Company No: 05674848 (England and Wales)

Contents

• Company Information
• Accountant's Report
• Statement of Financial Position
• Notes to the Unaudited Financial Statements

DIRECTORS	Mr D C Cockwell
	Mr S A Hubbard
REGISTERED OFFICE	Mylor Creek Boatyard
	Mylor Bridge
	Falmouth
	Cornwall
	TR11 5NS
	United Kingdom
COMPANY NUMBER	05674848(England and Wales)
CHARTERED ACCOUNTANTS	Bishop Fleming LLP
	Chy Nyverow
	Newham Road
	Truro
	TR1 2DP

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Cockwells Modern & Classic Boat Building Limited for the financial year ended 31 December 2020 which comprises the Statement of Financial Position and the related notes 1 to 9 from the Company’s accounting records and from information and explanations you have given us.

We are subject to the ethical and other professional requirements of the Institute of Chartered Accountants in England and Wales (ICAEW) which are detailed at _http://www.icaew.com/en/members/regulations-standards-and-guidance/_.

It is your duty to ensure that Cockwells Modern & Classic Boat Building 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 Cockwells Modern & Classic Boat Building Limited. You consider that Cockwells Modern & Classic Boat Building Limited is exempt from the statutory audit requirement for the financial year.

We have not been instructed to carry out an audit or a review of the financial statements of Cockwells Modern & Classic Boat Building 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.

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

Bishop Fleming LLP
Chartered Accountants

Chy Nyverow
Newham Road
Truro
TR1 2DP

19 January 2021

		2020		2019
	Note	£		£
Fixed assets
Intangible assets	3	38,375		45,875
Tangible assets	4	2,331,200		2,021,576
		2,369,575		2,067,451
Current assets
Stocks		104,640		120,295
Debtors	5	612,353		212,226
Cash at bank and in hand		323,233		154,052
		1,040,226		486,573
Creditors
Amounts falling due within one year	6	( 1,011,704)		( 1,882,295)
Net current assets/(liabilities)		28,522		(1,395,722)
Total assets less current liabilities		2,398,097		671,729
Creditors
Amounts falling due after more than one year	7	( 797,148)		( 77,528)
Provisions for liabilities		( 658,074)		( 397,268)
Net assets		942,875		196,933
Capital and reserves
Called-up share capital	8	2		2
Share premium account		399,999		399,999
Profit and loss account		542,874		( 203,068 )
Total shareholders' funds		942,875		196,933

For the financial year ending 31 December 2020 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Cockwells Modern & Classic Boat Building Limited (registered number: 05674848) were approved and authorised for issue by the Board of Directors on 19 January 2021. They were signed on its behalf by:

Mr D C Cockwell Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year.

General information and basis of accounting

Cockwells Modern & Classic Boat Building Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Mylor Creek Boatyard, Mylor Bridge, Falmouth, Cornwall, TR11 5NS, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council.

The functional currency of Cockwells Modern & Classic Boat Building Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

Turnover

Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the Statement of Financial Position date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the Statement of Financial Position date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws.

Deferred tax assets and liabilities are not discounted.

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the over its useful economic life of 10 years.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a [straight-line,reducing balance] basis over its expected useful life, as follows:


Plant and machinery - 10% straight line
Motor vehicles - 25% straight line
Fixtures and fittings - 20% straight line
Buildings - 2% straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial in such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities
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 the Statement of Income and Retained Earnings, 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.

Financial assets and liabilities are only offset in the Statement of Financial Position when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

2. Employees

	2020	2019
	Number	Number
Monthly average number of persons employed by the Company during the year, including directors	82	58

3. Intangible assets

	Goodwill	Total
	£	£
Cost
At 01 January 2020	150,000	150,000
At 31 December 2020	150,000	150,000
Accumulated amortisation
At 01 January 2020	104,125	104,125
Charge for the financial year	7,500	7,500
At 31 December 2020	111,625	111,625
Net book value
At 31 December 2020	38,375	38,375
At 31 December 2019	45,875	45,875

4. Tangible assets

	Land and buildings	Plant and machinery	Vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost/Valuation
At 01 January 2020	1,249,308	1,321,233	21,145	120,182	2,711,868
Additions	73,303	492,559	0	2,913	568,776
Disposals	0	( 40,351)	( 6,400)	0	( 46,751)
At 31 December 2020	1,322,611	1,773,441	14,745	123,096	3,233,893
Accumulated depreciation
At 01 January 2020	49,936	554,512	12,345	73,499	690,292
Charge for the financial year	26,452	181,037	1,820	20,078	229,388
Disposals	0	( 12,105)	( 4,881)	0	( 16,986)
Transfers	0	0	0	0	0
At 31 December 2020	76,388	723,444	9,284	93,577	902,693
Net book value
At 31 December 2020	1,246,223	1,049,997	5,461	29,519	2,331,200
At 31 December 2019	1,199,372	766,721	8,800	46,683	2,021,576

5. Debtors

	2020	2019
	£	£
Trade debtors	148,936	12,657
Amounts owed by associates	400,000	0
Amounts owed by directors	5,707	0
Amounts recoverable on contracts	0	40,615
Prepayments	51,007	25,971
Other debtors	6,703	132,983
	612,353	212,226

6. Creditors: amounts falling due within one year

	2020	2019
	£	£
Bank loans and overdrafts	45,455	6,571
Trade creditors	107,823	557,233
Amounts owed to associates	88,811	363,660
Amounts owed to directors	0	7,131
Other creditors	8,785	( 6,257)
Other loans	50,000	350,000
Accruals and deferred income	542,947	492,439
Other taxation and social security	157,340	100,975
Obligations under finance leases and hire purchase contracts (secured)	10,543	10,543
	1,011,704	1,882,295

The net obligations under finance leases and hire purchase contract are secured on the assets to which they relate.

Other loans relate to shareholder loans.
Accruals and deferred income comprise £282,933 (2019: 77,118) of accruals and £259,954 (2019: £415,321) of deferred income.

7. Creditors: amounts falling due after more than one year

	2020	2019
	£	£
Bank loans	196,970	26,833
Amounts owed to associates	260,000	0
Other loans	300,000	0
Obligations under finance leases and hire purchase contracts (secured)	17,487	28,004
Other creditors	22,691	22,691
	797,148	77,528

The net obligations under finance leases and hire purchase contract are secured on the assets to which they relate.
Other loans relate to shareholders loans.

8. Called-up share capital and reserves

	2020	2019
	£	£
Allotted, called-up and fully-paid
1,562 Ordinary shares of £ 0.001 each (2019: 1,562 shares of £ 0.00 each)	2	2
	2	2

9. Financial commitments

Pensions

The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

	2020	2019
	£	£
Unpaid contributions due to the fund (inc. in other creditors)	7,527	6,960
	7,527	6,960