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 2019 which comprises the Statement of Income and Retained Earnings, 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 loss 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

24 December 2020

		2019		2018
	Note	£		£
Fixed assets
Intangible assets	3	45,875		53,375
Tangible assets	4	2,021,576		1,926,297
		2,067,451		1,979,672
Current assets
Stocks		120,295		112,000
Debtors	5	212,226		440,343
Cash at bank and in hand		154,052		145,712
		486,573		698,055
Creditors
Amounts falling due within one year	6	( 1,882,295)		( 1,279,058)
Net current liabilities		(1,395,722)		(581,003)
Total assets less current liabilities		671,729		1,398,669
Creditors
Amounts falling due after more than one year	7	( 77,528)		( 60,213)
Provisions for liabilities		( 397,268)		( 539,879)
Net assets		196,933		798,577
Capital and reserves
Called-up share capital	8	2		2
Share premium account		399,999		399,999
Profit and loss account		( 203,068 )		398,576
Total shareholders' funds		196,933		798,577

For the financial year ending 31 December 2019 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 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A – small entities.

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 24 December 2020. 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

	2019	2018
	Number	Number
Monthly average number of persons employed by the Company during the year, including directors	58	69

3. Intangible assets

	Goodwill	Total
	£	£
Cost
At 01 January 2019	150,000	150,000
At 31 December 2019	150,000	150,000
Accumulated amortisation
At 01 January 2019	96,625	96,625
Charge for the financial year	7,500	7,500
At 31 December 2019	104,125	104,125
Net book value
At 31 December 2019	45,875	45,875
At 31 December 2018	53,375	53,375

4. Tangible assets

	Land and buildings	Plant and machinery	Vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost/Valuation
At 01 January 2019	1,247,481	1,052,632	18,645	110,629	2,429,387
Additions	1,827	271,601	0	9,553	282,980
Disposals	0	( 3,000)	( 500)	0	( 3,500)
Transfers	0	0	3,000	0	3,000
At 31 December 2019	1,249,308	1,321,233	21,145	120,182	2,711,868
Accumulated depreciation
At 01 January 2019	24,950	416,582	7,811	53,747	503,090
Charge for the financial year	24,986	140,030	2,933	19,752	187,701
Disposals	0	( 2,100)	( 500)	0	( 2,600)
Transfers	0	0	2,100	0	2,100
At 31 December 2019	49,936	554,512	12,345	73,499	690,292
Net book value
At 31 December 2019	1,199,372	766,721	8,800	46,683	2,021,576
At 31 December 2018	1,222,531	636,050	10,834	56,882	1,926,297

5. Debtors

	2019	2018
	£	£
Trade debtors	12,657	114,040
Amounts recoverable on contracts	40,615	315,000
Prepayments	25,971	10,903
Other debtors	132,983	400
	212,226	440,343

6. Creditors: amounts falling due within one year

	2019	2018
	£	£
Bank loans and overdrafts	6,571	6,900
Trade creditors	557,233	256,225
Amounts owed to associates	363,660	425,309
Other creditors	843,313	468,823
Other taxation and social security	100,975	119,158
Obligations under finance leases and hire purchase contracts (secured)	10,543	2,643
	1,882,295	1,279,058

The net obligations under finance leases and hire purchase contract are secured on the assets to which they relate and the bank loans are secured as a fixed and floating charge over the company's property and other assets.

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

	2019	2018
	£	£
Bank loans (secured)	26,833	30,475
Obligations under finance leases and hire purchase contracts (secured)	28,004	7,047
Other creditors	22,691	22,691
	77,528	60,213

The net obligations under finance leases and hire purchase contract are secured on the assets to which they relate and the bank loans are secured as a fixed and floating charge over the company's property and other assets.

8. Called-up share capital and reserves

	2019	2018
	£	£
Allotted, called-up and fully-paid
1,562 Ordinary shares of £ 0.001 each (2018: 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.

	2019	2018
	£	£
Unpaid contributions due to the fund (inc. in other creditors)	6,690	1,237
	6,690	1,237