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Company No: 03870120 (England and Wales)

R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

Unaudited Financial Statements
For the financial year ended 31 December 2023
Pages for filing with the registrar

R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

Unaudited Financial Statements

For the financial year ended 31 December 2023

Contents

R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

STATEMENT OF FINANCIAL POSITION

As at 31 December 2023
R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

STATEMENT OF FINANCIAL POSITION (continued)

As at 31 December 2023
Note 2023 2022
£ £
Fixed assets
Tangible assets 3 356,826 432,585
356,826 432,585
Current assets
Stocks 675,752 726,893
Debtors 4 820,584 817,129
Cash at bank and in hand 65,151 110,591
1,561,487 1,654,613
Creditors: amounts falling due within one year 5 ( 470,782) ( 522,004)
Net current assets 1,090,705 1,132,609
Total assets less current liabilities 1,447,531 1,565,194
Creditors: amounts falling due after more than one year 6 ( 116,229) ( 183,080)
Provision for liabilities ( 23,799) ( 45,051)
Net assets 1,307,503 1,337,063
Capital and reserves
Called-up share capital 100 100
Profit and loss account 1,307,403 1,336,963
Total shareholders' funds 1,307,503 1,337,063

For the financial year ending 31 December 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The financial statements of R B Watts Roofing Contractors & Merchants Limited (registered number: 03870120) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

C B Watts
Director

08 August 2024

R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
R B WATTS ROOFING CONTRACTORS & MERCHANTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

For the financial year ended 31 December 2023
1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

R B Watts Roofing Contractors & Merchants Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Hoe Road, Longham, Dereham, NR19 2RP, United Kingdom.

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 items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings 5 % reducing balance
Plant and machinery 25 % reducing balance
Vehicles 25 % reducing balance
Fixtures and fittings 25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Borrowing costs

Borrowing costs that are directly attributable to acquisition, construction or production of qualifying assets, are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2. Employees

2023 2022
Number Number
Monthly average number of persons employed by the Company during the year, including directors 8 8

3. Tangible assets

Land and buildings Plant and machinery Vehicles Fixtures and fittings Total
£ £ £ £ £
Cost
At 01 January 2023 280,260 44,140 385,011 36,625 746,036
Additions 0 3,748 34,305 1,961 40,014
Disposals 0 0 ( 174,286) 0 ( 174,286)
At 31 December 2023 280,260 47,888 245,030 38,586 611,764
Accumulated depreciation
At 01 January 2023 57,841 31,264 190,850 33,496 313,451
Charge for the financial year 3,302 3,843 50,439 926 58,510
Disposals 0 0 ( 117,023) 0 ( 117,023)
At 31 December 2023 61,143 35,107 124,266 34,422 254,938
Net book value
At 31 December 2023 219,117 12,781 120,764 4,164 356,826
At 31 December 2022 222,419 12,876 194,161 3,129 432,585
Leased assets included above:
Net book value
At 31 December 2023 0 0 24,766 0 24,766
At 31 December 2022 0 0 97,477 0 97,477

Included within freehold property is land totaling £156,375 (2022 - £156,375) which is not depreciated.

4. Debtors

2023 2022
£ £
Trade debtors 789,747 744,356
Amounts owed by directors 13,050 7,373
Prepayments 13,206 47,263
Corporation tax 0 15,472
Other debtors 4,581 2,665
820,584 817,129

5. Creditors: amounts falling due within one year

2023 2022
£ £
Bank loans 63,588 57,762
Trade creditors 237,359 209,440
Amounts owed to directors 11,754 1,038
Corporation tax 26,563 40,439
Other taxation and social security 18,903 31,456
Obligations under finance leases and hire purchase contracts (secured) 6,075 103,496
Other creditors 106,540 78,373
470,782 522,004

6. Creditors: amounts falling due after more than one year

2023 2022
£ £
Bank loans 87,839 148,617
Obligations under finance leases and hire purchase contracts (secured) 28,390 34,463
116,229 183,080

Obligations under finance leases and hire purchase contracts are secured upon the assets to which they relate.

7. Financial commitments

Commitments

Capital commitments are as follows:

2023 2022
£ £
Contracted for but not provided for:
Tangible fixed assets 108,000 0
2023 2022
£ £
Total future minimum lease payments under non-cancellable operating lease 23,903 29,025

8. Related party transactions

Transactions with the entity's directors

2023 2022
£ £
The company owing to the directors, that are interest free and repayable on demand 11,754 1,038
Amount owed to the company from another director, where interest was charged at HMRC's official rate of interest 13,050 7,374