Display Mode Limited - Filleted accounts

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