Company registration number 02577934 (England and Wales)
FORMOST EQUIPMENT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
FORMOST EQUIPMENT LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 7
FORMOST EQUIPMENT LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF FORMOST EQUIPMENT LIMITED FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Formost Equipment Limited for the year ended 31 March 2024 which comprise, the balance sheet and the related notes 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 https://www.icaew.com/regulation.

This report is made solely to the board of directors of Formost Equipment Limited, as a body, in accordance with the terms of our engagement letter dated 15 May 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Formost Equipment Limited and state those matters that we have agreed to state to the board of directors of Formost Equipment 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 Formost Equipment Limited and its board of directors as a body, for our work or for this report.

It is your duty to ensure that Formost Equipment Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Formost Equipment Limited. You consider that Formost Equipment 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 financial statements of Formost Equipment 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 financial statements.

Waters & Atkinson
27 July 2024
Chartered Accountants
The Old Court House
Clark Street
Morecambe
Lancashire
LA4 5HR
FORMOST EQUIPMENT LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment properties
5
1,440,000
1,440,000
Current assets
Debtors
2,774
2,237
Cash at bank and in hand
61
61
2,835
2,298
Creditors: amounts falling due within one year
(26,581)
(28,724)
Net current liabilities
(23,746)
(26,426)
Total assets less current liabilities
1,416,254
1,413,574
Creditors: amounts falling due after more than one year
(256,330)
(260,281)
Provisions for liabilities
(121,748)
(121,748)
Net assets
1,038,176
1,031,545
Capital and reserves
Called up share capital
1,000
1,000
Revaluation reserve
6
243,907
243,907
Other reserves
633,893
633,893
Profit and loss reserves
159,376
152,745
Total equity
1,038,176
1,031,545

In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).

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 March 2024 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.

FORMOST EQUIPMENT LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 27 July 2024 and are signed on its behalf by:
Mr MJ Hodgkins
Director
Company Registration No. 02577934
FORMOST EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
1
Accounting policies
Company information

Formost Equipment Limited is a private company limited by shares incorporated in England and Wales. The registered office is 58 Main Street, Kirkby Lonsdale, Carnforth, Lancashire, LA6 2AJ.

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 £1.

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
Going concern

Despite the company having net current liabilities of £23,746, the directors have formed a reasonable expectation that the company will remain within agreed facilities and continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. true

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which was 10 years.

 

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:

Fixtures and fittings
33% and 15% on cost

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
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.

1.6
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.

FORMOST EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.7
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.

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.

 

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.

1.8
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.

1.9
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.

 

FORMOST EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
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.

 

1.11
Retirement benefits

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

1.12
Leases

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.

2
Employees

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

2024
2023
Number
Number
Total
3
3
3
Intangible fixed assets
Total
£
Cost
At 1 April 2023 and 31 March 2024
80,000
Amortisation and impairment
At 1 April 2023 and 31 March 2024
80,000
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
FORMOST EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
4
Tangible fixed assets
Total
£
Cost
At 1 April 2023
3,496
Disposals
(695)
At 31 March 2024
2,801
Depreciation and impairment
At 1 April 2023
3,496
Eliminated in respect of disposals
(695)
At 31 March 2024
2,801
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
5
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
1,440,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

6
Revaluation reserve
2024
2023
£
£
At the beginning and end of the year
243,907
243,907
7
Fair value reserve

Other reserves represents the fair value reserve of non distributable profits as follows;

2024

£

Value brought forward 633,893

Current year adjustment -

Carry forward 633,893

2024-03-312023-04-01false27 July 2024CCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr M J HodgkinsMr F E HodgkinsMrs E Hodgkinsfalsefalse025779342023-04-012024-03-31025779342024-03-31025779342023-03-3102577934core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3102577934core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102577934core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3102577934core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3102577934core:ShareCapital2024-03-3102577934core:ShareCapital2023-03-3102577934core:RevaluationReserve2024-03-3102577934core:RevaluationReserve2023-03-3102577934core:OtherMiscellaneousReserve2024-03-3102577934core:OtherMiscellaneousReserve2023-03-3102577934core:RetainedEarningsAccumulatedLosses2024-03-3102577934core:RetainedEarningsAccumulatedLosses2023-03-3102577934bus:Director12023-04-012024-03-3102577934core:Goodwill2023-04-012024-03-3102577934core:FurnitureFittings2023-04-012024-03-31025779342022-04-012023-03-31025779342023-03-3102577934bus:PrivateLimitedCompanyLtd2023-04-012024-03-3102577934bus:SmallCompaniesRegimeForAccounts2023-04-012024-03-3102577934bus:FRS1022023-04-012024-03-3102577934bus:AuditExemptWithAccountantsReport2023-04-012024-03-3102577934bus:Director22023-04-012024-03-3102577934bus:Director32023-04-012024-03-3102577934bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP