| E.J. BALAAM & SON LIMITED |
| Notes to the Accounts |
| for the year ended 31 December 2024 |
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| 1 |
Accounting policies |
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Basis of preparation |
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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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Motor vehicles |
25% reducing balance method |
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Plant and machinery |
25% reducing balance method |
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Fixtures, fittings, tools and equipment |
25% reducing balance method |
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Investment property |
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Investment property, which is property held to earn rentals and/or 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 |
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Impairment of fixed assets |
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At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Judgements and key sources of estimation uncertainty |
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In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
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| 3 |
Employees |
2024 |
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2023 |
| Number |
Number |
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Average number of persons employed by the company |
8 |
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8 |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
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Cost |
£ |
£ |
£ |
£ |
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At 1 January 2024 |
29,997 |
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128,231 |
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- |
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158,228 |
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Additions |
- |
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10,033 |
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33,371 |
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43,404 |
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At 31 December 2024 |
29,997 |
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138,264 |
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33,371 |
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201,632 |
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Depreciation |
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At 1 January 2024 |
24,873 |
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117,995 |
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- |
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142,868 |
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Charge for the year |
1,281 |
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5,068 |
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8,342 |
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14,691 |
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At 31 December 2024 |
26,154 |
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123,063 |
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8,342 |
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157,559 |
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Net book value |
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At 31 December 2024 |
3,843 |
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15,201 |
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25,029 |
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44,073 |
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At 31 December 2023 |
5,124 |
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10,236 |
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- |
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15,360 |
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| 5 |
Investments |
| Other |
| investments |
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Cost |
£ |
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At 1 January 2024 |
525,000 |
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At 31 December 2024 |
525,000 |
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Investment property comprises of a single investment property at the fair value of £525,000 which has been arrived at on the basis of a valuation carried out in July 2017 by Ringley Chartered Surveyors, who are valuers not connected with the company. The valuation conforms to International Valuation Standards and was based on recent transactions on arm's length terms for similar properties. The Director considers the valuation has been maintained . |
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| 6 |
Debtors |
2024 |
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2023 |
| £ |
£ |
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Trade debtors |
26,568 |
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29,064 |
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Prepayments |
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- |
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1,094 |
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26,568 |
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30,158 |
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| 7 |
Creditors: amounts falling due within one year |
2024 |
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2023 |
| £ |
£ |
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Bank loans and overdrafts |
21,935 |
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10,000 |
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Trade creditors |
97,620 |
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33,745 |
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Directors' current account |
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334 |
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64 |
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Taxation and social security costs |
10,805 |
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20,073 |
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Accruals |
19,343 |
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50,136 |
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Other creditors |
29,950 |
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30,950 |
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179,987 |
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144,968 |
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| 8 |
Creditors: amounts falling due after one year |
2024 |
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2023 |
| £ |
£ |
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Bank loans |
191,409 |
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14,167 |
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| 9 |
Pension commitments |
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Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. There were no outstanding contributions at the end of the year. |
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| 10 |
Called up share capital |
2024 |
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2023 |
| £ |
£ |
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Ordinary share capital |
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Ordinary shares of £1 each |
2,500 |
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2,500 |
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2,500 |
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2,500 |
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| 11 |
Other financial commitments |
2024 |
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2023 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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217,500 |
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290,000 |
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The operating leases represent leases £72,500 per annum to third parties. The leases are negotiated over terms of 5 years and rentals are fixed for 5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. |
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| 12 |
Related party transactions |
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The director, and his wife, a shareholder, operate a joint loan account with the company. This is an interest free loan to the company. At the year end, the company owed them £334 (2023: £64). |
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| 13 |
Other information |
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E.J. BALAAM & SON LIMITED is a private company limited by shares and incorporated in England. Its registered office is: |
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Corkscrew Hill Garage |
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Corkscrew Hill |
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West Wickham |
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Kent |
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BR4 9BA |