C & K Smith Limited
Unaudited Financial Statements
For the year ended 31 March 2023
Pages for filing with registrar
Company Registration No. 10404637 (England and Wales)
C & K SMITH LIMITED
C & K Smith Limited
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
C & K SMITH LIMITED
C & K Smith Limited
Accountants Report to the Board of Directors on the Unaudited Financial Statements of C & K Smith Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of C & K Smith Limited for the year ended 31 March 2023 set out on the following pages from the company’s accounting records and from information and explanations you have given us.
This report is made solely to the Board of Directors of C & K Smith Limited, as a body, in accordance with the terms of our engagement letter dated 5 October 2016. Our work has been undertaken solely to prepare for your approval the financial statements of C & K Smith Limited. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than C & K Smith Limited and Board of Directors as a body, for our work or for this report.
It is your duty to ensure that C & K Smith Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of C & K Smith Limited. You consider that C & K Smith Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of C & K Smith Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Churchgate Accountants Limited
9 November 2023
Accountants
18 Langton Place
Bury St Edmunds
Suffolk
IP33 1NE
C & K SMITH LIMITED
C & K Smith Limited
BALANCE SHEET
AS AT 31 MARCH 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
56,802
41,205
Investment properties
4
10,290,083
9,752,159
10,346,885
9,793,364
Current assets
Debtors
5
17,835
51,261
Cash at bank and in hand
59,750
211,057
77,585
262,318
Creditors: amounts falling due within one year
6
(729,953)
(708,852)
Net current liabilities
(652,368)
(446,534)
Total assets less current liabilities
9,694,517
9,346,830
Creditors: amounts falling due after more than one year
7
(3,852,965)
(3,809,634)
Provisions for liabilities
(237,091)
(189,300)
Net assets
5,604,461
5,347,896
Capital and reserves
Called up share capital
8
100
100
Non-distributable profits reserve
9
181,559
181,559
Distributable profit and loss reserves
5,422,802
5,166,237
Total equity
5,604,461
5,347,896
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 March 2023 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.
C & K SMITH LIMITED
C & K Smith Limited
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
2023-03-31
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 9 November 2023 and are signed on its behalf by:
Mrs K L Smith
Mr C A Smith
Director
Director
Company Registration No. 10404637
C & K SMITH LIMITED
C & K Smith Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
C & K Smith Limited is a private company limited by shares incorporated in England and Wales. The registered office is Churchgate Accountants Limited, 18 Langton Place, Bury St Edmunds, Suffolk, IP33 1NE.
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
Turnover
The turnover shown in the accounts represents rental income relating to the year from investment properties held by the company. Revenue is recognised for the period(s) to which investment properties held by the company are occupied by tenants, on a daily basis.
1.3
Tangible fixed assets
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 improvements
5% straight line
Plant and equipment
20% reducing balance
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
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.
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.
C & K SMITH LIMITED
C & K Smith Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
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.
1.9
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
C & K SMITH LIMITED
C & K Smith Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 1 April 2022
57,207
57,207
Additions
15,157
20,000
35,157
At 31 March 2023
15,157
77,207
92,364
Depreciation and impairment
At 1 April 2022
16,002
16,002
Depreciation charged in the year
758
18,802
19,560
At 31 March 2023
758
34,804
35,562
Carrying amount
At 31 March 2023
14,399
42,403
56,802
At 31 March 2022
41,205
41,205
4
Investment property
2023
£
Fair value
At 1 April 2022
9,752,159
Additions
537,924
At 31 March 2023
10,290,083
The investment properties are deemed to be valued at market value by the directors' of the company.
C & K SMITH LIMITED
C & K Smith Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
24
Corporation tax recoverable
8,983
8,983
Other debtors
8,828
42,278
17,835
51,261
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
154,913
146,858
Trade creditors
10,859
21,635
Corporation tax
25,454
Other creditors
538,727
540,359
729,953
708,852
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
3,852,965
3,809,634
The long-term loans are secured by fixed and floating charges over the assets of the company.
8
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
76 Ordinary shares of £1 each
76
76
24 Ordinary B of £1 each
24
24
100
100
C & K SMITH LIMITED
C & K Smith Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
9
Non-distributable profits reserve
2023
2022
£
£
At the beginning of the year
181,559
191,992
Non distributable profits in the year
-
(10,433)
At the end of the year
181,559
181,559