Company registration number 10886470 (England and Wales)
Brookes & McCarthy Ltd
Unaudited financial statements
For the year ended 28 June 2024
Brookes & Mccarthy Ltd
Brookes & McCarthy Ltd
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 6
Brookes & Mccarthy Ltd
Brookes & McCarthy Ltd
Statement of financial position
As at 28 June 2024
28 June 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
3
120,000
110,000
Current assets
Debtors
4
5,826
159
Cash at bank and in hand
1,464
1,558
7,290
1,717
Creditors: amounts falling due within one year
5
(23,790)
(24,221)
Net current liabilities
(16,500)
(22,504)
Total assets less current liabilities
103,500
87,496
Creditors: amounts falling due after more than one year
6
(72,965)
(61,225)
Provisions for liabilities
(7,600)
(5,200)
Net assets
22,935
21,071
Capital and reserves
Called up share capital
2
2
Revaluation reserve
7
47,305
39,705
Profit and loss reserves
(24,372)
(18,636)
Total equity
22,935
21,071
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 28 June 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.
Brookes & Mccarthy Ltd
Brookes & McCarthy Ltd
Statement of financial position (continued)
As at 28 June 2024
28 June 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Mr J Brookes
Mrs J Brookes
Director
Director
Company registration number 10886470 (England and Wales)
Brookes & McCarthy Ltd
Notes to the financial statements
For the year ended 28 June 2024
- 3 -
1
Accounting policies
Company information
Brookes & McCarthy Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 88 Blithfield Way, Stoke on Trent, Staffordshire, ST6 8GS.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from rentals of property are recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
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:
Computers
33% per annum of net book value
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.
1.4
Investment property
Investment property, which is property held to earn rentals and 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.
At 28 June 2023, the directors have considered the valuation of the company's investment property and in their opinion the current open market value is not materially different to the amount shown as net book value.
Brookes & McCarthy Ltd
Notes to the financial statements (continued)
For the year ended 28 June 2024
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
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 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 and bank loans, 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.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Brookes & McCarthy Ltd
Notes to the financial statements (continued)
For the year ended 28 June 2024
1
Accounting policies
(Continued)
- 5 -
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.
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.
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.
2
Tangible fixed assets
Computers
£
Cost
At 29 June 2023 and 28 June 2024
649
Depreciation and impairment
At 29 June 2023 and 28 June 2024
649
Carrying amount
At 28 June 2024
At 28 June 2023
3
Investment property
2024
£
Fair value
At 29 June 2023
110,000
Revaluations
10,000
At 28 June 2024
120,000
Investment property comprises of residential property. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors as at the period end date. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Brookes & McCarthy Ltd
Notes to the financial statements (continued)
For the year ended 28 June 2024
- 6 -
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
5,826
159
5
Creditors: amounts falling due within one year
2024
2023
£
£
Other creditors
23,790
24,221
6
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
72,965
61,225
The bank loan is secured against the property
Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable other than by instalments
72,965
61,225
7
Revaluation reserve
2024
2023
£
£
At the beginning of the year
39,705
31,179
Other movements
7,600
8,526
At the end of the year
47,305
39,705