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Registration number: 02083883

J. O. Straughan & Co. Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 30 April 2023

 

J. O. Straughan & Co. Limited

Contents

Company Information

1

Statement of Financial Position

2 to 3

Notes to the Unaudited Financial Statements

4 to 10

 

J. O. Straughan & Co. Limited

Company Information

Directors

R W Dickinson

A Callaghan

D W Dickinson

T J Straughan

S Straughan

S J Dickinson

J Brown

F Bates

S Dickinson

Registered office

Netherton Park Steads
Stannington
Morpeth
Northumberland
NE61 6EF

Accountants

Azets
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS

 

J. O. Straughan & Co. Limited

(Registration number: 02083883)
Statement of Financial Position as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

3,516,448

3,598,437

Other financial assets

5

100

100

 

3,516,548

3,598,537

Current assets

 

Stocks

6

26,914

36,954

Debtors

7

264,299

298,563

Cash at bank and in hand

 

23

23

 

291,236

335,540

Creditors: Amounts falling due within one year

8

(838,760)

(856,997)

Net current liabilities

 

(547,524)

(521,457)

Total assets less current liabilities

 

2,969,024

3,077,080

Creditors: Amounts falling due after more than one year

8

(334,558)

(476,283)

Provisions for liabilities

(459,639)

(334,172)

Net assets

 

2,174,827

2,266,625

Capital and reserves

 

Called up share capital

115

115

Capital redemption reserve

12

12

Revaluation reserve

530,349

530,349

Profit and loss account

1,644,351

1,736,149

Total equity

 

2,174,827

2,266,625

For the financial year ending 30 April 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; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

 

J. O. Straughan & Co. Limited

(Registration number: 02083883)
Statement of Financial Position as at 30 April 2023 (continued)

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. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Income Statement.

Approved and authorised for issue by the Board on 14 November 2023 and signed on its behalf by:
 

.........................................
R W Dickinson
Director

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 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 Netherton Park Steads, Stannington, Morpeth, Northumberland, NE61 6EF.

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are prepared in sterling which is the functional currency of the entity.

Going concern

The company has a net current liability position of £547,524. The financial statements have been prepared on a going concern basis. The company meets its day to day working capital requirements through cash generated from operations and external borrowings. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.

Based on the factors set out above the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the turnover can be reliably measured. Turnover is measured as the fair value of the
consideration received or receivable, excluding discounts, rebates, value added tax and other sales
taxes. The following criteria must also be met before turnover is recognised:

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the Company retains neither continuing managerial involvement to the degree usually
• associated with ownership nor effective control over the goods sold;
• the amount of turnover can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
 

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are
provided in accordance with the stage of completion of the contract when all of the following
conditions are satisfied:
• the amount of turnover can be measured reliably;
• it is probable that the Company will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured
• reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
 

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position 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.

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

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

 

Freehold property

No depreciation

 

Plant & machinery

10% reducing balance

 

Office equipment

15% reducing balance

 

Motor vehicles

25% reducing balance

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the
date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated
impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying
amount does not differ materially from that which would be determined using fair value at the
balance sheet date.

Fair values are determined from market based evidence normally undertaken by professionally
qualified valuers.

Realised revaluation gains and losses are recognised in other comprehensive income unless losses
exceed the previously recognised gains or reflect a clear consumption of economic benefits, in
which case the excess losses are recognised in profit or loss.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 income statement 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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 13 (2022 - 13).

4

Tangible assets

Land and buildings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 May 2022

699,240

5,406,113

285,228

6,390,581

Additions

-

202,810

46,600

249,410

Disposals

-

(150,247)

(54,700)

(204,947)

At 30 April 2023

699,240

5,458,676

277,128

6,435,044

Depreciation

At 1 May 2022

-

2,555,939

236,205

2,792,144

Charge for the year

-

291,256

12,904

304,160

Eliminated on disposal

-

(126,794)

(50,914)

(177,708)

At 30 April 2023

-

2,720,401

198,195

2,918,596

Carrying amount

At 30 April 2023

699,240

2,738,275

78,933

3,516,448

At 30 April 2022

699,240

2,850,174

49,023

3,598,437

Included within the net book value of land and buildings above is £699,240 (2022 - £699,240) in respect of freehold land and buildings.

The net book value of plant and machinery assets held under finance leases or hire purchase contracts, included above is £1,397,756 (2022: £1,328,223).

The property was revalued on 15th August 2021 by D Carmichael, Chartered Surveyors and Agricultural Valuers Limited. The revaluation was agreed by both the shareholders and the directors that it should be brought into the 2021 accounts.

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

5

Other financial assets (current and non-current)

2023
£

2022
£

Non-current financial assets

Unlisted investments

100

100

6

Stocks

2023
£

2022
£

Other inventories

26,914

36,954

7

Debtors

2023
£

2022
£

Trade debtors

232,260

271,263

Other debtors

32,039

27,300

264,299

298,563

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

9

788,474

731,650

Trade creditors

 

28,638

76,794

Taxation and social security

 

8,055

36,320

Accruals and deferred income

 

4,350

12,233

Other creditors

 

9,243

-

 

838,760

856,997

Creditors include net obligations under finance lease and hire purchase contracts which are secured on the assets to which they relate.

 

J. O. Straughan & Co. Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 April 2023 (continued)

8

Creditors (continued)

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

334,558

476,283

Creditors include net obligations under finance lease and hire purchase contracts which are secured on the assets to which they relate.

Secured loans

The overdraft is secured by charges over the Company's freehold property. The bank also has an outstanding debenture deed over all fixed and current assets.

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

461,695

448,534

Hire purchase and finance lease liabilities

326,779

283,116

788,474

731,650

2023
£

2022
£

Non-current loans and borrowings

Hire purchase and finance lease liabilities

334,558

476,283