Registered number
02862845
INC. Design Limited
Unaudited Filleted Accounts
31 October 2023
INC. Design Limited
Registered number: 02862845
Balance Sheet
as at 31 October 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 3 288,940 214,540
Current assets
Debtors 4 222,579 298,129
Cash at bank and in hand 2,533 13,003
225,112 311,132
Creditors: amounts falling due within one year 5 (202,977) (231,508)
Net current assets 22,135 79,624
Total assets less current liabilities 311,075 294,164
Creditors: amounts falling due after more than one year 6 (77,881) (27,621)
Provisions for liabilities (15,134) (4,938)
Net assets 218,060 261,605
Capital and reserves
Called up share capital 1,000 1,000
Revaluation reserve 6,723 -
Fair value reserve 11,907 18,630
Profit and loss account 198,430 241,975
Shareholders' funds 218,060 261,605
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr R A Howarth
Director
Approved by the board on 8 August 2024
INC. Design Limited
Notes to the Accounts
for the year ended 31 October 2023
1 Accounting policies
Basis of preparation
The accounts have been prepared under the historical cost convention as modified by the revaluation of certain assets and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses or at revalued amount.Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost or revalued amount, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Office over 45 years
Computer equipment over 3 years
Plant and machinery 25% reducing balance
Fixtures, fittings, and office equipment 25% reducing balance
Investment properties
The investment property has been measured at fair value which is the open market value of the
property The fair value adjustment has been taken through the profit and loss account.
Fair value is determined by the directors by reference to a report procured from an independent
qualified valuer.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 5 6
3 Tangible fixed assets
Land and buildings Property, plant and machinery etc Motor vehicles Total
£ £ £ £
Cost / Fair Value
At 1 November 2022 208,000 154,892 - 362,892
Additions - 78,709 78,035 156,744
Reclassification (75,000) - - (75,000)
At 31 October 2023 133,000 233,601 78,035 444,636
Depreciation
At 1 November 2022 - 148,352 - 148,352
Charge for the year - 4,093 3,251 7,344
At 31 October 2023 - 152,445 3,251 155,696
Net book value
At 31 October 2023 133,000 81,156 74,784 288,940
At 31 October 2022 208,000 6,540 - 214,540
In November 2022 the company started to use part of the investment property as an owner
occupied office. Therefore part of the investment property has been reclassified to property,
plant and machinery. The part of the investment property reclassified to property, plant and
machinery was valued at £75,000 in November 2022 by Mark Warren RICS who is an
independent qualified valuer.The historical cost of the part of the investment property
reallocated in November 2022 was £66,700. As at 31 October 2023 the net book value of the
owner occupied office under the revaluation method is £73,333 and £65,218 under the
historical cost method.
4 Debtors 2023 2022
£ £
Trade debtors 170,955 263,923
Other debtors 51,624 34,206
222,579 298,129
5 Creditors: amounts falling due within one year 2023 2022
£ £
Bank loans and overdrafts 91,608 94,244
Obligations under finance lease and hire purchase contracts 12,254 -
Trade creditors 53,317 44,051
Taxation and social security costs 6,684 40,227
Other creditors 39,114 52,986
202,977 231,508
6 Creditors: amounts falling due after one year 2023 2022
£ £
Bank loans 17,566 27,621
Obligations under finance lease and hire purchase contracts 60,315 -
77,881 27,621
The company obtained a loan of £50,000 under the Bounce Back
Loan Scheme on the 02 June 2020. The loan is for a period of 6
years with repayments commencing on the 02 June 2021.
The rate of interest payable on the loan is fixed at 2.5%.
There is a mortgage debenture over all of the assets of the company in favour of the
National Westminster Bank Plc which was created on the 21 March 1997.
There is a legal charge over the property at 184a Eaves Lane,
Chorley, Lancashire, PR6 0AU in favour of the National Westminster Bank Plc which was
created on the 27 November 2017.
7 Revaluation reserve 2023 2022
8 Other financial commitments 2023 2022
£ £
Total future minimum payments under non-cancellable operating leases 18,612 34,723
9 Other information
INC. Design Limited is a private company limited by shares and incorporated in England. Its registered office is:
184a Eaves Lane
Chorley
Lancashire
PR6 0AU
10 Dividends
Dividends totalling £65,000 ( 2022: £20,000 ) were paid in the year in respect of shares held by
the company's directors.
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