Churchill Property Services Limited - Period Ending 2020-07-31
Churchill Property Services Limited - Period Ending 2020-07-31
Registration number:
Churchill Property Services Limited
for the Year Ended 31 July 2020
Churchill Property Services Limited
Contents
Balance Sheet |
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Notes to the Unaudited Financial Statements |
Churchill Property Services Limited
(Registration number: 03596485)
Balance Sheet as at 31 July 2020
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2020 |
2019 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current (liabilities)/assets |
( |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Shareholders' funds |
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For the financial year ending 31 July 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
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 Director's Report and the Profit and Loss Account has been taken.
Churchill Property Services Limited
(Registration number: 03596485)
Balance Sheet as at 31 July 2020
Approved and authorised by the
...........................................
M J Granville
Director
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
General information |
The company is a private company limited by share capital, incorporated and domiciled in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The growth of the Coronavirus Covid-19 pandemic across the world has had an inevitable impact on the company’s trading outlook. The pandemic has impacted on the company’s customer base, being eldery residents in a care home.
In light of the rapid global spread of the Coronavirus “Covid-19” in early 2020, the director has reviewed and stress tested projections and budgets for the next twelve months. Following this review, the director considers that at this time there has been little adverse impact on the company’s ability to act as a going concern following the government's lockdown measures.
Although the company has not suffered an outbreak of Covid-19 at its care home, any outbreak is likely to lead to a sudden significant fall in occupancy, which will not be easily replaced in the immediate future. This could lead to liquidity issues.
The director has reviewed the supply chains, key customers and the capital resources available and consider that the company has adequate resources in place to continue trading for the next twelve months.
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
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 any discounts.
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;
- specific criteria have been met for each of the company's activities and;
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Rental income from investment properties is recognised on rental receipts on an accruals basis in line with the overall revenue recognition policy.
Finance income and costs policy
Interest income is recognised on the receipts basis while interest expenses are recognised using the effective interest rate method.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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.
Deferred income 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 income 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, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land and buildings |
no depreciation as considered immaterial |
Motor vehicles |
25% reducing balance |
Plant and machinery |
15% reducing balance - 20% straight line |
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
Investment properties
Goodwill
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. Goodwill is amortised over its useful life.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20% straight line |
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.
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 subsequently measured at amortised cost using the effective interest method.
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
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.
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.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
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.
Staff numbers |
The average number of persons employed by the company (including the director) during the year was
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 August 2019 |
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At 31 July 2020 |
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Amortisation |
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At 1 August 2019 |
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At 31 July 2020 |
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Carrying amount |
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At 31 July 2020 |
- |
- |
Tangible assets |
Freehold land and buildings |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 August 2019 |
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Additions |
- |
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At 31 July 2020 |
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Depreciation |
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At 1 August 2019 |
- |
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Charge for the year |
- |
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At 31 July 2020 |
- |
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Carrying amount |
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At 31 July 2020 |
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At 31 July 2019 |
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Included within the net book value of freehold land and buildings above is £1,404,837 (2019 - £1,404,837) in respect of freehold land and buildings.
Had the freehold land and buildings been measured on a historical cost basis, their carrying amount would have been £428,285 (2019 - £428,285).
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
Investment properties |
2020 |
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At 31 July 2020 |
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The fair value of the investment properties has been arrived at on the opinion of the director. The basis of this valuation was open market value.
Debtors |
Note |
2020 |
2019 |
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Trade debtors |
- |
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Other debtors |
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Prepayments and accrued income |
5,235 |
16,634 |
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Amounts due from related parties |
56,938 |
98,157 |
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Total current trade and other debtors |
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Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
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Due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Amounts owed to related party |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
31,042 |
33,314 |
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The bank has a fixed and floating charge over all the property and undertakings of the company.
Churchill Property Services Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2020
Related party transactions |
Loans to related parties
2020 |
Key management |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
At end of period |
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2019 |
Key management |
Total |
At start of period |
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Advanced |
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Repaid |
( |
( |
At end of period |
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Loans from related parties
2020 |
Other related parties |
Total |
At start of period |
( |
( |
Advanced |
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Repaid |
( |
( |
At end of period |
( |
( |
2019 |
Other related parties |
Total |
Advanced |
( |
( |
Repaid |
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At end of period |
( |
( |
Terms of loans with related parties