Company Registration No. 06469604 (England and Wales)
STERLINGBUILD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
STERLINGBUILD LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
STERLINGBUILD LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
4
92,450
158,395
Tangible assets
5
1,935,459
1,905,412
Investments
6
2,550
2,550
2,030,459
2,066,357
Current assets
Stocks
899,151
638,027
Debtors
7
897,534
739,365
Cash at bank and in hand
341,297
736,520
2,137,982
2,113,912
Creditors: amounts falling due within one year
8
(2,725,457)
(2,732,733)
Net current liabilities
(587,475)
(618,821)
Total assets less current liabilities
1,442,984
1,447,536
Creditors: amounts falling due after more than one year
9
(360,929)
(409,295)
Provisions for liabilities
10
(123,285)
(122,320)
Net assets
958,770
915,921
Capital and reserves
Called up share capital
100
100
Revaluation reserve
655,962
649,529
Profit and loss reserves
302,708
266,292
Total equity
958,770
915,921
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.
STERLINGBUILD LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 10 May 2022 and are signed on its behalf by:
N West
D West
Director
Director
Company Registration No. 06469604
STERLINGBUILD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
100
532,564
432,576
965,240
Year ended 31 December 2020:
Profit for the year
-
-
52,716
52,716
Other comprehensive income:
Revaluation of tangible fixed assets
-
136,696
-
136,696
Tax relating to other comprehensive income
-
(19,731)
(19,731)
Total comprehensive income for the year
116,965
52,716
169,681
Dividends
-
-
(219,000)
(219,000)
Balance at 31 December 2020
100
649,529
266,292
915,921
Year ended 31 December 2021:
Profit for the year
-
-
246,416
246,416
Other comprehensive income:
Tax relating to other comprehensive income
-
6,433
6,433
Total comprehensive income for the year
6,433
246,416
252,849
Dividends
-
-
(210,000)
(210,000)
Balance at 31 December 2021
100
655,962
302,708
958,770
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
1
Accounting policies
Company information
Sterlingbuild Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 14 Barnfield Road, Park Farm Industrial Estate, Folkestone, Kent, United Kingdom, CT19 5SU.
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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements the directors prepared profit and cash flow projections and assessed the potential impact that the Covid 19 pandemic could continue to have on the companies trade, its supply chain and its customers. The conclusion of these considerations is that the directors do not consider that the pandemic will have a material impact on the companies ability to continue as a going concern as there is reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
Amortisation 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:
Software
20% straight line
1.5
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:
Land and buildings Freehold
Land - not depreciated, Buildings - 2% straight line
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
20% straight line
Motor vehicles
20% straight line
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.
1.6
Impairment of fixed assets
At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of impairment is recognised immediately in profit or loss.
1.7
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
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.
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.9
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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
1.11
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.
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 7 -
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
37
36
4
Intangible fixed assets
Other
£
Cost
At 1 January 2021 and 31 December 2021
329,723
Amortisation and impairment
At 1 January 2021
171,328
Amortisation charged for the year
65,945
At 31 December 2021
237,273
Carrying amount
At 31 December 2021
92,450
At 31 December 2020
158,395
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2021
1,943,827
473,699
2,417,526
Additions
19,362
94,922
114,284
Disposals
(33)
(33)
At 31 December 2021
1,963,189
568,588
2,531,777
Depreciation and impairment
At 1 January 2021
143,827
368,287
512,114
Depreciation charged in the year
33,856
50,349
84,205
Eliminated in respect of disposals
(1)
(1)
At 31 December 2021
177,683
418,635
596,318
Carrying amount
At 31 December 2021
1,785,506
149,953
1,935,459
At 31 December 2020
1,800,000
105,412
1,905,412
Land and buildings with a carrying amount of £1,800,000 were revalued at 16 February 2021 by Michael Parkes Surveyors Limited, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,058,169 (2020 - £1,061,437), being cost £1,164,214 (2020 - £1,148,061) and depreciation £106,045 (2020 - £86,624).
6
Fixed asset investments
2021
2020
£
£
Investments
2,550
2,550
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
7
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
647,062
593,159
Other debtors
250,472
146,206
897,534
739,365
8
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
24,980
22,980
Trade creditors
2,326,727
2,166,000
Corporation tax
25,533
39,554
Other taxation and social security
166,367
359,489
Other creditors
181,850
144,710
2,725,457
2,732,733
9
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
331,985
355,812
Other creditors
28,944
53,483
360,929
409,295
HSBC Bank plc holds a fixed and floating charge over all the company's assets.
HSBC Bank plc holds a legal mortgage over the company's premises in Folkestone, Kent.
Included in other creditors above is a loan from Kent County Council and in this respect they hold a fixed charge over all rent recoverable from any lease or licence, all goodwill and uncalled capital, the proceeds of any insurance, the benefit of all contracts, guarantees, appointments and warranties relating to the property and all fixtures and fittings not forming part of the property and all plant and machinery, all tools, vehicles, furniture and other goods kept at the property, all licences, consents and authorisations held or acquired in connection with the company's business or the property.
Creditors which fall due after five years are as follows:
2021
2020
£
£
Payable by instalments
225,257
257,897
STERLINGBUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
10
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
24,077
16,679
Revaluations
99,208
105,641
123,285
122,320
2021
Movements in the year:
£
Liability at 1 January 2021
122,320
Charge to profit or loss
7,398
Credit to equity
(6,433)
Liability at 31 December 2021
123,285
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