ACCOUNTS - Final Accounts

ACCOUNTS - Final Accounts

FB 53 LIMITED - Company Information

Print Friendly Version

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-06-302020-06-302020-06-302019-07-01falseConstructionfalsefalse 06469426 2019-07-01 2020-06-30 06469426 2018-07-01 2019-06-30 06469426 2020-06-30 06469426 2019-06-30 06469426 2018-07-01 06469426 c:CompanySecretary1 2019-07-01 2020-06-30 06469426 c:Director1 2019-07-01 2020-06-30 06469426 c:RegisteredOffice 2019-07-01 2020-06-30 06469426 d:Buildings 2019-07-01 2020-06-30 06469426 d:PlantMachinery 2019-07-01 2020-06-30 06469426 d:MotorVehicles 2019-07-01 2020-06-30 06469426 d:FurnitureFittings 2019-07-01 2020-06-30 06469426 d:CurrentFinancialInstruments 2020-06-30 06469426 d:CurrentFinancialInstruments 2019-06-30 06469426 d:CurrentFinancialInstruments d:WithinOneYear 2020-06-30 06469426 d:CurrentFinancialInstruments d:WithinOneYear 2019-06-30 06469426 d:ShareCapital 2019-07-01 2020-06-30 06469426 d:ShareCapital 2020-06-30 06469426 d:ShareCapital 2018-07-01 2019-06-30 06469426 d:ShareCapital 2019-06-30 06469426 d:ShareCapital 2018-07-01 06469426 d:SharePremium 2019-07-01 2020-06-30 06469426 d:SharePremium 2020-06-30 06469426 d:SharePremium 2018-07-01 2019-06-30 06469426 d:SharePremium 2019-06-30 06469426 d:SharePremium 2018-07-01 06469426 d:RetainedEarningsAccumulatedLosses 2019-07-01 2020-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2020-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2018-07-01 2019-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2019-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2018-07-01 06469426 c:OrdinaryShareClass1 2019-07-01 2020-06-30 06469426 c:OrdinaryShareClass1 2020-06-30 06469426 c:OrdinaryShareClass1 2019-06-30 06469426 c:FRS102 2019-07-01 2020-06-30 06469426 c:Audited 2019-07-01 2020-06-30 06469426 c:FullAccounts 2019-07-01 2020-06-30 06469426 c:PrivateLimitedCompanyLtd 2019-07-01 2020-06-30 06469426 d:Subsidiary1 2019-07-01 2020-06-30 06469426 d:Subsidiary1 1 2019-07-01 2020-06-30 06469426 c:Consolidated 2020-06-30 06469426 c:ConsolidatedGroupCompanyAccounts 2019-07-01 2020-06-30 06469426 2 2019-07-01 2020-06-30 06469426 6 2019-07-01 2020-06-30 06469426 c:OrdinaryShareClass1 2018-07-01 2019-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06469426










FB 53 LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2020
 
FB 53 LIMITED
 

COMPANY INFORMATION


Director
P M Harris 




Company secretary
R P Harris



Registered number
06469426



Registered office
Swallows Barn
Alkmonton

Ashbourne

Derbyshire

DE6 3DH




Independent auditors
Smith Cooper Audit Limited
Chartered Accountants & Statutory Auditors

St Helen's House

King Street

Derby

DE1 3EE




 
FB 53 LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Director's report
 
2 - 3
Independent auditors' report
 
4 - 6
Consolidated statement of comprehensive income
 
7
Consolidated balance sheet
 
8
Company balance sheet
 
9
Consolidated statement of changes in equity
 
10
Company statement of changes in equity
 
11
Consolidated Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 29

 
FB 53 LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2020

Business review
 
Within this report the directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
The principal activity remains unchanged and continues to be the groundwork relating to the construction of roads and motorways. The current year has seem a significant fall in performance with turnover decreasing by £3.7m to £15.3m and the gross margin has also fallen to 12.5% from 19.3%. Operating profit has also fallen by £1.3m to £1.3m. The downturn in performance is as a result of the Covid 19 pandemic impacting the final quarter of the year. This has also impacted current assets which have reduced to £1.9m from £2.9m. This impact of Covid 19 has been discussed in more detail below.

Principal risks and uncertainties
 
Considering the risks and uncertainties the company has identified, we are aware that any plans for the future development of the business may be subject to unforeseen events outside our control.
Covid
The impact of the Covid 19 pandemic on the business has been challenging, but the directors have sought to address these challenges by reducing non-essential costs and furloughing staff where possible to safeguard the economic future and ensuring that it utilises available Government financial support where appropriate. The directors also ensured that all relevant health and safety guidelines were followed to ensure the safety of employees which included face masks, additional cleaning and social distancing.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin, and EBITDA.
EBITDA has remained fairly strong during the year despite the difficulties faced during the year due to Covid and totaled £1.9m (2019: £3.2m) which showed that the underlying performance of the business has remained positive.


This report was approved by the board and signed on its behalf.



P M Harris
Director
Date: 24 June 2021

Page 1
 
FB 53 LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2020

The director presents his report and the financial statements for the year ended 30 June 2020.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,022,631 (2019 - £2,088,371).

A total dividend of £457,914 (2019 - £722,902) was distributed during the year.

Director

The director who served during the year was:

P M Harris 

Future developments

There are no future developments that require disclosure within the financial statements, with the exception of Covid 19 discussed in the strategic report.

Financial instruments

The Group operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk and liquidity risk. The Group has a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and finance costs. The Group has implemented policies that require appropriate credit checks before a sale is made. 

Page 2
 
FB 53 LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2020

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

After date performance has continued to be impacted by Covid 19 but has returned to normal operating levels.

Auditors

Under section 487(2) of the Companies Act 2006, Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





P M Harris
Director
Date: 24 June 2021

Page 3
 
FB 53 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FB 53 LIMITED
 

Opinion


We have audited the financial statements of FB 53 Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2020, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2020 and of the Group's profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:


∙the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group's or the parent Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.


Page 4
 
FB 53 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FB 53 LIMITED (CONTINUED)


Other information


The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of director's remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 2, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5
 
FB 53 LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FB 53 LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Janet Morgan (Senior statutory auditor)
for and on behalf of
Smith Cooper Audit Limited
Chartered Accountants
Statutory Auditors
St Helen's House
King Street
Derby
DE1 3EE

24 June 2021
Page 6
 
FB 53 LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020

2020
2019
Note
£
£

  

Turnover
 4 
15,293,531
18,955,995

Cost of sales
  
(13,379,339)
(15,295,820)

Gross profit
  
1,914,192
3,660,175

Administrative expenses
  
(1,080,795)
(1,083,228)

Other operating income
 5 
431,684
-

Operating profit
 6 
1,265,081
2,576,947

Interest receivable and similar income
 10 
6,061
10,463

Interest payable and expenses
 11 
(7,604)
(4,137)

Profit before taxation
  
1,263,538
2,583,273

Tax on profit
 12 
(240,907)
(494,902)

Profit for the financial year
  
1,022,631
2,088,371

Profit for the year attributable to:
  

Owners of the parent Company
  
1,022,631
2,088,371

There was no other comprehensive income for 2020 (2019:£NIL).

The notes on pages 14 to 29 form part of these financial statements.

Page 7
 
FB 53 LIMITED
REGISTERED NUMBER: 06469426

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2020

2020
2019
Note
£
£

Fixed assets
  

Tangible assets
 16 
5,025,173
3,358,639

Current assets
  

Stocks
 18 
111,371
143,230

Debtors: amounts falling due within one year
 19 
2,542,435
3,167,932

Cash at bank and in hand
 20 
1,720,524
4,150,937

  
4,374,330
7,462,099

Creditors: amounts falling due within one year
 21 
(3,454,561)
(5,599,298)

Net current assets
  
 
 
919,769
 
 
1,862,801

Total assets less current liabilities
  
5,944,942
5,221,440

Creditors: amounts falling due after more than one year
 22 
(50,000)
(3,750)

Provisions for liabilities
  

Deferred taxation
 24 
(378,043)
(265,508)

Net assets
  
5,516,899
4,952,182


Capital and reserves
  

Called up share capital 
 25 
28,560
28,560

Share premium account
 26 
1,012,452
1,012,452

Profit and loss account
 26 
4,475,887
3,911,170

Equity attributable to owners of the parent Company
  
5,516,899
4,952,182


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




P M Harris
Director
Date: 24 June 2021

The notes on pages 14 to 29 form part of these financial statements.

Page 8
 
FB 53 LIMITED
REGISTERED NUMBER: 06469426

COMPANY BALANCE SHEET
AS AT 30 JUNE 2020

2020
2019
Note
£
£

Fixed assets
  

Investments
 17 
2,060,415
2,060,415

  

Creditors: amounts falling due within one year
 21 
(1,019,403)
(1,019,403)

Net current liabilities
  
 
 
(1,019,403)
 
 
(1,019,403)

Total assets less current liabilities
  
1,041,012
1,041,012

  

  

Net assets
  
1,041,012
1,041,012


Capital and reserves
  

Called up share capital 
 25 
28,560
28,560

Share premium account
 26 
1,012,452
1,012,452

  
1,041,012
1,041,012


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


P M Harris
Director
Date: 24 June 2021

The notes on pages 14 to 29 form part of these financial statements.

Page 9
 
FB 53 LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 July 2018
28,560
1,012,452
2,545,701
3,586,713


Comprehensive income for the year

Profit for the year
-
-
2,088,371
2,088,371
Total comprehensive income for the year
-
-
2,088,371
2,088,371

Dividends: Equity capital
-
-
(722,902)
(722,902)


Total transactions with owners
-
-
(722,902)
(722,902)



At 1 July 2019
28,560
1,012,452
3,911,170
4,952,182


Comprehensive income for the year

Profit for the year
-
-
1,022,631
1,022,631
Total comprehensive income for the year
-
-
1,022,631
1,022,631

Dividends: Equity capital
-
-
(457,914)
(457,914)


Total transactions with owners
-
-
(457,914)
(457,914)


At 30 June 2020
28,560
1,012,452
4,475,887
5,516,899


The notes on pages 14 to 29 form part of these financial statements.

Page 10
 
FB 53 LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 July 2018
28,560
1,012,452
-
1,041,012


Comprehensive income for the year

Profit for the year
-
-
722,902
722,902
Total comprehensive income for the year
-
-
722,902
722,902

Dividends: Equity capital
-
-
(722,902)
(722,902)


Total transactions with owners
-
-
(722,902)
(722,902)



At 1 July 2019
28,560
1,012,452
-
1,041,012


Comprehensive income for the year

Profit for the year
-
-
457,914
457,914
Total comprehensive income for the year
-
-
457,914
457,914

Dividends: Equity capital
-
-
(457,914)
(457,914)


Total transactions with owners
-
-
(457,914)
(457,914)


At 30 June 2020
28,560
1,012,452
-
1,041,012


The notes on pages 14 to 29 form part of these financial statements.

Page 11
 
FB 53 LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020

2020
2019
£
£

Cash flows from operating activities

Profit for the financial year
1,022,631
2,088,371

Adjustments for:

Depreciation of tangible assets
650,441
596,441

Loss on disposal of tangible assets
(15,255)
3,654

Interest paid
7,604
4,137

Interest received
(6,061)
(10,463)

Taxation charge
240,907
494,902

Decrease/(increase) in stocks
31,859
(53,595)

Decrease/(increase) in debtors
625,497
(452,494)

(Decrease) in creditors
(1,908,509)
(244,511)

Corporation tax (paid)
(434,682)
(342,816)

Net cash generated from operating activities

214,432
2,083,626


Cash flows from investing activities

Purchase of tangible fixed assets
(2,220,983)
(938,012)

Sale of tangible fixed assets
109,262
209,002

Interest received
6,061
10,463

HP interest paid
(3,287)
(4,137)

Net cash from investing activities

(2,108,947)
(722,684)

Cash flows from financing activities

Repayment of/new finance leases
(73,667)
(80,756)

Dividends paid
(457,914)
(722,902)

Interest paid
(4,317)
-

Net cash used in financing activities
(535,898)
(803,658)

Net (decrease)/increase in cash and cash equivalents
(2,430,413)
557,284

Cash and cash equivalents at beginning of year
4,150,937
3,593,653

Cash and cash equivalents at the end of year
1,720,524
4,150,937


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,720,524
4,150,937


The notes on pages 14 to 29 form part of these financial statements.

Page 12
 
FB 53 LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2020






At 1 July 2019
Cash flows
New finance leases
Other non-cash changes
At 30 June 2020
£

£

£

£

£

Cash at bank and in hand

4,150,937

(2,430,413)

-

-

1,720,524

Finance leases

(42,417)

76,954

(190,000)

(3,287)

(158,750)


4,108,520
(2,353,459)
(190,000)
(3,287)
1,561,774

The notes on pages 14 to 29 form part of these financial statements.

Page 13
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

1.


General information

The Company is a private limited liability company and is incorporated in England and Wales. The registered address is Swallows Barn, Alkmonton, Ashbourne, DE6 3DH and the registered number is 06469426. The principal activity of the Group is civil engineering contractors and the principal activity of the Company is that of a holding Company. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The Group's functional and presentational currency is GBP.
The financial statements are rounded to the nearest GBP.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 July 2014.

Page 14
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

2.Accounting policies (continued)

 
2.3

Going concern

The COVID 19 pandemic developed rapidly in 2020 with a significant number of cases. Measures taken by the government to contain the virus affected economic activity. The director has taken a number of measures to monitor and mitigate the effects of COVID 19 such as safety and health measures for our people (such as social distancing and working from home) and securing the supply of PPE that are essential to our daily activities.
The impact of the COVID 19 pandemic on the business post year end has continued to be challenging, but the director has sought to address these challenges by reducing all non-essential costs and furloughing staff where possible to safeguard the economic future of the Group and ensuring the Company utilises available Government financial support, where appropriate. The Group has experienced some reduction in its turnover levels but cashflows remain healthy. The directors have prepared detailed profit and cashflow forecasts covering a period of at least 12 months from the date of the approval of these financial statements. These show an ability to operate within agreed facilities.
The director, therefore, has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

 
2.4

Revenue and long-term contracts

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Profit on long-term contracts is taken as the work is carried out if the final outcome can be measured reliably. Profits are recognised as stages of the overall contracts are completed. Where an element of the contract has not yet completed no profit is recognised until the outcome can be assessed with reasonable certainty. Turnover is calculated as that proportion of total contract value that covers costs incurred to date for completed contract stages and profit in relation to any completed stages of the contract based on the specific performance of the contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Monies received over the value of work done are classified as payments on account and included in creditors.

 
2.5

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 15
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. The accrued element of grants is included in debtors as other debtors. The grants received during the year relate to the receipt from furloughing staff in the government Covid 19 job retention scheme.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that 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.

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 16
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

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 the Group's share 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 Consolidated statement of comprehensive income over its useful economic life.
Amortisation is provided at the following rates:
        Goodwill                                      -    10% straight line     

Page 17
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Plant and machinery
-
17.5% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

The directors do not consider it appropriate to depreciate freehold property since, in their opinion, any charge to depreciation would be immaterial as the estimated residual value of the buildings is not materially different from the carrying values of the buildings.
Depreciation is charged on assets based over their useful economic life rather than the length of the lease. 
Freehold land is not depreciated.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks and work in progress

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 stocks. 

 
2.15

Debtors

Short term debtors are measured at transaction price, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.17

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

2.Accounting policies (continued)

 
2.18

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.19

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas of judgment are:
Profit on long-term contracts is recognised based upon staged completion of contracts. These stages are separable and can be clearly distinguished. No profit is recognised on contract stages that are not yet complete on the basis that profits attributable to these specific stages cannot be assessed with reasonable certainty.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods. No depreciation is charged on the building as the director estimates the residual value to be consistent with the carrying value.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the Group.

All turnover arose within the United Kingdom.


5.


Other operating income

2020
2019
£
£

Government grants - CJRS
431,684
-


Page 19
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

6.


Operating profit

The operating profit is stated after charging:

2020
2019
£
£

Depreciation
650,441
596,441

Defined contribution pension cost
131,536
103,011

Fees payable to the auditors for the audit of the Group's annual financial statements
14,900
14,500


7.


Auditors' remuneration

2020
2019
£
£


Fees payable to the Group's auditor for the audit of the Group's annual financial statements
14,900
14,500


Fees payable to the Group's auditor and its associates in respect of:


Taxation compliance services
1,800
1,750


8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2020
2019
2020
2019
£
£
£
£


Wages and salaries
4,831,131
4,824,045
-
-

Social security costs
554,353
522,084
-
-

Cost of defined contribution scheme
131,536
103,011
-
-

5,517,020
5,449,140
-
-


The average monthly number of employees, including the director, during the year was as follows:


        2020
        2019
            No.
            No.







Management
19
18



Other
80
78

99
96

The Company has no employees other than the directors, who did not receive any remuneration (2019 - £NIL)
Page 20
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

9.


Director remuneration

2020
2019
£
£

Director emoluments
127,271
116,093


The directors is remunerated through the subsidiary trading company.


10.


Interest receivable

2020
2019
£
£


Other interest receivable
6,061
10,463


11.


Interest payable and similar expenses

2020
2019
£
£


Finance leases and hire purchase contracts
3,287
4,137

Other interest payable
4,317
-

7,604
4,137


12.


Taxation


2020
2019
£
£

Corporation tax


Current tax on profits for the year
128,431
439,073

Adjustments in respect of previous periods
(59)
(9)


Total current tax
128,372
439,064

Deferred tax


Origination and reversal of timing differences
112,535
55,838

Total deferred tax
112,535
55,838


Taxation on profit on ordinary activities
240,907
494,902
Page 21
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2019 - higher than) the standard rate of corporation tax in the UK of 19% (2019 - 19%). The differences are explained below:

2020
2019
£
£


Profit on ordinary activities before tax
1,263,538
2,583,273


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
240,072
490,822

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
894
4,089

Adjustments to tax charge in respect of prior periods
(59)
(9)

Total tax charge for the year
240,907
494,902


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2020
2019
£
£


Dividends
457,914
722,902


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £457,914 (2019 - £722,902).

Page 22
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

15.


Intangible assets

Group





Goodwill

£



Cost


At 1 July 2019
282,279



At 30 June 2020

282,279



Amortisation


At 1 July 2019
282,279



At 30 June 2020

282,279



Net book value



At 30 June 2020
-



At 30 June 2019
-



Page 23
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

16.


Tangible fixed assets

Group






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 July 2019
597,137
4,086,418
1,306,665
42,132
6,032,352


Additions
1,375,802
896,655
134,211
4,315
2,410,983


Disposals
-
(252,045)
(49,637)
-
(301,682)



At 30 June 2020

1,972,939
4,731,028
1,391,239
46,447
8,141,653



Depreciation


At 1 July 2019
-
2,068,630
564,731
40,352
2,673,713


Charge for the year on owned assets
-
421,448
183,661
1,888
606,997


Charge for the year on financed assets
-
20,686
22,759
-
43,445


Disposals
-
(173,663)
(34,012)
-
(207,675)



At 30 June 2020

-
2,337,101
737,139
42,240
3,116,480



Net book value



At 30 June 2020
1,972,939
2,393,927
654,100
4,207
5,025,173



At 30 June 2019
597,137
2,017,788
741,934
1,780
3,358,639




The net book value of land and buildings may be further analysed as follows:


2020
2019
£
£

Freehold
1,972,939
597,137


The property is not depreciated as management have estimated the residual value of the buildings not to be materially different from the carrying value.
Land with a value of £225,000 is included within the brought forward value of freehold property. Additional land purchased during the year for £1,260,000 and £40,000 is also included in freehold property.

Page 24
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

           16.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2020
2019
£
£



Plant and machinery
271,414
118,551

Motor vehicles
68,280
91,039

339,694
209,590


17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost


At 1 July 2019
2,060,415



At 30 June 2020
2,060,415





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

P M Harris Limited
Swallows Barn, Alkmonton, Ashbourne, Derbyshire, DE6 3DH
Construction
Ordinary
100%

Page 25
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

18.


Stocks

Group
Group
2020
2019
£
£

Raw materials
10,047
10,047

Work in progress
101,324
133,183

111,371
143,230


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group
Group
2020
2019
£
£


Trade debtors
2,316,626
3,125,280

Other debtors
140,000
-

Prepayments and accrued income
85,809
42,652

2,542,435
3,167,932



20.


Cash and cash equivalents

Group
Group
2020
2019
£
£

Cash at bank and in hand
1,720,524
4,150,937


Page 26
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2020
2019
2020
2019
£
£
£
£

Payments received on account
1,210,063
1,941,742
-
-

Trade creditors
923,266
2,004,101
-
-

Amounts owed to group undertakings
-
-
1,019,403
1,019,403

Corporation tax
132,762
439,073
-
-

Other taxation and social security
629,074
507,125
-
-

Obligations under finance lease and hire purchase contracts (Note 23)
108,750
38,667
-
-

Accruals and deferred income
450,646
668,590
-
-

3,454,561
5,599,298
1,019,403
1,019,403



22.


Creditors: Amounts falling due after more than one year

Group
Group
2020
2019
£
£

Net obligations under finance leases and hire purchase contracts (Note 23)
50,000
3,750





23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2020
2019
£
£

Within one year
108,750
38,667

Between 1-2 years
50,000
3,750

158,750
42,417

Obligations under hire purchase agreements are secured against the assets they have been used to finance.

Page 27
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

24.


Deferred taxation


Group



2020


£






At beginning of year
(265,508)


Charged to profit or loss
(112,535)



At end of year
(378,043)

Group
Group
2020
2019
£
£

Accelerated capital allowances
378,043
265,508


The amount of the net reversal of deferred tax expected to occur next year is £65,147 relating to the reversal of existing timing differences on tangible fixed assets and other short term timing differences.


25.


Share capital

2020
2019
£
£
Authorised, allotted, called up and fully paid



28,560 (2019 - 28,560) Ordinary shares of £1.00 each
28,560
28,560


26.


Reserves

Share premium - includes any premiums received on the issue of share capital and is not distributable.
Profit and loss account – includes all distributable current and prior period retained profits and losses.

Page 28
 
FB 53 LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020


27.


Pension commitments

The Group operates a money purchase pension scheme for staff, employees and directors. Contributions into the scheme vary from time to time, the maximum contribution is equivalent to the funding required to meet the Inland Revenue maximum benefit. The pension contribution for the year to the scheme was £131,536 (2019: £103,011). Contributions totalling £10,032 (2019: £13,343) were payable to the scheme at the balance sheet date and are included in creditors.


28.


Related party transactions

In accordance with FRS 102 the Company has taken advantage of disclosure requirements in respect of wholly owned subsidiary companies because the accounts of the Group are consolidated and publicly available. However, the Group also has other related entities and the transactions with them are as stated below:
The director, and shareholder, received dividends of £457,914 during the year (2019: £722,902) 
During the year key management received remuneration of £170,568 (2019: £168,864).


29.


Controlling party

The ultimate controlling party is P M Harris due to his 100% interest in the equity share capital of FB 53 Limited.


Page 29