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COMPANY REGISTRATION NUMBER: 5095224
Tree & Sons Limited
Filleted Unaudited Financial Statements
31 March 2023
Tree & Sons Limited
Financial Statements
Year ended 31 March 2023
Contents
Pages
Statement of financial position
1 to 2
Notes to the financial statements
3 to 9
Tree & Sons Limited
Statement of Financial Position
31 March 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
6
28,191
33,737
Tangible assets
7
212,570
217,762
---------
---------
240,761
251,499
Current assets
Stocks
164,463
175,982
Debtors
8
233,456
157,532
Cash at bank and in hand
81,104
80,001
---------
---------
479,023
413,515
Creditors: amounts falling due within one year
9
( 305,286)
( 316,885)
---------
---------
Net current assets
173,737
96,630
---------
---------
Total assets less current liabilities
414,498
348,129
Creditors: amounts falling due after more than one year
10
( 129,840)
( 144,480)
Provisions
Taxation including deferred tax
11
( 27,515)
( 28,502)
---------
---------
Net assets
257,143
175,147
---------
---------
Capital and reserves
Called up share capital
13
100
99
Profit and loss account
257,043
175,048
---------
---------
Shareholders funds
257,143
175,147
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the 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 financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
Tree & Sons Limited
Statement of Financial Position (continued)
31 March 2023
These financial statements were approved by the board of directors and authorised for issue on 9 November 2023 , and are signed on behalf of the board by:
Mr J Tree
Mr R Tree
Director
Director
Company registration number: 5095224
Tree & Sons Limited
Notes to the Financial Statements
Year ended 31 March 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Reclaimation Yard, George Street, Milford Haven, Pembrokeshire, SA73 2AY.
2. Statement of compliance
These financial statements have been prepared in accordance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have a reasonable expectation that the company has adequate resources to continue operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover represents net invoiced sales of goods and services, excluding VAT.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
over 20 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant & Machinery
-
25% reducing balance
Motor Vehicles
-
25% reducing balance
Office Equipment
-
25 % reducing balance
No depreciation is to be charged on Land & Buildings.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stock and work-in-progress are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow-moving items.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 29 (2022: 31 ).
5. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
33,482
37,395
Deferred tax:
Origination and reversal of timing differences
( 987)
906
--------
--------
Tax on profit
32,495
38,301
--------
--------
6. Intangible assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
110,919
---------
Amortisation
At 1 April 2022
77,182
Charge for the year
5,546
---------
At 31 March 2023
82,728
---------
Carrying amount
At 31 March 2023
28,191
---------
At 31 March 2022
33,737
---------
7. Tangible assets
Land & Buildings
Plant & Machinery
Motor Vehicles
Office Equipment
Total
£
£
£
£
£
Cost
At 1 April 2022
67,753
133,136
223,625
14,159
438,673
Additions
41,108
14,999
2,103
58,210
Disposals
( 30,822)
( 30,822)
--------
---------
---------
--------
---------
At 31 March 2023
67,753
143,422
238,624
16,262
466,061
--------
---------
---------
--------
---------
Depreciation
At 1 April 2022
75,667
135,536
9,708
220,911
Charge for the year
20,862
25,772
1,639
48,273
Disposals
( 15,693)
( 15,693)
--------
---------
---------
--------
---------
At 31 March 2023
80,836
161,308
11,347
253,491
--------
---------
---------
--------
---------
Carrying amount
At 31 March 2023
67,753
62,586
77,316
4,915
212,570
--------
---------
---------
--------
---------
At 31 March 2022
67,753
57,469
88,089
4,451
217,762
--------
---------
---------
--------
---------
Hire purchase agreements (secured)
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant & Machinery
Motor Vehicles
Total
£
£
£
At 31 March 2023
42,556
53,010
95,566
--------
--------
--------
At 31 March 2022
35,600
56,772
92,372
--------
--------
--------
8. Debtors
2023
2022
£
£
Trade debtors
178,295
112,353
Other debtors
55,161
45,179
---------
---------
233,456
157,532
---------
---------
Other debtors include an amount of £nil (2022 - £nil) falling due after more than one year.
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts (secured)
89,196
78,154
Trade creditors
94,989
93,127
Hire purchase agreements (secured)
33,389
36,969
Corporation tax
33,615
37,395
Social security and other taxes
35,005
43,845
Director loan accounts
29
12
Other creditors
19,063
27,383
---------
---------
305,286
316,885
---------
---------
National Westminster Bank PLC holds a fixed and floating charge over the assets of the company.
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts (secured)
86,689
112,926
Hire purchase agreements (secured)
43,151
31,554
---------
---------
129,840
144,480
---------
---------
Included within creditors: amounts falling due after more than one year is an amount of £34,689 (2022: £28,456) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
11. Provisions
Deferred tax (note 12)
£
At 1 April 2022
28,502
Charge against provision
( 987)
--------
At 31 March 2023
27,515
--------
12. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions (note 11)
27,515
28,502
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
27,515
28,502
--------
--------
13. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
99
99
----
----
----
----
Share movements
No.
£
Ordinary
At 1 April 2022
99
99
Issue of shares
1
1
----
----
At 31 March 2023
100
100
----
----
14. Related party transactions
The company was under the control of Mr JEF Tree, Mr J Tree and Mr R Tree , the managing directors, throughout the current and previous year by virtue of their combined interest in 100% of the company's issued ordinary share capital. During the year the company paid dividends totalling £59,800 (2022 - £113,700) to Mr J Tree and Mr R Tree. During the year the company paid rent of £4,410 (2022 - £5,300) to Mr JEF Tree and Mrs DP Tree.