Evans Turner (Finishes) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01307491 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019

FOR

EVANS TURNER (FINISHES) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G P Bird

P R McEntire

REGISTERED OFFICE:

Unit 25

Acorn Industrial Park

Crayford Road

Crayford

Kent

DA1 4AL

REGISTERED NUMBER:

01307491 (England and Wales)

ACCOUNTANTS:

Crowe U.K. LLP

Riverside House

40-46 High Street

Maidstone

Kent

ME14 1JH

FIXED ASSETS

Tangible assets

4

161,139

153,488

CURRENT ASSETS

Stocks

94,000

105,000

Debtors

5

990,852

993,896

Cash at bank and in hand

594,742

647,072

1,679,594

1,745,968

CREDITORS

Amounts falling due within one year

6

1,335,443

1,564,351

NET CURRENT ASSETS

344,151

181,617

TOTAL ASSETS LESS CURRENT LIABILITIES

505,290

335,105

PROVISIONS FOR LIABILITIES

17,468

15,447

NET ASSETS

487,822

319,658

CAPITAL AND RESERVES

Called up share capital

8

624

624

Share premium

9

51,376

51,376

Retained earnings

9

435,822

267,658

SHAREHOLDERS' FUNDS

487,822

319,658

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

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

The directors acknowledge their 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 Income Statement has not been delivered.

The financial statements were approved by and authorised for issue by the Board of Directors and authorised for issue on 29 April 2020 and were signed on its behalf by:

G P Bird - Director

1.	STATUTORY INFORMATION

Evans Turner (Finishes) Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number is 01307491 and registered office address is at Unit 25 Acorn Industrial Park,

Crayford Road, Crayford, Kent, DA1 4AL.

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.

Accounting standards require the directors to consider the appropriateness of the going concern basis when

preparing the financial statements. The directors confirm that they consider that the going concern basis remains

appropriate. The directors believe that the Company has sufficient resources to continue in operational existence for

the foreseeable future. The directors believe this to be the case as the Company has positive reserves, cash

balances and no significant long term liabilities. Thus they continue to adopt the going concern basis of accounting

in preparing the annual financial statements.

The Company has been open and operating since the start of the Covid-19 crisis and plans to continue to do so,

unless otherwise directed by HM Govt.

The immediate effect of Covid-19 has been rather limited on the whole. At the start of April the cash position of the

company was very favourable. If there has been an impact on the order book, it has been un-noticeable. The

debtor book is in very good shape, which is reflected in the cash position and, as we continue to serve our client

base through this crisis, the directors expect those clients to continue to pay promptly.

The directors took the decision to furlough about 40% of the staff in order to be able to maintain the 'social

distancing' requirements in the factory & office. It was mainly less experienced staff that were furloughed, so there is

no requirement for supervision. All the drafting staff are working from home, as are some of the accounts staff.

There are generally only 2 people in the office at any one time; one of the directors and one administrator.

Fortunately, significant quantities of materials had been procured for some of the larger projects, prior to the

Covid-19 lockdown. As such, the factory continues to produce without any problems. Some suppliers did close

down early in the crisis, but they are now starting to offer limited services. The supply situation is further improved

by the fact that the company has multiple suppliers for similar materials, so there are supply options.

The landlord has agreed to monthly rent payments, as opposed to quarterly in advance and other fixed overheads

are also being driven down. The company will defer the next VAT payment.

In respect of cashflow over the next few months, the directors are not unduly concerned, because March invoicing

was at pre-crisis levels and as the company has continued to operate during April, the expectation is that April

invoicing will only be slightly reduced against pre-crisis levels. If the crisis continues beyond April, it is expected the

company can continue to operate in this reconfigured state almost indefinitely.

Going forward, the directors do not envisage any significant long term effect on the business, because no orders

have been cancelled and bidding activity continues at much the same rate as pre-crisis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Turnover is recognised at the invoice date, following completion of works or a certain stage of a project.

Amounts recoverable on long term contracts are valued at anticipated net sales value of work done.

Tangible fixed assets

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

Long leasehold

10% straight line

Plant and machinery

12.5% straight line

Motor vehicles

25% straight line

Fixtures & fittings

10 - 33% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the

extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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

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 year 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.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of

the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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 profit or loss in the period to which they relate.

The company contributes to personal pension plans on behalf of directors.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction price.

Cash and Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of

not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months

from the date of acquisition and that are readily convertible to known accounts of cash with no significant risk of

change in value.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of the financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties,

loans to related parties and investments in non-puttable ordinary shares.

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements,

as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;

- the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);

- the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;

- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;

- the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 36 (2018 - 37 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 August 2018

25,325

253,847

64,573

152,192

495,937

Additions

17,886

2,901

1,769

33,799

56,355

Disposals

-

-

-

(14,625

)

(14,625

)

At 31 July 2019

43,211

256,748

66,342

171,366

537,667

DEPRECIATION

At 1 August 2018

8,828

165,724

42,986

124,911

342,449

Charge for year

3,055

19,178

8,613

17,858

48,704

Eliminated on disposal

-

-

-

(14,625

)

(14,625

)

At 31 July 2019

11,883

184,902

51,599

128,144

376,528

NET BOOK VALUE

At 31 July 2019

31,328

71,846

14,743

43,222

161,139

At 31 July 2018

16,497

88,123

21,587

27,281

153,488

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

955,740

848,137

Other debtors

35,112

145,759

990,852

993,896

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

-

37,429

Trade creditors

365,818

445,399

Taxation and social security

319,070

287,684

Other creditors

650,555

793,839

1,335,443

1,564,351

Directors have loaned £550,604 (2018 - £520,743) to the company.

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2019

2018

£

£

Within one year

176,943

176,943

Between one and five years

707,772

707,772

In more than five years

450,311

627,254

1,335,026

1,511,969

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal value:

2019

2018

£

£

125

A Ordinary

£1

125

125

125

B Ordinary

£1

125

125

125

C Ordinary

£1

125

125

125

D Ordinary

£1

125

125

62

E Ordinary

£1

62

62

62

F Ordinary

£1

62

62

624

624

Last year, the company carried out a reorganisation of its share capital. 51,500 £1 preference shares were re

designated £1 ordinary E and F shares, with 25,750 preference shares being redesignated into 62 £1 ordinary E

shares and 25,750 preference shares being redesignated into 62 £1 ordinary F shares. As a result, these shares

were fully paid at a premium of £413.32 per share. Newly issued shares do not confer any voting rights, but rank pari

passu in all other respects.

9.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 August 2018

267,658

51,376

319,034

Profit for the year

702,114

702,114

Dividends

(533,950

)

(533,950

)

At 31 July 2019

435,822

51,376

487,198

10.	PENSION COMMITMENTS

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from

those of the company in an independently administered fund. The pension cost charge represents contributions

payable by the company to the fund and amounted to £94,753 (2018: £83,888).

11.	RELATED PARTY DISCLOSURES

The company is related to Metalcare Engineering Limited by way of Mr P McEntire, a shareholder and director of

Evans Turner (Finishes) Limited holding preference shares in Metalcare Engineering Limited, a company of which

his father, Mr J McEnitre is the majority shareholder.

The company occupies the same building as Metalcare Engineering Limited. There was purchases from Metalcare

Engineering Limited during the period worth of £2,808 (2018 - £528) and a management charge to Metalcare

Engineering Limited of £10,000 (2018 - £10,000).

Mr G Bird and Mr P McEntire are directors and shareholders of the company. All dividends were paid to the

directors and other shareholders connected with the directors. Directors have loaned £550,605 (2018 - £520,743) to

the company.

At the year end, Metalcare Engineering Limited owed Evans Turner (Finishes) Limited £3,000 (2018 - £3,000).