Bayberry Limited - Period Ending 2019-02-28

Registration number: 06809492

Bayberry Limited

Unaudited Financial Statements

for the Year Ended 28 February 2019

Bayberry Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 13

Bayberry Limited

Company Information

Directors

Mrs V Y A Blount A Blount Mrs A P Cooper

Registered office

34 Boulevard Weston-super-Mare Somerset BS23 1NF

Accountants

Four Fifty Partnership Chartered Accountants 34 Boulevard Weston-super-Mare Somerset BS23 1NF

Page 1

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Bayberry Limited
for the Year Ended 28 February 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Bayberry Limited for the year ended 28 February 2019 as set out on pages 3 to 13 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 Bayberry 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 Bayberry Limited and state those matters that we have agreed to state to the Board of Directors of Bayberry 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 Bayberry Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Bayberry 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 Bayberry Limited. You consider that Bayberry 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 Bayberry 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.

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

Four Fifty Partnership
Chartered Accountants
34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

29 November 2019

Page 2

Bayberry Limited

(Registration number: 06809492)
Balance Sheet as at 28 February 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	107,149	104,791
Current assets
Debtors	5	21,724	32,048
Cash at bank and in hand		34,594	494
		56,318	32,542
Creditors: Amounts falling due within one year	6	(787,816)	(762,039)
Net current liabilities		(731,498)	(729,497)
Net liabilities		(624,349)	(624,706)
Capital and reserves
Called up share capital	8	125	6
Profit and loss account		(624,474)	(624,712)
Total equity		(624,349)	(624,706)

For the financial year ending 28 February 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 3

Bayberry Limited

(Registration number: 06809492)
Balance Sheet as at 28 February 2019

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 Board on 29 November 2019 and signed on its behalf by:
 

......................................... Mrs A P Cooper Director

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 4

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

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:
34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF
United Kingdom

The principal place of business is:
Glebe Farm
Small Lane
Earlswood
West Midlands
B94 5EL
United Kingdom

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 presentation currency of the financial statements is the Pound Sterling (£).

Page 5

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

2	Accounting policies (continued)

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will continue to trade in operational existence for the forseeable future. At 28 February 2019, the company had net current liabilities of £731,498 (2018 - £729,497) and a net liabilities position of £624,349 (2018 - £624,706). The directors have considered the position of the company with respect to its obligations to ensure that the business can continue in operational existence for the forseeable future, and confirm their approval to adopt the going concern basis for preparing the accounts.

The assumptions the directors have made in reaching this conclusion may be summarised as folows:

- Included in the net current liabilities balance is an amount outstanding to the directors of £586,431 (2018 - £569,933). The directors have confirmed that they will not seek repayment of this loan until such time as the company has sufficient funds to do so.

- the company has been able to maintain break even for the past two years and on review of post year end finanical records, appears to be profitable.

On the basis of the above, and all other information available, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the 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.

Tax

The tax expense for the period comprises current 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 6

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

2	Accounting policies (continued)

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 countries where the company operates and generates taxable income.

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

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
Improvements to property	Straight line over term of lease
Fixtures and fittings	25% reducing balance
Computer equipment (included within fixtures and fittings)	25% on cost
Motor vehicle	25% reducing balance
Plant and machinery	25% reducing balance

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 clients for 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.

Page 7

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

2	Accounting policies (continued)

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.

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.

Page 8

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

2	Accounting policies (continued)

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
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company, after deducting all liabilities.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 39 (2018 - 43).

Page 9

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

4	Tangible assets

	Improvements to property £	Fixtures and fittings  £	Motor vehicles  £	Plant and machinery  £	Total £
Cost or valuation
At 1 March 2018	42,917	166,430	25,800	17,695	252,842
Additions	-	23,853	9,215	9,523	42,591
Disposals	(23,799)	-	(12,000)	-	(35,799)
At 28 February 2019	19,118	190,283	23,015	27,218	259,634
Depreciation
At 1 March 2018	25,485	99,069	15,103	8,393	148,050
Charge for the year	5,961	21,660	2,931	3,916	34,468
Eliminated on disposal	(23,799)	-	(6,234)	-	(30,033)
At 28 February 2019	7,647	120,729	11,800	12,309	152,485
Carrying amount
At 28 February 2019	11,471	69,554	11,215	14,909	107,149
At 28 February 2018	17,432	67,361	10,697	9,301	104,791

5

Debtors

	2019 £	2018 £
Trade debtors	-	2,340
Prepayments	9,518	7,418
Other debtors	12,206	22,290
	21,724	32,048

Page 10

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

6

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Bank loans and overdrafts	9	-	19,467
Trade creditors		14,655	53,163
Taxation and social security		50,744	67,577
Accruals and deferred income		120,689	38,520
Other creditors		601,728	583,312
		787,816	762,039

7	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	33,108	21,635
Later than one year and not later than five years	180,000	345,400
	213,108	367,035

Page 11

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary shares of £1 each	-	-	6	6
Ordinary 'A' shares of £1 each	50	50	-	-
Ordinary 'B' shares of £1 each	50	50	-	-
Ordinary 'C' shares of £1 each	25	25	-	-
	125	125	6	6

During the year, the company issued a further 94 ordinary shares for a par value of £1 per share. These shares were then split into 50 ordinary 'A' shares and 50 ordinary 'B' shares.

Further to this, an additional 25 ordinary 'C' shares were issued for a par value of £1 during the year.

9	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank overdrafts	-	19,467

Page 12

Bayberry Limited

Notes to the Financial Statements for the Year Ended 28 February 2019

10	Related party transactions

Transactions with directors

2019	At 1 March 2018 £	Advances to director £	Repayments by director £	At 28 February 2019 £
A Blount
Directors loan account	(294,082)	33,558	(54,772)	(315,296)
Mrs V Y A Blount
Directors loan account	(275,850)	4,715	-	(271,135)
Mrs A P Cooper
Directors loan account	-	36	-	36

2018	At 1 March 2017 £	Advances to director £	Repayments by director £	At 28 February 2018 £
A Blount
Directors loan account	(294,863)	87,042	(86,261)	(294,082)
Mrs V Y A Blount
Directors loan account	(282,560)	40,460	(33,750)	(275,850)

Page 13