Company Registration No. 09794805 (England and Wales)
HENRY BOOT BARNFIELD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
HENRY BOOT BARNFIELD LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
HENRY BOOT BARNFIELD LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
Current assets
Inventories
4
200,000
1,199,342
Trade and other receivables
5
176,827
1,302,019
Cash and cash equivalents
89,192
11,185
466,019
2,512,546
Current liabilities
Trade and other payables
7
92,715
79,031
Taxation and social security
309,476
87,319
402,191
166,350
Net current assets
63,828
2,346,196
Total assets less current liabilities
63,828
2,346,196
Net assets
63,828
2,346,196
Equity
Called up share capital
8
2
1,600,000
Retained earnings
63,826
746,196
Total equity
63,828
2,346,196
The financial statements were approved by the board of directors and authorised for issue on 16 August 2022 and are signed on its behalf by:
Mr A J Couper
Director
Company Registration No. 09794805
HENRY BOOT BARNFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Henry Boot Barnfield Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Kenyon Road, Lomeshaye Industrial Estate, Nelson, Lancashire, BB9 5SP. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below and are unchanged from the prior year.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
1.2
Going concern
The truedirectors have, at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Whilst the directors have adopted the going concern basis set out above, the impact of the worldwide Coronavirus pandemic, Covid-19, on all businesses represents an uncertainty and the true impact of this pandemic will only become apparent over time.
The directors have given due consideration to the impact of the pandemic on the company and consider that it will have adequate resources to manage that impact.
1.3
Revenue
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer.
For construction contracts, where the outcome of a contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
For construction contracts, the “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
HENRY BOOT BARNFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
Revenue from the sale of land and properties generally represents a single performance obligation which is satisfied at the point in time when control of the land and properties has passed to the customer, this is typically on legal completion when legal title has transferred.
1.4
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.5
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. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those at fair value through profit or 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 of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when the company transfers the financial asset and substantially transfers all the risks and rewards of ownership to another entity.
HENRY BOOT BARNFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.7
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
2
Critical accounting estimates and judgements
In the application of IFRS 15 Revenue from Contracts with Customers, the directors have been 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 considered to be 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Key sources of estimation uncertainty
Recognition of revenue on contruction contracts over time
Construction contract revenue is recognised in accordance with the stage of completion of the contract where the outcome of the contract can be estimated reliably. The principal method used to recognise the stage of completion of a contract is a survey of the work performed and costs to complete.
HENRY BOOT BARNFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Directors
6
6
The directors are remunerated by the shareholder companies.
4
Inventories
2021
2020
£
£
Work in progress
200,000
1,199,342
5
Trade and other receivables
2021
2020
£
£
Trade receivables
1
46,370
VAT recoverable
330
Amount due from parent undertaking
79,933
Amounts due from related parties
96,563
1,251,998
Prepayments
3,651
176,827
1,302,019
At 31 December 2021 the company was owed £79,933 (2020 - £727,435) by Henry Boot Developments Limited, a 50% shareholder of the entity.
At 31 December 2021 the company was owed £nil (2020 - £368,000) by Barnfield Construction Limited, a 50% shareholder of the entity.
At 31 December 2021 the company was owed £96,563 (2020 - £96,563) by HBB Roman Way Limited for costs incurred on their behalf. This company is under common control of the shareholders.
The loans are interest free.
6
Liabilities
2021
2020
Notes
£
£
Trade and other payables
7
92,715
79,031
Taxation and social security
309,476
87,319
402,191
166,350
HENRY BOOT BARNFIELD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
7
Trade and other payables
2021
2020
£
£
Trade payables
9,055
28,427
Amount owed to parent undertaking
81,910
Accruals and deferred income
1,750
50,604
92,715
79,031
The amount due to parent undertaking is due to Barnfield Construction Limited, one of the company's immediate shareholder companies.
8
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
1,600,000
2
1,600,000
Reconciliation of movements during the year:
Number
At 1 January 2021
1,600,000
Share capital reduction
(1,599,998)
At 31 December 2021
2
During the year the company reduced its issued share capital by 1,599,998 ordinary shares of £1 each to 2 ordinary shares of £1 each.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Jane Smith and the auditor was Pierce C A Limited.
10
Capital risk management
The company is not subject to any externally imposed capital requirements.