M A Daly Building Contractors Ltd - Period Ending 2018-12-31

Registration number: 04328752

M A Daly Building Contractors Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2018

TSH Professional Services Ltd
89 High Street
Thame
Oxfordshire
OX9 3EH

M A Daly Building Contractors Ltd

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 13

M A Daly Building Contractors Ltd

Company Information

Directors

Mr Michael Anthony Daly Mrs Patricia Elaine Daly

Registered office

89 High Street Thame Oxfordshire OX9 3EH

Accountants

TSH Professional Services Ltd 89 High Street Thame Oxfordshire OX9 3EH

Page 1 of 13

Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
M A Daly Building Contractors Ltd
for the Year Ended 31 December 2018

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of M A Daly Building Contractors Ltd for the year ended 31 December 2018 as set out on pages 3 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of M A Daly Building Contractors Ltd, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of M A Daly Building Contractors Ltd and state those matters that we have agreed to state to the Board of Directors of M A Daly Building Contractors Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than M A Daly Building Contractors Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that M A Daly Building Contractors Ltd has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of M A Daly Building Contractors Ltd. You consider that M A Daly Building Contractors Ltd 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 accounts of M A Daly Building Contractors Ltd. 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 accounts.

......................................

TSH Professional Services Ltd
89 High Street
Thame
Oxfordshire
OX9 3EH

28 September 2019

Page 2 of 13

M A Daly Building Contractors Ltd

(Registration number: 04328752)
Balance Sheet as at 31 December 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	35,182	23,724
Current assets
Stocks	5	294,594	770,752
Debtors	6	228,964	173,634
Cash at bank and in hand		140,078	40,082
		663,636	984,468
Creditors: Amounts falling due within one year	7	(641,554)	(957,090)
Net current assets		22,082	27,378
Total assets less current liabilities		57,264	51,102
Creditors: Amounts falling due after more than one year	7	(22,864)	(11,984)
Provisions for liabilities		(4,377)	(4,507)
Net assets		30,023	34,611
Capital and reserves
Called up share capital	8	1,000	1,000
Profit and loss account		29,023	33,611
Total equity		30,023	34,611

For the financial year ending 31 December 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	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.

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 3 of 13

M A Daly Building Contractors Ltd

(Registration number: 04328752)
Balance Sheet as at 31 December 2018

Approved and authorised by the Board on 28 September 2019 and signed on its behalf by:
 

.........................................

Mr Michael Anthony Daly
Director

The notes on pages 5 to 13 form an integral part of these financial statements.

Page 4 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

1	General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
89 High Street
Thame
Oxfordshire
OX9 3EH
England

The principal place of business is:
Orchard Barn
Lower Road
Postcombe
OX9 7DU

These financial statements were authorised for issue by the Board on 28 September 2019.

2	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.

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 expressed in pounds sterling and are rounded to the nearest pound.

Going concern

The financial statements have been prepared on a going concern basis.

Page 5 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Judgements

The Directors have made no individual judgements that have a significant impact upon the financial statements, excepting those involving estimation which are dealt with below.

Construction work in progress

The principal judgement involved in preparing the financial statements is an assessment of the likelihood of realisation of a profit on construction work in progress. This is discussed in relation to the estimation uncertainty (below).

Key sources of estimation uncertainty

Housing Market Risk
The company is fundamentally affected by the level of house prices in the area of its operation. These in turn are affected by factors such as credit availability, employment levels, interest rates, consumer confidence and the supply of land with planning permission. It is not possible for the company to fully mitigate such risks. The directors have considered the senstivity to house price changes and concluded that the risk of not realising a gain on the contracts in progress is remote. The carrying amount is £294,594 (2017 -£770,752).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the construction of dwellings and the provision of ancillary 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.

Contract revenue recognition

Turnover on work carried out under a construction contract relates to construction work in progress.

Where the contract outcome cannot be measured reliably, revenue is measured only to the extent of the expenses recognised that are recoverable. For this purpose, all costs incurred by the company are considered to relate to the current construction project. Full provision is made for losses on all contracts in the year in which they are first foreseen.

Where the Company has entered into a binding contract for construction, Revenue from long term contracts is recognised by stage of completion. Stage of completion is measured by reference to costs incurred to date as a percentage of total estimated costs for each contract.

Where the contract (including any construction project undertaken speculatively) cannot be measured reliably, revenue is measured only to the extent of the expenses recognised that are recoverable. Contract expenses include all expenses that are attributable to the contract including financing costs incurred specifically in respect of that contract and general overheads that would not have been incurred had the contract not been undertaken.

Full provision is made for contract losses at the point in which they are first foreseen.

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.

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.

Page 6 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Deferred taxation is provided using the balance sheet liability method on timing differences, providing for timing differences between the carrying amounts of assets and liability for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is calculated using the tax rates applicable or expected to be applicable at the date of settlement, based on enacted rates at the reporting date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which that asset can be utilised.

Deferred tax assets and liabilities are offset when there is a legaly enforceable right to set off current tax assets against current tax liabilities.

Tangible assets

Tangible assets are stated in the statement of financial position at 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% Straight line / 25% RB (individually assessed)
Office equipment	25% Straight line

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 construction work or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, 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. Cost is determined using the first-in, first-out (FIFO) method.

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.

Page 7 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

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 initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs and arrangement fees are treated as assets. 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.

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2017 - 3).

Page 8 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

4	Tangible assets

	Motor vehicles  £	Other tangible assets £	Total £
Cost or valuation
At 1 January 2018	26,126	26,981	53,107
Additions	-	25,670	25,670
At 31 December 2018	26,126	52,651	78,777
Depreciation
At 1 January 2018	7,231	22,152	29,383
Charge for the year	6,432	7,780	14,212
At 31 December 2018	13,663	29,932	43,595
Carrying amount
At 31 December 2018	12,463	22,719	35,182
At 31 December 2017	18,895	4,829	23,724

5

Stocks

	2018 £	2017 £
Work in progress	294,594	770,752

6

Debtors

	2018 £	2017 £
Trade debtors	81,468	60,457
Prepayments	652	57
Other debtors	146,844	113,120
	228,964	173,634

Details of non-current trade and other debtors

£Nil (2017 -£15,432) of Trade and other debtors is classified as non current.

Page 9 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

7

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	9	11,706	284,359
Trade creditors		22,080	5,554
Taxation and social security		5,067	9,816
Accruals and deferred income		69,256	154,410
Other creditors		533,445	502,951
		641,554	957,090

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	22,864	11,984

Creditors falling due after include bank and other loans which are secured of £nil (2017 - £180,182).

The Company has net obligations under hire purchase contracts of £34,571 (2017: £16,161)

8	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	1,000	1,000	1,000	1,000

Page 10 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

9	Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Finance lease liabilities	11,706	4,177
Other borrowings	-	280,182
	11,706	284,359

Bank borrowings

Development loan included in Other Borrowings is denominated in Pound Sterling with a nominal interest rate of 9%, and the final instalment is due on 22 March 2018. The carrying amount at year end is £Nil (2017 - £181,182). The Development loan was secured by first charge on land and buildings under construction.

10

Dividends

Final dividends paid

		2018 £		2017 £
Final dividend of Nil per each Ordinary shares		-		-

Interim dividends paid

		2018 £		2017 £
Interim dividend of £4.00 (2017 - £20.00) per each Ordinary		4,000		20,000

11	Related party transactions

The Company entered into the following transactions with directors.

Transactions with directors

2018

At 1 January 2018 £

Advances to directors £

Repayments by director £

Other payments made to company by director £

At 31 December 2018 £

Page 11 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Mr Michael Anthony Daly
Interest free loan repayable on demand	(502)	141,470	(61,168)	(79,800)	-
Loan to the company bearing interest at 2% pa	-	-	-	(170,200)	(170,200)
	(502)	141,470	(61,168)	(250,000)	(170,200)
Mrs Patricia Elaine Daly
Loan to the company bearing interest at 2% pa	-	-	-	(250,000)	(250,000)
	-	-	-	(250,000)	(250,000)

2017	Advances to directors £	Repayments by director £	Other payments made to company by director £	At 31 December 2017 £
Mr Michael Anthony Daly
Interest free loan repayable on demand	175,656	(175,656)	(502)	(502)
	175,656	(175,656)	(502)	(502)

Directors' remuneration

The directors' remuneration for the year was as follows:

	2018 £	2017 £
Remuneration	24,188	31,345
Sums paid to third parties for directors' services	734	700
	24,922	32,045

Benefits in kind

Dividends paid to directors

	2018 £	2017 £
Mr Michael Anthony Daly
Dividends paid to directors	2,000	10,000
Mrs Patricia Elaine Daly
Dividends paid	2,000	10,000

Summary of transactions with other related parties

Page 12 of 13

M A Daly Building Contractors Ltd

Notes to the Financial Statements for the Year Ended 31 December 2018

Included in other debtors at 31 December 2018 was a loan from Fine Homes UK Limited of £15,432 (2017 - £15,432). Fine Homes UK Limited is jointly owned by director M A Daly. The loan is interest free and repayable on demand.

Included in other creditors at 31 December 2018 was a loan to Fine Homes UK Limited of £93,289 (2017 - £93,289). Fine Homes UK Limited is jointly owned by director M A Daly. The loan is interest free and repayable on demand.

Included in trade debtors at 31 December 2018 was £50,195 (2017 - £60,286) owed from Fine Homes Oakley Limited, a company jointly owned by director M A Daly.

Included in other debtors at 31 December 2018 was accrued income of £1,000 (2017 - £35,791) owed from Fine Homes Oakley Limited, a company jointly owned by director M A Daly.
 

Page 13 of 13