Parsons Nationwide Distribution Ltd - Period Ending 2018-03-31

Registration number: 3746821

Parsons Nationwide Distribution Ltd

Filleted and Unaudited Financial Statements

for the Year Ended 31 March 2018

Redwoods
Chartered Certified Accountants
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

Parsons Nationwide Distribution Ltd

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 13

Parsons Nationwide Distribution Ltd

Company Information

Director

Mrs N A Hoskin

Company secretary

Mr K A Hoskin

Registered office

2 Clyst Works Clyst Road Topsham Exeter Devon EX3 0DB

Solicitors

Gilbert Stephens 15-17 Southernhay East Exeter EX1 1QE

Accountants

Redwoods Chartered Certified Accountants 2 Clyst Works Clyst Road Topsham Exeter Devon EX3 0DB

Page 1

Parsons Nationwide Distribution Ltd

(Registration number: 3746821)
Balance Sheet as at 31 March 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	5	2,459,863	2,459,310
Investment property	6	330,000	330,000
Other financial assets	7	6,250	6,250
		2,796,113	2,795,560
Current assets
Stocks	8	13,959	14,413
Debtors	9	1,098,897	1,092,270
Cash at bank and in hand		164	156
		1,113,020	1,106,839
Creditors: Amounts falling due within one year	10	(2,284,272)	(2,088,334)
Net current liabilities		(1,171,252)	(981,495)
Total assets less current liabilities		1,624,861	1,814,065
Creditors: Amounts falling due after more than one year	10	(674,732)	(756,422)
Provisions for liabilities		(154,469)	(182,444)
Net assets		795,660	875,199
Capital and reserves
Called up share capital	11	100	100
Other reserves		115,602	113,518
Profit and loss account		679,958	761,581
Total equity		795,660	875,199

For the financial year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges her 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.

The notes on pages 4 to 13 form an integral part of these financial statements.

Page 2

Parsons Nationwide Distribution Ltd

(Registration number: 3746821)
Balance Sheet as at 31 March 2018

Approved and authorised by the director on 29 June 2018
 

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

Mrs N A Hoskin
Director

The notes on pages 4 to 13 form an integral part of these financial statements.

Page 3

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

1	General information

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

The address of its registered office is:
2 Clyst Works
Clyst Road
Topsham
Exeter
Devon
EX3 0DB

The principal place of business is:
Common Farm
Aylesbeare
Exeter
Devon
EX5 2DG
England

These financial statements were authorised for issue by the director on 29 June 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.

The accounts are presented in £ sterling and rounded to £1

Judgements

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Page 4

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

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

The company has adopted a policy of writing off items of plant and machinery over 12 years old.

Depreciation is apportioned pro-rata in respect of all additions and disposals during the period.
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
Land and buildings long leasehold	2% straight line basis
Plant and machinery	15/20% reducing balance basis
Fleet number plates	Nil
Commercial vehicles and trailers	15/20% reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate. The value is adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

The company uses invoice discounting in respect of some of its trade debtors. An unlinked presentation has been adopted due to the terms of the discounting and trade debtors are shown gross within the balance sheet.

Page 5

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

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.

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Page 6

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 7

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

Financial instruments

Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and investments in non-puttable ordinary shares.
 Recognition and measurement
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. In the case of an outright loan not at market rate, the financial liability is measured, initially and subsequently at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Investments in non-puttable non quoted, ordinary shares are measured at cost less impairment.
 Impairment
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows, discounted at the asset's original effective interest rate.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
 

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 63 (2017 - 59).

4	Loss before tax

Arrived at after charging/(crediting)

	2018 £	2017 £
Depreciation expense	530,503	546,614

Page 8

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

5	Tangible assets

	Long Leasehold Land and buildings £	Fleet number plates  £	Commercial vehicles and trailers  £	Plant and machinery  £	Total £
Cost or valuation
At 1 April 2017	17,133	24,780	5,010,035	109,556	5,161,504
Additions	-	-	534,503	59,445	593,948
Disposals	-	-	(311,818)	(19,879)	(331,697)
At 31 March 2018	17,133	24,780	5,232,720	149,122	5,423,755
Depreciation
At 1 April 2017	5,169	-	2,610,464	86,561	2,702,194
Charge for the year	343	-	523,646	6,514	530,503
Eliminated on disposal	-	-	(251,567)	(17,238)	(268,805)
At 31 March 2018	5,512	-	2,882,543	75,837	2,963,892
Carrying amount
At 31 March 2018	11,621	24,780	2,350,177	73,285	2,459,863
At 31 March 2017	11,964	24,780	2,399,571	22,995	2,459,310

Included within the net book value of land and buildings above is £11,621 (2017 - £11,964) in respect of long leasehold land and buildings.
 

Page 9

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

6	Investment properties

	2018 £
At 1 April	330,000

The fair value of the property at 1st April 2017 has been arrived at on the basis of a valuation carried out by Mrs N Hoskin, director of the company, who is not a professionally qualified valuer. The valuation is not considered to have changed between 1st April 2017 and 31st March 2018. The valuation is arrived at by reference to rental values achieved for similar properties.

The historic cost of the investment property was £214,789 (2017 : £214,789) and the aggregate depreciation thereon would have been £72,769 (2017:£68,474)

There has been no valuation of investment property by an independent valuer.

The company's investment property is built on land owned by the director and therefore could only be sold for the value shown in the accounts with the director's agreement to sell the land at the same time.

7	Other financial assets (current and non-current)

	2018 £	2017 £
Non-current financial assets
Financial assets at cost less impairment	6,250	6,250

8

Stocks

	2018 £	2017 £
Other inventories	13,959	14,413

9

Debtors

	2018 £	2017 £
Trade debtors	1,047,866	1,033,383
Other debtors	51,031	58,887
Total current trade and other debtors	1,098,897	1,092,270

Page 10

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

10

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	12	1,031,771	1,026,633
Trade creditors		238,694	147,611
Directors loan account	14	210,871	76,672
Taxation and social security		174,831	193,019
Other creditors		628,105	644,399
		2,284,272	2,088,334
Due after one year
Loans and borrowings	12	674,732	756,422

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	12	674,732	756,422

The bank overdraft is secured by a company debenture and a limited personal guarantee given by the director.

Advances on discounted debts are secured using the company's debtors.

11	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	60	60	60	60
Ordinary A shares of £1 each	30	30	30	30
Ordinary B shares of £1 each	10	10	10	10
	100	100	100	100

Page 11

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

12	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Finance lease liabilities	674,732	756,422

	2018 £	2017 £
Current loans and borrowings
Bank overdrafts	490,873	454,852
Finance lease liabilities	540,898	571,781
	1,031,771	1,026,633

13	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £42,186 (2017 - £Nil). The company had committed to purchasing an additional commercial vehicle, but did not take delivery of the vehicle until after the balance sheet date.

14	Related party transactions

Key management personnel

Mrs N A Hoskin - director

Summary of transactions with key management

The company's operational base is Aylesbeare Common Business Park. Some of the land and buildings are owned personally by the director. No rent or service charges have been paid to the director by the company.
 

Dividends paid to directors

	2018 £	2017 £
Mrs N A Hoskin
Interim dividend on ordinary shares	5,000	-

Summary of transactions with other related parties

Page 12

Parsons Nationwide Distribution Ltd

Notes to the Financial Statements for the Year Ended 31 March 2018

The Hoskin Farm Partnership - the company director Mrs N Hoskin, is a partner in this business.

During the year the company has recharged shared costs to the Hoskin Farm Partnership. During the year the company has purchased goods and services from the Hoskin Farm Partnership. The company gives and receives ordinary trade credit for these transactions. At the balance sheet date the amount due from the Hoskin Farm Partnership was £14,863 (2017 - £19,336). At the balance sheet date the amount due to the Hoskin Farm Partnership was £1,239 (2017 - £nil).
 

Income and receivables from related parties

2018	Other related parties £
Amounts receivable from related party	112,215

2017	Other related parties £
Amounts receivable from related party	96,788

Expenditure with and payables to related parties

2018	Other related parties £
Purchase of goods	6,268

2017	Other related parties £
Purchase of goods	4,729

Loans from related parties

2018	Key management £
At start of period	76,672
Advanced	140,000
Repaid	(5,801)
At end of period	210,871

2017	Key management £
At start of period	61,768
Advanced	14,904
At end of period	76,672

Terms of loans from related parties

This loan is provided interest free by the director.
 

Page 13