Ultimate Demolition And Construction Ser - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07665997 (England and Wales)

Financial Statements

for the Year Ended 31 July 2020

for

Ultimate Demolition And Construction

Service Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTOR:

M Browne

REGISTERED OFFICE:

The Old Bottle Yard

Great Northern Terrace

LINCOLN

LN5 8HN

REGISTERED NUMBER:

07665997 (England and Wales)

ACCOUNTANTS:

Nicholsons

Chartered Accountants

Newland House

The Point

Weaver Road

LINCOLN

Lincolnshire

LN6 3QN

FIXED ASSETS

Tangible assets

4

1,067,746

989,760

CURRENT ASSETS

Stocks

13,700

10,000

Debtors

424,667

799,676

Cash at bank

394,666

140,671

833,033

950,347

CREDITORS

Amounts falling due within one year

425,552

505,462

NET CURRENT ASSETS

407,481

444,885

TOTAL ASSETS LESS CURRENT LIABILITIES

1,475,227

1,434,645

CREDITORS

Amounts falling due after more than one year

(528,476

)

(459,927

)

PROVISIONS FOR LIABILITIES

(182,515

)

(153,461

)

NET ASSETS

764,236

821,257

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

764,235

821,256

764,236

821,257

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

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

The director acknowledges his 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.

All the members have consented to the preparation of an abridged Income Statement and an abridged Balance Sheet for the year ended 31 July 2020 in accordance with Section 444(2A) of the Companies Act 2006.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 25 May 2021 and were signed by:

M Browne - Director

1.	STATUTORY INFORMATION

Ultimate Demolition And Construction Service 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.

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.

Turnover

The turnover shown in the profit and loss account represents the value of all goods sold during the period, less returns received, at selling price exclusive of Value Added Tax. Sales of goods are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product, such as obsolescence, have been transferred to the customer. Sales of services are recognised as work is carried out regardless of when payment is due, less credits raised to customers.

Tangible fixed assets

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

Freehold property

-

4% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on reducing balance

Freehold land is not depreciated.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Financial instruments

Only basic financial instruments as defined in FRS102 are held. Financial assets and financial liabilities are recognised in the accounts only when the entity becomes party to the contractual provisions of the instrument and their measurement basis is as follows:

Financial assets - trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank is classified as a basic financial instrument and is measured at transaction price.

Financial liabilities - trade creditors, accruals and other creditors are basic financial instruments and are measured at amortised cost. Where a financial liability constitutes a financing transaction it is initially and subsequently measures at the present value of future payments, discounted at a market rate of interest.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 14 (2019 - 11 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 August 2019

1,411,229

Additions

450,769

Disposals

(259,600

)

At 31 July 2020

1,602,398

DEPRECIATION

At 1 August 2019

421,469

Charge for year

219,063

Eliminated on disposal

(105,880

)

At 31 July 2020

534,652

NET BOOK VALUE

At 31 July 2020

1,067,746

At 31 July 2019

989,760

5.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Hire purchase contracts

650,306

612,885

HP agreements are secured over the assets to which they relate.

6.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2020 and 31 July 2019:

2020

2019

£

£

M Browne

Balance outstanding at start of year

-

2,752

Amounts advanced

118,062

48,525

Amounts repaid

(27,031

)

(51,277

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

91,031

-

Director's loan is unsecured and repayable on demand. Interest at 2.5% was charged on overdrawn amounts.

7.

COVID-19

During the year the consequences of the COVID-19 pandemic were managed by utilising the Coronavirus Job Retention Scheme where necessary. The main impact has been a slow down in work due to site closures and with customers ability to pay which impacted on cash flow.

To mitigate the effects post the year end the company has utilised CBILS to consolidate debt. The director feels this is sufficient to allow the company to continue as a going concern.