Edgebourn Building Contracts Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00800542 (England and Wales)

Financial Statements For The Year Ended 30 November 2018

for

Edgebourn Building Contracts Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Certified Accountants' Report

12

DIRECTORS:

M Syner

S J Fellows

REGISTERED OFFICE:

38 Stourbridge Road

Lye

Stourbridge

West Midlands

DY9 7DL

REGISTERED NUMBER:

00800542 (England and Wales)

ACCOUNTANTS:

Howell Dunn & Co Limited

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

FIXED ASSETS

Tangible assets

4

261,548

277,349

Investment property

5

310,000

271,945

571,548

549,294

CURRENT ASSETS

Stocks

708,054

853,869

Debtors

6

127,652

130,094

Cash at bank and in hand

439,066

849,113

1,274,772

1,833,076

CREDITORS

Amounts falling due within one year

7

254,156

287,632

NET CURRENT ASSETS

1,020,616

1,545,444

TOTAL ASSETS LESS CURRENT LIABILITIES

1,592,164

2,094,738

CREDITORS

Amounts falling due after more than one year

8

(6,191

)

(38,339

)

PROVISIONS FOR LIABILITIES

11

(32,243

)

(27,664

)

NET ASSETS

1,553,730

2,028,735

CAPITAL AND RESERVES

Called up share capital

12

66

100

Capital redemption reserve

13

34

-

Investment property reserve

13

48,524

17,481

Retained earnings

13

1,505,106

2,011,154

SHAREHOLDERS' FUNDS

1,553,730

2,028,735

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 29 March 2019 and were signed on its behalf by:

S J Fellows - Director

M Syner - Director

1.	STATUTORY INFORMATION

Edgebourn Building Contracts Limited is a private company, limited by shares , registered in England and

Wales. The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods

have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic

benefits associated with the transaction will flow to the company and the cost incurred or to be incurred in

respect of the transaction can be measured reliably. This is usually on completion of the work rendered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Improvements to leasehold property

-

20% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment and fittings

-

20% on cost

Tangible fixed assets are stated under the cost model at historical cost less accumulated depreciation and any

accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the

asset to the location and condition necessary for it to be capable of operating.

The assets' residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date. Depreciation is

provided on freehold buildings. Freehold land is not depreciated. In addition, tools are not depreciated as these

are frequently replaced.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are

recognized within 'operating profit' in the income statement.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised in profit or loss.

Deferred tax, where applicable is provided against these valuations at the rate expected to apply should the

property be sold.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance

for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in

bringing stocks to their present location and condition.

Work in progress include the cost of direct materials and labour plus attributable overheads based on normal

levels of activity.

Net realisable value is based on estimated selling price less any further costs expected to be incurred for

completion and sale. The impairment loss is recognised in the income statement.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws

that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of

the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

The apportionment between the finance charge and the reduction of the outstanding liability uses the effective

interest method.

The related obligations, net of future finance charges, are included in creditors.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate

entity. Once the contributions have been paid, the company has no further payment obligations.

Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held

separately from the company in independently administered funds.

Employee benefits

When employees have rendered services to the company, short term employee benefits to which the employees

are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are

received.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the Statement of comprehensive income

in other administrative expenses.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

Impairment

Assets not valued at fair value are reviewed for any indication that the asset may be impaired at each balance

sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is

estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an

impairment loss is recognised in the statement of comprehensive income.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past

event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be

reliably estimated.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Loans and borrowings are initially recognised at the transaction price including transaction costs.

Subsequently,they are measured at amortised cost using the effective interest rate method, less impairment.If an

arrangement constitutes a finance transaction it is measured at present value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2017 - 14 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

to

Freehold

leasehold

Plant and

property

property

machinery

£

£

£

COST

At 1 December 2017

182,438

24,808

78,199

At 30 November 2018

182,438

24,808

78,199

DEPRECIATION

At 1 December 2017

28,836

24,808

18,317

Charge for year

1,851

-

8,983

At 30 November 2018

30,687

24,808

27,300

NET BOOK VALUE

At 30 November 2018

151,751

-

50,899

At 30 November 2017

153,602

-

59,882

Office

equipment

Small

Motor

and

tools

vehicles

fittings

Totals

£

£

£

£

COST

At 1 December 2017

80

131,994

8,926

426,445

Additions

-

15,518

-

15,518

Disposals

(80

)

-

-

(80

)

At 30 November 2018

-

147,512

8,926

441,883

DEPRECIATION

At 1 December 2017

-

68,978

8,157

149,096

Charge for year

-

19,636

769

31,239

At 30 November 2018

-

88,614

8,926

180,335

NET BOOK VALUE

At 30 November 2018

-

58,898

-

261,548

At 30 November 2017

80

63,016

769

277,349

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 December 2017

and 30 November 2018

64,000

47,980

111,980

DEPRECIATION

At 1 December 2017

11,704

16,683

28,387

Charge for year

7,844

7,825

15,669

At 30 November 2018

19,548

24,508

44,056

NET BOOK VALUE

At 30 November 2018

44,452

23,472

67,924

At 30 November 2017

52,296

31,297

83,593

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 December 2017

271,945

Revaluations

38,055

At 30 November 2018

310,000

NET BOOK VALUE

At 30 November 2018

310,000

At 30 November 2017

271,945

Fair value at 30 November 2018 is represented by:

£

Valuation in 2018

310,000

If the investment properties had not been revalued they would have been included at the following historical

cost:

2018

2017

£

£

Cost

250,094

250,094

The investment properties were valued on an open market basis on 30 November 2018 by the directors .

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

99,897

110,465

Value added tax

7,513

1,810

Prepayments

20,242

17,819

127,652

130,094

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Hire purchase contracts (see note 9)

32,149

31,225

Trade creditors

137,809

128,896

Corporation tax

47,198

49,825

Social security and other taxes

8,824

17,703

Other creditors

2,252

5,220

Directors' current accounts

36

34,076

Accrued expenses

25,888

20,687

254,156

287,632

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Hire purchase contracts (see note 9)

6,191

38,339

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Gross obligations repayable:

Within one year

33,044

33,274

Between one and five years

6,237

39,281

39,281

72,555

Finance charges repayable:

Within one year

895

2,049

Between one and five years

46

942

941

2,991

Net obligations repayable:

Within one year

32,149

31,225

Between one and five years

6,191

38,339

38,340

69,564

Non-cancellable operating

leases

2018

2017

£

£

Within one year

1,189

860

Between one and five years

3,568

2,150

4,757

3,010

10.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Hire purchase contracts

38,340

69,564

Hire purchase agreements are secured against the asset to which the agreement relates.

11.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

Accelerated capital allowances

20,861

23,512

Other timing differences

11,382

4,152

32,243

27,664

Deferred

tax

£

Balance at 1 December 2017

27,664

Charge to Statement of Comprehensive Income during year

4,579

Balance at 30 November 2018

32,243

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

66

Ordinary

£1

66

100

(2017 - 100 )

13.

RESERVES

Capital

Investment

Retained

redemption

property

earnings

reserve

reserve

Totals

£

£

£

£

At 1 December 2017

2,011,154

-

17,481

2,028,635

Profit for the year

176,710

176,710

Purchase of own shares

(689,770

)

34

-

(689,736

)

Investment property revaluation

38,055

-

-

38,055

Transfer between reserves

(31,043

)

-

31,043

-

At 30 November 2018

1,505,106

34

48,524

1,553,664

The investment property reserve includes a provision for deferred tax of £11,382.

14.	RELATED PARTY DISCLOSURES

15.	ULTIMATE CONTROLLING PARTY

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to

file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and certain other

primary statements and the Report of the Directors are not required to be filed with the Registrar of

Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Edgebourn Building Contracts Limited for the year ended 30 November 2018 which comprise

the Income Statement, Balance Sheet and the related notes from the company's accounting records and from

information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook.

This report is made solely to the Board of Directors of Edgebourn Building Contracts Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Edgebourn Building Contracts Limited and state those matters that we have agreed to state to the Board of Directors of Edgebourn Building Contracts Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Edgebourn Building Contracts Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Edgebourn Building Contracts Limited. You consider that Edgebourn Building Contracts Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Edgebourn Building Contracts Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Howell Dunn & Co Limited

60 Lyde Green

Halesowen

West Midlands

B63 2PQ

29 March 2019