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Registration number: 07512728

Orchard Flooring Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2022

 

Orchard Flooring Ltd

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Orchard Flooring Ltd

Company Information

Directors

Mr Garry Cooke

Mrs Jane Elizabeth Cooke

Registered office

Unit 25
Millbrook Close
St James Mill Business Park
Northampton
NN5 5JF

Accountants

KRW Accountants Limited
Chartered Accountants & Tax Advisers
The Mill
Pury Hill Business Park
Alderton Road
Towcester
NN12 7LS

 

Orchard Flooring Ltd

(Registration number: 07512728)
Balance Sheet as at 28 February 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

5

98,066

130,551

Current assets

 

Stocks

6

379,710

234,068

Debtors

7

631,048

649,663

Cash at bank and in hand

 

6

34,043

 

1,010,764

917,774

Creditors: Amounts falling due within one year

8

(642,718)

(413,620)

Net current assets

 

368,046

504,154

Total assets less current liabilities

 

466,112

634,705

Creditors: Amounts falling due after more than one year

8

(306,917)

(476,603)

Net assets

 

159,195

158,102

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

158,195

157,102

Shareholders' funds

 

159,195

158,102

For the financial year ending 28 February 2022 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 23 August 2022 and signed on its behalf by:
 

.........................................
Mr Garry Cooke
Director

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

1

General information

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

The address of its registered office is:
Unit 25
Millbrook Close
St James Mill Business Park
Northampton
NN5 5JF

These financial statements were authorised for issue by the Board on 23 August 2022.

The company registration number is 07512728

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

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

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.

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 tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income 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.

Tangible assets

Tangible assets are stated in the balance sheet 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:

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

Asset class

Depreciation method and rate

Plant and machinery

25% straight line

Office equipment

20% reducing balance

Goodwill

Goodwill is the difference between fair value of consideration paid for an acquired entity and the aggregate of the fair value of that's identifiable assets and liabilities.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

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

10% straight line basis

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. The company subsequently considers the recoverable value of the trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 subsequently measured at amortised cost using the effective interest method.

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit and loss account on a straight line basis.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2021 - 5).

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2021

20,000

20,000

At 28 February 2022

20,000

20,000

Amortisation

At 1 March 2021

20,000

20,000

At 28 February 2022

20,000

20,000

Carrying amount

At 28 February 2022

-

-

5

Tangible assets

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2021

2,518

12,986

238,958

254,462

At 28 February 2022

2,518

12,986

238,958

254,462

Depreciation

At 1 March 2021

2,518

9,935

111,458

123,911

Charge for the year

-

610

31,875

32,485

At 28 February 2022

2,518

10,545

143,333

156,396

Carrying amount

At 28 February 2022

-

2,441

95,625

98,066

At 28 February 2021

-

3,051

127,500

130,551

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

6

Stocks

2022
£

2021
£

Work in progress

253,589

112,000

Other inventories

126,121

122,068

379,710

234,068

7

Debtors

Current

2022
£

2021
£

Trade debtors

308,318

239,238

Other debtors

322,730

410,425

 

631,048

649,663

8

Creditors

Creditors: amounts falling due within one year

Note

2022
£

2021
£

Due within one year

 

Loans and borrowings

10

262,010

109,683

Trade creditors

 

294,654

95,620

Taxation and social security

 

73,035

200,762

Accruals and deferred income

 

2,237

2,237

Other creditors

 

10,782

5,318

 

642,718

413,620

Creditors: amounts falling due after more than one year

Note

2022
£

2021
£

Due after one year

 

Loans and borrowings

10

306,917

476,603

 

Orchard Flooring Ltd

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2022

9

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

10

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

298,592

451,608

Hire purchase contracts

8,325

24,995

306,917

476,603

2022
£

2021
£

Current loans and borrowings

Bank borrowings

141,821

93,013

Bank overdrafts

103,519

-

Hire purchase contracts

16,670

16,670

262,010

109,683