Company registration number 06893037 (England and Wales)
NARFORD SCAFFOLDING LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
PAGES FOR FILING WITH REGISTRAR
NARFORD SCAFFOLDING LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
NARFORD SCAFFOLDING LTD
BALANCE SHEET
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,412,596
1,396,111
Current assets
Debtors
4
1,099,528
846,163
Cash at bank and in hand
245,634
608,825
1,345,162
1,454,988
Creditors: amounts falling due within one year
5
(476,816)
(500,128)
Net current assets
868,346
954,860
Total assets less current liabilities
2,280,942
2,350,971
Creditors: amounts falling due after more than one year
6
(54,466)
(18,696)
Provisions for liabilities
(307,504)
(300,096)
Net assets
1,918,972
2,032,179
Capital and reserves
Called up share capital
10
100
100
Profit and loss reserves
1,918,872
2,032,079
Total equity
1,918,972
2,032,179
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 period ended 30 June 2022 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 period 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.
NARFORD SCAFFOLDING LTD
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 23 October 2023 and are signed on its behalf by:
L Elmer
Director
Company Registration No. 06893037
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
- 3 -
1
Accounting policies
Company information
Narford Scaffolding Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Bens Yard, Bears Lane, Swaffham, Norfolk, PE37 7QB.
1.1
Reporting period
The company has chosen to change its accounting period end to be 30 June each year. In the opinion of the Directors this will assist in the timely preparation of the Financial Statements as these will now be finalised in the Winter months in which the Directors are afforded more time due to the seasonal nature of the trade. With the period presented by these Financial Statements therefore only comprising of 8 months it should be noted that comparative amounts presented (including the related notes) may not be entirely comparable to those presented for the previous 12 months.
1.2
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. The principal accounting policies adopted are set out below.
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.
Revenue from contracts for the provision of professional services 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, mainly in relation to contractual hourly staff rates and materials, 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 it is probable will be recovered.
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:
Leasehold land and buildings
10% reducing balance
Plant and equipment
10% reducing balance
Office Equipment
15% reducing balance
Motor vehicles
15% 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.
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 4 -
1.5
Cash and cash equivalents
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.
1.6
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
1.7
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.
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 5 -
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.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
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.
1.10
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2021
Number
Number
Total
47
51
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 6 -
3
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Office Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2021
34,588
1,741,433
42,429
576,778
2,395,228
Additions
3,200
68,279
2,027
80,994
154,500
Disposals
(6,791)
(24,613)
(31,404)
At 30 June 2022
37,788
1,809,712
37,665
633,159
2,518,324
Depreciation and impairment
At 1 November 2021
8,565
733,602
17,504
239,446
999,117
Depreciation charged in the period
1,948
71,741
2,380
26,380
102,449
Eliminated in respect of disposals
(3,638)
(5,767)
(9,405)
Transfers
13,567
13,567
At 30 June 2022
10,513
805,343
16,246
273,626
1,105,728
Carrying amount
At 30 June 2022
27,275
1,004,369
21,419
359,533
1,412,596
At 31 October 2021
26,023
1,007,831
24,925
337,332
1,396,111
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
738,822
561,722
Corporation tax recoverable
99,731
99,731
Amounts owed by group undertakings
1,361
4,479
Other debtors
221,725
169,267
1,061,639
835,199
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
37,889
10,964
Total debtors
1,099,528
846,163
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 7 -
5
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
83,333
250,000
Trade creditors
53,888
63,730
Corporation tax
96,485
32,207
Other taxation and social security
94,331
44,801
Other creditors
148,779
109,390
476,816
500,128
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
54,466
18,696
7
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
40,975
53,692
In two to five years
54,466
18,696
95,441
72,388
The balance of obligations under finance leases and hire purchase contracts is secured against the assets for which the finance was provided.
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
307,504
300,096
NARFORD SCAFFOLDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
8
Deferred taxation
(Continued)
- 8 -
2022
Movements in the period:
£
Liability at 1 November 2021
300,096
Charge to profit or loss
7,408
Liability at 30 June 2022
307,504
9
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,131
50,048
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions of £4,335 (2021 - £6,013) were payable to the fund at the Balance Sheet date.
10
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
11
Directors' transactions
During the year the company had loan accounts with the Directors. At the year end L Elmer owed the company £28,434 (2021 - £61,979), M Titmarsh owed the company £75,868 (2021 - £23,540) and B Elmer owed the company £10,002 (2021 - £4,428).
Although included in amounts falling due within one year there is no fixed date for repayment. Interest is charged at HMRC official rates for any loans over £10,000.
12
Parent company
Narford Scaffolding Ltd is a wholly-owned subsidiary of Narford Holdings Ltd. Narford Holdings Ltd's (10452058) Registered Office address is Ben's Yard, Bears Lane, Swaffham, Norfolk, PE37 7QB.