Company registration number 01931016 (England and Wales)
BROOK & CHURCHES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
BROOK & CHURCHES LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
BROOK & CHURCHES LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,426,844
1,769,599
Investments
5
500
500
1,427,344
1,770,099
Current assets
Debtors
7
137,727
155,575
Cash at bank and in hand
367,112
243,279
504,839
398,854
Creditors: amounts falling due within one year
8
(291,377)
(373,210)
Net current assets
213,462
25,644
Total assets less current liabilities
1,640,806
1,795,743
Creditors: amounts falling due after more than one year
9
(248,734)
Provisions for liabilities
(71,108)
Net assets
1,392,072
1,724,635
Capital and reserves
Called up share capital
11
692
692
Revaluation reserve
12
662,158
1,002,380
Profit and loss reserves
729,222
721,563
Total equity
1,392,072
1,724,635
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 28 March 2024 and are signed on its behalf by:
Mr C P Brook
Mr D J Brook
Director
Director
Company Registration No. 01931016
BROOK & CHURCHES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 November 2021
692
1,002,380
738,688
1,741,760
Year ended 31 October 2022:
Profit and total comprehensive income for the year
-
-
167,127
167,127
Dividends
-
-
(184,252)
(184,252)
Balance at 31 October 2022
692
1,002,380
721,563
1,724,635
Year ended 31 October 2023:
Profit for the year
-
-
104,539
104,539
Other comprehensive income:
Revaluation of tangible fixed assets
-
(340,222)
-
(340,222)
Total comprehensive income for the year
-
(340,222)
104,539
(235,683)
Dividends
-
-
(96,880)
(96,880)
Balance at 31 October 2023
692
662,158
729,222
1,392,072
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
1
Accounting policies
Company information
Brook & Churches Limited is a private company limited by shares incorporated in England and Wales. The registered office is BCL House, Gatwick Road, Crawley, West Sussex, RH10 9AX.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. true
At the time of approving the financial statements the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next 12 months and thus conclude that the going concern basis remains appropriate.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover represents amounts receivable for rental income and the provision of management services net of VAT.
1.4
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:
Buildings Freehold
2% Straight line/5% straight line
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
Freehold land is not depreciated.
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.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
1.7
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.
1.8
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.
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 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.
1.9
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.
1.10
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.
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 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 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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
2
3
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
7,324
25,692
Deferred tax
Origination and reversal of timing differences
(78,408)
10,580
Total tax (credit)/charge
(71,084)
36,272
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
4
Tangible fixed assets
Land and buildings
£
Cost or valuation
At 1 November 2022
1,895,176
Revaluation
(444,528)
At 31 October 2023
1,450,648
Depreciation and impairment
At 1 November 2022
125,577
Depreciation charged in the year
2,533
Revaluation
(104,306)
At 31 October 2023
23,804
Carrying amount
At 31 October 2023
1,426,844
At 31 October 2022
1,769,599
A full valuation of the company's land and buildings was undertaken in August 2023 by Vail Williams, an independent valuer who is not connected with the company. The company's 50% share was valued on a market value with vacant possession at £1,400,000, land included within this figure is not being depreciated. The directors do not consider the net book value of the land and buildings as at 31 December 2023 to be materially different to the market value in August 2023.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2023
2022
£
£
Cost
919,544
919,544
Accumulated depreciation
(120,153)
(117,621)
Carrying value
799,391
801,923
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
500
500
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
6
Subsidiaries
Details of the company's subsidiaries at 31 October 2023 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Brook & Churches Bros Limited
England & Wales
Sale and servicing of motor vehicles
Ordinary
100.00
0
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Brook & Churches Bros Limited
10,392
509,715
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,106
5,594
Amounts owed by group undertakings
106,511
135,549
Other debtors
18,810
14,432
130,427
155,575
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
7,300
Total debtors
137,727
155,575
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
54,103
1,638
Trade creditors
1,114
713
Corporation tax
7,324
25,692
Other taxation and social security
68,935
12,963
Other creditors
159,901
332,204
291,377
373,210
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Creditors: amounts falling due within one year
(Continued)
- 9 -
The aggregate amount of creditors for which security has been given amounted to £54,103 (2022 - £1,638).
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
248,734
The aggregate amount of creditors for which security has been given amounted to £248,734 (2022 - £Nil).
10
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
6,250
6,250
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.
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
692
692
692
692
12
Revaluation reserve
2023
2022
£
£
At beginning of year
1,002,380
1,002,380
Revaluation surplus arising in the year
(340,222)
At end of year
662,158
1,002,380
A full valuation of the company's land and buildings was undertaken in August 2023. The company's 50% share was valued on a market value with vacant possession at £1,400,000.
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.
BROOK & CHURCHES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
13
Audit report information
(Continued)
- 10 -
Senior Statutory Auditor:
J. Christopher Ketley FCA
Statutory Auditor:
Knill James LLP
Date of audit report:
28 March 2024
14
Financial commitments, guarantees and contingent liabilities
The company has entered into cross guarantees with Brook & Churches Bros. Limited in respect of sums owed and consignment stock held by Brook & Churches Bros. Limited to Hyundai Capital UK Limited. The aggregate liability at the balance sheet date (excluding the value of consignment stock) was £305,248 (2022 - £318,194). The value of consignment stock at the balance sheet date was £395,136 (2022 - £328,096).
The company has entered into joint and several guarantees with Brook & Churches Bros. Limited in respect of that company's bank borrowings in favour of Lloyds Bank Plc for an amount of £250,000 (2022 - £250,000). The potential liability at the balance sheet date was £nil (2022 - £nil).
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