Welch Hire Limited - Period Ending 2019-03-31

Registration number: 03527560

Welch Hire Limited

Unaudited Financial Statements

for the Year Ended 31 March 2019

Welch Hire Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Notes to the Financial Statements	5 to 10

Welch Hire Limited

Company Information

Directors

T S Atkins Miss M M Davies

Registered office

Unit 19 Parrett Way Colley Lane Bridgwater Somerset TA6 5LB

Accountants

Four Fifty Partnership Chartered Accountants 34 Boulevard Weston-super-Mare Somerset BS23 1NF

Page 1

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Welch Hire Limited
for the Year Ended 31 March 2019

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Welch Hire Limited for the year ended 31 March 2019 as set out on pages 3 to 10 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 Welch Hire Limited, 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 Welch Hire Limited and state those matters that we have agreed to state to the Board of Directors of Welch Hire Limited, 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 Welch Hire Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Welch Hire Limited 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 Welch Hire Limited. You consider that Welch Hire Limited 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 Welch Hire Limited. 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.

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

Four Fifty Partnership
Chartered Accountants
34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

18 December 2019

Page 2

Welch Hire Limited

(Registration number: 03527560)
Balance Sheet as at 31 March 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	3,328	-
Current assets
Debtors	5	223,593	-
Cash at bank and in hand		13,061	1
		236,654	1
Creditors: Amounts falling due within one year	6	(256,438)	-
Net current (liabilities)/assets		(19,784)	1
Net (liabilities)/assets		(16,456)	1
Capital and reserves
Called up share capital	8	1	1
Profit and loss account		(16,457)	-
Total equity		(16,456)	1

For the financial year ending 31 March 2019 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 10 form an integral part of these financial statements.

Page 3

Welch Hire Limited

(Registration number: 03527560)
Balance Sheet as at 31 March 2019

Approved and authorised by the Board on 11 December 2019 and signed on its behalf by:
 

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

Miss M M Davies
Director

The notes on pages 5 to 10 form an integral part of these financial statements.

Page 4

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

1	General information

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

The address of its registered office is:
Unit 19 Parrett Way
Colley Lane
Bridgwater
Somerset
TA6 5LB
United Kingdom

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 presentation currency of the financial statements is Pound Sterling (£).

Page 5

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

2	Accounting policies (continued)

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will continue to trade in operational existence for the forseeable future. At 31 March 2019, the company had net current liabilities of £19,784 and a net liabilities position of £16,456. The directors have considered the position of the company with respect to its obligations to ensure that the business can continue in operational existence for the forseeable future, and confirm their approval to adopt the going concern basis for preparing the accounts.

The assumptions the directors have made in reaching this conclusion may be summarised as folows:

- as the company did not commence trading until 1 September 2018, there are set up costs included within these figures that will not be incurred in the next financial period.

- on review on the company's financial records post year end, there has been a large increase in turnover with the company starting to generate profits.

On the basis of the above, and all other information available, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of 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.

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

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

2	Accounting policies (continued)

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

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
Furniture, fittings and equipment	3 years straight line
Portacabin	15% reducing balance

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 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.

Page 7

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

2	Accounting policies (continued)

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as either financial assets, liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company, after deducting all liabilities.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2018 - 0).

Page 8

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

4	Tangible assets

	Furniture, fittings and equipment  £	Portacabin  £	Total £
Cost or valuation
Additions	2,216	2,178	4,394
At 31 March 2019	2,216	2,178	4,394
Depreciation
Charge for the year	739	327	1,066
At 31 March 2019	739	327	1,066
Carrying amount
At 31 March 2019	1,477	1,851	3,328

5

Debtors

	2019 £	2018 £
Trade debtors	91,312	-
Prepayments	12,941	-
Other debtors	119,340	-
	223,593	-

Page 9

Welch Hire Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

6

Creditors

Creditors: amounts falling due within one year

	2019 £	2018 £
Due within one year
Trade creditors	187,627	-
Taxation and social security	42,397	-
Accruals and deferred income	5,476	-
Other creditors	20,938	-
	256,438	-

7	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2019 £	2018 £
Not later than one year	255,441	-
	255,441	-

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary share of £1 each	1	1	1	1

Page 10