Inco Contracts Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07310210 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

FOR

INCO CONTRACTS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

C J Ingram

Mrs K S Ingram

D J Cotterill

REGISTERED OFFICE:

Dunston Business Village

Stafford Road

Dunston

Stafford

ST18 9AB

REGISTERED NUMBER:

07310210 (England and Wales)

ACCOUNTANTS:

Prime

Chartered Accountants

No. 3 Caroline Court

13 Caroline Street

St Paul's Square

Birmingham

B3 1TR

FIXED ASSETS

Tangible assets

3

7,758

6,446

CURRENT ASSETS

Stocks

275,507

370,307

Debtors

4

1,139,261

1,415,801

Cash at bank and in hand

315,354

422,884

1,730,122

2,208,992

CREDITORS

Amounts falling due within one year

5

1,022,700

1,590,970

NET CURRENT ASSETS

707,422

618,022

TOTAL ASSETS LESS CURRENT LIABILITIES

715,180

624,468

PROVISIONS FOR LIABILITIES

255

655

NET ASSETS

714,925

623,813

CAPITAL AND RESERVES

Called up share capital

25,000

25,000

Retained earnings

689,925

598,813

SHAREHOLDERS' FUNDS

714,925

623,813

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

The members have not required the company to obtain an audit of its financial statements for the year ended 30 September 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 26 April 2019 and were signed on its behalf by:

C J Ingram - Director

1.	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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

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 amounts 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 if the revision

affects only that period, or in the period of revision and future periods if the revision effects both current

and future periods.

In preparing these financial statements, the directors have made the following judgements:

The company reviews the carrying value of all assets for indications of impairment at each period. If

indicators of impairment exist, the carrying value of the asset is subject to further testing to determine

whether its carrying value exceeds it recoverable amount. This process will usually involve the

estimation of future cash flows which are likely to be generated by the asset.

A provision is recognised when the company has a present legal or constructive obligation as a result

of a past event for which it is probable that an outflow of resources will be required to settle the

obligation and the amount can be reliably estimated. If the effect is material, provisions are determined

by discounting the expected future cash flows at a rate that reflects the time value of money and the

risk specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for

these provisions differ and management's judgement is applied regarding the nature and extent of

obligations in deciding if an outflow of resources is probable or not.

The directors have reviewed the asset lives and associated residual values of all fixed assets classes.

In re-assessing asset lives, factors such as technological innovation, product life cycles and

maintenance programmes are taken into account. Residual value assessments consider issues such

as future market conditions, the remaining life of the asset and projects disposal values.

Revenue recognition

Turnover represents net invoiced sales of services, excluding value added tax. Revenue and costs

are recognised by reference to the stage of completion of the contract activity at the balance sheet

date.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is

recognised as a loss immediately.

Construction work in progress is stated at cost plus profit recognised to date less provision for

foreseeable losses and less amounts already billed.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

20% on reducing balance

Financial instruments

All financial assets and liabilities are recognised when the company becomes party to the contractual

provisions of the instrument.

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 its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction

costs), except for those financial assets classified as at fair value through profit and loss, which are

initially measured at fair value unless the arrangement constitutes a financing transaction. If an

arrangement constitutes a financing transaction, the financial asset or liability is measured at the

present value of the future payments discounted at a market rate of interest for a similar debt

instrument.

Financial assets and liabilities are only offset at the balance sheet date when, and only when there

exists a legally enforceable right to set off the recognised amounts and the company intends either to

settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that have no stated interest rate and are classified as payable or receivable within

one year are initially measured at an undiscounted amount of the cash or other consideration expected

to be paid or received, net of impairment. Other debt instruments not meeting these conditions are

measured at fair value through the profit and loss account.

Commitments to make or receive loans which meet the conditions mentioned above are measured at

cost less impairment.

Financial assets are derecognised when and only when the contractual rights to the cash flows for the

financial asset expire or are settled, when the company transfers to another party substantially all the

risks and rewards of ownership of the financial asset, or the company, despite having retained some,

but not all, significant risks and rewards of ownership, has transferred control of the asset to another

party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged,

cancelled or expires.

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

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.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each

balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in

profit or loss.

For financial assets carried at amortised costs, the amount of an impairment is the difference between

the asset's carrying amount and the present value of estimated future cash flows, discounted at the

financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the

asset's carrying amount and the best estimate of the amount that would be received for the asset if it

were to be sold at the reporting date.

Where indicators exist for the decrease in impairment loss, and the decrease can be related

objectively to an event occuring after the impairment was recognised, the prior impairment loss is

tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset

to the extent that the revised recoverable value does not lead to a revised carrying amount higher than

the carrying value had no impairment been recognised.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2017 - 11 ) .

3.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 October 2017

12,757

Additions

3,254

At 30 September 2018

16,011

DEPRECIATION

At 1 October 2017

6,311

Charge for year

1,942

At 30 September 2018

8,253

NET BOOK VALUE

At 30 September 2018

7,758

At 30 September 2017

6,446

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

1,132,246

1,412,563

Other debtors

7,015

3,238

1,139,261

1,415,801

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade creditors

814,952

1,277,054

Amounts owed to group undertakings

1,861

2,832

Taxation and social security

188,152

286,894

Other creditors

17,735

24,190

1,022,700

1,590,970

6.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2018

2017

£

£

Within one year

12,124

60,824

Between one and five years

51,267

58,122

63,391

118,946

7.	ULTIMATE CONTROLLING PARTY

C J Ingram is the ultimate controlling party by virtue of his majority shareholding in CKI Holdings

Limited, the parent company of Inco Contracts Limited. CKI Holdings Limited is incorporated in

England and Wales.