Fosseway Tool Hire Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03548023 (England and Wales)

FOSSEWAY TOOL HIRE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

8

DIRECTORS:

Mrs L E Butler

N H J Davis

P J Gibbs

T Palmer

REGISTERED OFFICE:

41 Cornmarket Street

Oxford

OX1 3HA

REGISTERED NUMBER:

03548023 (England and Wales)

ACCOUNTANTS:

Mercer Lewin Ltd

Chartered Accountants

41 Cornmarket Street

Oxford

OX1 3HA

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

297,558

579,758

297,558

579,758

CURRENT ASSETS

Stocks

44,107

117,560

Debtors

6

111,617

131,713

Cash at bank and in hand

285,181

16,219

440,905

265,492

CREDITORS

Amounts falling due within one year

7

255,248

321,716

NET CURRENT ASSETS/(LIABILITIES)

185,657

(56,224

)

TOTAL ASSETS LESS CURRENT LIABILITIES

483,215

523,534

CREDITORS

Amounts falling due after more than one year

8

(83,393

)

(225,259

)

PROVISIONS FOR LIABILITIES

(51,827

)

(108,158

)

NET ASSETS

347,995

190,117

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

347,993

190,115

347,995

190,117

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 April 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 April 2020 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 the Board of Directors and authorised for issue on 10 August 2020 and were signed on its behalf by:

Mrs L E Butler - Director

N H J Davis - Director

1.	STATUTORY INFORMATION

Fosseway Tool Hire 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

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.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

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

assumptions that affect the amounts reported. These estimates and judgements are continually

reviewed and are based on experience and other factors, including expectations of future events that

are believed to be reasonable under the circumstances.

There are no judgements that are deemed to have had a significant effect on amounts recognised in

the financial statements

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 fair value of the consideration received or receivable for goods and

services provided in the normal course of business, and is shown net of VAT and other sales related

taxes. The fair value of consideration takes into account trade discounts, settlement discounts and

volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the

consideration is the present value of the future receipts. the difference between the fair value of the

consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of

the goods have passed to the buyer (usually on dispatch of the goods). the amount of revenue can be

measured reliably, it is probable that the economic benefits associated with the transaction will flow to

the entity and the costs incurred or to be incurred in respect of the transaction can be measured

reliably.

GOODWILL

Goodwill, being the amount paid in connection with the acquisition of a business, has been amortised

over its estimated useful life to a nil value.

INTANGIBLE ASSETS

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

TANGIBLE FIXED ASSETS

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

Freehold property

-

12% on cost

Plant and machinery

-

20% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

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.

HIRE PURCHASE AND LEASING COMMITMENTS

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2019 - 12 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 May 2019

and 30 April 2020

6,000

AMORTISATION

At 1 May 2019

and 30 April 2020

6,000

NET BOOK VALUE

At 30 April 2020

-

At 30 April 2019

-

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 May 2019

159,827

1,534,198

1,694,025

Additions

272

21,860

22,132

Disposals

(160,099

)

(50,916

)

(211,015

)

At 30 April 2020

-

1,505,142

1,505,142

DEPRECIATION

At 1 May 2019

44,414

1,069,853

1,114,267

Charge for year

-

187,689

187,689

Eliminated on disposal

(44,414

)

(49,958

)

(94,372

)

At 30 April 2020

-

1,207,584

1,207,584

NET BOOK VALUE

At 30 April 2020

-

297,558

297,558

At 30 April 2019

115,413

464,345

579,758

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

76,653

128,765

Other debtors

34,964

2,948

111,617

131,713

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

76

81,117

Hire purchase contracts (see note 9)

117,339

176,695

Trade creditors

70,724

45,997

Taxation and social security

64,909

6,559

Other creditors

2,200

11,348

255,248

321,716

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

-

33,916

Hire purchase contracts (see note 9)

51,395

152,124

Other creditors

31,998

39,219

83,393

225,259

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

117,339

176,695

Between one and five years

51,395

152,124

168,734

328,819

Non-cancellable

operating leases

2020

2019

£

£

Within one year

59,500

24,500

Between one and five years

225,750

98,000

In more than five years

350,000

12,250

635,250

134,750

10.	IMPACT OF COVID-19

As per the governments instruction we closed the business on the 24th March 2020 and reopened on

the 25th May 2020 for the 9 week period the business only supplied bottle gas for use as heating or

cooking. This 9 week period covered one of the busiest periods for a rural independent tool hire

company as gardeners both professional and domestic start preparing for the summer season. Based

on the previous year turnover we estimate this loss as £100,000 in this period. As a result we have

made redundancies and changed our operating system to allow us to operate in a safe manner for

both our staff and customers which has had a cost to the company both time and money. At the date

of completing our Financial Statements we are still only operating at 75% of our normal turnover.

The following reproduces the text of the report prepared for the directors in respect of the company's

annual unaudited financial statements. In accordance with the Companies Act 2006, the company is

only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain

other primary statements and the Report of the Directors are not required to be filed with the

Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval

the financial statements of Fosseway Tool Hire Limited for the year ended 30 April 2020 which comprise the

Income Statement, Balance Sheet and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Fosseway Tool Hire Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Fosseway Tool Hire Limited and state those matters that we have agreed to state to the Board of Directors of Fosseway Tool Hire Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Fosseway Tool Hire Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Fosseway Tool Hire Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Fosseway Tool Hire Limited. You consider that Fosseway Tool 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 financial statements of Fosseway Tool 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 financial statements.

Mercer Lewin Ltd

Chartered Accountants

41 Cornmarket Street

Oxford

OX1 3HA

10 August 2020