Company No: 11075955 (England and Wales)

Contents

• Company Information
• Balance Sheet
• Notes to the Financial Statements

DIRECTORS	Mr J J Fabby
	Mr C B Morris

REGISTERED OFFICE	Lowin House
	Tregolls Road
	Truro
	TR1 2NA
	United Kingdom

COMPANY NUMBER

11075955 (England and Wales)

CHARTERED ACCOUNTANTS	Francis Clark LLP
	Lowin House
	Tregolls Road
	Truro
	Cornwall TR1 2NA

	Note	2021		2020
		£		£
Current assets
Stocks	3	2,821,208		1,455,455
Debtors	4	79,205		54,488
Cash at bank and in hand		50,000		188,028
		2,950,413		1,697,971
Creditors
Amounts falling due within one year	5	( 2,944,357)		( 1,669,389)
Net current assets		6,056		28,582
Total assets less current liabilities		6,056		28,582
Creditors
Amounts falling due after more than one year	6	( 35,000)		( 45,000)
Net liabilities		( 28,944)		( 16,418)
Capital and reserves
Called-up share capital	8	100		100
Profit and loss account		( 29,044 )		( 16,518 )
Total shareholders' deficit		( 28,944)		( 16,418)

For the financial year ending 30 November 2021 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 Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Tidal Reach Construction Limited (registered number: 11075955) were approved and authorised for issue by the Board of Directors on 29 November 2022. They were signed on its behalf by:

Mr J J Fabby 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, unless otherwise stated.

General information and basis of accounting

Tidal Reach Construction 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 Lowin House, Tregolls Road, Truro, TR1 2NA, 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 and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. Since the year end the company has completed the ongoing development project and all units have been sold. 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.

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 Balance Sheet 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 tax rates and laws substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted.

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 is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Financial instruments

The company holds the following financial statements:

1. Short term trade and other debtors and creditors;
2. Bank loans; and
3. Cash and bank balances.

All financial instruments are classified as basic.

Recognition and Measurement

The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	2		2

3. Stocks

	2021		2020
	£		£
Work in progress	2,821,208		1,455,455

4. Debtors

	2021		2020
	£		£
Prepayments	7,480		10,286
Deferred tax asset	6,156		0
VAT recoverable	59,617		44,202
Other debtors	5,952		0
	79,205		54,488

5. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans (secured)	1,265,307		596,307
Trade creditors	312,944		26,007
Amounts owed to directors	167,336		20,568
Other loans	1,019,984		963,035
Accruals and deferred income	165,857		59,683
Other taxation and social security	11,173		2,034
Other creditors	1,756		1,755
	2,944,357		1,669,389

Included in bank borrowings due in less than one year are amounts totalling £1,255,307 that are secured (2020 - £591,307).

Included in other borrowings due in less than one year are amounts totalling £388,533 that are secured (2020 - £325,584).

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

	2021		2020
	£		£
Bank loans	35,000		45,000

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

7. Deferred tax

	2021		2020
	£		£
At the beginning of financial year	0		0
Credited to the Statement of Income and Retained Earnings	6,156		0
At the end of financial year	6,156		0

8. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
50 Ordinary A shares of £ 1.00 each	50		50
50 Ordinary B shares of £ 1.00 each	50		50
	100		100

9. Related party transactions

Other related party transactions

Included in creditors due within one year is a loan of £388,533 (2020 - £325,584) from Guberno Ltd, a company under the control of Mr J J Fabby. This loan is secured and interest is accruing at 6% pa. In addition the company owed Mr J J Fabby £167,074 (2020 - £20,568) on a director loan account at the year end.

Included in creditors due within one year are loans totalling £631,451 (2020 - £637,541) from Mr C B Morris. These loans are unsecured and interest is accruing at 6% pa.