J. Cavanagh Limited Filleted accounts for Companies House (small and micro)

J. CAVANAGH LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 3449147

J. Cavanagh Limited

Filleted Unaudited Financial Statements

31 May 2022

J. Cavanagh Limited

Statement of Financial Position

31 May 2022

	2022		2021
Note	£	£	£

Fixed assets

Tangible assets	5		1,111,729	1,093,491

Current assets

Stocks		1,107,280	847,293
Debtors	6	721,699	726,596
Cash at bank and in hand		545,726	781,713
		------------	------------
		2,374,705	2,355,602

Creditors: amounts falling due within one year	7	740,750		908,281
		------------		------------
Net current assets			1,633,955	1,447,321
			------------	------------
Total assets less current liabilities			2,745,684	2,540,812

Provisions

Taxation including deferred tax	87,805	84,599
	------------	------------
Net assets	2,657,879	2,456,213
	------------	------------

J. Cavanagh Limited

Statement of Financial Position (continued)

31 May 2022

	2022		2021
Note	£	£	£

Capital and reserves

Called up share capital		2,372	2,372
Share premium account	8	433,272	433,272
Revaluation reserve	8	590,327	599,636
Profit and loss account	8	1,631,908	1,420,933
		------------	------------
Shareholders funds		2,657,879	2,456,213
		------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the year ending 31 May 2022 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 year in question 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 .

These financial statements were approved by the board of directors and authorised for issue on 18 August 2022 , and are signed on behalf of the board by:

J.R.T. Cavanagh	W. Cavanagh
Director	Director

Company registration number: 3449147

J. Cavanagh Limited

Notes to the Financial Statements

Year ended 31 May 2022

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Ground Floor, 4 Broadgate, Broadway Business Park, Chadderton, Oldham, OL9 9XA.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have a significant effect on the amounts recognised in the financial statements are the valuations of freehold and leasehold property. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. There are no key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

The turnover shown in the profit and loss account represents amounts receivable from the sale of timber and related products, net of any discounts and exclusive of Value Added Tax.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold Property	-	2% straight line
Leasehold Property Improvements	-	2% straight line
Plant and machinery	-	15% straight line
Fixtures and fittings	-	20% straight line

Motor vehicles	-	20% straight line
Computer equipment	-	20% straight line

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 largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis 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 and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 20 (2021: 19 ).

5. Tangible assets

	At 1 June 2021	Additions	Disposals	At 31 May 2022
	£	£	£	£
Cost
Freehold property	650,000	–	–	650,000
Long leasehold property	400,000	–	–	400,000
Plant and machinery	166,736	–	–	166,736
Fixtures and fittings	44,176	21,337	–	65,513
Motor vehicles	127,211	52,316	( 6,875)	172,652
Equipment	55,937	1,905	–	57,842
	------------	--------	-------	------------
	1,444,060	75,558	( 6,875)	1,512,743
	------------	--------	-------	------------

	At 1 June 2021	Charge for the year	Disposals	At 31 May 2022
	£	£	£	£
Depreciation
Freehold property	39,000	13,000	–	52,000
Long leasehold property	24,000	8,000	–	32,000
Plant and machinery	121,933	11,322	–	133,255
Fixtures and fittings	40,456	4,285	–	44,741
Motor vehicles	72,076	19,079	( 6,875)	84,280
Equipment	53,104	1,634	–	54,738
	------------	--------	-------	---------
	350,569	57,320	( 6,875)	401,014
	------------	--------	-------	---------

	At 31 May 2022	At 31 May 2021
	£	£
Carrying amount
Freehold property	598,000	611,000
Long leasehold property	368,000	376,000
Plant and machinery	33,481	44,803
Fixtures and fittings	20,772	3,720
Motor vehicles	88,372	55,135
Equipment	3,104	2,833
	------------	------------
	1,111,729	1,093,491
	------------	------------

6. Debtors

	2022	2021
	£	£
Trade debtors	79,116	99,121
Other debtors	642,583	627,475
	---------	---------
	721,699	726,596
	---------	---------

7. Creditors: amounts falling due within one year

	2022	2021
	£	£
Trade creditors	613,622	739,160
Corporation tax	59,863	85,362
Social security and other taxes	56,589	77,123
Other creditors	10,676	6,636
	---------	---------
	740,750	908,281
	---------	---------

8. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.

9. Directors' advances, credits and guarantees

During the year the directors entered into the following advances and credits with the company:

	2022
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
J.R.T. Cavanagh	–	–	–
N.M. Cavanagh	( 1,500)	–	( 1,500)
	-------	----	-------
	( 1,500)	–	( 1,500)
	-------	----	-------

	2021
	Balance brought forward	Advances/ (credits) to the directors	Balance outstanding
	£	£	£
J.R.T. Cavanagh	3,085	( 3,085)	–
N.M. Cavanagh	( 1,500)	–	( 1,500)
	-------	-------	-------
	1,585	( 3,085)	( 1,500)
	-------	-------	-------

10. Related party transactions

The company was under the control of Mr. W. Cavanagh and Mr. J.R.T. Cavanagh throughout the current and previous year. Mr. W. Cavanagh is the chairman and majority shareholder, Mr. J.R.T. Cavanagh is the managing director and a shareholder. At 31 May 2022 Cavanagh Estates Limited owed the company £611,537 (2021: £611,537). Cavanagh Estates Limited is under common directorship as this company. J.R.T. Cavanagh and H.J. Cavanagh are further interested in Cavanagh Estates Limited as shareholders. During the year the company paid dividends of £73,200 (2021: £73,200) to the directors.