Birmingham Drain Services Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07344240 (England and Wales)

Unaudited Financial Statements for the Year Ended 30 November 2018

for

Birmingham Drain Services Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

A Buchanan

T Buchanan

REGISTERED OFFICE:

Unit 66 Birch Road East

Witton

Birmingham

B6 7DA

REGISTERED NUMBER:

07344240 (England and Wales)

ACCOUNTANTS:

Breslins Birmingham Ltd

Chartered Accountants

Crosby Court

28 George Street

Birmingham

B3 1QG

FIXED ASSETS

Intangible assets

4

26,000

39,000

Tangible assets

5

387,769

335,156

413,769

374,156

CURRENT ASSETS

Stock and WIP

6,025

5,540

Debtors

6

488,300

400,336

494,325

405,876

CREDITORS

Amounts falling due within one year

7

488,929

357,910

NET CURRENT ASSETS

5,396

47,966

TOTAL ASSETS LESS CURRENT LIABILITIES

419,165

422,122

CREDITORS

Amounts falling due after more than one year

8

(106,269

)

(115,245

)

PROVISIONS FOR LIABILITIES

(54,904

)

(55,399

)

NET ASSETS

257,992

251,478

CAPITAL AND RESERVES

Called up share capital

2,000

2,000

Share premium

9

120,000

120,000

Retained earnings

9

135,992

129,478

SHAREHOLDERS' FUNDS

257,992

251,478

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 20 May 2019 and were signed on its behalf by:

A Buchanan - Director

1.	STATUTORY INFORMATION

Birmingham Drain Services Ltd 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of Vat and trade discounts. The

policies adopted for the recognition of turnover are as follows

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

The Company has transferred the significant risks and rewards of ownership to the buyer

The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor

effective control over the goods sold;

The amount of revenue can be measured reliably;

It is probable that the Company will receive the consideration due under the transaction; and

The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less

any accumulated amortisation and any accumulated impairment losses.

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.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Stocks

Stock and wip are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

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.

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.

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 profit and loss account in the other

administrative expenses.

Cash and cash equivalents

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. Bank overdrafts

are shown within borrowings in current liabilities.

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 costs 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 at a discounted at a market rate of interest.

Financial assets are classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint

ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently

carried at fair value and the changes in fair value are recognised in the profit or loss, except that investments in

equity instruments that are not publicly traded and whose fair values cannot be measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment

at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred

after the initial recognition of the financial asset, the estimate future cash flows have been affected. If an asset is

impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated

cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event accruing after impairment was recognized, the

impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying

amount would have been, had the impairment not previously been recognised.

The impairment reversal is recognised in the profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are

settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to

another entity, or if some significant risks and rewards of ownership are retained but control of the asset has been

transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangement

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, 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 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 costs using the effective interest 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial

instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are

re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance

costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value

through profit or loss. Debt instruments may be designed as being measured at fair value through profit or loss to

eliminate or reduce an accounting mismatch or if the instrument are measured and their performance evaluated on a

fair value basis in accordance with a documented risk management or investment strategy.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 35 (2017 - 29 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2017

and 30 November 2018

130,000

AMORTISATION

At 1 December 2017

91,000

Charge for year

13,000

At 30 November 2018

104,000

NET BOOK VALUE

At 30 November 2018

26,000

At 30 November 2017

39,000

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 December 2017

532,434

Additions

124,240

At 30 November 2018

656,674

DEPRECIATION

At 1 December 2017

197,278

Charge for year

71,627

At 30 November 2018

268,905

NET BOOK VALUE

At 30 November 2018

387,769

At 30 November 2017

335,156

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

Plant and

machinery

etc

£

COST

At 1 December 2017

248,498

Additions

123,945

At 30 November 2018

372,443

DEPRECIATION

At 1 December 2017

72,085

Charge for year

42,982

At 30 November 2018

115,067

NET BOOK VALUE

At 30 November 2018

257,376

At 30 November 2017

176,413

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Trade debtors

437,071

363,858

Other debtors

51,229

36,478

488,300

400,336

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.18

30.11.17

£

£

Bank loans and overdrafts

32,055

11,890

Hire purchase contracts

70,084

56,510

Trade creditors

149,397

135,018

Taxation and social security

163,334

111,707

Other creditors

74,059

42,785

488,929

357,910

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.11.18

30.11.17

£

£

Hire purchase contracts

106,269

115,245

9.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 December 2017

129,478

120,000

249,478

Profit for the year

141,114

141,114

Dividends

(134,600

)

(134,600

)

At 30 November 2018

135,992

120,000

255,992

10.	ULTIMATE CONTROLLING PARTY

The company is controlled by Mr and Mrs Buchanan who own 100% of the issued share capital.