Westside Distribution Limited - Limited company accounts 18.2

REGISTERED NUMBER: SC365971 (Scotland)

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018

FOR

WESTSIDE DISTRIBUTION LIMITED

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Financial Statements

10

DIRECTORS:

Mrs A M Grant

P E Hay

J F Van Der Schoot

SECRETARY:

Mrs A M Grant

REGISTERED OFFICE:

100 Fifty Pitches Road

Glasgow

G51 4EB

REGISTERED NUMBER:

SC365971 (Scotland)

AUDITORS:

Consilium Audit Limited (Statutory Auditor)

169 West George Street

Glasgow

G2 2LB

The directors present their strategic report for the year ended 31 March 2018.

REVIEW OF BUSINESS

There has been a slight decrease in turnover compared to the prior year from £12,019k to £11,794k.

At the year end the Company had shareholders funds and distributable profits of £7,909k. The directors therefore believe the

Company's position to be satisfactory.

KEY PERFORMANCE INDICATORS

The gross margin for the year has increased from 18.3% to 27.6%.

The operating profit margin for the year increased from 4.7% to 14.4%.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have assessed the main risk facing the Company as being the competition from other companies within the industry.

The directors believe that the reputation of the Company and the quality of the products and services provided will mitigate this

risk.

FINANCIAL RISK MANAGEMENT AND OBJECTIVES AND POLICIES

The Company finances its operations through a mixture of retained profits and operational bank accounts, and where necessary

bank borrowings and hire purchase to fund the Company's expansion or capital expenditure programmes. The management's

objectives are to:

-

retain sufficient liquid funds to enable the Company to meet its day to day obligations as they fall due whilst maximising returns on surplus funds;

-

minimise the Company's exposure to fluctuating interest and exchange rates; and

-

match the repayment schedule of any external borrowings with the future cash flows expected to arise from the Company's trading activities.

The Company is exposed to the normal credit risk associated with dealing with customers on commercial credit terms.

ON BEHALF OF THE BOARD:

P E Hay - Director

21 December 2018

The directors present their report with the financial statements of the Company for the year ended 31 March 2018.

PRINCIPAL ACTIVITY

The principal activity of the Company during the year was the wholesale of musical instruments.

DIVIDENDS

During the year dividends of £8,333 (2017: £21,666) were paid to the shareholders.

DIRECTORS

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

Mrs A M Grant

P E Hay

J F Van Der Schoot

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Directors' Report 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), including Financial Reporting Standard 102 'The Financial Reporting Standard

applicable in the UK and Republic of Ireland'. 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the

Company's website.

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, Consilium Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

P E Hay - Director

21 December 2018

Opinion

We have audited the financial statements of Westside Distribution Limited (the 'Company') for the year ended 31 March 2018

which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and

Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that

has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting

Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the Company's affairs as at 31 March 2018 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our

responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements

section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical

responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report

and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated

in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material

misstatement of the other information. If, based on the work we have performed, we conclude that there is a material

misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have

not identified material misstatements in the Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our

opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as

the directors determine necessary to enable the preparation of financial statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the

directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable

assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always

detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,

individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis

of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's

website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to

state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or

assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this

report, or for the opinions we have formed.

David Holt (Senior Statutory Auditor)

for and on behalf of Consilium Audit Limited (Statutory Auditor)

169 West George Street

Glasgow

G2 2LB

21 December 2018

TURNOVER

11,793,530

12,019,242

Cost of sales

8,534,378

9,817,543

GROSS PROFIT

3,259,152

2,201,699

Administrative expenses

1,556,290

1,633,952

OPERATING PROFIT

4

1,702,862

567,747

Income from shares in group undertakings

3,098,340

-

Interest receivable and similar income

1,929

2,980

Amounts provided against investments

5

(200

)

-

Interest payable and similar expenses

6

(80

)

(1,656

)

3,099,989

1,324

PROFIT BEFORE TAXATION

4,802,851

569,071

Tax on profit

7

322,795

117,842

PROFIT FOR THE FINANCIAL YEAR

4,480,056

451,229

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,480,056

451,229

FIXED ASSETS

Tangible assets

9

82,075

101,890

Investments

10

-

-

82,075

101,890

CURRENT ASSETS

Stocks

11

4,816,195

375,138

Debtors

12

1,346,810

1,200,618

Cash at bank and in hand

3,889,352

3,783,066

10,052,357

5,358,822

CREDITORS

Amounts falling due within one year

13

2,212,849

2,006,302

NET CURRENT ASSETS

7,839,508

3,352,520

TOTAL ASSETS LESS CURRENT LIABILITIES

7,921,583

3,454,410

PROVISIONS FOR LIABILITIES

16

12,367

17,117

NET ASSETS

7,909,216

3,437,293

CAPITAL AND RESERVES

Called up share capital

17

300

100

Retained earnings

18

7,908,916

3,437,193

SHAREHOLDERS' FUNDS

7,909,216

3,437,293

The financial statements were approved by the Board of Directors on 21 December 2018 and were signed on its behalf by:

P E Hay - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2016

100

3,007,630

3,007,730

Changes in equity

Dividends

-

(21,666

)

(21,666

)

Total comprehensive income

-

451,229

451,229

Balance at 31 March 2017

100

3,437,193

3,437,293

Changes in equity

Issue of share capital

200

-

200

Dividends

-

(8,333

)

(8,333

)

Total comprehensive income

-

4,480,056

4,480,056

Balance at 31 March 2018

300

7,908,916

7,909,216

Cash flows from operating activities

Cash generated from operations

21

918,141

183,829

Interest element of hire purchase payments paid

(80

)

(1,656

)

Tax paid

(122,481

)

(109,617

)

Net cash from operating activities

795,580

72,556

Cash flows from investing activities

Purchase of tangible fixed assets

(1,313

)

(2,359

)

Interest received

1,929

2,980

Net cash from investing activities

616

621

Cash flows from financing activities

Capital repayments in year

(14,204

)

(11,420

)

Amounts (paid) to directors

(591,080

)

830,512

Amounts (paid) to related parties

(76,293

)

885,893

Equity dividends paid

(8,333

)

(21,666

)

Net cash from financing activities

(689,910

)

1,683,319

Increase in cash and cash equivalents

106,286

1,756,496

Cash and cash equivalents at beginning of year

22

3,783,066

2,026,570

Cash and cash equivalents at end of year

22

3,889,352

3,783,066

1.	STATUTORY INFORMATION

Westside Distribution Limited is a private company, limited by shares , registered in Scotland. 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 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.

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. In preparing

the financial statements the directors have made the following judgements:

-

Determine whether leases entered into by the Company as a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

-

Determine whether there are indicators of impairment of the Company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

-

Determine whether any bad debt provision is required via review of trade debtors, with debts provided for on a specific basis. Factors considered include customer payment history and agreed credit terms.

-

Determine whether any stock provision is required via comparison of cost and net realisable value of stock on an item by item basis. Factors considered include stock obsolescence, stock turnover and stock condition.

Turnover

The turnover shown in the Statement of Comprehensive Income represents the value of all goods sold during the year, less

returns received and services delivered at a selling price exclusive of Value Added Tax. Sales are recognised at the point at

which the Company has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as

obsolescence, have been transferred to the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Fixtures and fittings

-

5% reducing balance/20% reducing balance

Motor vehicles

-

25% reducing balance

Computer equipment

-

5% reducing balance/20% reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs

of acquisition.

Investments in subsidiaries

Investments in subsidiaries are recognised at cost less any provision for impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

Cost consists of purchase price and the normal cost of transporting stock to its present location and condition.

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments,

according to the substance of the contractual arrangement.

Financial instruments which are assets are stated at cost less any provision for impairment. Financial liabilities are stated at

principal capital amounts outstanding at the period end. Issue costs relating to financial liabilities are deducted from the

outstanding balance and are amortised over the period to the due date for repayment of the financial liability.

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of

its liabilities. A financial liability is any contractual arrangement for an entity to deliver cash to the holder of the associated

financial instrument.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income,

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

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 applicable to operating leases, where substantially all of the benefits and risks of ownership remain with the lessor,

are charged against profits on a straight line basis over the period of the lease.

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value, and

are depreciated in accordance with the above depreciation policies.

Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable

are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the

finance element, which is charged to the Statement of Comprehensive Income on a straight line basis.

Pension costs and other post-retirement benefits

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by

the Company to the fund in respect of the year. The assets of the scheme are held separately from those of the Company in

an independently administered fund.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid

investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are

shown within borrowings in current liabilities.

Foreign currencies

Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the

transactions, or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities

are translated at year end exchange rates or, where appropriate, at rates of exchange fixed under the terms of the relevant

transaction. The resulting exchange rate differences are charged to the Statement of Comprehensive Income.

3.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

835,834

861,201

Social security costs

88,644

87,056

Other pension costs

5,660

7,528

930,138

955,785

The average number of employees during the year was as follows:

2018

2017

Management staff

3

3

Distribution staff

31

31

34

34

2018

2017

£

£

Directors' remuneration

47,283

42,158

The Company considers key management to be the directors of the Company. The key management remuneration for the

year is as disclosed above.

4.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Other operating leases

130,497

145,423

Depreciation - owned assets

21,128

16,365

Depreciation - assets on hire purchase contracts

-

9,792

Auditors' remuneration

10,000

10,000

5.

AMOUNTS PROVIDED AGAINST INVESTMENTS

2018

2017

£

£

Provision against fixed asset investments

200

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Hire purchase interest

80

1,656

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2018

2017

£

£

Current tax:

UK corporation tax

327,652

122,588

Over provision in prior year

(107

)

(702

)

Total current tax

327,545

121,886

Deferred tax

(4,750

)

(4,044

)

Tax on profit

322,795

117,842

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained

below:

2018

2017

£

£

Profit before tax

4,802,851

569,071

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 20%)

912,542

113,814

Effects of:

Expenses not deductible for tax purposes

587

4,730

Income not taxable for tax purposes

(588,685

)

-

Adjustments to tax charge in respect of previous periods

(107

)

(702

)

Deferred tax at lower rate

(1,542

)

-

Total tax charge

322,795

117,842

8.

DIVIDENDS

2018

2017

£

£

Ordinary shares of £1 each

Paid in year

8,333

21,666

9.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2017

156,910

29,500

73,319

259,729

Additions

1,313

-

-

1,313

At 31 March 2018

158,223

29,500

73,319

261,042

DEPRECIATION

At 1 April 2017

96,287

17,313

44,239

157,839

Charge for year

12,265

3,047

5,816

21,128

At 31 March 2018

108,552

20,360

50,055

178,967

NET BOOK VALUE

At 31 March 2018

49,671

9,140

23,264

82,075

At 31 March 2017

60,623

12,187

29,080

101,890

Included within the net book value is £nil (2017: £35,105) relating to assets held under hire purchase agreements. The

depreciation charged to the financial statements in the year in respect of such assets amounted to £nil (2017: £9,792).

10.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

200

At 31 March 2018

200

PROVISIONS

Provision for year

200

At 31 March 2018

200

NET BOOK VALUE

At 31 March 2018

-

The Company's investments at the Balance Sheet date in the share capital of companies include the following:

Southlands Music Limited

Registered office: 100 Fifty Pitches Road, Glasgow, G51 4EB

Nature of business: Dormant

%

Class of shares:

holding

Ordinary

100.00