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REGISTRAR OF COMPANIES

Registration number: 03962404

Armstrong Building Supplies Limited

Unaudited Financial Statements

31 May 2023

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Armstrong Building Supplies Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Armstrong Building Supplies Limited
for the Year Ended 31 May 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Armstrong Building Supplies Limited for the year ended 31 May 2023 as set out on pages 2 to 10 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Armstrong Building Supplies Limited, as a body, in accordance with the terms of our engagement letter dated 3 October 2022. Our work has been undertaken solely to prepare for your approval the accounts of Armstrong Building Supplies Limited and state those matters that we have agreed to state to the Board of Directors of Armstrong Building Supplies Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Armstrong Building Supplies Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Armstrong Building Supplies Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Armstrong Building Supplies Limited. You consider that Armstrong Building Supplies Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Armstrong Building Supplies Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

18 January 2024

 

Armstrong Building Supplies Limited

(Registration number: 03962404)
Balance Sheet as at 31 May 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

19,696

21,008

Investment property

6

292,463

292,463

 

312,159

313,471

Current assets

 

Stocks

118,043

119,678

Debtors

8

103,529

94,858

Other financial assets

7

1,300

1,300

Cash at bank and in hand

 

92,929

109,932

 

315,801

325,768

Creditors: Amounts falling due within one year

9

(133,663)

(138,996)

Net current assets

 

182,138

186,772

Total assets less current liabilities

 

494,297

500,243

Provisions for liabilities

(1,873)

(2,375)

Net assets

 

492,424

497,868

Capital and reserves

 

Allotted, called up and fully paid share capital

200

200

Profit and loss account

492,224

497,668

Total equity

 

492,424

497,868

 

Armstrong Building Supplies Limited

(Registration number: 03962404)
Balance Sheet as at 31 May 2023 (continued)

For the financial year ending 31 May 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 prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

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.

Approved and authorised by the Board on 18 January 2024 and signed on its behalf by:
 

.........................................

N Johnstone

Director

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 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:
Brunel Way
Durranhill Industrial Estate
CARLISLE
CA1 3NQ

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.

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.

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.

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

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

Land and buildings

2% straight line

Plant and equipment

15% reducing balance

Motor vehicles

25% reducing balance

Furniture, fittings and office equipment

15% reducing balance and 33% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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 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

Goodwill

20 years straight line

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.

Trade debtors

Trade debtors are amounts due from customers for the sale of goods 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.

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

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 inventories 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.

Trade 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 where due after more than one year.

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.

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.

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.

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

Financial instruments

Classification
Equity shares and debt securities

 Recognition and measurement
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.


 Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2022 - 5).

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 June 2022

48,253

48,253

At 31 May 2023

48,253

48,253

Amortisation

At 1 June 2022

48,253

48,253

At 31 May 2023

48,253

48,253

Carrying amount

At 31 May 2023

-

-

At 31 May 2022

-

-

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Furniture, fittings and office equipment
 £

Total
£

Cost or valuation

At 1 June 2022

16,295

6,198

21,521

10,084

54,098

Additions

-

-

-

1,306

1,306

Disposals

-

-

-

(389)

(389)

At 31 May 2023

16,295

6,198

21,521

11,001

55,015

Depreciation

At 1 June 2022

5,305

5,484

15,847

6,454

33,090

Charge for the year

327

108

1,419

759

2,613

Eliminated on disposal

-

-

-

(384)

(384)

At 31 May 2023

5,632

5,592

17,266

6,829

35,319

Carrying amount

At 31 May 2023

10,663

606

4,255

4,172

19,696

At 31 May 2022

10,990

714

5,674

3,630

21,008

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

6

Investment properties

£

At 1 June 2022

292,463

At 31 May 2023

292,463

The directors of the company are of the opinion that cost is a reasonable estimate of the fair value of the investment properties.
 

There has been no valuation of investment property by an independent valuer.

7

Other financial assets (current and non-current)

2023
£

2022
£

Current financial assets

Financial assets at cost less impairment

1,300

1,300

8

Debtors

2023
£

2022
£

Trade debtors

95,583

87,203

Other debtors

7,946

7,655

103,529

94,858

9

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

38,364

37,489

Trade creditors

 

69,252

60,663

Taxation and social security

 

7,516

10,092

Corporation tax liability

 

12,714

25,687

Other creditors

 

5,817

5,065

 

133,663

138,996

 

Armstrong Building Supplies Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2023 (continued)

10

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Other borrowings

38,364

37,489