Grantham Bros. Limited - Period Ending 2018-11-30
Grantham Bros. Limited - Period Ending 2018-11-30
Registration number:
Grantham Bros. Limited
for the Year Ended 30 November 2018
Grantham Bros. Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Grantham Bros. Limited
Company Information
Directors |
P C Grantham D H Grantham S H Grantham |
Company secretary |
P C Grantham |
Registered office |
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Page 1 |
Grantham Bros. Limited
(Registration number: 01372008)
Balance Sheet as at 30 November 2018
Note |
2018 |
2017 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investment property |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Other reserves |
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Profit and loss account |
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Total equity |
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For the financial year ending 30 November 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Page 2 |
Grantham Bros. Limited
(Registration number: 01372008)
Balance Sheet as at 30 November 2018
Approved and authorised by the
.........................................
Director
Page 3 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
General information |
The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 01372008.
The address of its registered office is:
These financial statements cover the individual entity, Grantham Bros Limited.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 subject to departure below.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.
Departure from requirements of FRS 102
No depreciation has been charged on freehold land and buildings as they are maintained to such a standard that their residual value is not less than their cost. Management have concluded that this does not affect the financial statements from showing a true and fair view. Apart from this departure the company has complied with the relevant accounting standards and legislation. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Basic Payment Scheme is received in respect of calendar years. Receipt is contingent upon meeting certain eligibility criteria on 15 May. Once the criteria have been met, the income is recognised on a time apportioned basis over the calendar year to which it relates.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Page 4 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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 balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.
Tangible assets
Tangible assets are stated in the statement of financial position at cost or deemed cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives. Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. Where buildings are maintained to such a standard that their residual value is not less than their cost, no depreciation is charged as it is not material.
Asset class |
Depreciation method and rate |
Land and buildings |
No depreciation charged |
Plant and machinery |
15%-33% straight line basis |
Motor vehicles |
20% straight line basis |
Investment property
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Intangible assets are stated in the statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Page 5 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Asset class |
Amortisation method and rate |
Goodwill |
20 years straight line basis |
Single farm payment entitlements |
7 years straight line basis |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at cost less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Page 6 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Page 7 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Intangible assets |
Goodwill |
Single farm entitlements |
Total |
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Cost or valuation |
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At 1 December 2017 |
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At 30 November 2018 |
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Amortisation |
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At 1 December 2017 |
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Amortisation charge |
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At 30 November 2018 |
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Carrying amount |
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At 30 November 2018 |
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At 30 November 2017 |
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Tangible assets |
Land and buildings |
Long leasehold land and buildings |
Plant and machinery |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 December 2017 |
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Additions |
- |
- |
- |
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Disposals |
- |
- |
( |
( |
( |
At 30 November 2018 |
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Depreciation |
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At 1 December 2017 |
- |
- |
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Charge for the year |
- |
- |
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Eliminated on disposal |
- |
- |
( |
( |
( |
At 30 November 2018 |
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- |
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Carrying amount |
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At 30 November 2018 |
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At 30 November 2017 |
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Revaluation
The fair value of the company's land and buildings was revalued on
The class of assets has a current value of £1,656,728 2017 - £1,656,728) and historical cost of £
Page 8 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Investment properties |
2018 |
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At 1 December |
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At 30 November |
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Revaluation
The investment property class of fixed assets were revalued on 30 November 2018 by the directors who are internal to the company. The basis of this valuation was an open market value basis. The class of assets has a current value of £4,250,953 (2017 - £4,250,953) and historical cost of £1,688,977 (2017 - £1,688,977). The depreciation on this historical cost is £nil (2017 - £nil). The historical carrying amount at 30 November 2018 was £1,688,977 (2017 - £1,688,977).
Investments |
2018 |
2017 |
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Investments in associates |
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Associates |
£ |
Cost |
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At 1 December 2017 |
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Provision |
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Carrying amount |
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At 30 November 2018 |
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At 30 November 2017 |
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Stocks |
2018 |
2017 |
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Work in progress |
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Other inventories |
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Debtors |
2018 |
2017 |
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Trade debtors |
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Other debtors |
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Prepayments and accrued income |
19,835 |
20,487 |
Total current trade and other debtors |
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Page 9 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Creditors |
Creditors: amounts falling due within one year
Note |
2018 |
2017 |
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Due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
162,031 |
51,561 |
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Due after one year |
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Loans and borrowings |
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Creditor amounts falling due within one year on which security has been given includes bank overdrafts of £5,920 (2017 - £55,014) and finance lease liabilities of £30,000 (2017 - £28,682).
Creditor amounts falling due after one year on which security has been given includes finance lease liabilities of £61,084 (2017 - £91,084).
The bank overdrafts are secured by charges over the company's assets.
The finance lease liabilities are secured on the assets to which they relate to.
Loans and borrowings |
2018 |
2017 |
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Non-current loans and borrowings |
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Finance lease liabilities |
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2018 |
2017 |
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Current loans and borrowings |
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Bank overdrafts |
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Finance lease liabilities |
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Director's loan account |
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Page 10 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Related party transactions |
Directors' remuneration
The directors' remuneration for the year was as follows:
2018 |
2017 |
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Remuneration |
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Dividends paid to directors |
2018 |
2017 |
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Dividends paid |
225,000 |
- |
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2018 |
At 1 December 2017 |
Advances to directors |
Repayments by director |
At 30 November 2018 |
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Director's interest free loan accounts - no formal repayments |
278,872 |
129,828 |
362,500 |
46,200 |
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2017 |
At 1 December 2016 |
Advances to directors |
Repayments by director |
At 30 November 2017 |
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Director's interest free loan accounts - no formal repayments |
30,344 |
285,803 |
37,275 |
278,872 |
Income and receivables from related parties
2018 |
Other related parties |
Amounts receivable from related party |
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2017 |
Other related parties |
Amounts receivable from related party |
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Page 11 |
Grantham Bros. Limited
Notes to the Financial Statements for the Year Ended 30 November 2018
Expenditure with and payables to related parties
2018 |
Other related parties |
Rendering of services |
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2017 |
Other related parties |
Rendering of services |
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Page 12 |