Company registration number 00735591 (England and Wales)
EMERTON ROOFING (WESTERN) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
EMERTON ROOFING (WESTERN) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
EMERTON ROOFING (WESTERN) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
571,914
514,972
Investments
4
75,000
75,000
646,914
589,972
Current assets
Stocks
218,768
159,012
Debtors
5
160,368
143,805
Cash at bank and in hand
87,660
79,444
466,796
382,261
Creditors: amounts falling due within one year
6
(226,757)
(220,615)
Net current assets
240,039
161,646
Total assets less current liabilities
886,953
751,618
Creditors: amounts falling due after more than one year
7
(245,824)
(147,777)
Provisions for liabilities
8
(34,105)
(23,310)
Net assets
607,024
580,531
Capital and reserves
Called up share capital
9
5,000
5,000
Revaluation reserve
10
175,077
175,077
Profit and loss reserves
426,947
400,454
Total equity
607,024
580,531
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.
EMERTON ROOFING (WESTERN) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 4 October 2023 and are signed on its behalf by:
Mr S R Emerton
Director
Company Registration No. 00735591
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
Emerton Roofing (Western) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Beambridge Depot, Barony Road, Nantwich, Cheshire, CW5 5RE.
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 at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for goods and services net of VAT.
1.3
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:
Freehold buildings
2% Straight line
Plant and machinery
10% to 25% Straight line
Fixtures, fittings & equipment
25% Straight line
Motor vehicles
25% Reducing balance
The residual value of freehold property comprising land and buildings is reviewed annually.
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.
1.4
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.5
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.
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.6
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.
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.
1.7
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.8
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.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.9
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.
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
44
41
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 April 2022
350,000
395,286
745,286
Additions
94,869
94,869
At 31 March 2023
350,000
490,155
840,155
Depreciation and impairment
At 1 April 2022
230,314
230,314
Depreciation charged in the year
37,927
37,927
At 31 March 2023
268,241
268,241
Carrying amount
At 31 March 2023
350,000
221,914
571,914
At 31 March 2022
350,000
164,972
514,972
The freehold property is included at fair value. The valuation was made by the director at the year end and is based on previous professional valuations.
The revaluation surplus is disclosed in note 10.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been £174,923 (2022 - £174,923), being cost £174,923 (2022 - £174,923) and depreciation £nil (2022 - £nil).
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
4
Fixed asset investments
2023
2022
£
£
Other investments other than loans
75,000
75,000
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
122,051
92,879
Other debtors
38,317
50,926
160,368
143,805
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
43,380
34,000
Trade creditors
62,989
74,935
Taxation and social security
95,343
89,218
Other creditors
25,045
22,462
226,757
220,615
Bank borrowings of £23,596 (2022 £20,000) are secured on the assets of the company and by a personal guarantee from a director.
Other creditors include accruals and deferred income of £6,605 (2022 - £6,396).
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
222,078
138,062
Other creditors
23,746
9,715
245,824
147,777
Bank borrowings of £191,745 (2022 £93,728) are secured on the assets of the company and by a personal guarantee from a director.
Creditors include obligations under finance leases of £34,965 (2022 - £19,640) which are secured on the assets financed.
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
109,399
8,492
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
34,105
23,310
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
10
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
175,077
175,077
The revaluation reserve is in respect of the company's freehold land and buildings. If the land and buildings were sold at their revalued amount, no tax would be payable (2022 - £nil).
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
11,291
14,766
EMERTON ROOFING (WESTERN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
12
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Loan account
2.00
40,078
641
(15,408)
25,311
40,078
641
(15,408)
25,311