AWEBB Limited - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: 01274531 (England and Wales)

Financial Statements

for the Year Ended 31 May 2017

for

Association of Wholesale Electrical Bulk

Buyers Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

K A Avenell

N W Butler

S Graydon

S Grimshaw

L J Hassell

A S Johnson

SECRETARY:

S K Robinson

REGISTERED OFFICE:

AWEBB House

2 Kensington Works

Hallam Fields Road

Ilkeston

Derbyshire

DE7 4BR

REGISTERED NUMBER:

01274531 (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

220,461

223,628

Investments

5

2,707

2,707

223,168

226,335

CURRENT ASSETS

Debtors

6

2,244,826

1,951,664

Cash at bank and in hand

2,248,608

1,246,873

4,493,434

3,198,537

CREDITORS

Amounts falling due within one year

7

3,757,575

2,494,933

NET CURRENT ASSETS

735,859

703,604

TOTAL ASSETS LESS CURRENT LIABILITIES

959,027

929,939

RESERVES

Revaluation reserve

8

42,623

43,511

Income and expenditure account

916,404

886,428

959,027

929,939

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 Board of Directors on 13 September 2017 and were signed on its behalf by:

S Grimshaw - Director

S Graydon - Director

1.	STATUTORY INFORMATION

Association of Wholesale Electrical Bulk Buyers Limited is a private company, limited by guarantee ,

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.

Preparation of consolidated financial statements

The financial statements contain information about Association of Wholesale Electrical Bulk Buyers

Limited as an individual company and do not contain consolidated financial information as the parent

of a group. The company has taken the option under Section 398 of the Companies Act 2006 not to

prepare consolidated financial statements.

Turnover

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

rebates, value added tax and other sales taxes.

The company recognises turnover where the amount of revenue and related cost can be measured

reliably.

The following accounting policies relate to the key income streams:-

Membership and marketing subscriptions are recognised in the accounting period to which the services

are covered by those subscriptions.

Joining fees are accounted for in the year in which the member joins the association.

AGM donations are paid by members and suppliers and are recognised in the period in which the AGM

takes place.

Tangible fixed assets

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

Land and buildings

-

Straight line over 100 years

Plant and machinery etc

-

25% on reducing balance and 20% 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.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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 4 (2016 - 4 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 June 2016

225,000

60,986

25,568

311,554

Additions

-

272

-

272

At 31 May 2017

225,000

61,258

25,568

311,826

DEPRECIATION

At 1 June 2016

6,750

56,801

24,375

87,926

Charge for year

2,250

891

298

3,439

At 31 May 2017

9,000

57,692

24,673

91,365

NET BOOK VALUE

At 31 May 2017

216,000

3,566

895

220,461

At 31 May 2016

218,250

4,185

1,193

223,628

Cost or valuation at 31 May 2017 is represented by:

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

Valuation in 2014

44,399

-

-

44,399

Cost

180,601

61,258

25,568

267,427

225,000

61,258

25,568

311,826

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

historical cost:

2017

2016

£

£

Cost

180,601

180,601

Aggregate depreciation

14,448

12,642

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

.

5.	FIXED ASSET INVESTMENTS

Shares in

group

Unlisted

undertakings

investments

Totals

£

£

£

COST

At 1 June 2016

and 31 May 2017

1

2,706

2,707

NET BOOK VALUE

At 31 May 2017

1

2,706

2,707

At 31 May 2016

1

2,706

2,707

The company's investments at the Balance Sheet date in the share capital of companies include the

following:

Electracentre Distribution Limited

Registered office: England and Wales

Nature of business: Electrical goods wholesaler

%

Class of shares:

holding

Ordinary 'A'

100.00

2017

2016

£

£

Aggregate capital and reserves

1,173,243

999,311

Profit for the year

173,932

143,436

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

2,038,850

1,754,552

Prepayments

205,976

197,112

2,244,826

1,951,664

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

10,585

17,000

VAT

608,367

419,737

Other creditors

3,105,919

1,978,195

Accruals

32,704

80,001

3,757,575

2,494,933

8.

RESERVES

Revaluation

reserve

£

At 1 June 2016

43,511

Transfer of excess depreciation on revaluation

(888

)

At 31 May 2017

42,623

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.	RELATED PARTY DISCLOSURES

The company has an unlimited cross guarantee on all bank borrowings with Electracentre Distribution

Limited. The bank borrowings of Electracentre Distribution Limited at the balance sheet date

amounted to £Nil (2016 : £Nil).

An amount of £86,400 (2016 : £85,050) is to be distributed to the members of the company in relation

to amounts received from Electracentre Distribution Limited.

11.	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.