Company Registration No. 00614411 (England and Wales)
THE ENTRYPHONE COMPANY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
THE ENTRYPHONE COMPANY LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
THE ENTRYPHONE COMPANY LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr G D Ashbee
Mrs D R Ashbee
Mr O W Ashbee
Mr H P Ashbee
(Appointed 12 February 2021)
Secretary
Mrs D R Ashbee
Company number
00614411
Registered office
23 Granville Road
London
SW18 5SD
Accountants
TC Group
The Courtyard
Shoreham Road
Upper Beeding
Steyning
West Sussex
BN44 3TN
THE ENTRYPHONE COMPANY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 2 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,756,912
1,770,917
Investment properties
4
2,721,628
2,589,482
4,478,540
4,360,399
Current assets
Stocks
336,440
247,382
Debtors
5
113,200
146,921
Cash at bank and in hand
1,789,413
2,031,332
2,239,053
2,425,635
Creditors: amounts falling due within one year
6
(784,332)
(835,969)
Net current assets
1,454,721
1,589,666
Total assets less current liabilities
5,933,261
5,950,065
Provisions for liabilities
8
(686,943)
(510,869)
Net assets
5,246,318
5,439,196
Capital and reserves
Called up share capital
7
10,007
10,007
Revaluation reserve
1,051,183
1,140,881
Profit and loss reserves
4,185,128
4,288,308
Total equity
5,246,318
5,439,196
THE ENTRYPHONE COMPANY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021
31 December 2021
- 3 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 August 2022 and are signed on its behalf by:
Mrs D R Ashbee
Director
Company Registration No. 00614411
The notes on pages 4 to 9 form part of these financial statements
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
1
Accounting policies
Company information
The Entryphone Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 23 Granville Road, London, SW18 5SD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties and to include investment properties.The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Rental income is included on an accruals basis.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
35 year straight line
Plant and equipment
7 year straight line
Fixtures and fittings
15% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
No depreciation is provided on freehold land.
Installation on hire rentals are leased to customers under operating leases. These are written off over seven years in the accounts.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.6
Stocks
Stocks 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 stocks to their present location and condition.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and 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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.15
Provision is made for the liability existing at the balance sheet date for non-annual maintenance work on long term rental contracts and renewable annual maintenance contracts.
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
29
29
3
Tangible fixed assets
Freehold property
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
2,000,000
1,086,616
157,908
212,096
3,456,620
Additions
3,120
95,447
98,567
Disposals
(10,338)
(30,051)
(40,389)
At 31 December 2021
2,000,000
1,076,278
161,028
277,492
3,514,798
Depreciation and impairment
At 1 January 2021
395,997
991,543
151,710
146,453
1,685,703
Depreciation charged in the year
56,571
22,394
2,266
28,280
109,511
Eliminated in respect of disposals
(10,338)
(26,990)
(37,328)
At 31 December 2021
452,568
1,003,599
153,976
147,743
1,757,886
Carrying amount
At 31 December 2021
1,547,432
72,679
7,052
129,749
1,756,912
At 31 December 2020
1,604,003
95,073
6,198
65,643
1,770,917
Included in cost of land and buildings is freehold land of £20,000 (2020 - £20,000) which is not depreciated.
The company has elected, in accordance with Section 35.10(c) of FRS 102, to use the fair value on 1 January 2014, the date of transition to FRS 102, of the above freehold property as the deemed cost.
Assets included under plant and machinery refer to assets leased to customers of the business under operating leases. At the year end the company was committed under the lease agreements to correct any maintenance issues with the assets which arise whilst the agreements are in force. The financial impact of this commitment is inherently difficult to quantify due to the uncertainty over the timing and extent of maintenance issues arising; however an appropriate calculation is in place to provide for a maintenance provision each year.
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
4
Investment property
2021
£
Fair value
At 1 January 2021
2,589,482
Additions
132,146
At 31 December 2021
2,721,628
Investment property was valued on an open market basis on 31 December 2021 by the directors.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2021
2020
£
£
Cost
580,623
448,477
Accumulated depreciation
-
-
Carrying amount
580,623
448,477
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
82,580
116,265
Other debtors
30,620
30,656
113,200
146,921
THE ENTRYPHONE COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
28,863
31,427
Corporation tax
46,865
105,448
Other taxation and social security
98,509
119,531
Other creditors
610,095
579,563
784,332
835,969
7
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Ordinary shares of £1 each
10,007
10,007
10,007
10,007
8
Non-distributable profits reserve
The non-distributable element of profit and loss reserve for the year ending 31 December 2021 is £1,680,741 (2020: £1,791,205).