Company registration number 00372391 (England and Wales)
SOUTHCOMBE BROTHERS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SOUTHCOMBE BROTHERS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
SOUTHCOMBE BROTHERS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
469,584
459,963
Current assets
Stocks
371,474
368,954
Debtors
4
78,667
140,716
Cash at bank and in hand
19,926
34,342
470,067
544,012
Creditors: amounts falling due within one year
5
(507,905)
(441,565)
Net current (liabilities)/assets
(37,838)
102,447
Total assets less current liabilities
431,746
562,410
Capital and reserves
Called up share capital
6
220,000
220,000
Revaluation reserve
396,246
396,246
Profit and loss reserves
(184,500)
(53,836)
Total equity
431,746
562,410
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 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.
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Mr D M Southcombe
Director
Company Registration No. 00372391
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SOUTHCOMBE BROTHERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
220,000
396,246
145,916
762,162
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(199,752)
(199,752)
Balance at 31 December 2022
220,000
396,246
(53,836)
562,410
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(130,664)
(130,664)
Balance at 31 December 2023
220,000
396,246
(184,500)
431,746
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SOUTHCOMBE BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
Company information
Southcombe Brothers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cole Lane, Stoke-Sub-Hamdon, Somerset, TA14 6QD.
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 freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
The truefinancial statements are prepared on a going concern basis. The use of the going concern basis of accounting is appropriate as the company has sufficient resources to operate for the foreseeable future, such resources including loans for a director and his immediate family which will not be called upon such to render the company unable to meet its debts as they fall due.
1.3
Turnover
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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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.
1.4
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
- not provided
Plant and machinery
- 5%-10% on cost
Fixtures, fittings and equipment
- 10%-25% 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.
SOUTHCOMBE BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
1.5
Impairment of fixed assets
At each reporting date, property, plant and equipment are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of impairment is recognised immediately in profit or loss.
1.6
Stocks
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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.
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.
1.7
Cash at bank and in hand
Cash at bank and in hand 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.
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. true
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.
SOUTHCOMBE BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
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.
1.9
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
18
20
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SOUTHCOMBE BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Total
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
450,000
303,606
753,606
Depreciation and impairment
At 1 January 2023
280,861
280,861
Depreciation charged in the year
3,161
3,161
At 31 December 2023
284,022
284,022
Carrying amount
At 31 December 2023
450,000
19,584
469,584
At 31 December 2022
450,000
9,963
459,963
The directors consider that the freehold property is valued at £450,000 on the basis of professional advice.
If freehold land and buildings had not been revalued they would have been included at their cost of £53,754.
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
51,853
121,274
Other debtors
26,814
19,442
78,667
140,716
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
185,375
119,839
Taxation and social security
19,425
46,575
Other creditors
303,105
275,151
507,905
441,565
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SOUTHCOMBE BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
20,000 Ordinary shares of £1 each
20,000
20,000
200,000 Ordinary B shares of £1 each
200,000
200,000
220,000
220,000
The company has 20,000 £1 ordinary shares which have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.
The company has 200,000 £1 ordinary B shares which have no voting rights. They only have the right to receive payment of capital on a winding up or sale of the company and are not entitled to participate in any other distribution of capital. They are entitled to receive dividends as declared by the directors. They do not confer any rights of redemption.
7
Financial commitments, guarantees and contingent liabilities
At 31 December 2022 the company had a duty deferment bond in favour of HM Customs & Excise in the sum of £20,000 (2021 - £20,000).
8
Related party transactions
During the year the directors and their close family members maintained loan accounts with the company reflecting amounts introduced to and drawn from the company in the year.
The total amount owed by the company to the directors and their close family members as at 31 December 2023 was £285,000 (2022 - £275,000).
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