Cowley & Son Limited 03040292 false 2020-09-01 2021-08-31 2021-08-31 The principal activity of the company is that of funeral directors Digita Accounts Production Advanced 6.30.9574.0 true true 03040292 2020-09-01 2021-08-31 03040292 2021-08-31 03040292 core:AcceleratedTaxDepreciationDeferredTax 2021-08-31 03040292 core:RevaluationPropertyDeferredTax 2021-08-31 03040292 core:RetainedEarningsAccumulatedLosses 2021-08-31 03040292 core:RevaluationReserve 2021-08-31 03040292 core:ShareCapital 2021-08-31 03040292 core:CurrentFinancialInstruments 2021-08-31 03040292 core:CurrentFinancialInstruments core:WithinOneYear 2021-08-31 03040292 core:CurrentFinancialInstruments core:Secured 2021-08-31 03040292 core:Non-currentFinancialInstruments 2021-08-31 03040292 core:Non-currentFinancialInstruments core:AfterOneYear 2021-08-31 03040292 core:Goodwill 2021-08-31 03040292 core:MoreThanFiveYears 1 2021-08-31 03040292 core:FurnitureFittingsToolsEquipment 2021-08-31 03040292 core:LandBuildings 2021-08-31 03040292 core:MotorVehicles 2021-08-31 03040292 bus:SmallEntities 2020-09-01 2021-08-31 03040292 bus:AuditExemptWithAccountantsReport 2020-09-01 2021-08-31 03040292 bus:FullAccounts 2020-09-01 2021-08-31 03040292 bus:SmallCompaniesRegimeForAccounts 2020-09-01 2021-08-31 03040292 bus:RegisteredOffice 2020-09-01 2021-08-31 03040292 bus:Director1 2020-09-01 2021-08-31 03040292 bus:PrivateLimitedCompanyLtd 2020-09-01 2021-08-31 03040292 core:Goodwill 2020-09-01 2021-08-31 03040292 core:FurnitureFittings 2020-09-01 2021-08-31 03040292 core:FurnitureFittingsToolsEquipment 2020-09-01 2021-08-31 03040292 core:LandBuildings 2020-09-01 2021-08-31 03040292 core:MotorVehicles 2020-09-01 2021-08-31 03040292 core:OtherRelatedParties 2020-09-01 2021-08-31 03040292 core:Subsidiary1 2020-09-01 2021-08-31 03040292 core:Subsidiary1 1 2020-09-01 2021-08-31 03040292 core:Subsidiary1 countries:UnitedKingdom 2020-09-01 2021-08-31 03040292 countries:AllCountries 2020-09-01 2021-08-31 03040292 2020-08-31 03040292 core:Goodwill 2020-08-31 03040292 core:FurnitureFittingsToolsEquipment 2020-08-31 03040292 core:LandBuildings 2020-08-31 03040292 core:MotorVehicles 2020-08-31 03040292 2019-09-01 2020-08-31 03040292 2020-08-31 03040292 core:AcceleratedTaxDepreciationDeferredTax 2020-08-31 03040292 core:RevaluationPropertyDeferredTax 2020-08-31 03040292 core:RetainedEarningsAccumulatedLosses 2020-08-31 03040292 core:RevaluationReserve 2020-08-31 03040292 core:ShareCapital 2020-08-31 03040292 core:CurrentFinancialInstruments 2020-08-31 03040292 core:CurrentFinancialInstruments core:WithinOneYear 2020-08-31 03040292 core:CurrentFinancialInstruments core:Secured 2020-08-31 03040292 core:Non-currentFinancialInstruments 2020-08-31 03040292 core:Non-currentFinancialInstruments core:AfterOneYear 2020-08-31 03040292 core:Goodwill 2020-08-31 03040292 core:MoreThanFiveYears 1 2020-08-31 03040292 core:FurnitureFittingsToolsEquipment 2020-08-31 03040292 core:LandBuildings 2020-08-31 03040292 core:MotorVehicles 2020-08-31 03040292 core:Subsidiary1 1 2019-09-01 2020-08-31 iso4217:GBP xbrli:pure

Registration number: 03040292

Prepared for the registrar

Cowley & Son Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2021

 

Cowley & Son Limited

(Registration number: 03040292)
Balance Sheet as at 31 August 2021

Note

2021
 £

2020
 £

Fixed assets

 

Intangible assets

4

65,000

65,000

Tangible assets

5

785,114

708,207

Investments

6

1

1

 

850,115

773,208

Current assets

 

Stocks

7

2,400

2,200

Debtors

8

300,758

309,921

Cash at bank and in hand

 

353,575

267,813

 

656,733

579,934

Creditors: Amounts falling due within one year

9

(429,954)

(324,362)

Net current assets

 

226,779

255,572

Total assets less current liabilities

 

1,076,894

1,028,780

Creditors: Amounts falling due after more than one year

9

(560,674)

(554,414)

Deferred tax liabilities

10

(93,199)

(87,298)

Net assets

 

423,021

387,068

Capital and reserves

 

Called up share capital

4

4

Revaluation reserve

324,960

324,960

Profit and loss account

98,057

62,104

Total equity

 

423,021

387,068

 

Cowley & Son Limited

(Registration number: 03040292)
Balance Sheet as at 31 August 2021

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

 

Cowley & Son 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.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts.

Judgements

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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Cowley & Son Limited

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

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.

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

Freehold land and buildings

No depreciation

Fixtures, fittings and equipment

15% reducing balance

Motor vehicles

15% reducing balance

The freehold property is not depreciated, as it is revalued each year to reflect its market value.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

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

 

Cowley & Son Limited

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

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

Stocks

Stock is stated at the lower of cost and net realisable value.

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.

 

Cowley & Son 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.

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.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 20 (2020 - 20).

 

4

Intangible assets

Goodwill
 £

Cost

At 1 September 2020

65,000

At 31 August 2021

65,000

Amortisation

Carrying amount

At 31 August 2021

65,000

At 31 August 2020

65,000

 

Cowley & Son Limited

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

 

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 September 2020

470,000

115,825

314,839

900,664

Additions

46,084

3,943

138,475

188,502

Disposals

-

-

(123,191)

(123,191)

At 31 August 2021

516,084

119,768

330,123

965,975

Depreciation

At 1 September 2020

-

94,549

97,908

192,457

Charge for the year

-

3,400

32,540

35,940

Eliminated on disposal

-

-

(47,536)

(47,536)

At 31 August 2021

-

97,949

82,912

180,861

Carrying amount

At 31 August 2021

516,084

21,819

247,211

785,114

At 31 August 2020

470,000

21,276

216,931

708,207

 

6

Investments

2021
£

2020
£

Investments in subsidiaries

1

1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2021

2020

Subsidiary undertakings

Churn Properties Limited

Triangle House
62 Victoria Road
Cirencester
Gloucestershire
GL7 1ES

United Kingdom

Ordinary

100%

100%

 

Cowley & Son Limited

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

Subsidiary undertakings

Churn Properties Limited

The principal activity of Churn Properties Limited is Property development..

 

7

Stocks

2021
 £

2020
 £

Raw materials and consumables

2,400

2,200

 

8

Debtors

Note

2021
 £

2020
 £

Trade debtors

 

13,256

45,084

Amounts owed by related parties

12

263,991

247,257

Other debtors

 

21,489

16,682

Prepayments

 

2,022

898

   

300,758

309,921

 

9

Creditors

Note

2021
 £

2020
 £

Due within one year

 

Loans and borrowings

11

86,700

81,503

Trade creditors

 

65,425

44,275

Social security and other taxes

 

5,112

14,880

Outstanding defined contribution pension costs

 

994

2,289

Other creditors

 

57,461

17,237

Accrued expenses

 

80,390

60,694

Corporation tax liability

133,872

103,484

 

429,954

324,362

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

11

560,674

554,414

2021
£

2020
£

After more than five years by instalments

251,841

254,559

-

-

 

Cowley & Son Limited

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

 

10

Deferred tax

Deferred tax assets and liabilities

2021

Liability
£

Difference between accumulated depreciation and capital allowances

51,116

Revaluation of property

42,084

 

93,200

2020

Liability
£

Difference between accumulated depreciation and capital allowances

45,215

Revaluation of property

42,084

 

87,299

 

11

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Bank borrowings (secured)

16,019

12,429

Hire purchase liability

40,653

39,046

Directors' loans

18,028

18,028

Other borrowings

12,000

12,000

86,700

81,503

2021
£

2020
£

Non-current loans and borrowings

Bank borrowings (secured)

290,647

305,797

Hire purchase liability

174,308

145,119

Other borrowings

95,719

103,498

560,674

554,414

 

Cowley & Son Limited

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

 

12

Related party transactions

At 31 August 2021, the company owed the directors N P Keen £9,580 (2020: £9,580) in the form of a directors loan account. The loan is unsecured, interest free and repayable on demand.

At 31 August 2021, the company owed the directors R L Orford and C P Orford £8,448 (2020: £8,448) in the form of a directors loan account. The loan is unsecured, interest free and repayable on demand.
 

Summary of transactions with other related parties

The following entities are under the common control of the directors N P Keen and R L H Orford:

Matthews Independent Funeral Directors Limited

Churn Properties Limited is the wholly owned subsidiary of Cowley & Son Limited

Cowley pension scheme

At 31 August 2021, Cowley & Son Limited owed £40,248 (2020: Cowley & Son Limited was owed £2,162) to Matthews Independent Funeral Directors Limited.

At 31 August 2021, Cowley & Son Limited was owed £263,991 (2020: £245,095) from Churn Properties Limited.

At 31 August 2021, Cowley & Son Limited owed the Cowley pension scheme £107,719 (2020: £115,498).

All loans are unsecured, interest free and repayable on demand.