Audio Images Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 03204191 (England and Wales)

Report of the Director and

Unaudited Financial Statements for the Year Ended 31 August 2017

for

Audio Images Limited

Page

Company Information

1

Report of the Director

2

Income Statement

3

Statement of Financial Position

4

Notes to the Financial Statements

6

DIRECTOR:

A R Weldon

REGISTERED OFFICE:

284 Glossop Road

Sheffield

South Yorkshire

S10 2HS

REGISTERED NUMBER:

03204191 (England and Wales)

ACCOUNTANTS:

Fisher & Company Limited

Kingfisher House

65 Market Place

Market Weighton

York

East Riding of Yorks

YO43 3AN

SOLICITORS:

Taylor & Emmet LLP

20 Arundel Gate

Sheffield

South Yorkshire

S1 2PP

The director presents his report with the financial statements of the company for the year ended 31 August 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of hi-fi retailers and advisors.

DIRECTOR

A R Weldon held office during the whole of the period from 1 September 2016 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

A R Weldon - Director

30 May 2018

REVENUE

502,142

582,561

Cost of sales

326,445

399,863

GROSS PROFIT

175,697

182,698

Administrative expenses

134,737

129,046

40,960

53,652

Interest payable and similar expenses

6,579

6,237

PROFIT BEFORE TAXATION

34,381

47,415

Tax on profit

7,624

10,456

PROFIT FOR THE FINANCIAL YEAR

26,757

36,959

FIXED ASSETS

Intangible assets

4

-

-

Property, plant and equipment

5

115,763

88,557

115,763

88,557

CURRENT ASSETS

Inventories

302,981

328,693

Debtors

6

32,012

14,526

Cash at bank and in hand

29,101

2,797

364,094

346,016

CREDITORS

Amounts falling due within one year

7

184,194

131,716

NET CURRENT ASSETS

179,900

214,300

TOTAL ASSETS LESS CURRENT LIABILITIES

295,663

302,857

CREDITORS

Amounts falling due after more than one year

8

(113,725

)

(133,985

)

PROVISIONS FOR LIABILITIES

(13,841

)

(7,532

)

NET ASSETS

168,097

161,340

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

168,096

161,339

SHAREHOLDERS' FUNDS

168,097

161,340

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2017 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the director on 30 May 2018 and were signed by:

A R Weldon - Director

1.	STATUTORY INFORMATION

Audio Images 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.

No material uncertainties that may cast doubt about the ability of the company to continue as a going concern

have been identified by the directors.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates

and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other

sources. The estimates and associated assumptions are based on the directors historical experience and

knowledge as well as other factors which may be considered relevant, as a result the actual results may differ

from these estimates.

The estimates and underlying assumptions applied are reviewed by the directors on an ongoing basis.

Revisions to these accounting estimates are recognised in the period to which the the revisions have been ,

revised where these revisions affect only that period, or in the period of revision and future periods where this

revision would affect both current and future periods.

No key sources of estimation uncertainty are noted by management that have a significant effect on the amounts

recognised in the financial statements.

Revenue recognition

Revenue for the sale of services, goods and materials is recognised when these are delivered or used and legal

title of the goods supplied has passed to the customer, sales are made on a credit and cash basis. The amounts

reported are net of VAT and trade discounts.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment

losses.

Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost less

estimated residual value, of each item on a systematic basis over their expected useful lives as follows:

Land and buildings

- 4% on cost

Plant and machinery etc

- 10% to 25% on cost, 10% to 25% on a reducing balance basis

Assets held under hire purchase agreements of finance leases are depreciated in the same way as owned assets.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine

whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the

recoverable amount of an 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 fo the asset, the Company estimates the recoverable amount

of the cash-generating unit to which the asset belongs.

Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to sale. Inventories are recognised

as an expenses in the period in which the related revenue is recognised.

Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present

location and condition. Provision is made for damaged, obsolete and slow moving stock where appropriate.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar

debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented

as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the

profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding

liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability

then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited

direct to equity.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Short-term employee benefits are recognised as an expense on the period they are incurred.

The obligations for contributions to the defined contribution schemes are recognised as an expense in the period

they are incurred. The assets of the schemes are held separately from those of the company in independently

administered funds.

Debtors and creditors receivable / payable within one year

i) Trade and other debtors:

Short term trade and other debtors are initially measured at transaction price, less any impairment. Loans

receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at

amortised costs using the effective interest method, less any impairment.

ii) Trade and other creditors:

Short term trade and other creditors are initially measured at the transaction price, Other financial liabilities,

including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently

at amortised cost using the effective interest method.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term

highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance

sheet, bank overdrafts are shown within borrowings or current liabilities.

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:

(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the company or

exercise significant influence over the company in the making of financial and operating policy decisions, or has

overall or joint control over the company;

(ii) the company and the party are subject to common control;

(iii) the party is an associate of the company a joint venture in which the company is a party to;

(iv) the party is a member of key management personnel of the company or the company's parent, or a close

family member of such an individual, or is an entity under the control, joint control or significant influence of

such individuals;

(v) the party is a close family member of a party referred to within (i) or is an entity under the control, joint

control or has significant influence of such individuals;

(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or of any

entity that is a related party of the company;

(vii) the party, or any member of a group of which it is part of, provides key management personnel services to

the company or the group.

Close family members of an individual are those family members who may be expected to influence or be

influenced by, the relevant individuals in their dealings with the entity.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2016 - 3 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 September 2016

and 31 August 2017

10,000

AMORTISATION

At 1 September 2016

and 31 August 2017

10,000

NET BOOK VALUE

At 31 August 2017

-

At 31 August 2016

-

5.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 September 2016

117,139

88,561

205,700

Additions

-

47,545

47,545

Disposals

(10,494

)

(18,725

)

(29,219

)

At 31 August 2017

106,645

117,381

224,026

DEPRECIATION

At 1 September 2016

68,783

48,360

117,143

Charge for year

3,267

7,878

11,145

Eliminated on disposal

(8,396

)

(11,629

)

(20,025

)

At 31 August 2017

63,654

44,609

108,263

NET BOOK VALUE

At 31 August 2017

42,991

72,772

115,763

At 31 August 2016

48,356

40,201

88,557

Included in cost of land and buildings is freehold land of £ 25,000 (2016 - £ 25,000 ) which is not depreciated.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

At 1 September 2016

and 31 August 2017

24,794

DEPRECIATION

At 1 September 2016

19

Charge for year

6,194

At 31 August 2017

6,213

NET BOOK VALUE

At 31 August 2017

18,581

At 31 August 2016

24,775

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

20,600

555

Other debtors

11,412

13,971

32,012

14,526

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

11,818

11,212

Hire purchase contracts

8,360

7,975

Trade creditors

55,294

22,896

Taxation and social security

2,477

7,023

Other creditors

106,245

82,610

184,194

131,716

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Bank loans

104,981

116,881

Hire purchase contracts

8,744

17,104

113,725

133,985

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

53,072

67,299

9.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank loans

116,799

128,093

Hire purchase contracts

17,104

25,079

133,903

153,172

The bank overdraft facility and mortgage have been secured on the leasehold land and buildings.

Secured against the specific assets held under finance agreements.

10.	ULTIMATE CONTROLLING PARTY

The controlling party is A R Weldon.

11.	TRANSITION TO FRS 102

This is the first year the company has presented its results under FRS 102. The last financial statements prepared

under UK GAAP were for the year ended 31 August 2016. The date of transition to FRS 102 was 1 September

2015.

The effect of transition from the previous UK GAAP to FRS 102 is outlined below:

(i) There were no consequential changes in accounting policies as a result of the transition;

(ii) There were no adjustments to previously reported equity shareholders' fund at the date of transition;

(iii) There were no adjustments to the previously reported profit in the comparative period.