Company registration number 02789750 (England and Wales)
CHESHIRE SCAFFOLDS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
CHESHIRE SCAFFOLDS LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
CHESHIRE SCAFFOLDS LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr PJ Davidson
Secretary
Cheshire Scaffolds Limited
Company number
02789750
Registered office
Whitehill Trading Estate
Reddish
Stockport
Cheshire
UK
SK4 1NU
Accountants
Hallidays
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
CHESHIRE SCAFFOLDS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
3,644,413
4,073,544
Current assets
Debtors
6
1,043,714
1,654,564
Cash at bank and in hand
940,873
622,983
1,984,587
2,277,547
Creditors: amounts falling due within one year
7
(681,418)
(1,151,380)
Net current assets
1,303,169
1,126,167
Total assets less current liabilities
4,947,582
5,199,711
Creditors: amounts falling due after more than one year
8
(380,875)
(404,954)
Provisions for liabilities
(834,228)
(959,305)
Net assets
3,732,479
3,835,452
Capital and reserves
Called up share capital
87,000
100,000
Revaluation reserve
10
1,338,559
1,473,792
Capital redemption reserve
13,400
400
Profit and loss reserves
2,293,520
2,261,260
Total equity
3,732,479
3,835,452
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his 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.
CHESHIRE SCAFFOLDS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 6 August 2024 and are signed on its behalf by:
Mr PJ Davidson
Director
Company Registration No. 02789750
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
1
Accounting policies
Company information
Cheshire Scaffolds Limited is a private company limited by shares incorporated in England and Wales. The registered office is Whitehill Trading Estate, Reddish, Stockport, Cheshire, UK, SK4 1NU.
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 plant and equipment. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors believe that the company is experiencing good levels of sales growth and profitability and that it is well placed to manage its business risks successfully. Accordingly they have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
1.4
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 is 5 years.
1.5
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:
Freehold land and buildings
6.67% on cost
Plant and equipment
10% / 25% on written down value
Fixtures and fittings
10% on cost
Motor vehicles
25% 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.
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 5 -
1.6
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs.
Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
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.
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 6 -
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.
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
Retirement benefits
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 7 -
1.12
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The
corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
1.13
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
82
88
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
639,704
564,209
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
300,000
Amortisation and impairment
At 1 May 2023 and 30 April 2024
300,000
Carrying amount
At 30 April 2024
At 30 April 2023
5
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
58,800
6,722,430
37,382
806,808
7,625,420
Additions
189,300
193,731
383,031
Disposals
(389,849)
(248,272)
(638,121)
At 30 April 2024
58,800
6,521,881
37,382
752,267
7,370,330
Depreciation and impairment
At 1 May 2023
51,305
3,037,022
35,101
428,448
3,551,876
Depreciation charged in the year
1,782
475,261
1,126
161,534
639,703
Eliminated in respect of disposals
(263,042)
(202,620)
(465,662)
At 30 April 2024
53,087
3,249,241
36,227
387,362
3,725,917
Carrying amount
At 30 April 2024
5,713
3,272,640
1,155
364,905
3,644,413
At 30 April 2023
7,495
3,685,408
2,281
378,360
4,073,544
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
987,036
1,533,281
Other debtors
44,163
115,983
Prepayments and accrued income
12,515
5,300
1,043,714
1,654,564
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
67,802
100,058
Obligations under finance leases
9
84,579
80,636
Trade creditors
157,896
602,225
Amounts owed to undertakings in which the company has a participating interest
375
325
Corporation tax
262,575
57,000
Other taxation and social security
73,060
84,952
Other creditors
-
127,685
Accruals and deferred income
35,129
98,499
681,416
1,151,380
Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £152,381 (2023: £180,694).
Assets held under hire purchase and finance lease agreements are secured on the assets to which they relate.
In respect of the bank overdraft, the director has given a personal guarantee.
8
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
62,512
125,000
Obligations under finance leases
9
318,363
279,954
380,875
404,954
Creditors include bank loans and overdrafts and net obligations under finance lease and hire
purchase contracts which are secured of £380,875 (2023: £404,954).
Included within creditors due after one year is a Coronavirus Business Interruption Loan of £62,512 (2023: £125,000) which carries no security.
The finance leases are secured on the assets concerned.
The bank overdraft is secured by a fixed and floating charge over the company's assets.
9
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
84,579
80,636
In two to five years
318,363
279,954
402,942
360,590
CHESHIRE SCAFFOLDS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
10
Revaluation reserve
2024
2023
£
£
At the beginning of the year
1,473,792
1,653,900
Deferred tax on revaluation of tangible assets
45,077
20,236
Transfer to retained earnings
(180,310)
(200,344)
At the end of the year
1,338,559
1,473,792
11
Financial commitments, guarantees and contingent liabilities
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £228,327 (2023: £329,213). These commitments are in respect of non-cancellable operating leases.
12
Related party transactions
Summary of transactions with other related parties
PAL SIPP of Mr P J Davidson
The company has signed a lease for rental of the property from the PAL SIPP of which Mr P J Davidson is the sole beneficiary. During the year rent of £62,000 was paid (2023 : £62,000).
13
Directors' transactions
The below loans are unsecured, interest free and repayable on demand.
Description
% Rate
Opening balance
Credit
Amounts repaid
Closing balance
£
£
£
£
Mr PJ Davidson - Director
-
-
83,434
(67,268)
16,166
-
83,434
(67,268)
16,166
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