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Registration number: 01343501

K.R. Hardy (Builders) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2021

 

K.R. Hardy (Builders) Limited

Contents

Company Information

1

Accountants' Report

2

Balance Sheet

3

Notes to the Unaudited Financial Statements

4 to 11

 

K.R. Hardy (Builders) Limited

Company Information

Directors

Mr R Hardy

Mrs A Hardy

Mr Ryan Hardy

Mr Adam Hardy

Company secretary

Mrs A Hardy

Registered office

Empire House
Empire Industrial Park
Brickyard Road, Aldridge
Walsall
WS9 8XT

Accountants

Bissell & Brown Midlands Ltd
Chartered Certified Accountants
Charter House, 56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

 

Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
K.R. Hardy (Builders) Limited
for the Year Ended 31 December 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of K.R. Hardy (Builders) Limited for the year ended 31 December 2021 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at
http://www.accaglobal.com/gb/en/discover/public-value/rulebook.html.

This report is made solely to the Board of Directors of K.R. Hardy (Builders) Limited, as a body, in accordance with the terms of our engagement letter dated 1 September 2021. Our work has been undertaken solely to prepare for your approval the accounts of K.R. Hardy (Builders) Limited and state those matters that we have agreed to state to the Board of Directors of K.R. Hardy (Builders) Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at
http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/october/factsheet-163-audit-exempt-
companies.html.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than K.R. Hardy (Builders) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that K.R. Hardy (Builders) Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of K.R. Hardy (Builders) Limited. You consider that K.R. Hardy (Builders) Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of K.R. Hardy (Builders) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Bissell & Brown Midlands Ltd
Chartered Certified Accountants
Charter House, 56 High Street
Sutton Coldfield
West Midlands
B72 1UJ


1 September 2022

 

K.R. Hardy (Builders) Limited

(Registration number: 01343501)
Balance Sheet as at 31 December 2021

Note

2021
£

2020
£

Fixed assets

 

Tangible assets

5

16,334

20,052

Investments

6

3,588,216

3,399,721

 

3,604,550

3,419,773

Current assets

 

Stocks

7

325

325

Debtors

8

853,131

1,431,302

Cash at bank and in hand

 

143,170

161,260

 

996,626

1,592,887

Creditors: Amounts falling due within one year

9

(448,416)

(764,549)

Net current assets

 

548,210

828,338

Total assets less current liabilities

 

4,152,760

4,248,111

Creditors: Amounts falling due after more than one year

9

(700,000)

(1,367,800)

Provisions for liabilities

1,019

610

Net assets

 

3,453,779

2,880,921

Capital and reserves

 

Called up share capital

1,037,501

1,037,501

Capital redemption reserve

2,499

2,499

Profit and loss account

2,413,779

1,840,921

Total equity

 

3,453,779

2,880,921

For the financial year ending 31 December 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 Directors' Report or the Profit and Loss Account has been taken.

Approved and authorised by the Board on 1 September 2022 and signed on its behalf by:
 

.........................................
Mr R Hardy
Director

   
     
 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021

1

General information

The company is a private company limited by share capital, incorporated in England & Wales. The company's registration number is 01343501.

The address of its registered office is:
Empire House
Empire Industrial Park
Brickyard Road, Aldridge
Walsall
WS9 8XT

These financial statements were authorised for issue by the Board on 1 September 2022.

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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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 and deferred 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.

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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:

Asset class

Depreciation method and rate

Plant and Machinery

25% Reducing Balance

Fixtures, Fittings & Equipment

20% Reducing Balance

Motor Vehicles

25% Reducing Balance

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. 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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

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.

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

2

Accounting policies (continued)

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.

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.

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 (including directors) during the year was 5 (2020 - 5).

4

Taxation

Deferred tax

Deferred tax assets and liabilities

2021

Asset
£

Accelerated tax depreciation

409

   

2020

Asset
£

Accelerated tax depreciation

610

   
 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

5

Tangible assets

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2021

10,357

3,478

66,547

80,382

Additions

-

1,417

-

1,417

At 31 December 2021

10,357

4,895

66,547

81,799

Depreciation

At 1 January 2021

9,810

2,200

48,320

60,330

Charge for the year

109

469

4,557

5,135

At 31 December 2021

9,919

2,669

52,877

65,465

Carrying amount

At 31 December 2021

438

2,226

13,670

16,334

At 31 December 2020

547

1,278

18,227

20,052

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

6

Investments

2021
£

2020
£

Investments in associates

3,588,216

3,399,721

Associates

£

Cost

At 1 January 2021

5,478,242

Provision

At 1 January 2021

2,078,521

Provision

(188,495)

At 31 December 2021

1,890,026

Carrying amount

At 31 December 2021

3,588,216

At 31 December 2020

3,399,721

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Associates

K R Hardy Estates Limited

 

Ordinary £1 shares

46.66%

46.66%

         

Associates

K R Hardy Estates Limited

The principal activity of K R Hardy Estates Limited is Industrial Estate Developers.

7

Stocks

2021
£

2020
£

Other inventories

325

325

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

8

Debtors

Note

2021
£

2020
£

Trade debtors

 

68

76

Amounts owed by related parties

12

819,832

1,397,773

Other debtors

 

5

5

Prepayments

 

10,572

10,794

Income tax asset

22,654

22,654

 

853,131

1,431,302

9

Creditors

Creditors: amounts falling due within one year

Note

2021
£

2020
£

Due within one year

 

Loans and borrowings

9.1

162,285

585,885

Trade creditors

 

11,863

11,533

Taxation and social security

 

11,341

11,151

Other creditors

 

1,275

1,125

Accrued expenses

 

161,631

23,037

Corporation tax liability

 

100,021

131,818

 

448,416

764,549

Creditors: amounts falling due after more than one year

Note

2021
£

2020
£

Due after one year

 

Loans and borrowings

9.1

700,000

1,367,800

9.1

Loans and borrowings

2021
£

2020
£

Current loans and borrowings

Other borrowings

162,285

585,885

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

9

Creditors (continued)

9.1

Loans and borrowings (continued)

2021
£

2020
£

Non-current loans and borrowings

Unsecured debentures

700,000

700,000

Other borrowings

-

667,800

700,000

1,367,800

Other borrowings

Compass Pension Scheme Loan A is denominated in £ with a nominal interest rate of Base rate plus 1%, and the final instalment is due on 29 June 2021. The carrying amount at year end is £Nil (2020 - £172,200).

Fixed charge in favour of the lender over 1,400 Ordinary £1 shares owned by the company in K R Hardy Estates Limited.

Compass Pension Scheme Loan B is denominated in £ with a nominal interest rate of Base rate plus 1%, and the final instalment is due on 2 July 2022. The carrying amount at year end is £Nil (2020 - £95,600).

Compass Pension Scheme Loan C is denominated in £ with a nominal interest rate of Base rate plus 1%, and the final instalment is due on 2 July 2023. The carrying amount at year end is £Nil (2020 - £160,800).

Compass Pension Scheme Loan D is denominated in with a nominal interest rate of Base rate plus 1%, and the final instalment is due on 2 July 2024. The carrying amount at year end is £Nil (2020 - £348,800).

Compass Pension Scheme Loan E is denominated in £ with a nominal interest rate of Base rate plus 1%, and the final instalment is due on 2 July 2025. The carrying amount at year end is £Nil (2020 - £314,000).

10

Share capital

Allotted, called up and fully paid shares

 

2021

2020

 

No.

£

No.

£

Ordinary share of £1 each

837,501

837,501

837,501

837,501

Redeemable Preference share of £1 each

200,000

200,000

200,000

200,000

 

1,037,501

1,037,501

1,037,501

1,037,501

Redeemable preference shares

The Redeemable Preference are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights On a winding up of the company the holders of the shares have a right to receive £1 per share. Winding up value for redeemable preference shares is £200,000.

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
Holders of the ordinary share capital have a right to vote and receive dividends.

 

K.R. Hardy (Builders) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2021 (continued)

11

Dividends

Final dividends paid

 

2021
£

2020
£

Final dividend of £0.10 per each Redeemable Preference share

20,000

20,000

     

12

Related party transactions

Directors' remuneration

Summary of transactions with all associates

During the year the company invoiced a related party £503,157 (2020: £549,330) for works done, It also invoiced for management charges of £410,000 (2020: £395,000) and for rent of £41,000 (2020: £41,000). At the year end, the related party owed the company £819,831 (2020: £1,397,773).