Creative Interior Contracts Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03749511 (England and Wales)

Report of the Directors and

Unaudited Financial Statements for the Year Ended 31 March 2020

for

Creative Interior Contracts Limited

Page

Company Information

1

Report of the Directors

2

Statement of Financial Position

3

Notes to the Financial Statements

5

DIRECTORS:

I S Munro

A Teague

G M Monks

SECRETARY:

A Teague

REGISTERED OFFICE:

Grove House

1 Grove Place

Bedford

Bedfordshire

MK40 3JJ

REGISTERED NUMBER:

03749511 (England and Wales)

ACCOUNTANTS:

Thompsons Accountancy Services Limited

Chartered Accountants

Grove House

1 Grove Place

Bedford

Bedfordshire

MK40 3JJ

BANKERS:

Natwest Bank plc

81 High Street

Bedford

MK40 1YN

The directors present their report with the financial statements of the company for the year ended 31 March 2020.

REVIEW OF BUSINESS

During the year the company made a provision in the accounts to cover consultancy costs incurred in defending the company's position at an adjudication on a contract which the client claimed had been repudiated by the company. Fortunately, the monies spent gave the adjudicator enough information to allow him to find in the company's favour and also to conclude that the contract was 'time at large'. The company is now working with the client and insurers to try and recover costs incurred.

Whilst the contract dispute was ongoing the directors had commenced reviewing the company structure and were pleased to announce the arrival of Howard Thomas who brings both expertise and new clients to the company. Unfortunately, this news was announced just as Covid 19 reared its ugly head which has led to the company's existing pipeline of orders being decimated. In line with the market, the directors reviewed all overheads and used the furlough process to secure the future. The company has also taken advantage of the CBIL loan scheme and this has left it in a good position to take advantage of the market when it picks up.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report.

I S Munro

A Teague

G M Monks

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

A Teague - Director

23 December 2020

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

13,010

921

13,010

921

CURRENT ASSETS

Stocks

-

7,688

Debtors

6

1,004,379

482,049

Cash at bank and in hand

464,058

394,769

1,468,437

884,506

CREDITORS

Amounts falling due within one year

7

1,139,368

427,499

NET CURRENT ASSETS

329,069

457,007

TOTAL ASSETS LESS CURRENT LIABILITIES

342,079

457,928

CREDITORS

Amounts falling due after more than one year

8

141,667

191,667

NET ASSETS

200,412

266,261

CAPITAL AND RESERVES

Called up share capital

109

109

Share premium

24,972

24,972

Capital redemption reserve

28

28

Retained earnings

175,303

241,152

SHAREHOLDERS' FUNDS

200,412

266,261

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2020 and were signed on its behalf by:

A Teague - Director

1.	STATUTORY INFORMATION

Creative Interior Contracts 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

GOING CONCERN

The company has been impacted by the COVID-19 pandemic and, in particular, the effect that government responses to this have affected the hospitality trades which form the majority of the Company's client base. The Directors took immediate action to secure the future of the business in reviewing all overheads and cutting back where possible, using the government's job retention scheme to retain key team members through furlough and obtaining a Coronavirus Business Interruption Loan (CBIL). The Directors believe that the prompt action taken by the company has left the company in a good position to take advantage of the market once it starts to emerge from this crisis. The review undertaken by the Directors does not extend to 12 months from the date of signing of the accounts due to the significant uncertainties surrounding the timing of any relaxation of restrictions by the Government. However, the Directors do expect the company to be able to keep trading for the foreseeable future.

Revenue recognition

Turnover represents net amounts invoiced in the period, excluding VAT, together with amounts receivable on long term contracts, determined on the basis of the stage of completion of the job.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of nil years.

Tangible fixed assets

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

Plant and machinery

-

25% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Stocks

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Long-Term Contracts

Long-term contract work-in-progress is shown at net cost after deducting foreseeable losses and payments on account.

Turnover on long-term contracts is determined on the basis of the stage of completion of the job plus any extra services provided above the original contract value.

Operating profit includes attributable profit on long-term contracts completed and amounts recoverable on contracts uncompleted, the latter also being included under debtors due within one year and after one year.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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

Contributions in respect of the company's defined contribution pension scheme are charged to the profit and loss account for the year in which they are payable to the scheme. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments at the year end.

Employer-financed retirement benefit scheme and employee benefit trust

The company has established trusts for the benefit of employees and persons connected to them. Monies held in these trusts are held by independent trustees and managed at their discretion. The trustees are empowered to provide both retirement and other employee benefits.

Where the company retains future economic benefit from, and has de facto control of the assets and liabilities of the trust, they are accounted for as assets and liabilities of the company until the earlier of the date that an allocation of trust funds to employees in respect of past services is declared and the date that assets of the trust vest in identified individuals.

Where monies held in a trust are determined by the company on the basis of employees' past services to the business and the company can obtain no future economic benefit from those monies, such monies, whether in trust or accrued for by the company are charged to the profit and loss account in the period to which they relate.

Where monies held in a trust are determined by the company on the basis of employees' past services to the business and are payable after completion of the employment, such monies are charged to the profit and loss account in the period during which services are rendered by employees.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2019 - 12 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2019

and 31 March 2020

36,000

AMORTISATION

At 1 April 2019

and 31 March 2020

36,000

NET BOOK VALUE

At 31 March 2020

-

At 31 March 2019

-

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2019

1,277

43,362

18,858

63,497

Additions

-

14,575

-

14,575

Disposals

-

(3,840

)

-

(3,840

)

At 31 March 2020

1,277

54,097

18,858

74,232

DEPRECIATION

At 1 April 2019

1,277

42,441

18,858

62,576

Charge for year

-

2,486

-

2,486

Eliminated on disposal

-

(3,840

)

-

(3,840

)

At 31 March 2020

1,277

41,087

18,858

61,222

NET BOOK VALUE

At 31 March 2020

-

13,010

-

13,010

At 31 March 2019

-

921

-

921

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Trade debtors

621,309

392,903

Amounts recoverable on contracts

238,086

14,683

Other debtors

5,269

1,370

Directors' current accounts

93,559

41,395

Tax

16,159

-

Prepayments

29,997

31,698

1,004,379

482,049

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Bank loans and overdrafts

50,000

50,000

Trade creditors

731,235

242,464

Tax

-

17,266

Social security and other taxes

122,495

19,797

VAT

21,951

31,542

Other creditors

3,677

8,364

Accrued expenses

210,010

58,066

1,139,368

427,499

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.20

31.3.19

£

£

Bank loans - 1-2 years

50,000

50,000

Bank loans - 2-5 years

91,667

141,667

141,667

191,667

9.	OTHER FINANCIAL COMMITMENTS

The company had total guarantees and commitments at the balance sheet date of £171,256 (2019 £137,307).

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2020 and 31 March 2019:

31.3.20

31.3.19

£

£

A Teague

Balance outstanding at start of year

16,525

525

Amounts advanced

31,000

16,000

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

47,525

16,525

G M Monks

Balance outstanding at start of year

24,870

8,870

Amounts advanced

21,168

16,000

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

46,038

24,870

Included within trade debtors is a balance of £43,362 (2019 £43,362) due from A Teague which remains outstanding outside of the company's normal credit terms.