Company No: 04750554 (England and Wales)

Contents

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

DIRECTORS	Jamie Bonner
	Kevin Sherwood
	Joanna Sherwood
	Kevin Wiltshire
SECRETARY	Kevin Sherwood
REGISTERED OFFICE	Vander House
	Brunel Road
	Newton Abbot
	Devon
	TQ12 4YQ
	United Kingdom
COMPANY NUMBER	04750554(England and Wales)
CHARTERED ACCOUNTANTS	Bishop Fleming LLP
	Century House
	Nicholson Road
	Torquay
	TQ2 7TD

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Sherwoods (SW) Limited for the financial year ended 31 December 2020 which comprises the Statement of Financial Position and the related notes 1 to 12 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 Sherwoods (SW) 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 Sherwoods (SW) Limited. You consider that Sherwoods (SW) 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 Sherwoods (SW) 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 Sherwoods (SW) 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 Sherwoods (SW) 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 Sherwoods (SW) Limited and its Board of Directors as a body for our work or for this report.

Bishop Fleming LLP
Chartered Accountants

Century House
Nicholson Road
Torquay
TQ2 7TD

07 June 2021

		2020		2019
	Note	£		£
Fixed assets
Intangible assets	3	25,575		35,475
Tangible assets	4	147,859		148,309
Investments	5	250		0
		173,684		183,784
Current assets
Stocks		95,756		50,438
Debtors	6	1,554,573		1,178,185
Cash at bank and in hand		771,560		218,189
		2,421,889		1,446,812
Creditors
Amounts falling due within one year	7	( 1,189,111)		( 729,914)
Net current assets		1,232,778		716,898
Total assets less current liabilities		1,406,462		900,682
Creditors
Amounts falling due after more than one year	8	( 257,876)		( 14,248)
Provisions for liabilities	9	( 23,882)		( 22,000)
Net assets		1,124,704		864,434
Capital and reserves
Called-up share capital	10	167		167
Profit and loss account		1,124,537		864,267
Total shareholders' funds		1,124,704		864,434

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 Sherwoods (SW) Limited (registered number: 04750554) were approved and authorised for issue by the Board of Directors on 03 June 2021. They were signed on its behalf by:

Joanna Sherwood 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

Sherwoods (SW) 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 Vander House, Brunel Road, Newton Abbot, Devon, TQ12 4YQ, 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 Sherwoods (SW) Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

Going concern

The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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 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.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Finance costs

Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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 20 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 reducing balance basis over its expected useful life, as follows:

Leasehold property - not depreciated
Plant and machinery - 15% reducing balance
Motor vehicles - 25% reducing balance
Office equipment - 25% reducing balance

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.

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.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2020		2019
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	79		63

3. Intangible assets

	Goodwill		Total
	£		£
Cost
At 01 January 2020	198,000		198,000
At 31 December 2020	198,000		198,000
Accumulated amortisation
At 01 January 2020	162,525		162,525
Charge for the financial year	9,900		9,900
At 31 December 2020	172,425		172,425
Net book value
At 31 December 2020	25,575		25,575
At 31 December 2019	35,475		35,475

4. Tangible assets

	Leasehold improvements		Plant and machinery		Vehicles		Office equipment		Total
	£		£		£		£		£
Cost/Valuation
At 01 January 2020	750		83,128		166,397		93,743		344,018
Additions	2,748		17,275		0		14,635		34,658
At 31 December 2020	3,498		100,403		166,397		108,378		378,676
Accumulated depreciation
At 01 January 2020	0		30,363		88,844		76,502		195,709
Charge for the financial year	0		9,368		19,390		6,350		35,108
At 31 December 2020	0		39,731		108,234		82,852		230,817
Net book value
At 31 December 2020	3,498		60,672		58,163		25,526		147,859
At 31 December 2019	750		52,765		77,553		17,241		148,309

5. Fixed asset investments

	Other investments		Total
	£		£
Carrying value before impairment
At 01 January 2020	0		0
Additions	250		250
At 31 December 2020	250		250
Provisions for impairment
At 01 January 2020	0		0
At 31 December 2020	0		0
Carrying value at 31 December 2020	250		250
Carrying value at 31 December 2019	0		0

Investments in shares

Name of entity	Registered office	Nature of business	Class of shares	% of ownership 31.12.20	% of ownership 31.12.19
Repair Wizard (SW) Limited	Vander House, Brunel Road, Newton Abbot, England, TQ12 4YQ	Equipment repair	Ordinary A	25.00%	0.00%

6. Debtors

	2020		2019
	£		£
Trade debtors	1,412,948		1,050,075
Other debtors	141,625		128,110
	1,554,573		1,178,185

7. Creditors: amounts falling due within one year

	2020		2019
	£		£
Trade creditors	676,330		411,451
Other creditors	29,399		35,593
Corporation tax	94,438		77,708
Other taxation and social security	382,572		181,694
Obligations under finance leases and hire purchase contracts	6,372		23,468
	1,189,111		729,914

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

	2020		2019
	£		£
Bank loans	250,000		0
Obligations under finance leases and hire purchase contracts	7,876		14,248
	257,876		14,248

There are no amounts included above in respect of which any security has been given by the small entity.

9. Deferred tax

	2020		2019
	£		£
At the beginning of financial year	( 22,000)		( 22,355)
(Charged)/credited to the Statement of Income and Retained Earnings	( 1,882)		355
At the end of financial year	( 23,882)		( 22,000)

10. Called-up share capital and reserves

	2020		2019
	£		£
Allotted, called-up and fully-paid
12,692 A ordinary shares of £ 0.01 each	127		127
3,976 B ordinary shares of £ 0.01 each	40		40
	167		167

11. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2020		2019
	£		£
- within one year	18,000		45,861
- between one and five years	25,500		43,500
	43,500		89,361

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)	13,218		0

12. Related party transactions

Transactions with the entity's directors

	2020		2019
	£		£
Dividends	120,000		56,170

Advances

During the year Mr K and Mrs J Sherwood, the directors maintained a loan account with the company. At the year-end the directors owed the company £31,557 (2019: £25,364). Interest is charged on overdrawn balances at the approved rate when overdrawn and there are no set repayment terms.

During the year Mr J Bonner, a director maintained a loan account with the company. At the year-end the director owed the company £12,223 (2019: £12,558). Interest is charged on overdrawn balances at the approved rate when overdrawn and there are no set repayment terms.

During the year Mr K Wiltshire, a director also maintained a loan account with the company. At the year-end the director owed the company £11,653 (2019: £11,478 ). Interest is charged on overdrawn balances at the approved rate when overdrawn and there are no set repayment terms.