Company registration number 01178400 (England and Wales)
FROSTS LANDSCAPE CONSTRUCTION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
FROSTS LANDSCAPE CONSTRUCTION LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
FROSTS LANDSCAPE CONSTRUCTION LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
7
2,091
2,625
Tangible assets
8
153,633
64,016
155,724
66,641
Current assets
Debtors
9
1,987,746
2,233,506
Cash at bank and in hand
2,651,839
2,087,981
4,639,585
4,321,487
Creditors: amounts falling due within one year
10
(2,120,410)
(1,629,241)
Net current assets
2,519,175
2,692,246
Total assets less current liabilities
2,674,899
2,758,887
Provisions for liabilities
(12,309)
(11,086)
Net assets
2,662,590
2,747,801
Capital and reserves
Called up share capital
12
9,534
9,534
Profit and loss reserves
2,653,056
2,738,267
Total equity
2,662,590
2,747,801
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
K J W White
Director
Company Registration No. 01178400
FROSTS LANDSCAPE CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
9,534
1,679,730
1,689,264
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
1,422,464
1,422,464
Dividends
6
-
(363,927)
(363,927)
Balance at 31 July 2022
9,534
2,738,267
2,747,801
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
1,302,924
1,302,924
Dividends
6
-
(1,388,135)
(1,388,135)
Balance at 31 July 2023
9,534
2,653,056
2,662,590
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
Frosts Landscape Construction Limited is a private company limited by shares incorporated in England and Wales. The registered office is Liscombe Central, Liscombe Business Park, Soulbury, Leighton Buzzard, Beds, LU7 0JL.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
For commercial contracts applications for payment are raised at the end of each stage. The application will be included as work in progress until it is approved, at which point an invoice is raised and a sale recognised.
Grounds maintenance turnover, consists of annual maintenance contracts and one twelfth of the total contract value will be charged to the client each month.
For garden design turnover, invoices are raised once the work has been completed. Applications for payment are not raised as the projects are short term and are for private customers not companies.
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
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:
Software
20% straight line
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.
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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:
Land and buildings leasehold
20% straight line
Plant and machinery
varying rates 10% - 50% as appropriate
Fixtures, fittings & equipment
varying rates 20% - 50% as appropriate
Motor vehicles
20% straight line
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).
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting period end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. This is recognised as work in progress.
1.8
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 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 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.
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 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.
1.10
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.
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.
1.11
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 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 arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's accounts. Deferred tax is provided in full on timing differences that result in an obligation to pay more (or less) tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 6 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
See note 1.7 for details on contract work valuation, this is considered to be a key estimation applied by the company.
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
36
31
4
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
236,674
122,812
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
Directors remuneration includes benefits in kind of £26,040 (2022: £21,756).
5
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
346,814
333,358
Deferred tax
Origination and reversal of timing differences
1,223
3,612
Total tax charge
348,037
336,970
6
Dividends
2023
2022
£
£
Interim paid
1,388,135
363,927
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
7
Intangible fixed assets
Software
£
Cost
At 1 August 2022 and 31 July 2023
55,820
Amortisation and impairment
At 1 August 2022
53,195
Amortisation charged for the year
534
At 31 July 2023
53,729
Carrying amount
At 31 July 2023
2,091
At 31 July 2022
2,625
8
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2022
13,543
267,444
280,987
Additions
126,974
126,974
Disposals
(64,222)
(64,222)
At 31 July 2023
13,543
330,196
343,739
Depreciation and impairment
At 1 August 2022
7,762
209,209
216,971
Depreciation charged in the year
2,709
34,648
37,357
Eliminated in respect of disposals
(64,222)
(64,222)
At 31 July 2023
10,471
179,635
190,106
Carrying amount
At 31 July 2023
3,072
150,561
153,633
At 31 July 2022
5,781
58,235
64,016
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 9 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
679,532
496,426
Corporation tax recoverable
2,256
2,256
Amounts owed by group undertakings
531,376
Other debtors
1,305,958
1,203,448
1,987,746
2,233,506
10
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
110,000
Trade creditors
442,170
303,697
Amounts owed to group undertakings
655,000
Corporation tax
167,847
333,358
Other taxation and social security
28,787
52,101
Other creditors
826,606
830,085
2,120,410
1,629,241
Any bank borrowings are secured by way of a debenture, issued on 21 September 2001 by NatWest Bank Plc, over all the assets of the company.
11
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
257,867
107,019
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Called up share capital
2023
2022
£
£
Issued and fully paid
95,340 Ordinary shares of 10p each
9,534
9,534
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 10 -
13
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Peter Woodhall FCA
Statutory Auditor:
UHY Hacker Young (East) Limited
14
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
£
£
Within one year
57,304
87,423
Between two and five years
10,119
67,422
67,423
154,845
15
Related party transactions
Remuneration of key management personnel
2023
2022
£
£
Aggregate compensation
210,809
101,209
Under FRS102 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.
Transactions with related parties
At the balance sheet date the company was owed £9,170 (2022: £57,717 creditor) from K J W White, the managing director, £14,939 (2022: £37,037 creditor) from D Perry, a director and £26,949 (2022: £19,805 creditor) from A Meeker, a director.
During the year, a car was transferred to Gardenlink Limited, a fellow subsidiary of Formation Landscapes Ltd, at nil value. At the date the disposal, the car had an estimated market value of £7,500.
FROSTS LANDSCAPE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
16
Parent company
The company is wholly owned by Formation Landscapes Limited, the holding company. The ultimate controlling parties are the directors and shareholders of the holding company, acting in concert.
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