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Registration number: 00831440

Cover Construction Company Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2023

 

Cover Construction Company Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 9

 

Cover Construction Company Limited

(Registration number: 00831440)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

62,950

69,560

Investment property

5

22,272,727

20,734,080

 

22,335,677

20,803,640

Current assets

 

Stocks

6

-

16,308

Debtors

7

696,163

717,326

Cash at bank and in hand

 

452,202

1,627,593

 

1,148,365

2,361,227

Creditors: Amounts falling due within one year

8

(1,282,752)

(1,181,480)

Net current (liabilities)/assets

 

(134,387)

1,179,747

Total assets less current liabilities

 

22,201,290

21,983,387

Creditors: Amounts falling due after more than one year

8

(100,000)

(1,750,000)

Provisions for liabilities - Deferred Tax

(3,465,740)

(3,242,843)

Net assets

 

18,635,550

16,990,544

Capital and reserves

 

Called up share capital

900

900

Capital redemption reserve

550

550

Other reserves

10,376,117

9,676,609

Profit and loss account

8,257,983

7,312,485

Shareholders' funds

 

18,635,550

16,990,544

 

Cover Construction Company Limited

(Registration number: 00831440)
Balance Sheet as at 31 March 2023

For the financial year ending 31 March 2023 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 28 September 2023 and signed on its behalf by:
 

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

Mr S J Cover
Director

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

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

The address of its registered office is:
Filkins Mill
Filkins
Lechlade
Gloucestershire
GL7 3RF

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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 prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value 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.

Investment properties: These are valued by the director Mr S Cover based on his estimate of the open market value at the balance sheet date.

Work in progress: 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.

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. Turnover also includes rental income from investment properties net of VAT.

Revenue from the sale of goods, including property, is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods, or in the case of property, exchange of contracts, the amount of revenue can be measured relaibly, 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.

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Contract revenue recognition

Revenue from construction contracts is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

Government grants

Government grants are accounted for as revenue based grants under the accrual model in the period in which they are receivable.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current 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.

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

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

20% straight line basis

Computer and office equipment

10% to 20% straight line basis

Motor vehicles

20% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

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 profit or loss on a straight-line basis over the period of the lease.

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.

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.

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 8 (2022 - 8).

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

4

Tangible assets

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

174,209

4,153

28,072

206,434

Additions

560

1,239

-

1,799

At 31 March 2023

174,769

5,392

28,072

208,233

Depreciation

At 1 April 2022

109,337

4,040

23,497

136,874

Charge for the year

5,074

130

3,205

8,409

At 31 March 2023

114,411

4,170

26,702

145,283

Carrying amount

At 31 March 2023

60,358

1,222

1,370

62,950

At 31 March 2022

64,872

113

4,575

69,560

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

5

Investment properties

2023
£

At 1 April

20,734,080

Additions

605,970

Fair value adjustments

932,677

At 31 March

22,272,727

Investment property comprises commercial properties at a business park in West Oxfordshire. The fair value has been arrived at on the basis of a valuation carried out by the director Mr S Cover and was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

6

Stocks

2023
£

2022
£

Work in progress

-

16,308

7

Debtors

Note

2023
£

2022
£

Trade debtors

 

228,193

319,103

Amounts owed by group undertakings and undertakings in which the company has a participating interest

11

351,277

276,277

Prepayments

 

95,854

99,643

Other debtors

 

20,839

22,303

 

696,163

717,326

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

8

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Trade creditors

64,148

53,671

Taxation and social security

298,112

227,278

Other creditors

920,492

900,531

1,282,752

1,181,480

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

100,000

1,750,000

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

100,000

1,750,000

Bank borrowings
The loans are secured on freehold property at the West Oxfordshire Business Park, Brize Norton Road, Carterton.

 

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £2,740,437 (2022 - £2,763,477).

Operating lease commitments:
The Company has an operating lease expiring on 8th March 2142 at an annual rental of £23,040.

At the reporting year end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £2,763,477 (2021 £2,539,677)

11

Related party transactions

Other transactions with directors

J Cover and M Cover had a loan with the company.

At the balance sheet date, the amounts owed to the directors were as follows:

J Cover - £523,738 (2022 - £523,738)
M Cover £5,091 - (2022 - £4,400)

Summary of transactions with other related parties


 At the balance sheet date, debtors included an amount due from Cover Property Holdings Limited of £126,277 (2021: £126,277) in which the director Mr S J Cover has an interest.

At the balance sheet date, debtors included an amount due from and J A Cover Limited of £225,000 (2022: £150,000) in which the directors have an interest.