Company registration number 03591345 (England and Wales)
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Unaudited Financial Statements
for the Year Ended 31 July 2023
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Contents
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Company Information
- 1 -
Directors
Mr R S O'Reilly
Mrs T O'Reilly
Secretary
Mrs T O'Reilly
Company number
03591345
Registered office
The Meadows
Pontneathvaughan Road
Glynneath
Neath
SA11 5NT
Accountants
Mitchell Associates Ltd
The Business Park
Triangle Business Centre
Merthyr Tydfil
CF48 4TQ
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Balance Sheet
As at 31 July 2023
31 July 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
181,594
200,842
Investment property
4
110,935
110,935
292,529
311,777
Current assets
Stocks
5
389,472
294,986
Debtors
6
240,394
295,293
Cash at bank and in hand
198,069
310,599
827,935
900,878
Creditors: amounts falling due within one year
7
(304,787)
(371,888)
Net current assets
523,148
528,990
Total assets less current liabilities
815,677
840,767
Creditors: amounts falling due after more than one year
8
(18,335)
(32,820)
Provisions for liabilities
(15,881)
(19,105)
Net assets
781,461
788,842
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
781,451
788,832
Total equity
781,461
788,842
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Balance Sheet
As at 31 July 2023
31 July 2023
- 3 -
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 July 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.
The financial statements were approved by the board of directors and authorised for issue on 17 April 2024 and are signed on its behalf by:
Mr R S O'Reilly
Director
Company Registration No. 03591345
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
- 4 -
1
Accounting policies
Company information
Warmaglaze Home Improvements Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Meadows, Pontneathvaughan Road, Glynneath, Neath, SA11 5NT.
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 and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
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 Turnover when:
The amount of Turnover 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.
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 land and buildings
2% Straight Line
Plant and equipment
15% Reducing Balance
Computers
15% Straight Line
Motor vehicles
25% 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.
1.4
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
1
Accounting policies
- 5 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are recognised at transaction price.
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 at transaction price.
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
1
Accounting policies
- 6 -
1.9
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. 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 profit and loss account, 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
1
Accounting policies
- 7 -
1.12
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
8
7
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2022
121,615
198,467
320,082
Additions
5,157
5,157
At 31 July 2023
121,615
203,624
325,239
Depreciation and impairment
At 1 August 2022
22,031
97,209
119,240
Depreciation charged in the year
1,579
22,826
24,405
At 31 July 2023
23,610
120,035
143,645
Carrying amount
At 31 July 2023
98,005
83,589
181,594
At 31 July 2022
99,585
101,257
200,842
4
Investment property
2023
£
Fair value
At 1 August 2022 and 31 July 2023
110,935
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
4
Investment property
- 8 -
There has been no valuation of investment property by an independent valuer.
5
Stocks
2023
2022
£
£
Stocks
389,472
294,986
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
240,274
295,293
Other debtors
120
240,394
295,293
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,000
10,000
Trade creditors
178,348
228,484
Taxation and social security
39,184
55,037
Other creditors
77,255
78,367
304,787
371,888
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,335
28,333
Other creditors
4,487
18,335
32,820
WARMAGLAZE HOME IMPROVEMENTS LIMITED
Notes to the Financial Statements
For the Year Ended 31 July 2023
- 9 -
9
Loans and overdrafts
2023
2022
£
£
Bank loans
28,335
38,333
Payable within one year
10,000
10,000
Payable after one year
18,335
28,333
Barclays Bounce Back Loan is denominated in GBP with a nominal interest rate of 2.5%, and the final instalment is due on 27 April 2026. The carrying amount at year end is £28,335 (2022 - £38,333).
The loan is not secured.