T Clark & Son Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00255893 (England and Wales)

T CLARK & SON LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

J G U Clark

D J Buckle

SECRETARY:

J G U Clark

REGISTERED OFFICE:

Midanbury House

Woodmill Lane

Midanbury

Southampton

Hampshire

SO18 2NN

REGISTERED NUMBER:

00255893 (England and Wales)

SENIOR STATUTORY AUDITOR:

Richard Hurst FCA

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

FIXED ASSETS

Tangible assets

4

208,981

210,102

Investments

5

100,623

100,623

Investment property

6

19,320,719

19,293,491

19,630,323

19,604,216

CURRENT ASSETS

Stocks

7,834

13,928

Debtors

7

1,204,245

1,126,301

Cash at bank

288,813

39,345

1,500,892

1,179,574

CREDITORS

Amounts falling due within one year

8

(774,893

)

(766,571

)

NET CURRENT ASSETS

725,999

413,003

TOTAL ASSETS LESS CURRENT LIABILITIES

20,356,322

20,017,219

CREDITORS

Amounts falling due after more than one year

9

(2,236,250

)

(2,015,000

)

PROVISIONS FOR LIABILITIES

12

(2,375,895

)

(2,101,109

)

NET ASSETS

15,744,177

15,901,110

CAPITAL AND RESERVES

Called up share capital

27,910

27,910

Share premium

106,179

106,179

Non-distributable reserves

14,879,757

15,154,543

Retained earnings

730,331

612,478

SHAREHOLDERS' FUNDS

15,744,177

15,901,110

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 13 October 2020 and were signed on its behalf by:

J G U Clark - Director

1.	STATUTORY INFORMATION

T Clark & Son 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 FRS 102 "The Financial Reporting Standards 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 £1.

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

Going Concern

The directors have considered the impact and risk on the company of COVID-19 and the company's prospects, recognising the high degree of uncertainty. The directors have concluded that with the right management actions the company is a going concern for at least 12 months following the signature of the financial statements. Accordingly the directors have prepared the financial statements on this basis.

Turnover

Maintenance charges are invoiced quarterly in arrears. Rental income is accounted for on an accruals basis. All income is recognised net of value added tax.

Tangible fixed assets

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

Plant and machinery

-

20% Reducing balance and 10% Reducing balance

Office furniture and equipment

-

33.33% Straight Line, 20% Reducing balance and 10% Reducing balance

Motor vehicles

-

25% Reducing balance

Freehold land and buildings are not depreciated as, in the directors' opinion, the depreciation charge and accumulated depreciation is immaterial due to a high residual value as a result of the company adopting a policy and practice of regular maintenance and repair, the charges for which are recognised in the profit and loss account.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement.

Fixed asset investments

Other investments 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 the income statement.

Investment properties

Investment properties are income generating buildings. The investment properties are shown at fair value. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

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.

Financial assets

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 assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables 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 financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Basic financial liabilities, which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2019 - 5 ) .

4.	TANGIBLE FIXED ASSETS

Office

furniture

Freehold

Plant and

and

Motor

property

machinery

equipment

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2019

219,130

16,859

36,598

12,840

285,427

Additions

-

-

763

-

763

At 31 March 2020

219,130

16,859

37,361

12,840

286,190

DEPRECIATION

At 1 April 2019

16,606

13,678

34,331

10,710

75,325

Charge for year

-

322

1,030

532

1,884

At 31 March 2020

16,606

14,000

35,361

11,242

77,209

NET BOOK VALUE

At 31 March 2020

202,524

2,859

2,000

1,598

208,981

At 31 March 2019

202,524

3,181

2,267

2,130

210,102

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 April 2019

and 31 March 2020

100,623

NET BOOK VALUE

At 31 March 2020

100,623

At 31 March 2019

100,623

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2019

19,293,491

Additions

27,228

At 31 March 2020

19,320,719

NET BOOK VALUE

At 31 March 2020

19,320,719

At 31 March 2019

19,293,491

If investment properties had not been revalued, they would be included at the historical cost of £2,061,007.

Investment properties were valued on an open market basis on 31 March 2020 by the directors.

7.

DEBTORS

2020

2019

£

£

Amounts falling due within one year:

Trade debtors

732,003

655,725

Other debtors

45,230

49,901

777,233

705,626

Amounts falling due after more than one year:

Trade debtors

270,162

263,825

Other debtors

156,850

156,850

427,012

420,675

Aggregate amounts

1,204,245

1,126,301

Included within other debtors is an amount of £10 (2019: £10) held in a discretionary trust which was established for the benefit of the families of all of the company's officers and employees.

Included within trade debtors falling due after more than one year are amounts owed to the company by The Clark Family Trust of £270,162 (2019: £293,013).

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

25,000

20,000

Trade creditors

422,048

436,190

Taxation and social security

47,969

59,873

Other creditors

279,876

250,508

774,893

766,571

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

2,236,250

2,015,000

A new loan of £250,000 was obtained during the year to fund future improvements to properties.

10.	LEASING AGREEMENTS

At the balance sheet date the company had future commitments under operating leases which totalled £3,463 (2019: £6,313).

11.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

2,261,250

2,035,000

The bank loans are secured by way of a first legal charge over various properties owned by the company.

12.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

2,375,895

2,101,109

Deferred

tax

£

Balance at 1 April 2019

2,101,109

Impact of change in rate of

274,786

deferred tax

Balance at 31 March 2020

2,375,895

At the balance sheet date, a provision for tax totalling £2,375,895 (2019: £2,101,109) was included in respect of the estimated tax that would arise were the company to sell its investment properties for their fair value at the year end (note 7 to the accounts).

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

The Report of the Auditors was unqualified.

Richard Hurst FCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

14.	CONTINGENT LIABILITIES

A contingent liability exists in respect of a performance bond for £10,000 (2019: £10,000) given in favour of Southampton City Council for road charges. No liability is expected to crystallise as a result of this bond.

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date, the directors owed the company a cumulative balance of £235,753 (2019: £281,723). During the year, the directors were advanced amounts totalling £101,144 (2019: £79,333), and repaid amounts totalling £95,952 (2019: £49,882).

No interest has been charged on the loan owed to the company by Mr J Clark as the amounts owed to the director (in association with their pension scheme, estates of family members, and companies in which they are a shareholder) is in excess of the balance they owe to the company.

The directors' advances are repayable on demand.

At the start of the year Mr R B Clark, a former director, owed £51,162. The movement on the loan account during the year is not included in the above note as they were no longer a director at year end, however the 2019 comparatives do include movements relating to Mr R B Clark.

The directors consider that all family balances are recoverable.

16.	POST BALANCE SHEET EVENTS

The impact on the company subsequent to the balance sheet date as a result of the steps taken by the Government in March 2020 to control the Covid-19 pandemic is uncertain. This is the case for the majority of businesses in the UK and around the World.

The Directors do not consider that the Covid-19 pandemic has had a material impact on the company's financial position at the balance sheet date and thus no adjustments have been made to the carrying values of the company's assets and liabilities as at 31 March 2020.

17.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Board of Trustees of the T Clark & Son Limited Remuneration Trust, by virtue of the Trust's holding of the entire issued Ordinary and 'A' Ordinary share capital of the company. The Board of Trustees is comprised of J G U Clark and D J Buckle (all directors).