Electracentre Distribution Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 02627422 (England and Wales)

Financial Statements

for the Year Ended 31 May 2017

for

Electracentre Distribution Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S Graydon

SECRETARY:

S Graydon

REGISTERED OFFICE:

Awebb House

2 Kensington Works

Hallam Fields Road

Ilkeston

Derbyshire

DE7 4BR

REGISTERED NUMBER:

02627422 (England and Wales)

AUDITORS:

Mabe Allen LLP

Chartered Accountants & Statutory Auditors

The Old Manse

29 St. Mary Street

Ilkeston

Derbyshire

DE7 8AB

FIXED ASSETS

Tangible assets

4

229,734

227,706

CURRENT ASSETS

Stocks

502,686

453,204

Debtors

5

528,093

512,199

Cash at bank

438,715

247,230

1,469,494

1,212,633

CREDITORS

Amounts falling due within one year

6

525,985

441,028

NET CURRENT ASSETS

943,509

771,605

TOTAL ASSETS LESS CURRENT LIABILITIES

1,173,243

999,311

CAPITAL AND RESERVES

Called up share capital

7

75

75

Revaluation reserve

8

43,831

44,288

Retained earnings

1,129,337

954,948

SHAREHOLDERS' FUNDS

1,173,243

999,311

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 13 September 2017 and were signed by:

S Graydon - Director

1.	STATUTORY INFORMATION

Electracentre Distribution Limited is a private company, limited by shares , registered in England and

Wales. 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 the provisions of Section 1A "Small

Entities" of 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, as modified to include the revaluation of freehold land and

buildings.

These financial statements for the year ended 31 May 2017 are the first financial statements of the

company prepared in accordance with FRS 102. The date of transition to FRS 102 was 1 June 2015.

The reported financial position and financial performance for the previous period are not affected by

the transition to FRS 102.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

Straight line over 100 years

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation,

net of depreciation and any impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale

proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and

intangible assets to determine whether there is any indication that those assets have suffered an

impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in

order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the

recoverable amount of an individual asset, the company estimates the recoverable amount of the

cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in

use, the estimated future cash flows are discounted to their present value using a pre-tax discount

rate that reflects current market assessments of the time value of money and the risks specific to the

asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its

carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its

recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the

relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a

revaluation decrease.

Stocks

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

obsolete and slow moving items.

Taxation

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

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 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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

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

liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and

Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the

company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements,

when there is a legally enforceable right to set off the recognised amounts and there is an intention to

settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at

transaction price including transaction costs and are subsequently carried at amortised cost using the

effective interest method unless the arrangement constitutes a financing transaction, where the

transaction is measured at the present value of the future receipts discounted at a market rate of

interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators

of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events

that occurred after the initial recognition of the financial asset, the estimated future cash flows have

been affected. If an asset is impaired, the impairment loss is the difference between the carrying

amount and the present value of the estimated cash flows discounted at the asset's original effective

interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal is such that the current carrying amount does

not exceed what the carrying amount would have been, had the impairment not previously been

recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset

expire or are settled, or when the company transfers the financial asset and substantially all the risks

and rewards of ownership to another entity, or if some significant risks and rewards of ownership are

retained but control of the asset has transferred to another party that is able to sell the asset in its

entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and

preference shares that are classified as debt, are initially recognised at transaction price unless the

arrangement constitutes a financing transaction, where the debt instrument is measured at the

present value of the future receipts discounted at a market rate of interest. Financial liabilities

classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary

course of business from suppliers. Amounts payable are classified as current liabilities if payment is

due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are

recognised initially at transaction price and subsequently measured at amortised cost using the

effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are

discharged or cancelled.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date

and the amounts reported for revenues and expenses during the year. However, the nature of

estimation means that actual outcomes could differ from those estimates. The following judgements

have had the most significant effect on amounts recognised in the financial statements:-

Valuation of property

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2016 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 June 2016

225,000

69,510

8,035

302,545

Additions

-

7,763

-

7,763

At 31 May 2017

225,000

77,273

8,035

310,308

DEPRECIATION

At 1 June 2016

6,750

60,874

7,215

74,839

Charge for year

2,250

3,280

205

5,735

At 31 May 2017

9,000

64,154

7,420

80,574

NET BOOK VALUE

At 31 May 2017

216,000

13,119

615

229,734

At 31 May 2016

218,250

8,636

820

227,706

Cost or valuation at 31 May 2017 is represented by:

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

Valuation in 2014

45,659

-

-

45,659

Cost

179,341

77,273

8,035

264,649

225,000

77,273

8,035

310,308

If freehold land and buildings had not been revalued they would have been included at the following

historical cost:

2017

2016

£

£

Cost

179,341

179,341

Aggregate depreciation

12,551

10,758

Freehold land and buildings were valued on an open market basis on 5 August 2013 by Musson Liggins Chartered Surveyors

.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

512,688

495,367

Prepayments

15,405

16,832

528,093

512,199

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

410,148

344,754

Corporation tax

42,467

36,881

Social security and other taxes

35,576

22,594

Accruals

37,794

36,799

525,985

441,028

7.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1

Ordinary 'A'

£1

1

1

74

Ordinary 'B'

£1

74

74

75

75

8.

RESERVES

Revaluation

reserve

£

At 1 June 2016

44,288

Transfer of excess depreciation on revaluation

(457

)

At 31 May 2017

43,831

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Kevin Slack FCA (Senior Statutory Auditor)

for and on behalf of Mabe Allen LLP

10.	AUDITOR LIABILITY LIMITATION AGREEMENT

The auditors' liability limitation has been set at £500,000. This approval has been confirmed in the

letter of representation dated 22 August 2017.

11.	ULTIMATE CONTROLLING PARTY

The controlling party is Association of Wholesale Electrical Bulk Buyers Limited.

The company is controlled by Association of Wholesale Electrical Bulk Buyers Limited, a company

registered in England and Wales, by virtue of it holding 100% of the Ordinary 'A' share capital.