Coate Water Care (Arbory) Limited - Period Ending 2020-03-31

Registration number: 06443478

Coate Water Care (Arbory) Limited

Annual Report and Financial Statements

for the Period from 3 April 2019 to 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

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

Auditors

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 31 March 2020

	Note	31 March 2020  £	Unaudited 2 April 2019  £
Fixed assets
Intangible assets	4	-	-
Tangible assets	5	4,291,369	4,159,224
		4,291,369	4,159,224
Current assets
Debtors	6	163,839	68,832
Cash at bank and in hand		5,990	4,191
		169,829	73,023
Creditors: Amounts falling due within one year	7	(4,473,118)	(208,417)
Net current liabilities		(4,303,289)	(135,394)
Total assets less current liabilities		(11,920)	4,023,830
Creditors: Amounts falling due after more than one year	7	-	(4,356,528)
Deferred tax liabilities		(13,969)	-
Net liabilities		(25,889)	(332,698)
Capital and reserves
Called up share capital		1	1
Profit and loss account		(25,890)	(332,699)
Total equity		(25,889)	(332,698)

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 12 January 2021 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 3 April 2019 to 31 March 2020

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.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

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 current 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.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 3 April 2019 to 31 March 2020

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 balance sheet 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, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	1% 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.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 3 April 2019 to 31 March 2020

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.

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.

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.

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 3 April 2019 to 31 March 2020

Financial instruments (continued)

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 3 April 2019 to 31 March 2020

3

Staff numbers

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

	3 April 2019 to 31 March 2020  No.	Unaudited 1 April 2018 to 2 April 2019  No.
Average number of employees	56	57

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 3 April 2019 to 31 March 2020

4

Intangible assets

	Goodwill  £
Cost
At 3 April 2019 and at 31 March 2020	100,000
Amortisation
At 3 April 2019 and at 31 March 2020	100,000
Carrying amount
At 2 April 2019 and at 31 March 2020	-

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 3 April 2019	5,362,816	384,593	41,170	5,788,579
Additions	46,179	174,948	-	221,127
At 31 March 2020	5,408,995	559,541	41,170	6,009,706
Depreciation
At 3 April 2019	1,316,974	283,192	29,189	1,629,355
Charge for the period	24,426	52,575	11,981	88,982
At 31 March 2020	1,341,400	335,767	41,170	1,718,337
Carrying amount
At 31 March 2020	4,067,595	223,774	-	4,291,369
At 2 April 2019	4,045,842	101,401	11,981	4,159,224

Freehold land of £2,009,000 (2019 - £2,009,000) is not depreciated.

6

Debtors

	31 March 2020  £	Unaudited 2 April 2019  £
Trade debtors	110,475	20,892
Prepayments	53,364	38,390
Deferred tax assets	-	9,550
	163,839	68,832

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Coate Water Care (Arbory) Limited

Notes to the Financial Statements for the Period from 3 April 2019 to 31 March 2020

7

Creditors

	Note	31 March 2020  £	Unaudited 2 April 2019  £
Due within one year
Loans and borrowings	8	-	43,342
Trade creditors		115,691	52,698
Social security and other taxes		24,327	16,048
Other creditors		52,151	77,324
Accrued expenses		91,298	19,005
Amounts owed to group undertakings		4,182,269	-
Deferred income		7,382	-
		4,473,118	208,417
Due after one year
Amounts owed to group undertakings		-	4,356,528

8

Loans and borrowings

	2020 £	Unaudited 2019 £
Current loans and borrowings
Bank overdraft	-	43,342

9

Contingent liabilities

The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by its ultimate parent undertaking, Coate Water Care Company Limited. The amount guaranteed is £15,689,756.

10

Parent and ultimate parent undertaking

The company's immediate and only parent undertaking is Coate Water Care Company Limited, incorporated in England and Wales.

11

Audit report

The Independent Auditor's Report was unqualified. The corresponding figures for the period from 1 April 2018 to 2 April 2018 shown in the financial statements are derived from the financial statements prepared for that period that were not audited. The name of the Senior Statutory Auditor who signed the audit report on 12 January 2021 was Martin Howard, who signed for and on behalf of Hazlewoods LLP.

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