BROOMCO_(3857)_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Broomco (3857) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 67 Dee Banks, Great Boughton, Chester, CH3 5UX.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

Although the financial statements show a balance sheet deficiency, assurances have been obtained from the director that financial assistance will be provided to enable the company to continue to trade for the foreseeable future.true

At the time of approving the financial statements and having due regard to the impact of COVID-19 as referred to in note 10, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover relates to management charges levied on group companies and the sale of land. Turnover is recognised with reference to the costs incurred during the period on behalf of group companies and on the sale of land at the point the risks and rewards of ownership have passed from the company.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors 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. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised 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 classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 an employee or to provide termination benefits.

The average monthly number of persons (including directors) employed by the company during the year was:

The company has guaranteed all monies due or to become due from its subsidiary company DARU Limited to its finance parties by way of a fixed charge over the entire share capital and related rights of the company.

Since the beginning of 2020, the COVID-19 pandemic has severely impacted many local economies around the world. Measures taken by governments to control the spread of the virus have included travel bans, quarantines, social distancing and closing of non-essential services and this has resulted in many businesses having to cease or limit their activities for long or indefinite periods of time resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions in an attempt to stabilise economic conditions.

The company has determined that these are non-adjusting post balance sheet events. Accordingly, the financial position and results for the period ended 31 October 2019 have not been adjusted to reflect their impact. It is not possible to estimate the duration and impact of the COVID-19 pandemic on the financial position and results of the company for future periods.

Broomco (Whitehouse) Limited is a wholly owned subsidiary of Broomco (3857) Limited. Included in amounts owed by group undertakings is £1,458,193 (2018 - £1,462,765) due from Broomco (Whitehouse) Limited.

Broomco (Rhostryfan) Limited is a wholly owned subsidiary of Broomco (3857) Limited. Included in amounts owed by group undertakings is £328,114 ( 2018 - £328,310) due from Broomco (Rhostryfan) Limited.

Broomco Developments Limited is a wholly owned subsidiary of Broomco (3857) Limited. Included in amounts owed by group undertakings is £600 (2018 - £nil) due from Broomco Developments Limited.

Daru Limited is a wholly owned subsidiary of Broomco (3857) Limited. Included in amounts owed by group undertakings is £1,226 (2018 - £1,211) due from Daru Limited. Broomco (3857) Limited has an investment in Daru Limited of £250,000 (2018 - £250,000).

McLean Developments Limited is a related party as the company is jointly owned by the director of Broomco (3857) Limited and a former director. Included within amounts due from related parties is £3,005 (2018 - £1,128) due from Broomco (3857) Limited. Included in other debtors is £nil (2018 - £282,775) due from McLean Developments.

In relation to the estate of D C McLean, a former director, included in other creditors is £2,334,330 (2018 - £2,619,925) of funds received by the company as well as an amount owed to a former director of £nil (2018 - £100,000). The amounts are unsecured and non-interest bearing. There is no intention to call in the amounts owed to the estate of D C McLean within 12 months of the balance sheet date.

Dividends totalling £0 (2018 - £0) were paid in the year in respect of shares held by the company's directors.

At 31 October 2019 the company owed the director £nil (2018 - £400) in relation to the rental of office space, with total amounts invoiced in the year being £4,800 (2018 - £5,200)