REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
INGHAM & GARNER LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
INGHAM & GARNER LIMITED |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
INGHAM & GARNER LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
17 George Street |
St Helens |
Merseyside |
WA10 1DB |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investment property | 5 |
CURRENT ASSETS |
Debtors | 6 |
Investments | 7 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 8 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Property revaluation reserve | 12 |
Unrealised investment gains reserve | 12 |
Retained earnings | 12 |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Ingham & Garner Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in sterling which is the functional currency of the company. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Significant judgements and key sources of estimation uncertainty |
In the application of the company's accounting policies as set out below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Management consider that the following have the most significant effect on the amounts recognised in the financial statements: |
Financial outcome of individual contracts - All long term contracts are reviewed on a monthly basis, with particular attention to contract stage of completion, costs to date and costs still to be incurred. Movement in margin is recognised when prudent to do so but immediately in the event there is a foreseeable loss. |
Valuation of investment property - Investment properties are valued at the end of each reporting period by the directors at open market value. |
Turnover |
Turnover is entirely in respect of construction contracts and is measured at the fair value of the consideration received or receivable net of VAT and discounts. |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is calculated using the percentage completion method. Amounts recoverable on these long-terms contracts are included within debtors. Payments on account in respect of long-term contracts are included within creditors. |
Where the outcome cannot be measured reliably, the work in progress is valued at cost less payments on account. Cost includes all direct costs plus an appropriate amount of attributable overhead. |
When contract costs are expected to exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
The recognition of retentions is usually deferred until their receipt becomes virtually certain. |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets except freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Improvements to property | - 2% Straight line |
Plant and machinery | - 15% on reducing balance |
Fixtures and fittings | - 15% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Computer equipment | - Straight line over 3 years |
Assets are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss. |
Investment property |
Investment properties are initially recognised at cost. Cost includes the purchase price and any legal and professional fees in connection with the acquisition of the property. |
At each reporting date, the properties are valued at fair value through profit and loss. |
Taxation |
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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 balance sheet date that are expected to apply to the reversal of timing differences. |
Employee benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
Grants |
Revenue grants are included in the profit and loss account in the period to which they relate. |
Current asset investments |
Current asset investments are a basic financial instrument and are initially recognised at cost and subsequently at fair value through profit and loss. Deferred tax is recognised in respect of unrealised gains on current asset investments. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
4. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
land | property | machinery |
£ | £ | £ |
COST |
At 1 January 2022 |
Disposals |
Transfer from investment property |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Disposals | ( |
) | ( |
) |
Transfer from investment property |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The historical cost of freehold land amounts to £32,368. |
5. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2022 |
Revaluations | 56,450 |
Transfer to freehold land | (150,000 | ) |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
5. | INVESTMENT PROPERTY - continued |
The investment properties were valued at 31 December 2022 at the director's best estimate of the fair value of the properties on an open market basis. |
Fair value at 31 December 2022 is represented by: |
£ |
Valuation in 2009 | 350,952 |
Valuation in 2021 | 85,649 |
Valuation in 2022 | 56,450 |
Cost | 88,899 |
581,950 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
as restated |
£ | £ |
Trade debtors |
Amounts due from related parties | 12,039 | 12,039 |
Amounts recoverable on contracts |
Other debtors |
Corporation tax | 52,172 | 49,894 |
Directors' current accounts | 50,241 | 71,633 |
Prepayments and accrued income |
7. | CURRENT ASSET INVESTMENTS |
2022 | 2021 |
as restated |
£ | £ |
Unlisted investments | 1,127,735 | 1,129,600 |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
as restated |
£ | £ |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 85,281 | 124,804 |
Other creditors |
Accrued expenses |
9. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
as restated |
£ | £ |
Between one and five years |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
10. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
as restated |
£ | £ |
Deferred tax |
On accelerated capital allowances | 24,567 | 14,398 |
On revalued property | 90,220 | 57,842 |
On unrealised investment gains | 56,934 | 43,624 |
171,721 | 115,864 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Movement in year | 55,857 |
Balance at 31 December 2022 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | as restated |
£ | £ |
Ordinary | £1 | 10,000 | 10,000 |
12. | RESERVES |
Unrealised |
Property | investment |
Retained | revaluation | gains |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 2,810,072 |
Profit for the year | - | - |
Transfer for revaluation of investment property |
(56,450 |
) |
56,450 |
- |
- |
Transfer for deferred tax movement on investment property |
32,378 |
(32,378 |
) |
- |
- |
Transfer for unrealised gains on investments |
1,865 |
- |
(1,865 |
) |
- |
Transfer for deferred tax on unrealised investment gains |
13,310 |
- |
(13,310 |
) |
- |
At 31 December 2022 | 2,947,121 |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for qualified opinion |
Current asset investments includes £1,127,735 in respect of an investment with Prudential. We were unable to obtain a type 2 report from Prudential to verify that the internal controls operated by them are suitable for the purposes of valuing this investment and were unable to satisfy ourselves that the valuation was accurate by alternative means. Consequently, we were unable to determine whether any adjustment to this amount was necessary. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and the provisions available for small entities, in the circumstances set out in note 18 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Matters required to report by exception |
Arising solely from the limitation on the scope of our work relating to current asset investments referred to above, we have not obtained all of the information and explanations that we considered necessary for the purpose of our audit. |
for and on behalf of |
14. | PRIOR YEAR ADJUSTMENT |
The financial statements for the prior year have been restated as a result of the following: |
- |
The revision to the accounting policy in respect of current asset investments as the policy was not compliant with FRS102. |
- | The incorrect application of the accounting policy in respect of construction contracts. |
- | A material misstatement in respect of the fair value of investment property. |
Current asset investments |
The current asset investments were previously recognised at cost, rather than at fair value through profit and loss as required under FRS102. This incorrect treatment had occurred in all previous years following the transition to FRS102. The impact of the prior period adjustment was as follows: |
- | The closing valuation at 31 December 2021 has increased by £229,600 with a total uplift to the deferred tax provision of £43,623. |
Construction contracts |
Amounts recoverable on contracts were incorrectly disclosed within stocks and cost of sales rather than within debtors and turnover. The impact of the prior period adjustment was as follows: |
- | The closing amounts recoverable on contracts figure at 31 December 2021 of £743,410 has been re-presented within debtors rather than within stocks. |
Investment property |
A lack of certainty over the ownership of one of the company's investment properties led to a material misstatement in the fair value at 31 December 2021. The impact of the prior period adjustment was as follows: |
- | The closing valuation for investment property at 31 December 2021 has increased by £75,500 and the deferred tax provision has increased by £14,435. |
The impact of the above restatements has resulted in the following changes to the original balance sheet presented for the year ended 31 December 2021 as follows: |
- | Investment property has increased by £75,500 |
- | Stocks has reduced by £743,410 |
- | Debtors has increased by £743,410 |
- | Current asset investments has increased by £229,600 |
- | Net current assets have increased by £229,600 |
- | Total assets less current liabilities have increased by £305,100 |
- | Provisions for liabilities has increased by £57,969 |
- | Net assets has increased by £247,131 |
- | Property revaluation reserve has increased by £61,155 |
- | Unrealised investment gains reserve has increased by £185,976 |
INGHAM & GARNER LIMITED (REGISTERED NUMBER: 01188773) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | CAPITAL COMMITMENTS |
2022 | 2021 |
as restated |
£ | £ |
Contracted but not provided for in the |
financial statements |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2022 and 31 December 2021: |
2022 | 2021 |
as restated |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The note above summarises the net transactions on the directors' current account during the year. Interest has been charged using HM Revenue & Customs rates. |
17. | RELATED PARTY DISCLOSURES |
At the year end a balance was due to the company from EFT Systems Limited of £12,039 (2021 - £12,039). EFT Systems Limited is a company in which the 50% shareholder, Mrs H.Ingham, has a material interest. |
18. | PROVISIONS AVAILABLE FOR SMALLER ENTITIES |
In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities, provide routine bookkeeping services and assist with the preparation of the financial statements. |