Hewaswater Scaffolding Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05153320 (England and Wales)

Unaudited Financial Statements

for the Year Ended 31 March 2019

for

HEWASWATER SCAFFOLDING LIMITED

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

9

DIRECTOR:

MEF James

SECRETARY:

E James

REGISTERED OFFICE:

Hewaswater

Sticker

St Austell

Cornwall

PL26 7LF

REGISTERED NUMBER:

05153320 (England and Wales)

ACCOUNTANTS:

Baldwins

Accountants

Unit A

Woodlands Court

Truro Business Park

Truro

Cornwall

TR4 9NH

FIXED ASSETS

Tangible assets

4

1,174,664

887,389

Investments

5

26,500

26,500

1,201,164

913,889

CURRENT ASSETS

Debtors

6

677,663

858,099

Cash at bank

22,233

27,173

699,896

885,272

CREDITORS

Amounts falling due within one year

7

(832,138

)

(510,527

)

NET CURRENT (LIABILITIES)/ASSETS

(132,242

)

374,745

TOTAL ASSETS LESS CURRENT LIABILITIES

1,068,922

1,288,634

CREDITORS

Amounts falling due after more than one year

8

(126,890

)

(84,980

)

PROVISIONS FOR LIABILITIES

11

(111,140

)

(117,251

)

NET ASSETS

830,892

1,086,403

CAPITAL AND RESERVES

Called up share capital

12

170,001

170,001

Retained earnings

660,891

916,402

SHAREHOLDERS' FUNDS

830,892

1,086,403

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director on 18 December 2019 and were signed by:

MEF James - Director

1.	STATUTORY INFORMATION

Hewaswater Scaffolding Limited 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

The 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. The financial statements have been prepared under the historical cost

convention.

The financial statements are prepared in sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound sterling.

Notwithstanding the net current liabilities of £132,242 (2018: net current assets £374,745) the

directors, after making enquiries and having considered the company's business, its financial plans

and the facilities available to finance the business, have a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. In particular

related party balances of £270,404 are not required to be repaid until the company has sufficient

funds. Accordingly, the going concern basis is adopted in preparing the financial statements.

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.

Turnover

Turnover represents the total invoice value, excluding value added tax, of sales made during the year

and is recognised as services are performed.

Long term contracts

Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales

value of the work done after provisions for contingencies and anticipated future losses on contracts,

less amounts received as progress payments on account. Excess progress payments are included in

creditors as payments received on accounts.

Tangible fixed assets

Tangible assets are initially measured at cost. Such costs include costs directly attributable to making

the asset capable of operating as intended. Subsequent to initial recognition, tangible assets are

stated at cost less accumulated depreciation and accumulated impairment.

Tangible assets are depreciated as follows:

Plant and machinery

-

10% Straight Line

Fixtures, fittings and equipment

-

25% Straight Line

Motor vehicles

-

25% Straight Line

Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to

determine whether there is any indication that those assets have suffered an impairment loss. If any

such indication exists, the recoverable amount of the asset is estimated in order to determine the

extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of

an individual asset, the company estimates the recoverable amount of the cash-generating unit to

which the asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing

value in use, the estimated future cash flows are discounted to their present value using a pre-tax

discount rate that reflects current market assessments of the time value of money and the risks

specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying

amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable

amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have

ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset

(or cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the

increased carrying amount does not exceed the carrying amount that would have been determined

had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A

reversal of an impairment loss is recognised immediately in profit or loss.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and

Section 12 "Other Financial Instruments" of FRS102 to all of its financial instruments.

Financial assets and liabilities are recognised in the company's statement of financial position when

the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are classified into specified categories. The classification depends on

the nature and purpose of the financial asset or liability and is determined at the time of recognition.

Basic financial assets, which include trade and other receivables, including staff loans and cash and

bank balances, are initially measured at transaction price including transaction costs and are

subsequently carried at amortised cost 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 discounted at a market rate of interest.

Basic financial liabilities, which include trade and other payables are initially measured at transaction

price, unless the arrangement constitutes a financing transaction, where the debt instrument is

measured at the present value of the future payments discounted at a market rate of interest.

Financial liabilities are derecognised when, and only when, the company's obligations are discharged,

cancelled, or they expire.

Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current

tax assets are recognised when tax paid exceeds the tax payable.

Current and deferred tax is charged or credited to the profit or loss, except when it relates to items

charged or credited to other comprehensive income or equity, when the tax follows the transaction or

event it relates to and is also charged or credited to other comprehensive income, or equity.

Current tax assets and current tax liabilities as well as deferred tax assets and deferred tax liabilities

are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends

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

Current tax is based on taxable profit for the year. Taxable profit differs from total comprehensive

income because it excludes item of income or expense that are taxable or deductible in other periods.

Current tax assets and liabilities are measured using tax rates that have been enacted or substantively

enacted by the reporting period.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date where transactions or events have occured at that date that will result in an

obligation to pay more, or a right to pay less or to receive more tax.

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely

than not that there will be suitable taxable profits from which the future reversal of the underlying

timing differences can be deducted.

Deferred tax is measures on an undiscounted basis at the tax rates that are expected to apply in the

periods in which timing differences reverse, base don tax rates and laws enacted or substantively

enacted at the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets

and depreciated over the shorter of the lease term and their useful lives. Obligations under such

agreements are included in creditors net of the finance charge allocated to future periods. The finance

element of the rental payment is charged to the profit and loss account so as to produce constant

periodic rates of charge on the net obligations outstanding in each period.

Pension costs

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.

Investments

Fixed assets investments are stated at cost less provision for impairment.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those

costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's

services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably

committed to terminate the employment of any employee or to provide termination benefits

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 45 (2018 - 52 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures,

Plant and

fittings

Motor

machinery

& equipment

vehicles

Totals

£

£

£

£

COST

At 1 April 2018

1,537,945

32,784

227,080

1,797,809

Additions

463,055

1,937

15,000

479,992

Disposals

(120,682

)

(4,311

)

(58,553

)

(183,546

)

At 31 March 2019

1,880,318

30,410

183,527

2,094,255

DEPRECIATION

At 1 April 2018

711,747

22,389

176,284

910,420

Charge for year

163,525

3,743

20,529

187,797

Eliminated on disposal

(118,511

)

(4,311

)

(55,804

)

(178,626

)

At 31 March 2019

756,761

21,821

141,009

919,591

NET BOOK VALUE

At 31 March 2019

1,123,557

8,589

42,518

1,174,664

At 31 March 2018

826,198

10,395

50,796

887,389

Included within the above are assets held under finance leases or hire purchase contracts as follows:

31/3/19

31/3/18

Net Book Value

Depreciation Charge

Net Book Value

Depreciation Charge

£

£

£

£

Plant & Machinery

254,250

15,750

334,657

55,247

5.	FIXED ASSET INVESTMENTS

Tangible Fixed Asset Investments

£

At 31 March 2018

26,500

Additions

-

Impairment

-

At 31 March 2019

26,500

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Trade debtors

123,790

124,348

Amounts recoverable on contracts

545,234

726,612

Other debtors

8,639

7,139

677,663

858,099

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/19

31/3/18

£

£

Bank loans and overdrafts

64,518

9,038

Hire purchase contracts (see note 9)

153,840

99,368

Payments on account

-

92,313

Trade creditors

247,550

34,885

Amounts owed to group undertakings

270,404

156,446

Taxation and social security

53,057

104,115

Other creditors

42,769

14,362

832,138

510,527

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/3/19

31/3/18

£

£

Hire purchase contracts (see note 9)

126,890

84,980

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

31/3/19

31/3/18

£

£

Net obligations repayable:

Within one year

153,840

99,368

Between one and five years

126,890

84,980

280,730

184,348

10.	SECURED DEBTS

The following secured debts are included within creditors:

31/3/19

31/3/18

£

£

Hire purchase contracts

280,730

184,348

The hire purchase contracts are secured over the assets to which they relate.

The company has provided a cross-guarantee to its parent company, Hewaswater Engineering

Limited, for hire purchase contracts of £280,730 (2018: £176,920).

Natwest bank has a fixed and floating charge over the assets and undertaking of the company.

11.	PROVISIONS FOR LIABILITIES

31/3/19

31/3/18

£

£

Deferred tax

Deferred tax - Accelerated

capital allowances

133,533

117,251

Deferred tax on losses

(22,393

)

-

111,140

117,251

Deferred

tax

£

Balance at 1 April 2018

117,251

Timing differences

16,282

Unutilised losses

(22,393

)

Balance at 31 March 2019

111,140

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/19

31/3/18

value:

£

£

1

Ordinary

£1

1

1

170,000

"A" redeemable

£1

170,000

170,000

170,001

170,001

The "A" redeemable shares shall be redeemed at par at any time in whole or in part at the option of

the company.

13.	PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The total contributions made by the

company for directors and other employees totalled £15,665 (2018: £5,748). At the balance sheet

date the company owed the scheme £1,590 (2018: £558).

14.	CONTROLLING PARTY DISCLOSURES

The immediate parent entity is Hewaswater Engineering Limited.

15.	ULTIMATE CONTROLLING PARTY

MEF James is the ultimate controlling party.