First Cut UK Ltd Filleted accounts for Companies House (small and micro)

FIRST CUT UK LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 7167101

First Cut UK Ltd

Filleted Unaudited Financial Statements

28 February 2018

First Cut UK Ltd

Financial Statements

Year ended 28 February 2018

Contents	Page

Chartered certified accountants report to the director on the preparation of the unaudited statutory financial statements	1

Statement of financial position	2

Notes to the financial statements	4

First Cut UK Ltd

Chartered Certified Accountants Report to the Director on the Preparation of the Unaudited Statutory Financial Statements of First Cut UK Ltd

Year ended 28 February 2018

As described on the statement of financial position, the director of the company is responsible for the preparation of the financial statements for the year ended 28 February 2018, which comprise the statement of financial position and the related notes. You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.

VAGHELA & CO. (SERVICES) LTD. Chartered Certified Accountants

P.O. Box 10901 Birmingham B1 1ZQ

9 November 2018

First Cut UK Ltd

Statement of Financial Position

28 February 2018

	2018		2017
Note	£	£	£	£

Fixed assets

Tangible assets	7		84,444		106,446

Current assets

Debtors	8	100,379	137,280
Cash at bank and in hand		51,931	165,537
		---------	---------
		152,310	302,817

Creditors: amounts falling due within one year	9	171,618		179,965
		---------		---------
Net current (liabilities)/assets			( 19,308)		122,852
			--------		---------
Total assets less current liabilities			65,136		229,298

Creditors: amounts falling due after more than one year	10		7,711		10,432

Provisions

Taxation including deferred tax	97	7,601
	--------	---------
Net assets	57,328	211,265
	--------	---------

Capital and reserves

Called up share capital	12	100	100
Profit and loss account		57,228	211,165
		--------	---------
Shareholders funds		57,328	211,265
		--------	---------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 28 February 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 financial statements for the year in question in accordance with section 476 ;

- The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

First Cut UK Ltd

Statement of Financial Position (continued)

28 February 2018

These financial statements were approved by the board of directors and authorised for issue on 9 November 2018 , and are signed on behalf of the board by:

Mrs M. Gill
Director

Company registration number: 7167101

First Cut UK Ltd

Notes to the Financial Statements

Year ended 28 February 2018

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O Vaghela & Co (Services) Ltd, 145 Granville Street, Birmingham, B1 1SB.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date except that deferred tax assets are recognised only to the extent that the directors anticipate that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred tax balances are not discounted.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & machinery	-	15% straight line
Fixtures & fittings	-	15% straight line
Motor vehicles	-	25% straight line
Equipment	-	15% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 16 (2017: 18 ).

5. Tax on (loss)/profit

Major components of tax (income)/expense

	2018	2017
	£	£

Current tax:

UK current tax expense	–	25,478

Deferred tax:

Origination and reversal of timing differences	( 7,504)	( 6,076)
	-------	--------
Tax on (loss)/profit	( 7,504)	19,402
	-------	--------

Reconciliation of tax (income)/expense

The tax assessed on the (loss)/profit on ordinary activities for the year is lower than (2017: higher than) the standard rate of corporation tax in the UK of 19 % (2017: 20 %).

	2018	2017
	£	£
(Loss)/profit on ordinary activities before taxation	( 161,441)	96,518
	---------	--------
(Loss)/profit on ordinary activities by rate of tax	–	19,304
Effect of expenses not deductible for tax purposes	–	10,053
Effect of capital allowances and depreciation	–	( 3,879)
Deferred tax	( 7,504)	( 6,076)
	---------	--------
Tax on (loss)/profit	( 7,504)	19,402
	---------	--------

6. Dividends

Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):

	2018	2017
	£	£
Dividends on equity shares	–	7,000
	----	-------

7. Tangible assets

	Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
	£	£	£	£	£
Cost
At 1 March 2017	264,354	1,873	56,353	2,154	324,734
Additions	14,932	446	15,495	4,784	35,657
	---------	-------	--------	-------	---------
At 28 February 2018	279,286	2,319	71,848	6,938	360,391
	---------	-------	--------	-------	---------
Depreciation
At 1 March 2017	182,054	106	35,159	969	218,288
Charge for the year	40,587	342	16,067	663	57,659
	---------	-------	--------	-------	---------
At 28 February 2018	222,641	448	51,226	1,632	275,947
	---------	-------	--------	-------	---------
Carrying amount
At 28 February 2018	56,645	1,871	20,622	5,306	84,444
	---------	-------	--------	-------	---------
At 28 February 2017	82,300	1,767	21,194	1,185	106,446
	---------	-------	--------	-------	---------

8. Debtors

	2018	2017
	£	£
Trade debtors	–	36,612
Amounts owed by group undertakings and undertakings in which the company has a participating interest	83,653	28,653
Other debtors	16,726	72,015
	---------	---------
	100,379	137,280
	---------	---------

9. Creditors: amounts falling due within one year

	2018	2017
	£	£
Trade creditors	122,023	58,047
Corporation tax	–	25,478
Social security and other taxes	24,729	34,740
Pension Fund	261	1,314
Other creditors	24,605	60,386
	---------	---------
	171,618	179,965
	---------	---------

10. Creditors: amounts falling due after more than one year

	2018	2017
	£	£
Other creditors	7,711	10,432
	-------	--------

11. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2018	2017
	£	£
Included in provisions	97	7,601
	----	-------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2018	2017
	£	£
Accelerated capital allowances	97	7,601
	----	-------

12. Called up share capital

Authorised share capital

	2018		2017
	No.	£	No.	£
Ordinary shares of £ 1 each	1,000	1,000	1,000	1,000
	-------	-------	-------	-------

Issued, called up and fully paid

	2018		2017
	No.	£	No.	£
Ordinary shares of £ 1 each	100	100	100	100
	----	----	----	----

13. Director's advances, credits and guarantees

At 28th February 2018, other creditors include the following amounts due to the director:- Mrs M. Gill £9,372 (2017 - £245) The loans are interest free and repayable on demand

14. Related party transactions

Included within debtors is an amount due from Pennai Construction Limited, an associated company, of £83,653 (2017 - £28,653). The loan is interest free and for an indefinate period, however it is repayable on demand. The director, Mrs M. Gill, received no dividends for the year under review.