Background Trading Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09714577 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

1 SEPTEMBER 2016 TO 31 DECEMBER 2017

FOR

BACKGROUND TRADING LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

Mr L B Hyams

Mr J B Rule

REGISTERED OFFICE:

1 Kings Avenue

London

N21 3NA

REGISTERED NUMBER:

09714577 (England and Wales)

ACCOUNTANTS:

AGK Partners

Chartered Accountants

1 Kings Avenue

London

N21 3NA

FIXED ASSETS

Intangible assets

4

571

806

Property, plant and equipment

5

60,688

88,015

61,259

88,821

CURRENT ASSETS

Inventories

29,233

11,983

Debtors

6

64,465

61,178

Cash at bank

146,969

101,523

240,667

174,684

CREDITORS

Amounts falling due within one year

7

160,415

182,299

NET CURRENT ASSETS/(LIABILITIES)

80,252

(7,615

)

TOTAL ASSETS LESS CURRENT LIABILITIES

141,511

81,206

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

141,411

81,106

141,511

81,206

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

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

The directors acknowledge their 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 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 11 April 2018 and were signed on its behalf by:

Mr L B Hyams - Director

1.	STATUTORY INFORMATION

Background Trading 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.

First year adoption of Financial Reporting Standard 102 ( FRS 102) Section 1A

These financial statements for the period ended 31 December 2017 are the first that are prepared in

accordance with FRS 102 Section 1A. The previous financial statements were prepared in accordance with UK

GAAP, the date of transition to FRS 102 Section 1A is 1 September 2015.

As there is no impact of the transition on the financial statements of the company, the reconciliation of equity

and profit and loss is not considered necessary.

Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates

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

sources. The estimates and associated assumptions are based on historical experience and other factors that

are relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised where the revision affects only that

period or in the period of the revision and future periods where the revision affects both current and future

periods.

There are no significant judgements or estimates involved in the preparation of the financial statements.

Revenue

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

value added tax and other sales taxes.

Revenue is recognised when services are rendered to the customers.

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.

Brand and trademarks is being amortised evenly over its estimated useful life of five years.

Property, plant and equipment

Depreciation has been provided at the following rates in order to write off the assets over their estimated useful

lives.

Plant and machinery 25% on reducing balance

Fixtures and fittings 25% on reducing balance

Leasehold additions Over the terms of the lease

Inventories

Inventories 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 period 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.

All material 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 period 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

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.

Cash and cash equivalent

Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand, short

term deposits with an original maturity date of one month. Cash equivalents are defined as short-term, highly

liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant

risk of changes in value.

Financial instruments

Basic financial instruments are recognised at amortised cost, except for investments in non-convertible

preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in

profit or loss.

Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes

recognised in profit and loss.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 10 (2016 - 5 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 September 2016

1,020

Additions

50

At 31 December 2017

1,070

AMORTISATION

At 1 September 2016

214

Charge for period

285

At 31 December 2017

499

NET BOOK VALUE

At 31 December 2017

571

At 31 August 2016

806

5.	PROPERTY, PLANT AND EQUIPMENT

Short

Plant and

leasehold

machinery

Totals

£

£

£

COST

At 1 September 2016

2,853

114,814

117,667

Additions

-

3,938

3,938

At 31 December 2017

2,853

118,752

121,605

DEPRECIATION

At 1 September 2016

942

28,710

29,652

Charge for period

1,255

30,010

31,265

At 31 December 2017

2,197

58,720

60,917

NET BOOK VALUE

At 31 December 2017

656

60,032

60,688

At 31 August 2016

1,911

86,104

88,015

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

12,698

18,672

Other debtors

51,767

42,506

64,465

61,178

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

35,455

58,293

Taxation and social security

62,460

24,269

Other creditors

62,500

99,737

160,415

182,299

8.	RELATED PARTY DISCLOSURES

Included within other creditors is an amount of £22,644 owed to companies under common ownership. This

loan is interest free and repayable on demand.