Coate Water Care (Arbory) Limited - Period Ending 2019-04-02

Registration number: 06443478

Coate Water Care (Arbory) Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 April 2018 to 2 April 2019

Coate Water Care (Arbory) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Coate Water Care (Arbory) Limited

Company Information

Directors

C L Smith G F Smith J Smith N Smith

Registered office

3 Lancaster Mews South Marston Industrial Estate Swindon SN3 4YF

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Coate Water Care (Arbory) Limited

(Registration number: 06443478)
Balance Sheet as at 2 April 2019

	Note	2 April 2019  £	31 March 2018  £
Fixed assets
Tangible assets	4	4,159,224	4,206,817
Current assets
Debtors	5	68,832	175,603
Cash at bank and in hand		4,191	25,568
		73,023	201,171
Creditors: Amounts falling due within one year	6	(208,417)	(273,428)
Net current liabilities		(135,394)	(72,257)
Total assets less current liabilities		4,023,830	4,134,560
Creditors: Amounts falling due after more than one year	6	(4,356,528)	(4,607,461)
Net liabilities		(332,698)	(472,901)
Capital and reserves
Called up share capital		1	1
Profit and loss account		(332,699)	(472,902)
Total equity		(332,698)	(472,901)

For the financial period ending 2 April 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 period 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.

Approved and authorised by the Board on 11 March 2020 and signed on its behalf by:
 

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

G F Smith
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 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:
3 Lancaster Mews
South Marston Industrial Estate
Swindon
SN3 4YF
England

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. 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 and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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
Freehold property	Buildings - 125 years straight line
Plant and machinery	7 years straight line
Motor vehicles	4 years straight line
Fixtures and fittings	5 years straight line
Computer equipment	3 years straight line

Freehold land is not depreciated.

Intangible assets

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.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

	1 April 2018 to 2 April 2019  No.	Year ended 31 March 2018  No.
Average number of employees	57	57

4

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 April 2018	5,361,711	365,332	41,170	5,768,213
Additions	1,105	19,261	-	20,366
At 2 April 2019	5,362,816	384,593	41,170	5,788,579
Depreciation
At 1 April 2018	1,298,239	237,962	25,195	1,561,396
Charge for the year	18,735	45,230	3,994	67,959
At 2 April 2019	1,316,974	283,192	29,189	1,629,355
Carrying amount
At 2 April 2019	4,045,842	101,401	11,981	4,159,224
At 31 March 2018	4,063,472	127,370	15,975	4,206,817

5

Debtors

	Note	2 April 2019  £	31 March 2018  £
Trade debtors		20,892	101,624
Prepayments		38,390	64,429
Deferred tax assets	7	9,550	9,550
		68,832	175,603

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

6

Creditors

Creditors: amounts falling due within one year

	Note	2 April 2019  £	31 March 2018  £
Due within one year
Loans and borrowings	8	43,342	46,527
Trade creditors		52,698	41,124
Social security and other taxes		16,048	17,823
Other creditors		77,324	146,960
Accrued expenses		19,005	20,994
		208,417	273,428
Due after one year
Loans and borrowings	8	-	2,740,414
Amounts owed to group undertakings		4,356,528	1,867,047
		4,356,528	4,607,461

Creditors: amounts falling due after more than one year

	Note	2019 £	2018 £
Due after one year
Loans and borrowings	8	-	2,740,414

7

Deferred tax

Deferred tax assets and liabilities

2019	Asset £
Difference between accumulated depreciation and amortisation capital allowances	9,550

2018	Asset £
Difference between accumulated depreciation and amortisation capital allowances	9,550

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 2 April 2019

8

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	-	43,502
Bank overdraft	43,342	79
Finance lease liabilities	-	2,946
	43,342	46,527

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	-	2,537,500
Finance lease liabilities	-	11,414
Other borrowings	-	191,500
	-	2,740,414

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