CHARLES EDWARD LIMITED 31/07/2018 iXBRL

CHARLES EDWARD LIMITED 31/07/2018 iXBRL

CHARLES EDWARD LIMITED - Company Information

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CHARLES EDWARD LIMITED
Financial statements
31 July 2018
Company registration number 08088422
CHARLES EDWARD LIMITED
Contents
Directors and other information
Strategic report
Director's report
Independent auditor's report to the member
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
CHARLES EDWARD LIMITED
Directors and other information
Director D T Hardwick
Company number 08088422
Registered office Grove House
1 Sheldon Way
Larkfield
Kent
Business address Grove House
1 Sheldon Way
Larkfield
Kent
Auditor JADAudit Limited
4 Bloors Lane
Rainham
Kent
Accountants J.A.D. Associates Limited
4 Bloors Lane
Rainham
Gillingham
Kent
CHARLES EDWARD LIMITED
Strategic report
Year ended 31 July 2018
Key performance indicators
The key financial highlights aare as follows:
2018 2017 2016
Turnover (£000) 20,149 27,341 14,893
Gross Profit (£000) 1,570 2,225 1,970
Gross Profit Percentage (%) 7.8 8.1 13.2
Profit before Tax (£000) 325 929 1,359
Review of business and prospects
The Company's plan to secure further controlled growth is under way with strategic appointments of additional senior management and staff and improvements to management systems, tools and processes. We have also created a specialist fit out division that is now operating from new offices based in the City of London where they will be perfectly situated to service our clients' fast track requirements.Our head office in Kent is currently being extended and refurbished to suit the expanding business operations. The pipeline for opportunities is evidently strong in the Commercial, Residential, Data Centre and Hotel & Leisure sectors. The Company is focusing its sights on expanding in these markets by continued investment in resources and supply chain to both secure and deliver these opportunities.The Company is projecting the 2019 years turnover to be £45m and has secured work of £57.5m for the Financial Year ending 2020.The Company remains committed to retaining its client base: the continued high percentage of repeat business provides a constant reminder of the Company's ability to satisfy clients' requirements whilst recognising the need to offer added value and reduced costs to maintain its competitive edge.The Company remains committed to its policy of managing its exposure to risk. Continuous monitoring of sales income, costs and overheads together with robust cash management is a significant factor in its ability to make informed decisions about its future.The Company continues to enjoy a good reputation in the industry for prompt payment of its supply chain and remains committed to ensuring that its creditors are all discharged within terms.The director is confident that the Company will achieve its performance targets in the years ahead and acknowledges that delivery of projects that as a minimum meet, or as a rule exceed expectations is necessary to remain efficient and fit for purpose when clients select those companies with which they wish to work. The director remains mindful of the challenges the Company faces in the industry that it operates in and is committed to meeting them.
Health and Safety
The Company continues with its accreditation to OHSAS 18001Improvements in the Company's processes and systems and Key Performance dashboards and the employment of Health and Safety professionals have assisted the Company and the director in understanding the key risks and areas for improvement. The Company remains committed to the continued reduction of accidents in its workplaces.
Environment
The Company continues with its accreditation to ISO 14001The Company recognises the environmental implications of its operations and is committed to reducing its environmental impact, waste to landfill and carbon emissions
Quality management
The Company continues to be accredited to ISO 9001. Investment in new technology and documentation continues to facilitate improved information flow internally and externally. Accreditations and memberships held by the Company include CHAS, Constructionline, SMAS, Exor and Achilles Building Confidence.
This report was approved by the board of directors on 30 April 2019 and signed on behalf of the board by:
D T Hardwick
Director
CHARLES EDWARD LIMITED
Director's report
Year ended 31 July 2018
The director presents his report and the financial statements of the company for the year ended 31 July 2018.
Director
The director who served the company during the year was as follows:
D T Hardwick
Dividends
The director does not recommend the payment of a dividend.
Financial instruments
There are no material exposures to price risk, credit risk, liquidity risk or cash flow risk not covered in the strategic report.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 30 April 2019 and signed on behalf of the board by:
D T Hardwick
Director
CHARLES EDWARD LIMITED
Independent auditor's report to the member of
Charles Edward Limited
Year ended 31 July 2018
Opinion
We have audited the financial statements of Charles Edward Limited for the year ended 31 July 2018 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company's member, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to him in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 July 2018 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Wendy Draper BSc FCA (Senior Statutory Auditor)
For and on behalf of
JADAudit Limited
Chartered Accountants and Registered Auditor
4 Bloors Lane
Rainham
Kent
30 April 2019
CHARLES EDWARD LIMITED
Statement of comprehensive income
Year ended 31 July 2018
2018 2017
Note £ £
Turnover 4 20,149,234 27,341,259
Cost of sales ( 18,579,624) ( 25,116,004)
_______ _______
Gross profit 1,569,610 2,225,255
Administrative expenses ( 1,022,175) ( 1,196,686)
_______ _______
Operating profit 5 547,435 1,028,569
Other interest receivable and similar income 8 31 823
Amounts written off investments 9 - ( 100,000)
Interest payable and similar expenses 10 ( 222,054) -
_______ _______
Profit before taxation 325,412 929,392
Tax on profit 11 74,647 ( 204,978)
_______ _______
Profit for the financial year and total comprehensive income 400,059 724,414
_______ _______
All the activities of the company are from continuing operations.
CHARLES EDWARD LIMITED
Statement of financial position
31 July 2018
2018 2017
Note £ £ £ £
Fixed assets
Tangible assets 13 56,256 26,789
Investments 14 460,000 100,000
_______ _______
516,256 126,789
Current assets
Stocks 15 338,223 301,793
Debtors 16 9,735,180 7,940,633
Cash at bank and in hand 1,769,625 2,619,693
_______ _______
11,843,028 10,862,119
Creditors: amounts falling due
within one year 17 ( 9,598,369) ( 8,631,731)
_______ _______
Net current assets 2,244,659 2,230,388
_______ _______
Total assets less current liabilities 2,760,915 2,357,177
Provisions for liabilities 18 ( 4,813) ( 1,134)
_______ _______
Net assets 2,756,102 2,356,043
_______ _______
Capital and reserves
Called up share capital 22 5 5
Profit and loss account 2,756,097 2,356,038
_______ _______
Shareholder funds 2,756,102 2,356,043
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 30 April 2019 , and are signed on behalf of the board by:
D T Hardwick
Director
Company registration number: 08088422
CHARLES EDWARD LIMITED
Statement of changes in equity
Year ended 31 July 2018
Called up share capital Profit and loss account Total
£ £ £
At 1 August 2016 5 1,631,624 1,631,629
Profit for the year 724,414 724,414
_______ _______ _______
Total comprehensive income for the year - 724,414 724,414
_______ _______ _______
At 31 July 2017 and 1 August 2017 5 2,356,038 2,356,043
Profit for the year 400,059 400,059
_______ _______ _______
Total comprehensive income for the year - 400,059 400,059
_______ _______ _______
At 31 July 2018 5 2,756,097 2,756,102
_______ _______ _______
CHARLES EDWARD LIMITED
Statement of cash flows
Year ended 31 July 2018
2018 2017
£ £
Cash flows from operating activities
Profit for the financial year 400,059 724,414
Adjustments for:
Depreciation of tangible assets 9,908 7,958
Amounts written off investments - 100,000
Other interest receivable and similar income ( 31) ( 823)
Interest payable and similar expenses 222,054 -
Tax on profit (74,647) 204,978
Accrued expenses/(income) ( 222,245) 920,498
Changes in:
Stocks ( 36,430) 59,431
Trade and other debtors 806,906 ( 4,283,298)
Trade and other creditors ( 327,563) 1,168,170
_______ _______
Cash generated from operations 778,011 ( 1,098,672)
Interest paid ( 222,054) -
Interest received 31 823
Tax paid ( 1) ( 273,772)
_______ _______
Net cash from/(used in) operating activities 555,987 ( 1,371,621)
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 39,375) ( 7,783)
Acquisition of interests in associates and joint ventures - ( 200,000)
_______ _______
Net cash used in investing activities ( 39,375) ( 207,783)
_______ _______
Proceeds from borrowings ( 1,006,681) 1,006,681
Net increase/(decrease) in cash and cash equivalents ( 490,069) ( 572,723)
Cash and cash equivalents at beginning of year 2,619,693 3,192,416
_______ _______
Cash and cash equivalents at end of year 2,129,624 2,619,693
_______ _______
CHARLES EDWARD LIMITED
Notes to the financial statements
Year ended 31 July 2018
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Grove House, 1 Sheldon Way, Larkfield, Kent.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer, usually on despatch of the goods; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 20 % straight line
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2018 2017
£ £
United Kingdom 15,762,722 24,631,563
Rest of Europe 4,386,512 2,709,696
_______ _______
20,149,234 27,341,259
_______ _______
5. Operating profit
Operating profit is stated after charging/(crediting):
2018 2017
£ £
Depreciation of tangible assets 9,908 7,958
Cost of stocks recognised as an expense 2,502,513 8,655,035
Impairment of trade debtors - 91,018
Operating lease rentals 9,486 10,867
Foreign exchange differences ( 78,355) 853
Fees payable for the audit of the financial statements 12,000 10,000
_______ _______
6. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2018 2017
Directors 1 1
Employees 19 3
_______ _______
20 4
_______ _______
The aggregate payroll costs incurred during the year were:
2018 2017
£ £
Wages and salaries 756,209 249,544
Social security costs 88,328 28,626
Other pension costs 50,100 170,000
_______ _______
894,637 448,170
_______ _______
7. Directors remuneration
The director's aggregate remuneration in respect of qualifying services was:
2018 2017
£ £
Remuneration 82,000 72,400
Company contributions to pension schemes in respect of qualifying services 40,000 170,000
_______ _______
122,000 242,400
_______ _______
8. Other interest receivable and similar income
2018 2017
£ £
Bank deposits 31 823
_______ _______
9. Amounts written off investments
2018 2017
£ £
Impairment of investments in associates - 100,000
_______ _______
10. Interest payable and similar expenses
2018 2017
£ £
Other loans made to the company:
Other interest on other loans made to the company 222,054 -
_______ _______
222,054 -
_______ _______
11. Tax on profit
Major components of tax income/expense
2018 2017
£ £
Current tax:
UK current tax expense 66,175 204,159
Adjustments in respect of previous periods ( 144,500) -
_______ _______
Total current tax ( 78,325) 204,159
Deferred tax:
Origination and reversal of timing differences 3,678 819
_______ _______
Tax on profit (74,647) 204,978
_______ _______
Reconciliation of tax income/expense
The tax assessed on the profit for the year is lower than (2017: higher than) the standard rate of corporation tax in the UK of 19.00 % (2017: 19.67%).
2018 2017
£ £
Profit before taxation 325,412 929,392
_______ _______
Profit multiplied by rate of tax 61,828 182,811
Adjustments in respect of prior periods ( 144,500) -
Effect of expenses not deductible for tax purposes 6,664 22,256
Effect of capital allowances and depreciation ( 2,318) ( 865)
Rounding on tax charge 1 ( 43)
_______ _______
Tax on profit (78,325) 204,159
_______ _______
12. Earnings per share
Basic earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:
2018 2017
£ £
Profit for the year attributable to the owners of the company 400,059 724,414
_______ _______
Diluted earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:
2018 2017
£ £
Earnings/(loss) used in calculation of basic earnings/(loss) per share 400,059 724,414
_______ _______
13. Tangible assets
Short leasehold property Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £
Cost
At 1 August 2017 - 3,549 38,743 42,292
Additions 33,614 5,761 - 39,375
_______ _______ _______ _______
At 31 July 2018 33,614 9,310 38,743 81,667
_______ _______ _______ _______
Depreciation
At 1 August 2017 - 3,045 12,458 15,503
Charge for the year 1,681 1,656 6,571 9,908
_______ _______ _______ _______
At 31 July 2018 1,681 4,701 19,029 25,411
_______ _______ _______ _______
Carrying amount
At 31 July 2018 31,933 4,609 19,714 56,256
_______ _______ _______ _______
At 31 July 2017 - 504 26,285 26,789
_______ _______ _______ _______
14. Investments
Participating interests Other loans Total
£ £ £
Cost
At 1 August 2017 200,000 - 200,000
Additions - 360,000 360,000
_______ _______ _______
At 31 July 2018 200,000 360,000 560,000
_______ _______ _______
Impairment
At 1 August 2017 and 31 July 2018 100,000 - 100,000
_______ _______ _______
Carrying amount
At 31 July 2018 100,000 360,000 460,000
_______ _______ _______
At 31 July 2017 100,000 - 100,000
_______ _______ _______
Investments in group undertakings
Registered office Class of share Percentage of shares held
Participating interest
JW Smart Services Limited Smart House, Brielle Way, Sheerness, Kent. ME12 1YW Ordinary 30
15. Stocks
2018 2017
£ £
Work in progress 338,223 301,793
_______ _______
16. Debtors
2018 2017
£ £
Trade debtors 1,952,680 1,837,573
Prepayments and accrued income 4,497,747 1,945,674
Other debtors 3,284,753 4,157,386
_______ _______
9,735,180 7,940,633
_______ _______
The debtors above include the following amounts falling due after more than one year:
2018 2017
£ £
Other debtors 150,000 100,000
_______ _______
17. Creditors: amounts falling due within one year
2018 2017
£ £
Bank loans and overdrafts 60,000 1,060,000
Trade creditors 2,436,529 2,987,072
Accruals and deferred income 5,211,178 2,831,970
Corporation tax 125,833 204,159
Social security and other taxes 39,735 41,849
Director loan accounts - 6,681
Other creditors 1,725,094 1,500,000
_______ _______
9,598,369 8,631,731
_______ _______
18. Provisions
Deferred tax (note 19) Total
£ £
At 1 August 2017 1,135 1,135
Additions 3,678 3,678
_______ _______
At 31 July 2018 4,813 4,813
_______ _______
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2018 2017
£ £
Included in provisions (note 18) 4,813 1,134
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2018 2017
£ £
Accelerated capital allowances 4,813 1,134
_______ _______
20. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 50,100 (2017: £ 170,000 ).
21. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2018 2017
£ £
Financial assets that are equity instruments measured at cost less impairment
Unlisted investments - 100,000
_______ _______
22. Called up share capital
Issued, called up and fully paid
2018 2017
No £ No £
Ordinary shares shares of £ 1.00 each 5 5 5 5
_______ _______ _______ _______
23. Directors advances, credits and guarantees
During the year the director entered into the following advances and credits with the company:
2018
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
D T Hardwick ( 6,681) - 6,681 -
_______ _______ _______ _______
2017
Balance brought forward Advances /(credits) to the director Amounts repaid Balance o/standing
£ £ £ £
D T Hardwick 94,319 ( 200,000) 99,000 ( 6,681)
_______ _______ _______ _______
24. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(to)
2018 2017 2018 2017
£ £ £ £
Charles J Baxter Limited 3,283 63,658 66,941 63,658
Charles Edward (Joy Lane) Limited 70,711 598,362 669,072 598,362
Charles Edward (Nelmes Way) Limited 445,527 141,501 587,028 141,501
Charles Holden Limited ( 25,000) 85,000 60,000 85,000
Charles Edward Developments Limited - 25,132 - 25,132
Smart Fire & Security Solutions Limited 76,481 133,584 210,064 133,584
Charles Winter Interiors Limited ( 60,000) 60,000 - 60,000
Charles Edward (Station Road) Limited 32,841 197,535 230,376 197,535
Construction Management Services (Kent) Limited 430,000 100,000 - 10,000
TPS Clapham Limited - 30,000 102,000 102,000
_______ _______ _______ _______
Mr D T Hardwick , the director of this company, is a director of the above companies. The above transactions have been carried out at market rate and any balances outstanding are interest free, unsecured and have no fixed repayment schedule.
25. Controlling party
The company is controlled by Mr D T Hardwick , the sole director and shareholder.