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Registration number: 06439859

J H Cresswell & Sons Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 28 February 2023

 

J H Cresswell & Sons Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 10

 

J H Cresswell & Sons Limited

(Registration number: 06439859)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

130,824

99,063

Current assets

 

Stocks

6

7,780

11,992

Debtors

7

320,547

169,598

Cash at bank and in hand

 

28

28

 

328,355

181,618

Creditors: Amounts falling due within one year

8

(227,962)

(101,130)

Net current assets

 

100,393

80,488

Total assets less current liabilities

 

231,217

179,551

Creditors: Amounts falling due after more than one year

8

(60,151)

(33,246)

Provisions for liabilities

(32,480)

(24,565)

Net assets

 

138,586

121,740

Capital and reserves

 

Called up share capital

100

100

Retained earnings

138,486

121,640

Shareholders' funds

 

138,586

121,740

 

J H Cresswell & Sons Limited

(Registration number: 06439859)
Balance Sheet as at 28 February 2023

For the financial year ending 28 February 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 accounts 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 accounts.

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 Profit and Loss Account.

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.

Approved and authorised by the Board on 17 April 2024 and signed on its behalf by:
 

J H Cresswell
Director

J S Cresswell
Company secretary and director

 
     
 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 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:
c/o Milsted Langdon LLP
Motivo House
Alvington
Yeovil
Somerset
BA20 2FG

These financial statements were authorised for issue by the Board on 17 April 2024.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

The directors have reviewed the supply chains, key customers and the capital resources available and consider that the company has adequate resources in place to continue trading for the next twelve months.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable 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 Balance Sheet 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.

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

Plant and machinery

15% reducing balance and 3 years straight line

Furniture, fittings and equipment

15% reducing balance

Motor vehicles

20% reducing balance and 3 years straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Acquired goodwill

20% Straight line over 10 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

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 stocks 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.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 profit and loss account 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.

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

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 balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account 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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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 3 (2022 - 4).

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2022

256,932

256,932

At 28 February 2023

256,932

256,932

Amortisation

At 1 March 2022

256,932

256,932

At 28 February 2023

256,932

256,932

Carrying amount

At 28 February 2023

-

-

5

Tangible assets

Furniture, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2022

8,788

122,731

220,070

351,589

Additions

-

-

49,388

49,388

At 28 February 2023

8,788

122,731

269,458

400,977

Depreciation

At 1 March 2022

6,494

93,987

152,045

252,526

Charge for the year

343

4,312

12,972

17,627

At 28 February 2023

6,837

98,299

165,017

270,153

Carrying amount

At 28 February 2023

1,951

24,432

104,441

130,824

At 28 February 2022

2,294

28,744

68,025

99,063

6

Stocks

2023
£

2022
£

Work in progress

7,780

11,992

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

7

Debtors

Note

2023
£

2022
£

Trade debtors

 

32,594

4,253

Amounts owed by related parties

10

127,419

79,068

Other debtors

 

159,684

85,242

Prepayments

 

850

1,035

 

320,547

169,598

8

Creditors

Due within one year

Note

2023
£

2022
£

 

Loans and borrowings

9

52,427

31,316

Social security and other taxes

 

57,154

22,354

Other creditors

 

63,200

12

Accruals

 

20,259

11,195

Corporation tax liability

10,296

36,253

Deferred income

 

24,626

-

 

227,962

101,130

Due after one year

 

Loans and borrowings

9

60,151

33,246

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

23,334

33,246

Hire purchase contracts

36,817

-

60,151

33,246

Current loans and borrowings

2023
£

2022
£

Bank borrowings

9,910

9,667

Bank overdrafts

27,104

13,614

Hire purchase contracts

7,743

3,036

Other borrowings

7,670

4,999

52,427

31,316

Bank borrowings

Within bank borrowings is a balance of £33,246 (2022 - £42,913) relating to an outstanding amount due from a Coronavirus Bounce Back Loan. The UK government have guaranteed 100% of the value from the loan.

Other borrowings

The carrying amount of Hire purchase contracts at year end is £44,560 (2022 - £3,035).

The hire purchase contracts are secured on the underlying asset which is included within motor vehicles. The net book value of the relevant asset at the balance sheet date is £44,484 (2022 - £8,190).

 

J H Cresswell & Sons Limited

Notes to the Unaudited Financial Statements for the Year Ended 28 February 2023

10

Related party transactions

Transactions with directors

2023

At 1 March 2022
£

Advances to director
£

Repayments by director
£

At 28 February 2023
£

J S Cresswell

-

-

-

-

Transactions during the year

30,721

49,389

(27,085)

53,025

30,721

49,389

(27,085)

53,025

J H Cresswell

-

-

-

-

Transactions during the year

48,347

143,074

(117,669)

73,752

48,347

143,074

(117,669)

73,752

2022

At 1 March 2021
£

Advances to director
£

Repayments by director
£

At 28 February 2022
£

J S Cresswell

Transactions during the year

7,063

61,720

(38,062)

30,721

7,063

61,720

(38,062)

30,721

J H Cresswell

Transactions during the year

(644)

87,995

(39,004)

48,347

(644)

87,995

(39,004)

48,347

The directors loan accounts are repayable on demand and interest was charged during the year at 2% where applicable.