Company registration number 05883334 (England and Wales)
Elm Cottage Limited
Unaudited financial statements
For the year ended 30 September 2023
Elm Cottage Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
Elm Cottage Limited
Statement of financial position
As at 30 September 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
9,000
-
0
Tangible assets
4
6,988
24,200
15,988
24,200
Current assets
Stocks
-
210
Debtors
5
375,370
517,302
Cash at bank and in hand
469,047
266,674
844,417
784,186
Creditors: amounts falling due within one year
6
(553,856)
(476,333)
Net current assets
290,561
307,853
Total assets less current liabilities
306,549
332,053
Creditors: amounts falling due after more than one year
7
(104,167)
(154,167)
Provisions for liabilities
(4,000)
(5,800)
Net assets
198,382
172,086
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
198,282
171,986
Total equity
198,382
172,086

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 30 September 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 member has 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.

Elm Cottage Limited
Statement of financial position (continued)
As at 30 September 2023
30 September 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 1 February 2024 and are signed on its behalf by:
Mrs Y Thomas
Mr J W Thomas
Director
Director
Company Registration No. 05883334
Elm Cottage Limited
Notes to the financial statements
For the year ended 30 September 2023
- 3 -
1
Accounting policies
Company information

Elm Cottage Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke-on-Trent, Staffordshire, ST1 5SQ.

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. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and has been amortised over its expected life of ten years.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Website
10% per annum
1.5
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.

Elm Cottage Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
- 4 -

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:

Fixtures and fittings
33.33% on cost and 15% reducing balance

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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.

1.9
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 statement of financial position 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.

Elm Cottage Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets

Basic financial assets, which include debtors, loans to fellow group companies, 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 and bank loans, 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.

1.10
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.

1.11
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 income statement 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.

Elm Cottage Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
1
Accounting policies
(Continued)
- 6 -
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
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.

1.15
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.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Elm Cottage Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
- 7 -
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
104
90
3
Intangible fixed assets
Goodwill
Website
Total
£
£
£
Cost
At 1 October 2022
593,000
-
0
593,000
Additions
-
0
10,000
10,000
At 30 September 2023
593,000
10,000
603,000
Amortisation and impairment
At 1 October 2022
593,000
-
0
593,000
Amortisation charged for the year
-
0
1,000
1,000
At 30 September 2023
593,000
1,000
594,000
Carrying amount
At 30 September 2023
-
0
9,000
9,000
At 30 September 2022
-
0
-
0
-
0
4
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 October 2022 and 30 September 2023
81,927
Depreciation and impairment
At 1 October 2022
57,727
Depreciation charged in the year
17,212
At 30 September 2023
74,939
Carrying amount
At 30 September 2023
6,988
At 30 September 2022
24,200
Elm Cottage Limited
Notes to the financial statements (continued)
For the year ended 30 September 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
337
3,283
Amounts owed by group undertakings
350,573
493,494
Other debtors
24,460
20,525
375,370
517,302
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
50,000
50,000
Trade creditors
18,493
7,794
Taxation and social security
144,632
102,779
Other creditors
340,731
315,760
553,856
476,333
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
104,167
154,167
8
Security

The bank loans are secured by a fixed and floating charge over the assets of the company.

9
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
£
£
805,000
907,000
2023-09-302022-10-01false01 February 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityMrs Yvonne Margaret ThomasMr John William ThomasMrs Y Thomasfalse058833342022-10-012023-09-30058833342023-09-30058833342022-09-3005883334core:Goodwill2023-09-3005883334core:ComputerSoftware2023-09-3005883334core:Goodwill2022-09-3005883334core:ComputerSoftware2022-09-3005883334core:FurnitureFittings2023-09-3005883334core:FurnitureFittings2022-09-3005883334core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3005883334core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3005883334core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3005883334core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3005883334core:CurrentFinancialInstruments2023-09-3005883334core:CurrentFinancialInstruments2022-09-3005883334core:ShareCapital2023-09-3005883334core:ShareCapital2022-09-3005883334core:RetainedEarningsAccumulatedLosses2023-09-3005883334core:RetainedEarningsAccumulatedLosses2022-09-3005883334bus:CompanySecretaryDirector12022-10-012023-09-3005883334bus:Director12022-10-012023-09-3005883334core:Goodwill2022-10-012023-09-3005883334core:IntangibleAssetsOtherThanGoodwill2022-10-012023-09-3005883334core:ComputerSoftware2022-10-012023-09-3005883334core:FurnitureFittings2022-10-012023-09-30058833342021-10-012022-09-3005883334core:Goodwill2022-09-3005883334core:ComputerSoftware2022-09-30058833342022-09-3005883334core:Goodwillcore:ExternallyAcquiredIntangibleAssets2022-10-012023-09-3005883334core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2022-10-012023-09-3005883334core:ExternallyAcquiredIntangibleAssets2022-10-012023-09-3005883334core:FurnitureFittings2022-09-3005883334core:WithinOneYear2023-09-3005883334core:WithinOneYear2022-09-3005883334core:Non-currentFinancialInstruments2023-09-3005883334core:Non-currentFinancialInstruments2022-09-3005883334bus:PrivateLimitedCompanyLtd2022-10-012023-09-3005883334bus:SmallCompaniesRegimeForAccounts2022-10-012023-09-3005883334bus:FRS1022022-10-012023-09-3005883334bus:AuditExemptWithAccountantsReport2022-10-012023-09-3005883334bus:Director22022-10-012023-09-3005883334bus:CompanySecretary12022-10-012023-09-3005883334bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP