Registered number
13498240
Cornish Changeovers Ltd
Filleted Accounts
31 July 2023
Cornish Changeovers Ltd
Registered number: 13498240
Balance Sheet
as at 31 July 2023
Notes 2023 2022
£ £
Fixed assets
Intangible assets 3 7,200 9,600
Tangible assets 4 136,374 102,489
143,574 112,089
Current assets
Stocks 78,439 31,748
Debtors 5 49,611 14,735
Cash at bank and in hand 10,894 8,925
138,944 55,408
Creditors: amounts falling due within one year 6 (176,974) (67,274)
Net current liabilities (38,030) (11,866)
Total assets less current liabilities 105,544 100,223
Creditors: amounts falling due after more than one year 7 (64,926) (29,336)
Provisions for liabilities (9,100) -
Net assets 31,518 70,887
Capital and reserves
Called up share capital 100 100
Profit and loss account 31,418 70,787
Shareholders' funds 31,518 70,887
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr Peter Warrington
Director
Approved by the board on 9 October 2023
Cornish Changeovers Ltd
Notes to the Accounts
for the year ended 31 July 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery 25% reducing balance
Fixtures, fittings, tools and equipment 25% reducing balance
Leasehold improvements Over 11 years
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 19 19
3 Intangible fixed assets £
Goodwill:
Cost
At 1 August 2022 12,000
At 31 July 2023 12,000
Amortisation
At 1 August 2022 2,400
Provided during the year 2,400
At 31 July 2023 4,800
Net book value
At 31 July 2023 7,200
At 31 July 2022 9,600
Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years.
4 Tangible fixed assets
Land and buildings Plant and machinery etc Total
£ £ £
Cost
At 1 August 2022 - 136,652 136,652
Additions 19,287 55,964 75,251
At 31 July 2023 19,287 192,616 211,903
Depreciation
At 1 August 2022 - 34,163 34,163
Charge for the year 1,753 39,613 41,366
At 31 July 2023 1,753 73,776 75,529
Net book value
At 31 July 2023 17,534 118,840 136,374
At 31 July 2022 - 102,489 102,489
5 Debtors 2023 2022
£ £
Trade debtors 44,824 5,596
Deferred tax asset - 8,262
Other debtors 4,787 877
49,611 14,735
6 Creditors: amounts falling due within one year 2023 2022
£ £
Obligations under finance lease and hire purchase contracts 12,047 30,159
Trade creditors 20,987 -
Taxation and social security costs 35,597 15,373
Other creditors 108,343 21,742
176,974 67,274
7 Creditors: amounts falling due after one year 2023 2022
£ £
Obligations under finance lease and hire purchase contracts 64,926 29,336
8 Basis of preparation
At the period end, the company’s balance sheet showed net current liabilities of £38,030 (2022: £11,866). This includes £38,532 (2022: £20,095) payable to Mr Shuan Ferkin & Mr Peter Warrington, directors. The directors have indicated that they will continue to support the company financially until such time that it can afford to repay them. On this basis, the directors feel it is appropriate that the accounts are prepared on a going concern basis.
9 Related party transactions
At the period end, the company owed £38,532 (2022: £20,095) to Mr Shaun Ferkin & Mr Peter Warrington, Directors. The loan is interest free and repayable after less than one year.
10 Controlling party
The company is ultimately controlled by Mr Shaun Ferkin & Mr Peter Warrington, directors, who together own 100% of the issued share capital.
11 Other information
Cornish Changeovers Ltd is a private company limited by shares and incorporated in England. Its registered office is:
Grambler Farm
Sandy Lane
Redruth
Cornwall
TR16 5SR
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