N Smith Electrical Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05220835 (England and Wales)

N Smith Electrical Limited

Unaudited Financial Statements for the Year Ended 30 November 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr N Smith

Mr C Smith

REGISTERED OFFICE:

Unit 23 Ghyll Industrial Estate

Ghyll Road

Heathfield

East Sussex

TN21 8AW

REGISTERED NUMBER:

05220835 (England and Wales)

ACCOUNTANTS:

Swindells LLP

Chartered Accountants

Atlantic House

8 Bell Lane

Bellbrook Industrial Estate

Uckfield

East Sussex

TN22 1QL

FIXED ASSETS

Intangible assets

4

2,550

3,400

Tangible assets

5

367,225

614,028

Investment property

6

280,000

-

649,775

617,428

CURRENT ASSETS

Stocks

307,540

412,243

Debtors

7

205,018

123,160

Cash at bank and in hand

373,561

376,244

886,119

911,647

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

8

568,857

603,361

NET CURRENT ASSETS

317,262

308,286

TOTAL ASSETS LESS CURRENT LIABILITIES

967,037

925,714

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

9

(329,025

)

(374,072

)

PROVISIONS FOR LIABILITIES

(22,202

)

(16,661

)

NET ASSETS

615,810

534,981

CAPITAL AND RESERVES

Called up share capital

11

211

200

Fair value reserve

12

34,300

-

Retained earnings

581,299

534,781

SHAREHOLDERS' FUNDS

615,810

534,981

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 10 August 2022 and were signed on its behalf by:

Mr C Smith - Director

1.	STATUTORY INFORMATION

N Smith Electrical Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of electrical services supplied to customers. Revenue is recognised when the company obtains, through performance under contract, the right to consideration for those services.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of twenty years.

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

-

2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Investment property

Investment property is shown at fair value at each reporting date. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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 contributes to an employees' defined contribution pension scheme. Contributions payable to the pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation 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 obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in the profit or loss in the period in which it arises.

Going concern

The directors have assessed whether the going concern basis of preparation continues to be appropriate, based on whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. This assessment has been required in light of the significant uncertainty around the short to medium term impact of the spread of the Covid-19 virus.

At the time of approving the financial statements the directors believe that all appropriate measures have been or will be taken to ensure that the company will be able to continue its operations for at least the next twelve months and thus conclude that the going concern basis remains appropriate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 28 (2020 - 27 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 December 2020

and 30 November 2021

17,000

AMORTISATION

At 1 December 2020

13,600

Charge for year

850

At 30 November 2021

14,450

NET BOOK VALUE

At 30 November 2021

2,550

At 30 November 2020

3,400

5.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 December 2020

563,930

9,164

12,966

Additions

-

-

58

Disposals

-

-

-

Reclassification/transfer

(250,000

)

-

-

At 30 November 2021

313,930

9,164

13,024

DEPRECIATION

At 1 December 2020

22,558

7,786

10,652

Charge for year

6,279

346

597

Eliminated on disposal

-

-

-

Reclassification/transfer

(10,000

)

-

-

At 30 November 2021

18,837

8,132

11,249

NET BOOK VALUE

At 30 November 2021

295,093

1,032

1,775

At 30 November 2020

541,372

1,378

2,314

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 December 2020

166,839

33,446

786,345

Additions

22,000

4,537

26,595

Disposals

(9,698

)

-

(9,698

)

Reclassification/transfer

-

-

(250,000

)

At 30 November 2021

179,141

37,983

553,242

DEPRECIATION

At 1 December 2020

106,936

24,385

172,317

Charge for year

19,710

3,397

30,329

Eliminated on disposal

(6,629

)

-

(6,629

)

Reclassification/transfer

-

-

(10,000

)

At 30 November 2021

120,017

27,782

186,017

NET BOOK VALUE

At 30 November 2021

59,124

10,201

367,225

At 30 November 2020

59,903

9,061

614,028

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

Revaluations

40,000

Reclassification/transfer

240,000

At 30 November 2021

280,000

NET BOOK VALUE

At 30 November 2021

280,000

The investment property was valued on a fair value basis on 30 November 2021 by the directors.

If the investment property had not been revalued it would have been included at a historical cost of £250,000.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

131,432

116,823

Other debtors

73,586

6,337

205,018

123,160

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

31,578

23,489

Trade creditors

408,758

411,018

Taxation and social security

68,382

108,823

Other creditors

60,139

60,031

568,857

603,361

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

329,025

374,072

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than five years by instalments

194,525

243,800

10.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

311,385

347,561

The bank loan is secured by way of fixed and floating charges over the property of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

100

Ordinary

£1

100

100

100

Ordinary A

£1

100

100

11

Ordinary B

£1

11

-

211

200

Ordinary, Ordinary A and Ordinary B shares rank pari passu in all respects.

12.

RESERVES

Fair

value

reserve

£

Transfer of fair value gain

40,000

Recognition of deferred tax

(5,700

)

At 30 November 2021

34,300

13.	OTHER FINANCIAL COMMITMENTS

Total financial commitments which are not included in the balance sheet amount to £20,823 (2020 - £13,235).

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date the company owed the directors £11,482 (2020 - £11,482).

Loans from the directors are interest free, unsecured and repayable on demand.

15.	RELATED PARTY DISCLOSURES

Dividends paid to the directors in the year amounted to £69,765 (2020 - £54,050).