Company registration number 01328803 (England and Wales)
GROUNDSHIRE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
GROUNDSHIRE LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
GROUNDSHIRE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
334,524
296,191
Current assets
Stocks
4
35,500
41,000
Debtors
5
463,803
601,581
Cash at bank and in hand
306,570
327,015
805,873
969,596
Creditors: amounts falling due within one year
6
(583,413)
(403,703)
Net current assets
222,460
565,893
Total assets less current liabilities
556,984
862,084
Creditors: amounts falling due after more than one year
7
(79,700)
(87,815)
Provisions for liabilities
9
(55,824)
(53,534)
Net assets
421,460
720,735
Capital and reserves
Called up share capital
35,000
35,000
Profit and loss reserves
386,460
685,735
Total equity
421,460
720,735
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her 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.
GROUNDSHIRE LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JANUARY 2024
31 January 2024
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 13 September 2024
K E L Dempster
Director
Company Registration No. 01328803
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
1
Accounting policies
Company information
Groundshire Limited is a private company limited by shares incorporated in England and Wales. The registered office is Littleburn House, Littleburn Industrial Estate, Langley Moor, Co Durham, DH7 8HJ.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete 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.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, 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 machinery
15% straight line
Fixtures and fittings
15% straight line
Motor vehicles
25% reducing balance
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
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.
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 statement of financial position 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.
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.
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 income statement 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.
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
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 income statement, 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
22
21
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
3
Tangible fixed assets
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 February 2023
925,134
84,099
290,756
1,299,989
Additions
45,636
6,864
121,287
173,787
Disposals
(270,586)
(56,558)
(95,140)
(422,284)
At 31 January 2024
700,184
34,405
316,903
1,051,492
Depreciation and impairment
At 1 February 2023
808,414
69,972
125,412
1,003,798
Depreciation charged in the year
54,008
2,250
55,534
111,792
Eliminated in respect of disposals
(270,586)
(55,436)
(72,600)
(398,622)
At 31 January 2024
591,836
16,786
108,346
716,968
Carrying amount
At 31 January 2024
108,348
17,619
208,557
334,524
At 31 January 2023
116,720
14,127
165,344
296,191
4
Stocks
2024
2023
£
£
Stocks
35,500
41,000
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
341,603
500,354
Corporation tax recoverable
10,070
Other debtors
85,039
75,949
Prepayments and accrued income
27,091
25,278
463,803
601,581
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
8
10,000
10,000
Obligations under finance leases
56,255
34,796
Trade creditors
284,990
215,581
Corporation tax
56,349
Other taxation and social security
16,175
17,657
Other creditors
203,328
56,068
Accruals and deferred income
12,665
13,252
583,413
403,703
Hire purchase creditors are secured on the assets to which they relate.
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
8
17,500
27,500
Obligations under finance leases
62,200
60,315
79,700
87,815
Hire purchase creditors are secured on the assets to which they relate.
8
Loans and overdrafts
2024
2023
£
£
Bank loans
27,500
37,500
Payable within one year
10,000
10,000
Payable after one year
17,500
27,500
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
9
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
55,824
53,534
Provisions are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
10
Financial commitments, guarantees and contingent liabilities
The total amount of financial commitments not included in the statement of financial position is £30,358 (2023 - £11,961).
Included within the statement of financial position are unpaid pension contributions of £3,599 (2023: £3,068).
11
Parent company
The company's immediate parent is Groundshire Holdings Limited, incorporated in England and Wales.
The ultimate controlling party is K E L Dempster.
12
Prior period adjustment
Reconciliation of changes in equity
1 February
31 January
2022
2023
£
£
Adjustments to prior year
Increase in intercompany creditor
-
(53,000)
Change in corporation tax creditor
-
10,755
Total adjustments
-
(42,245)
Equity as previously reported
505,620
762,980
Equity as adjusted
505,620
720,735
Analysis of the effect upon equity
Profit and loss reserves
-
(42,245)
GROUNDSHIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
12
Prior period adjustment
(Continued)
- 9 -
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Increase in pension paid
(38,000)
Decrease in corporation tax
7,904
Total adjustments
(30,096)
Profit as previously reported
357,360
Profit as adjusted
327,264
Notes to reconciliation
Management have restated the prior year following a review of certain accounting balances.
During the previous years, pension contributions of £38,000 in 2023 and £15,000 in 2022 were incorrectly stated as dividend income in the parent company, Groundshire Holdings Limited. These transactions should have been included within the Groundshire Limited Financial Statements. Amounts owed from group undertakings have been adjusted to reflect those amendments.
We have further adjusted for the corporation tax movement on these adjustments.