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Registration number: 05307476

Prepared for the registrar

Matthews Independent Funeral Directors Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2021

 

Matthews Independent Funeral Directors Limited

(Registration number: 05307476)
Balance Sheet as at 31 August 2021

Note

2021
 £

2020
 £

Fixed assets

 

Intangible assets

4

226,918

226,918

Tangible assets

5

230,190

201,805

 

457,108

428,723

Current assets

 

Debtors

6

68,497

32,998

Cash at bank and in hand

 

57,756

74,458

 

126,253

107,456

Creditors: Amounts falling due within one year

7

(261,930)

(223,477)

Net current liabilities

 

(135,677)

(116,021)

Total assets less current liabilities

 

321,431

312,702

Creditors: Amounts falling due after more than one year

7

(259,169)

(238,925)

Deferred tax liabilities

8

(43,736)

(38,343)

Net assets

 

18,526

35,434

Capital and reserves

 

Called up share capital

5

5

Profit and loss account

18,521

35,429

Total equity

 

18,526

35,434

For the financial year ending 31 August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 8 August 2022 and signed on its behalf by:
 


N P Keen
Director

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Triangle House
62 Victoria Road
Cirencester
GL7 1ES

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Judgements or key sources of estimation uncertainty

No significant judgements or key sources of estimation uncertainty have been made by management in preparing these financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, fittings & equipment

15% reducing balance

Motor vehicles

10% reducing balance

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Nil

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Hire purchase

Leases are classified as hire purchase contracts whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under hire purchase are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a hire purchase obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2020 - 5).

 

4

Intangible assets

Goodwill
 £

Cost

At 1 September 2020

226,918

At 31 August 2021

226,918

Amortisation

Carrying amount

At 31 August 2021

226,918

At 31 August 2020

226,918

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

 

5

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 September 2020

13,069

246,589

259,658

Additions

-

138,475

138,475

Disposals

-

(123,191)

(123,191)

At 31 August 2021

13,069

261,873

274,942

Depreciation

At 1 September 2020

11,001

46,852

57,853

Charge for the year

310

19,974

20,284

Eliminated on disposal

-

(33,385)

(33,385)

At 31 August 2021

11,311

33,441

44,752

Carrying amount

At 31 August 2021

1,758

228,432

230,190

At 31 August 2020

2,068

199,737

201,805

 

6

Debtors

Note

2021
 £

2020
 £

Trade debtors

 

18,941

23,605

Amounts owed by related parties

10

40,249

-

Other debtors

 

7,030

7,263

Prepayments

 

2,277

2,130

   

68,497

32,998

 

7

Creditors

Note

2021
 £

2020
 £

Due within one year

 

Loans and borrowings

9

73,735

64,759

Trade creditors

 

28,374

24,597

Amounts due to related parties

10

9,344

10,506

Other creditors

 

9,867

8,378

Accrued expenses

 

45,696

44,181

Corporation tax liability

94,914

71,056

 

261,930

223,477

 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

9

259,169

238,925

2021
£

2020
£

After more than five years by instalments

21,759

-

 

8

Deferred tax

Deferred tax assets and liabilities

2021

Liability
£

Difference between accumulated depreciation and capital allowances

43,736

   

2020

Liability
£

Difference between accumulated depreciation and capital allowances

38,343

   
 

Matthews Independent Funeral Directors Limited

Notes to the Financial Statements for the Year Ended 31 August 2021

 

9

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Bank borrowings (secured)

18,980

15,823

Hire purchase liability

34,756

28,937

Director's loan

19,999

19,999

73,735

64,759

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings (secured)

81,992

99,702

Hire purchase liability

177,177

139,223

259,169

238,925

 

10

Related party transactions

Transactions with directors
At 31 August 2021, the company owed the director J Beesley £9,999 (2020: £9,999) in the form of a director's loan account. The loan is unsecured, interest free and repayable on demand.

At 31 August 2021, the company owed the director R Orford £10,000 (2020: £10,000) in the form of a director's loan account. The loan is unsecured, interest free and repayable on demand.

Summary of transactions with other related parties

At 31 August 2021, £40,249 was owed by Cowley & Son Limited (2020: the company owed £2,162 to Cowley & Son Limited).

At 31 August 2021, £9,344 (2020: £8,344) was owed to Churn Properties Limited by the company. The loans are unsecured, interest free and repayable on demand.

Churn Properties Limited and Cowley & Son Limited are companies under common control of the directors N P Keen and R L H Orford.

 

 

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2020 - £16,250).