Company registration number 05259429 (England and Wales)
HAMMERWOOD LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
HAMMERWOOD LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
HAMMERWOOD LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
87,798
130,459
Investment property
4
350,000
305,000
Investments
5
234,619
182,624
672,417
618,083
Current assets
Debtors
6
652,109
522,234
Cash at bank and in hand
74,246
338,040
726,355
860,274
Creditors: amounts falling due within one year
7
(399,363)
(366,662)
Net current assets
326,992
493,612
Total assets less current liabilities
999,409
1,111,695
Creditors: amounts falling due after more than one year
9
(181,757)
(226,920)
Provisions for liabilities
(37,816)
(34,283)
Net assets
779,836
850,492
Capital and reserves
Called up share capital
99
99
Capital redemption reserve
1
1
Other reserves
113,119
68,119
Profit and loss reserves
666,617
782,273
Total equity
779,836
850,492

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 October 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 member has 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.

HAMMERWOOD LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2023
31 October 2023
page 2
The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
G Bateman
Director
Company registration number 05259429 (England and Wales)
HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
page 3
1
Accounting policies
Company information

Hammerwood Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cambric House, 4 Cantelupe Mews, Cantelupe Road, East Grinstead, West Sussex, RH19 3BG.

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 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.

Gross amounts owed by contract customers are recognised by reference to the stage of completion when the stage of completion, costs incurred, costs to complete and the mark-up can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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:

Plant and equipment
25% reducing balance
Fixtures and fittings
25% straight line
Computers
25% straight line
Motor vehicles
25% 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.

1.4
Investment properties

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.

HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
page 4
1.5
Fixed asset investments

Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.

 

Investments in unlisted companies, where fair value cannot be reliably measured, are carried at cost less impairment.

1.6
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 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 revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

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. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

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.

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.

HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
page 5
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, 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
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.

1.10
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.

 

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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

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.

HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
page 6
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Total
17
15
3
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022 and 31 October 2023
20,594
2,767
20,154
196,610
240,125
Depreciation and impairment
At 1 November 2022
16,889
2,488
14,629
75,660
109,666
Depreciation charged in the year
927
74
1,960
39,700
42,661
At 31 October 2023
17,816
2,562
16,589
115,360
152,327
Carrying amount
At 31 October 2023
2,778
205
3,565
81,250
87,798
At 31 October 2022
3,705
279
5,525
120,950
130,459
4
Investment property
2023
£
Fair value
At 1 November 2022
305,000
Revaluations
45,000
At 31 October 2023
350,000

Investment property comprises a residential property. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 7 October 2019 by Connells Estate Agents, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. At the reporting date the director reviewed the valuation of the property and considered there was a change in the valuation based upon the Nationwide House price index. The historic cost of the property was £236,880.

5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
234,619
182,624
HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
5
Fixed asset investments
(Continued)
page 7
Fixed asset investments revalued

Fixed asset investments have been valued on an open market basis. The historical cost of these investments was £254,761 (2022 - £200,690).

Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 November 2022
182,624
Additions
50,452
Valuation changes
1,543
At 31 October 2023
234,619
Carrying amount
At 31 October 2023
234,619
At 31 October 2022
182,624
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
45,833
40,619
Corporation tax recoverable
17,364
12,713
Other debtors
588,912
468,902
652,109
522,234
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
18,428
22,037
Trade creditors
135,250
148,339
Corporation tax
-
0
26,209
Other taxation and social security
78,785
55,035
Other creditors
166,900
115,042
399,363
366,662

Included in other creditors are amounts owed under finance leases of £31,926 (2022 - £33,278), these are secured against the assets to which they relate.

HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
page 8
8
Loans and overdrafts
2023
2022
£
£
Bank loans
173,290
190,138
Payable within one year
18,428
22,037
Payable after one year
154,862
168,101

The long-term loans are secured by fixed charges over the properties owned by the company. The bank loans are repayable over 15 years. Interest of £10,403 (2022: £7,191 ) was paid in respect of these loans during this financial year.

 

In July 2020 the company received a loan under the Coronavirus Bounce Back Loan Scheme, which is 100% guaranteed by the government. Interest is charged at a fixed annual rate of 2.5%. Interest for the first 12 months is paid by the government and no capital repayments are due for the first 12 months. Interest of £802 (2022 - £1,052 ) was paid in respect of this loan in this financial year.

9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
154,862
168,101
Other creditors
26,895
58,819
181,757
226,920

Included in other creditors are amounts owed under finance leases of £26,895 (2022 - £58,819), these are secured against the assets to which they relate.

Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
(97,753)
-
10
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
£
£
209
2,725
HAMMERWOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
page 9
11
Directors' transactions

Loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Director 1
2.25
37,669
836
(6,908)
31,597
37,669
836
(6,908)
31,597
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