Old Barn Framing Gallery Limited - Period Ending 2018-03-31

Registration number: 06860716

Old Barn Framing Gallery Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

Lanham & Francis
Chartered Accountants
77a Cheap Street
Sherborne
Dorset
DT9 3BA

Old Barn Framing Gallery Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3
Notes to the Financial Statements	4 to 11

Old Barn Framing Gallery Limited

Company Information

Director

C J Smith

Registered office

Unit 20, Old Yarn Mills Westbury Sherborne Dorset DT9 3RQ

Accountants

Lanham & Francis Chartered Accountants 77a Cheap Street Sherborne Dorset DT9 3BA

Page 1

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Old Barn Framing Gallery Limited
for the Year Ended 31 March 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Old Barn Framing Gallery Limited for the year ended 31 March 2018 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of Old Barn Framing Gallery Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Old Barn Framing Gallery Limited and state those matters that we have agreed to state to the Board of Directors of Old Barn Framing Gallery Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Old Barn Framing Gallery Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Old Barn Framing Gallery Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Old Barn Framing Gallery Limited. You consider that Old Barn Framing Gallery Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Old Barn Framing Gallery Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Lanham & Francis
Chartered Accountants
77a Cheap Street
Sherborne
Dorset
DT9 3BA

21 December 2018

Page 2

Old Barn Framing Gallery Limited

(Registration number: 06860716)
Balance Sheet as at 31 March 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	5	24,788	33,216
Current assets
Stocks	6	30,100	30,850
Debtors	7	144,063	160,956
Cash at bank and in hand		6,010	4,745
		180,173	196,551
Creditors: Amounts falling due within one year	8	(177,192)	(206,892)
Net current assets/(liabilities)		2,981	(10,341)
Total assets less current liabilities		27,769	22,875
Creditors: Amounts falling due after more than one year	8	(32,656)	(27,114)
Provisions for liabilities		(4,710)	(6,643)
Net liabilities		(9,597)	(10,882)
Capital and reserves
Called up share capital		1	1
Profit and loss account		(9,598)	(10,883)
Total equity		(9,597)	(10,882)

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 his 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.

Approved and authorised by the director on 21 December 2018
 

C J Smith

Director

The notes on pages 4 to 11 form an integral part of these financial statements.

Page 3

Old Barn Framing Gallery Limited

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:
Unit 20, Old Yarn Mills
Westbury
Sherborne
Dorset
DT9 3RQ

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.

These financial statements are prepared in Sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

Going concern

The financial statements have been prepared on a going concern basis. The company continues to meet its day to day capital requirements with the support of its director. At the balance sheet date the company is insolvent. On the basis of discussions with the director and in view of his willingness to support the company through any cashflow difficulties and the continued support of the company's bankers, it is considered that the company will continue to operate. For these reasons the director considers it appropriate to prepare the financial statements on a going concern basis. If the company were unable to continue in existence, adjustments would have to be made to reclassify fixed assets and long term liabilities respectively, and to make provision for other costs which may be incurred.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Foreign exchange profits or losses are charged to the profit and loss account where the sum involved is material.

Page 4

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Tax

The tax expense for the period comprises current and 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the United Kingdom.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	20% on reducing balance
Office equipment	3 years straight line
Motor vehicles	25% on reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation. Goodwill is amortised over its useful life.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	5 years straight line

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs. 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.

Page 5

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

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.

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.

Financial instruments

Classification
FRS 102 classifies financial instruments as either basic financial instruments or other financial instruments. The accounting treatment varies according to the classification.
Basic financial instruments are defined as one of the following:
- cash
- a debt instrument (such as accounts receivable and payable)
- commitment to receive a loan that satisfy certain criteria
- investments in non-convertible preference shares, and non puttable ordinary shares.

All other financial instruments are classed as other financial instruments and treated accordingly.

 Recognition and measurement
The company only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 6

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 14 (2017 - 13).

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 April 2017	50,000	50,000
Disposals	(50,000)	(50,000)
At 31 March 2018	-	-
Amortisation
At 1 April 2017	50,000	50,000
Amortisation eliminated on disposals	(50,000)	(50,000)
At 31 March 2018	-	-
Carrying amount
At 31 March 2018	-	-

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2017 - £Nil).
 

Individually material intangible assets

Goodwill The carrying amount of this asset is £Nil (2017 -£Nil) and the remaining amortisation period is (2017 - ).

Page 7

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

5	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 April 2017	4,497	21,616	21,311	47,424
Additions	-	-	176	176
At 31 March 2018	4,497	21,616	21,487	47,600
Depreciation
At 1 April 2017	2,848	6,488	4,872	14,208
Charge for the year	1,499	3,782	3,323	8,604
At 31 March 2018	4,347	10,270	8,195	22,812
Carrying amount
At 31 March 2018	150	11,346	13,292	24,788
At 31 March 2017	1,649	15,128	16,439	33,216

6

Stocks

	2018 £	2017 £
Other inventories	30,100	30,850

7

Debtors

	2018 £	2017 £
Trade debtors	48,464	52,830
Other debtors	95,599	108,126
Total current trade and other debtors	144,063	160,956

Page 8

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

8

Creditors

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	9	13,659	7,331
Trade creditors		41,879	49,537
Taxation and social security		13,668	9,646
Other creditors		107,986	140,378
		177,192	206,892
Due after one year
Loans and borrowings	9	32,656	27,114

9	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	12,870	-
Finance lease liabilities	19,786	27,114
	32,656	27,114

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	6,328	-
Finance lease liabilities	7,331	7,331
	13,659	7,331

Creditors include net obligations under finance lease and hire purchase contracts which are secured of £27,116 (2017 - £34,445).

10	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £114,192 (2017 - £17,692).

Page 9

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

11	Related party transactions

Transactions with directors

2018	At 1 April 2017 £	Repayments by director £	At 31 March 2018 £
C J Smith
Interest free loan	78,823	(11,877)	66,946

2017	At 1 April 2016 £	Advances to directors £	At 31 March 2017 £
C J Smith
Interest free loan	44,890	33,933	78,823

Summary of transactions with entities with joint control or significant interest

Picture Business (Bournemouth) Ltd, a company in which C J Smith is a significant shareholder and the sole director.
 There is an interest free inter-company loan account.
 

Page 10

Old Barn Framing Gallery Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

11	Related party transactions (continued)

Loans from related parties

2018	Entities with joint control or significant influence £
At start of period	79,441
Advanced	114,636
Repaid	(128,553)
At end of period	65,524

2017	Entities with joint control or significant influence £
At start of period	61,903
Advanced	43,793
Repaid	(26,255)
At end of period	79,441

Page 11