DISPLAY MODE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2017
Company Registration Number: 06887853
DISPLAY MODE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
CONTENTS PAGES
Company information 1
Balance sheet 2 to 3
Notes to the financial statements 4 to 12
DISPLAY MODE LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2017
DIRECTORS
L Edwards
Mrs C Edwards
appointed 17 October 2016
resigned 3 January 2017
SECRETARY
The company does not have an appointed secretary
REGISTERED OFFICE
4 Princewood Road
Corby
Northants
NN17 4AP
COMPANY REGISTRATION NUMBER
06887853 England and Wales
DISPLAY MODE LIMITED
BALANCE SHEET
AS AT 31 March 2017
Notes 2017 2016
£ £
FIXED ASSETS
Tangible assets 7 198,691 146,051
CURRENT ASSETS
Stock 113,574 111,091
Debtors 8 3,456,342 2,631,850
Cash at bank and in hand 574,290 551,737
4,144,206 3,294,678
CREDITORS: Amounts falling due 9 1,228,715 1,442,498
within one year
NET CURRENT ASSETS 2,915,491 1,852,180
TOTAL ASSETS LESS CURRENT LIABILITIES 3,114,182 1,998,231
CREDITORS: Amounts falling due 10 122,780 256,672
after more than one year
Provisions for liabilities and charges 7,955 -
NET ASSETS 2,983,447 1,741,559
CAPITAL AND RESERVES
Called up share capital 2 2
Distributable profit and loss account 2,983,445 1,741,557
SHAREHOLDER'S FUNDS 2,983,447 1,741,559
These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board
L Edwards
Director
Date approved by the board: 3 August 2017
DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
1 GENERAL INFORMATION
Display Mode Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
4 Princewood Road
Corby
Northants
NN17 4AP
The financial statements are presented in Sterling, which is the functional currency of the company.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of financial statements
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
Revenue recognition
Turnover is measured at the fair value of consideration received or receivable and represents the sale of display stands and associated products, stated net of trade discounts and value added tax.
The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.
Tangible fixed assets
Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.
Depreciation has been provided at the following rates so as to write off the cost or valuation of the assets less their residual value over their estimated useful lives.
Plant, machinery and office equipment 20% reducing balance basis per annum
Motor Vehicles 33.33% straight line basis per annum
Computer and website 20% reducing balance basis and straight line basis per annum
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Financial Instruments
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, loans to related parties and investments in non-puttable ordinary shares.
Financial assets are measued at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in profit and loss.
The impairment loss for financial assets measured at cost 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 balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Impairment of non-financial assets
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.
Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.
Stock
Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Debtors
Short term debtors are measured at transaction price, less any impairment.
Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.
Leases
Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
Work in progress
Work in progress has been valued at the lower of cost and estimated selling price less cost to complete and sell. Cost comprises the cost of materials and direct labour relevant to the stage of construction.
Taxation
Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. 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 taxable profits.
Deferred tax is measured using 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.
Current and deferred tax assets and liabilities are not discounted.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Foreign currencies
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.
Borrowing costs
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Provisions
A provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use is recognised. The provision is measured at the salary cost payable for the period of absence.
Pensions
The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
Research and development
Expenditure on research and development is written off against profits in the year in which it is incurred.
3 TRANSITION TO FRS 102
This is the first year in which the financial statements have been prepared under FRS 102. Note 14 gives an explanation of the effects of the transition.
4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
No significant accounting estimates and judgements have had to be made by the director in preparing these financial statements.
5 EMPLOYEES
The average number of persons employed by the company (including directors) during the year was:
2017 2016
Average number of employees 47 39
6 DIRECTOR'S REMUNERATION
2017 2016
Remuneration paid to the director during the year was: 8,060 28,302
7 TANGIBLE ASSETS
Plant, machinery and office equipment Motor Vehicles Computer and website Total
£ £ £ £
Cost
At 1 April 2016 419,354 7,000 10,830 437,184
Additions 63,925 37,166 2,343 103,434
At 31 March 2017 483,279 44,166 13,173 540,618
Accumulated depreciation
At 1 April 2016 283,616 5,351 2,166 291,133
Charge for year 40,707 7,843 2,244 50,794
At 31 March 2017 324,323 13,194 4,410 341,927
Net book value
At 1 April 2016 135,738 1,649 8,664 146,051
At 31 March 2017 158,956 30,972 8,763 198,691
Included in the above are assets held under finance leases and hire purchase contracts as follows:
Plant, machinery and office equipment Motor Vehicles Computer and website Total
£ £ £ £
Depreciation charge for year - 3,896 - 3,896
Net book value
At 1 April 2016 - - - -
At 31 March 2017 - 19,484 - 19,484
The assets held under finance leases are secured against the assets to which they relate.
8 DEBTORS
2017 2016
£ £
Trade debtors 846,913 817,740
Amounts owed by group undertakings 2,578,711 1,790,452
Prepayments and accrued income 30,718 14,768
Other debtors - 8,890
3,456,342 2,631,850
9 CREDITORS: Amounts falling due within one year
2017 2016
£ £
Bank loans and overdrafts 133,906 133,914
Trade creditors 253,284 340,847
Corporation tax 55,807 107,988
Other taxation and social security 110,078 133,810
Hire purchase contracts and finance leases 7,000 -
Accruals and deferred income 57,060 44,738
Other creditors 611,580 681,201
1,228,715 1,442,498
Included in other creditors is an advance from the director (Note 12) of £2,940 (2016 = £nil). This advance is interest free and has no fixed date of repayment.
The company has a Confidential Invoice Discounting facility and a loan arrangement in place with Shawbrook Bank Limited. Shawbrook Bank Limited holds a fixed and floating charge over the assets of Display Mode Limited and its holding company, Ashbrook Rees Ltd. The loan is to be repaid over 36 months with interest charged at 4.5% above the Bank of England base rate. At the year end the company had secured loans totalling £256,686 (2016 = £390,586) (Notes 9 and 10) and secured other creditors totalling £607,840 (2016 = £678,492) (Note 9).
10 CREDITORS: Amounts falling due after more than one year
2017 2016
£ £
Bank loans and overdrafts 122,780 256,672
11 CONTINGENCIES AND COMMITMENTS
Not provided
Deferred Tax Assets 2017 2016
£ £
Capital losses 7,929 7,929
Balance carried forward 7,929 7,929
Other Commitments
Amounts falling due under operating leases: 2017 2016
£ £
In less than one year 1,005 -
In more than one but less than five years 399,394 480,774
400,399 480,774
Amounts falling due under operating leases for land and buildings: 2017 2016
£ £
In more than five years 314,327 349,327
12 RELATED PARTY TRANSACTIONS
The director made an advance to the company during the year. The following amount was due to the director at the year end:
2017 2016
£ £
L Edwards 2,940 -
The company has claimed exemptions from reporting disclosure of related party transactions for the following wholly owned entities:
Ashbrook Rees Ltd Parent company
During the year, the following transactions with related parties took place:
Ashbrook Rees Pension Scheme
Connected Party Mr and Mrs Edwards are Trustees of the pension scheme
2017 2016
£ £
Rental Expenses Ashbrook Rees Pension Scheme charged Display Mode Limited rent totalling: (35,000) (2,019)
Licence fees Ashbrook Rees Pension Scheme charged Display Mode Limited licence fees totalling: (93,564) (7,797)
Other transaction Display Mode Limited sold its intellectual property and freehold property to Ashbrook Rees Pension Scheme. The total consideration paid to Display Mode Limited was: - 689,000
13 PARENT COMPANY
The company is a subsidiary undertaking of Ashbrook Rees Ltd.
14 RECONCILIATIONS ON ADOPTION OF FRS 102
These financial statements for the year ended 31 March 2017 are the first financial statements that comply with FRS 102. The date of transition to FRS 102 is 1 April 2015.
Profit and loss for the year ended 31 March 2016 £
Profit for the year under former UK GAAP 682,641
Profit for the year under FRS 102 682,641
Balance sheet at 31 March 2016 £
Equity under former UK GAAP 1,741,559
Equity under FRS 102 1,741,559
Balance sheet at 1 April 2015 £
Equity under former UK GAAP 1,352,918
Equity under FRS 102 1,352,918
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