Vear Building Services Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03048253 (England and Wales)

VEAR BUILDING SERVICES LIMITED

FINANCIAL STATEMENTS FOR THE PERIOD 1 JANUARY 2018 TO 30 APRIL 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

T C Waters

C Allen

REGISTERED OFFICE:

Unit 1, Manor Farm Offices

Flexford Road

North Baddesley

Southampton

Hampshire

SO52 9DF

REGISTERED NUMBER:

03048253 (England and Wales)

AUDITORS:

Rothmans Audit LLP

Statutory Auditors

Chartered Accountants

Fryern House

125 Winchester Road

Chandlers Ford

Hampshire

SO53 2DR

BANKERS:

Barclays Bank plc

P.O. Box 87

Winchester

Hampshire

SO23 8TN

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

57,887

74,657

57,887

74,657

CURRENT ASSETS

Stocks

-

17,000

Debtors

6

1,243,682

3,805,574

Cash at bank and in hand

331,034

341,283

1,574,716

4,163,857

CREDITORS

Amounts falling due within one year

7

1,584,878

3,236,707

NET CURRENT (LIABILITIES)/ASSETS

(10,162

)

927,150

TOTAL ASSETS LESS CURRENT LIABILITIES

47,725

1,001,807

CAPITAL AND RESERVES

Called up share capital

3,000

3,000

Retained earnings

44,725

998,807

SHAREHOLDERS' FUNDS

47,725

1,001,807

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 Income and Retained Earnings has not been delivered.

The financial statements were approved by the director on 30 January 2020 and were signed by:

T C Waters - Director

C Allen - Director

1.	STATUTORY INFORMATION

Vear Building Services Limited is a private company, limited by shares, registered in England and Wales. The

Company's registered number is 03048253 and its registered address is: Unit 1, Manor Farm Offices, Flexford

Road, North Baddesley, SO52 9DF.

The presentation currency is £Sterling.

2.	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.

The presentation currency is £ sterling.

Frequency of reporting

The company year end was extended from 31 December 2018 to 30 April 2019 The comparative information

presented in the accounts (including related notes) may not be entirely comparable.

Going Concern

During the period the company suffered significant bad debts arising from one loss making contract and a group

company entering liquidation. With the continued support of its parent company preparation of the financial

statements on a going concern basis is considered appropriate.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the

amounts reported for revenues and expenses during the year. However, the nature of estimation means that

actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts

recognised in the financial statements.

Revenue recognition

Revenue is recognised in relation to the value of work carried out which is based on the project as a whole.

Judgements are made on the timing of revenue recognition based on the percentage completion of the work,

and the expected outcome of the contract.

Other key sources of estimation uncertainty

Revenue recognition

The degree of completion of contracts is estimated by reviewing the costs incurred to date against the total

expected costs of the project.

Turnover

Turnover represents net sales during the year (excluding value added tax) adjusted for accrued and deferred

income where applicable.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by

including in the income statement turnover and related costs as contract activity progresses. Turnover is

calculated as that proportion of total contract value which costs to date bear to total expected costs for that

contract.

Fixed assets

All fixed assets are initially recorded at cost.

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

life.

Fixture & fittings

- 20% reducing balance

Short leasehold

-5% reducing balance

Fixture and fittings

-20% straight line

Motor vehicles

-33% reducing balance

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is adjusted for prospectively.

Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the

difference between the net disposal proceeds and the carrying amount is recognised in the income statement.

Financial instruments

The company only has financial assets and liabilities of the kind that qualify as basic financial instruments. Basic

financial instruments are initially recognised at transaction value and debt instruments are subsequently

measured at amortised cost.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Income and

Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or

directly in equity.

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 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 period 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.

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 the income statement in the period to which they relate.

The pension costs charged in the financial statements represent the contributions payable by the company

during the year.

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by

reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work,

claims and incentive payments are included to the extent that the amount can be measured reliably and its

receipt is considered probable.

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

as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as

expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract

costs incurred where it is probable that they will be recoverable.

The "percentage of completion method" is used to determine the appropriate amount to recognise in a given

period. The stage of completion is measured by the proportion of contract costs incurred for work performed to

date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity

on a contract are excluded from contract costs in determining the stage of completion. These costs are

presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they

will be recovered.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 24 (2017 - 41 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2018

and 30 April 2019

3,708

AMORTISATION

At 1 January 2018

and 30 April 2019

3,708

NET BOOK VALUE

At 30 April 2019

-

At 31 December 2017

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2018

173,183

36,094

192,449

6,925

408,651

Additions

-

-

1,909

-

1,909

Disposals

-

-

-

(6,925

)

(6,925

)

At 30 April 2019

173,183

36,094

194,358

-

403,635

DEPRECIATION

At 1 January 2018

123,765

30,565

172,815

6,849

333,994

Charge for period

3,468

1,402

13,733

76

18,679

Eliminated on disposal

-

-

-

(6,925

)

(6,925

)

At 30 April 2019

127,233

31,967

186,548

-

345,748

NET BOOK VALUE

At 30 April 2019

45,950

4,127

7,810

-

57,887

At 31 December 2017

49,418

5,529

19,634

76

74,657

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2017

£

£

Trade debtors

1,171,828

1,860,802

Amounts owed by group undertakings

-

1,799,641

Amounts recoverable on contract

-

107,538

Other debtors

57,585

6,550

Directors' loan accounts

1,961

-

Prepayments and accrued income

12,308

31,043

1,243,682

3,805,574

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2017

£

£

Payments on account

294,620

-

Trade creditors

833,910

402,482

Amounts owed to group undertakings

50,438

1,125,412

Social security and other taxes

107,481

37,684

VAT

30,082

189,615

Other creditors

6,370

2,376

Directors' current accounts

-

43,039

Accruals and deferred income

261,977

1,436,099

1,584,878

3,236,707

8.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Robin Lloyd FCA (Senior Statutory Auditor)

for and on behalf of Rothmans Audit LLP

9.	CONTINGENT LIABILITIES

The company has a contingent liability in respect of cross guarantees given to the bank with Vear Holdings

Limited (the parent company). The only liability at the year end was an amount of £192,426 (2017 - £243,057) in

respect of a mortgage in Vear Holdings Limited.

During the period the Company entered a Company Voluntary Arrangement with its creditors. The creditor

balances subject to the arrangement have been written down to the amounts payable under the arrangement.

Should the company fail to comply with the terms of the arrangement these creditor balances will become

payable in full, crystalizing a further £896k of creditors.