on cost |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
15% on cost |
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Fixtures, fittings, tools and equipment |
15% - 25% on cost |
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Motor Vehicles |
25% on cost |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currencies |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leasing and hire purchase contracts |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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Provision for repair or replacement of goods under guarantee |
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Provision is made for the cost of repair or replacement of goods sold during the year but remaining under guarantee at the Balance Sheet date. |
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| 2 |
Employees |
2018 |
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2017 |
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Number |
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Number |
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Average number of persons employed by the company |
29 |
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23 |
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| 3 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
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£ |
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£ |
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£ |
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£ |
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Cost |
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At 1 July 2017 |
73,331 |
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1,401,311 |
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305,701 |
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1,780,343 |
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Additions |
25,372 |
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132,557 |
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18,332 |
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176,261 |
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Disposals |
- |
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- |
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- |
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- |
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At 30 June 2018 |
98,703 |
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1,533,868 |
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324,033 |
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1,956,604 |
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Depreciation |
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At 1 July 2017 |
18,336 |
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1,109,378 |
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104,126 |
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1,231,840 |
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Charge for the year |
2,959 |
|
109,890 |
|
79,575 |
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192,424 |
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At 30 June 2018 |
21,295 |
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1,219,268 |
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183,701 |
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1,424,264 |
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Net book value |
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At 30 June 2018 |
77,408 |
|
314,600 |
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140,332 |
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532,340 |
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At 30 June 2017 |
54,995 |
|
291,933 |
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201,575 |
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548,503 |
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| 4 |
Debtors |
2018 |
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2017 |
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£ |
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£ |
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Trade debtors |
700,997 |
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322,952 |
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Other debtors |
310,845 |
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59,343 |
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1,011,842 |
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382,295 |
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| 5 |
Creditors: amounts falling due within one year |
2018 |
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2017 |
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£ |
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£ |
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Obligations under finance lease and hire purchase contracts |
67,902 |
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126,326 |
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Trade creditors |
278,399 |
|
142,280 |
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Corporation tax |
141,521 |
|
74,690 |
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Other taxes and social security costs |
131,340 |
|
134,095 |
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Other creditors |
977,754 |
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924,681 |
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1,596,916 |
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1,402,072 |
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| 6 |
Creditors: amounts falling due after one year |
2018 |
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2017 |
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£ |
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£ |
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Obligations under finance lease and hire purchase contracts |
82,287 |
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150,190 |
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The finance leases are secured on the assets concerned. |
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| 7 |
Pension commitments |
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The assets of the pension schemes operated for the Directors and the employees of the company are held separately from those of the company in an independently administered fund. At the balance sheet date unpaid contributions of £Nil (2017 - £6,275) were due to the fund, which are included in other creditors. |
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| 8 |
Other financial commitments |
2018 |
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2017 |
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£ |
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£ |
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Total future minimum payments under non-cancellable operating leases |
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768,344 |
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888,392 |
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The annual commitment is £71,648 on leases expiring in 2027 and £26,400 on leases expiring in 2022. |
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Brian Head, Ann Head and Robert Hibberd - Directors |
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The company operates partly from freehold land and buildings owned by a pension scheme, in which Brian Head, a director of the company, is a beneficiary. The pension scheme charged the company rent on normal commercial terms of £24,677 (2017 - £18,800) during the year. |
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At 30 June 2018, the company owed the directors, Brian and Ann Head £272,927 (2017 £274,570) and Robert Hibberd £131,589 (2017 £102,578), |
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Interest of £28,738 (2017 £23,790) was payable to Brian Head and £12,458 (2017 £11,480) was payable to Robert Hibberd in respect of their loans to the company during the year. |
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Dividends of £Nil (2017 £200,000) were paid to Brian Head, £Nil (2017 £100,000) to Ann Head and £Nil (2017 £100,000) to Robert Hibberd, as shareholders of the company. |
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| 11 |
Other information |
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Headline Filters Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Headline House |
|
Mill Hall Business Estate |
|
Aylesford |
|
Maidstone |
|
Kent, ME20 7JZ |
