ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Caseware UK (AP4) 2020.0.247 2020.0.247 2021-06-302021-06-302021-06-302020-07-01falseConstructionfalsefalse 06469426 2020-07-01 2021-06-30 06469426 2019-07-01 2020-06-30 06469426 2021-06-30 06469426 2020-06-30 06469426 2019-07-01 06469426 c:CompanySecretary1 2020-07-01 2021-06-30 06469426 c:Director1 2020-07-01 2021-06-30 06469426 c:RegisteredOffice 2020-07-01 2021-06-30 06469426 d:Buildings 2020-07-01 2021-06-30 06469426 d:PlantMachinery 2020-07-01 2021-06-30 06469426 d:MotorVehicles 2020-07-01 2021-06-30 06469426 d:FurnitureFittings 2020-07-01 2021-06-30 06469426 d:CurrentFinancialInstruments 2021-06-30 06469426 d:CurrentFinancialInstruments 2020-06-30 06469426 d:CurrentFinancialInstruments d:WithinOneYear 2021-06-30 06469426 d:CurrentFinancialInstruments d:WithinOneYear 2020-06-30 06469426 d:ShareCapital 2020-07-01 2021-06-30 06469426 d:ShareCapital 2021-06-30 06469426 d:ShareCapital 2019-07-01 2020-06-30 06469426 d:ShareCapital 2020-06-30 06469426 d:ShareCapital 2019-07-01 06469426 d:SharePremium 2020-07-01 2021-06-30 06469426 d:SharePremium 2021-06-30 06469426 d:SharePremium 2019-07-01 2020-06-30 06469426 d:SharePremium 2020-06-30 06469426 d:SharePremium 2019-07-01 06469426 d:RetainedEarningsAccumulatedLosses 2020-07-01 2021-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2021-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2019-07-01 2020-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2020-06-30 06469426 d:RetainedEarningsAccumulatedLosses 2019-07-01 06469426 c:OrdinaryShareClass1 2020-07-01 2021-06-30 06469426 c:OrdinaryShareClass1 2021-06-30 06469426 c:OrdinaryShareClass1 2020-06-30 06469426 c:FRS102 2020-07-01 2021-06-30 06469426 c:Audited 2020-07-01 2021-06-30 06469426 c:FullAccounts 2020-07-01 2021-06-30 06469426 c:PrivateLimitedCompanyLtd 2020-07-01 2021-06-30 06469426 d:Subsidiary1 2020-07-01 2021-06-30 06469426 d:Subsidiary1 1 2020-07-01 2021-06-30 06469426 c:Consolidated 2021-06-30 06469426 c:ConsolidatedGroupCompanyAccounts 2020-07-01 2021-06-30 06469426 2 2020-07-01 2021-06-30 06469426 6 2020-07-01 2021-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06469426

FB 53 LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

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	PKF 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 - 7
Consolidated profit and loss account	8
Consolidated balance sheet	9
Company balance sheet	10
Consolidated statement of changes in equity	11
Company statement of changes in equity	12
Consolidated Statement of cash flows	13
Consolidated analysis of net debt	14
Notes to the financial statements	15 - 30

FB 53 LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2021

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 seen a slight fall in performance with turnover decreasing by £0.5m to £14.8m and the gross margin has improved slightly to 14% from 12.5%. Operating profit has remained consistent. The downturn in performance is as a result of the Covid 19 pandemic impacting the year. 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 and totaled £1.8m (2020: £1.9m) which showed that the business has remained profitable.

This report was approved by the board on 2 March 2022 and signed on its behalf.

Page 1

FB 53 LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 30 JUNE 2021

The director presents his report and the financial statements for the year ended 30 June 2021.

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 £592,750 (2020 - £1,022,631).

The total dividend of £371,522 (2020 - £457,914) was distributed during the year, no further dividend is recommended for payment.

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 the continued impact of Covid 19 discussed further in the strategic report.

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.

Page 2

FB 53 LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006, PKF 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 on 2 March 2022 and signed on its behalf.

P M Harris

Director

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 2021, which comprise the Group Profit and loss account, 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 2021 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

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Page 4

FB 53 LIMITED

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

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risk of fraud or non-compliance with laws and regulations related to:
• management bias in respect of accounting estimates and judgements made;
• management override of control;
• posting of unusual journals or transactions
We focused on those area that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:
• Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
• Reviewing minutes of meetings of those charged with governance where available;
• Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. In particular the recognition of long term contracts and provisions for doubtful debts.
It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Page 6

FB 53 LIMITED

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

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.

James Delve (Senior statutory auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Chartered Accountants

Statutory Auditors

St Helen's House

King Street

Derby

DE1 3EE

8 March 2022

Page 7

FB 53 LIMITED

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2021

	2021	2020
Note	£	£


Turnover	4	14,822,366	15,293,531
Cost of sales		(13,252,442)	(13,379,339)
Gross profit		1,569,924	1,914,192
Administrative expenses		(948,976)	(1,080,795)
Other operating income	5	99,178	431,684
Operating profit	6	720,126	1,265,081
Interest receivable and similar income	10	45	6,061
Interest payable and similar expenses	11	(4,784)	(7,604)
Profit before tax		715,387	1,263,538
Tax on profit	12	(122,637)	(240,907)
Profit for the financial year		592,750	1,022,631

Profit for the year attributable to:
Owners of the parent	592,750	1,022,631
	592,750	1,022,631

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated profit and loss account.

The notes on pages 15 to 30 form part of these financial statements.

Page 8

FB 53 LIMITED

REGISTERED NUMBER: 06469426

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2021

		2021		2020
Note		£		£

Fixed assets
Tangible assets	15		4,757,843		5,025,173
			4,757,843		5,025,173
Current assets
Stocks	17	143,120		111,371
Debtors: amounts falling due within one year	18	3,149,302		2,542,435
Cash at bank and in hand	19	1,361,005		1,720,524
		4,653,427		4,374,330
Creditors: amounts falling due within one year	20	(3,266,740)		(3,454,561)
Net current assets			1,386,687		919,769
Total assets less current liabilities			6,144,530		5,944,942
Creditors: amounts falling due after more than one year	21		(13,333)		(50,000)
Provisions for liabilities
Deferred taxation	23		(393,070)		(378,043)
Net assets excluding pension asset			5,738,127		5,516,899
Net assets			5,738,127		5,516,899

Capital and reserves
Called up share capital	24	28,560	28,560
Share premium account	25	1,012,452	1,012,452
Profit and loss account	25	4,697,115	4,475,887
Equity attributable to owners of the parent Company		5,738,127	5,516,899
		5,738,127	5,516,899

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 March 2022.

P M Harris

Director

The notes on pages 15 to 30 form part of these financial statements.

Page 9

FB 53 LIMITED

REGISTERED NUMBER: 06469426

COMPANY BALANCE SHEET

AS AT 30 JUNE 2021

		2021		2020
Note		£		£

Fixed assets
Investments	16		2,060,415		2,060,415
			2,060,415		2,060,415

Creditors: amounts falling due within one year	20	(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 excluding pension asset			1,041,012		1,041,012
Net assets			1,041,012		1,041,012

Capital and reserves
Called up share capital	24	28,560	28,560
Share premium account	25	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 on 2 March 2022.

P M Harris

Director

The notes on pages 15 to 30 form part of these financial statements.

Page 10

FB 53 LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
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 1 July 2020	28,560	1,012,452	4,475,887	5,516,899
Comprehensive income for the year
Profit for the year	-	-	592,750	592,750
Total comprehensive income for the year	-	-	592,750	592,750
Dividends: Equity capital	-	-	(371,522)	(371,522)
Total transactions with owners	-	-	(371,522)	(371,522)
At 30 June 2021	28,560	1,012,452	4,697,115	5,738,127

The notes on pages 15 to 30 form part of these financial statements.

Page 11

FB 53 LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
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
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(457,914)	(457,914)
Total transactions with owners	-	-	(457,914)	(457,914)

At 1 July 2020	28,560	1,012,452	-	1,041,012
Comprehensive income for the year
Profit for the year	-	-	371,522	371,522
Total comprehensive income for the year	-	-	371,522	371,522
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(371,522)	(371,522)
Total transactions with owners	-	-	(371,522)	(371,522)
At 30 June 2021	28,560	1,012,452	-	1,041,012

The notes on pages 15 to 30 form part of these financial statements.

Page 12

FB 53 LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

			2021	2020
			£	£

Cash flows from operating activities
Profit for the financial year	592,750	1,022,631
Adjustments for:
Depreciation of tangible assets	607,281	650,441
Loss on disposal of tangible assets	(7,289)	(15,255)
Government grants	(99,178)	-
Interest paid	4,784	7,604
Interest received	(45)	(6,061)
Taxation charge	122,637	240,907
(Increase)/decrease in stocks	(31,749)	31,859
(Increase)/decrease in debtors	(606,865)	625,497
(Decrease) in creditors	(124,739)	(1,908,509)
Corporation tax (paid)	(131,942)	(434,682)
Net cash generated from operating activities	325,645	214,432

Cash flows from investing activities
Purchase of tangible fixed assets	(605,171)	(2,220,983)
Sale of tangible fixed assets	272,507	109,262
Government grants received	99,178	-
Interest received	45	6,061
HP interest paid	(4,784)	(3,287)
Net cash from investing activities	(238,225)	(2,108,947)
Cash flows from financing activities
Repayment of/new finance leases	(75,417)	(73,667)
Dividends paid	(371,522)	(457,914)
Interest paid	-	(4,317)
Net cash used in financing activities	(446,939)	(535,898)
Net (decrease) in cash and cash equivalents	(359,519)	(2,430,413)
Cash and cash equivalents at beginning of year	1,720,524	4,150,937
Cash and cash equivalents at the end of year	1,361,005	1,720,524

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,361,005	1,720,524
	1,361,005	1,720,524

Page 13

FB 53 LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 30 JUNE 2021


At 1 July 2020	Cash flows	New finance leases	At 30 June 2021
£	£	£	£

Cash at bank and in hand	1,720,524	(359,519)	-	1,361,005
Finance leases	(158,750)	115,417	(40,000)	(83,333)
	1,561,774	(244,102)	(40,000)	1,277,672

The notes on pages 15 to 30 form part of these financial statements.

Page 14

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

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 Profit and loss account 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 profit and loss account 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 15

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

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

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 16

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

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 17

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

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

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.

Page 18

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

2.Accounting policies (continued)

2.12

Tangible fixed assets (continued)

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

Stock 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. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, 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 19

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

2.Accounting policies (continued)

2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

2.19

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.

2.20

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.

Turnover

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

All turnover arose within the United Kingdom.

5.	Other operating income
		2021	2020
		£	£

	Government grants receivable	99,178	431,684

Page 20

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

Depreciation	607,283	650,411
Defined contribution pension cost	125,834	131,536
Fees payable to the auditors for the audit of the Group's annual financial statements	14,900	14,900

7.	Auditors' remuneration
		2021	2020
		£	£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

14,900

	Fees payable to the Group's auditor and its associates in respect of:
	Taxation compliance services	1,800	1,800

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

Group	Group	Company	Company
2021	2020	2021	2020
£	£	£	£


Wages and salaries	4,727,930	4,831,131	-	-
Social security costs	400,430	554,353	-	-
Cost of defined contribution scheme	125,834	131,536	-	-
	5,254,194	5,517,020	-	-

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

	2021	2020
	No.	No.

Management	18	19
Other	72	80

	90	99

The Company has no employees other than the directors, who did not receive any remuneration (2020 - £NIL)

Page 21

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

9.	Director's remuneration
		2021	2020
		£	£

	Director's emoluments	103,000	127,271

The director is remunerated through the subsidiary trading company.

10.	Interest receivable
		2021	2020
		£	£

Other interest receivable

6,061

11.	Interest payable and similar expenses
		2021	2020
		£	£

Finance leases and hire purchase contracts	4,784	3,287
Other interest payable	-	4,317
	4,784	7,604

Corporation tax
Current tax on profits for the year	107,610	128,431
Adjustments in respect of previous periods	-	(59)
	107,610	128,372

Total current tax	107,610	128,372

Deferred tax
Origination and reversal of timing differences	15,027	112,535
Total deferred tax	15,027	112,535


	Taxation on profit on ordinary activities	122,637	240,907

Page 22

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

12.Taxation (continued)

Profit on ordinary activities before tax

715,387

1,263,538

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	135,924	240,072
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	722	894
Enhanced Allowances	(14,009)	-
Adjustments to tax charge in respect of prior periods	-	(59)
Total tax charge for the year	122,637	240,907

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

13.	Dividends
		2021	2020
		£	£

Dividends

371,522

457,914

Page 23

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

14.	Intangible assets
	Group and Company

		Goodwill
		£
	Cost
	At 1 July 2020	282,279
	At 30 June 2021	282,279
	Amortisation
	At 1 July 2020	282,279
	At 30 June 2021	282,279
	Net book value
	At 30 June 2021	-
	At 30 June 2020	-

Page 24

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

15.	Tangible fixed assets
	Group

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost
At 1 July 2020	1,972,940	4,731,028	1,391,240	46,447	8,141,655
Additions	-	383,400	216,352	5,419	605,171
Disposals	-	(548,389)	(201,194)	-	(749,583)
At 30 June 2021	1,972,940	4,566,039	1,406,398	51,866	7,997,243
Depreciation
At 1 July 2020	-	2,337,102	737,139	42,241	3,116,482
Charge for the year on owned assets	-	378,542	181,146	2,332	562,020
Charge for the year on financed assets	-	45,263	-	-	45,263
Disposals	-	(334,157)	(150,208)	-	(484,365)
At 30 June 2021	-	2,426,750	768,077	44,573	3,239,400
Net book value
At 30 June 2021	1,972,940	2,139,289	638,321	7,293	4,757,843
At 30 June 2020	1,972,940	2,393,926	654,101	4,206	5,025,173

The net book value of land and buildings may be further analysed as follows:
	2021	2020
	£	£

	Freehold	1,972,940	1,972,939

Page 25

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2021	2020
	£	£


Plant and machinery	251,007	271,414
Motor vehicles	-	68,280
	251,007	339,694

16.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 July 2020	2,060,415
	At 30 June 2021	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 26

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

17.	Stocks
		Group	Group
		2021	2020
		£	£

Raw materials	11,150	10,047
Work in progress	131,970	101,324
	143,120	111,371

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

18.

Debtors

		Group	Group
		2021	2020
		£	£


Trade debtors	3,077,169	2,316,626
Other debtors	13,362	140,000
Prepayments and accrued income	58,771	85,809
	3,149,302	2,542,435

19.	Cash and cash equivalents
		Group	Group
		2021	2020
		£	£

	Cash at bank and in hand	1,361,005	1,720,524

Page 27

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£	£	£	£

Payments received on account	527,028	1,210,063	-	-
Trade creditors	1,692,393	923,266	-	-
Amounts owed to group undertakings	-	-	1,019,403	1,019,403
Corporation tax	108,430	132,762	-	-
Other taxation and social security	164,069	629,074	-	-
Obligations under finance lease and hire purchase contracts	70,000	108,750	-	-
Accruals and deferred income	704,820	450,646	-	-
	3,266,740	3,454,561	1,019,403	1,019,403

21.	Creditors: Amounts falling due after more than one year
		Group	Group
		2021	2020
		£	£

	Net obligations under finance leases and hire purchase contracts	13,333	50,000

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2021	2020
		£	£

Within one year	70,000	108,750
Between 1-2 years	13,333	50,000
	83,333	158,750

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

Page 28

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

23.	Deferred taxation
	Group

		2021
		£

	At beginning of year	(378,043)
	Charged to profit or loss	(15,027)
	At end of year	(393,070)

The provision for deferred taxation is made up as follows:
	Group	Group
	2021	2020
	£	£

Accelerated capital allowances

(393,070)

(378,043)

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.

24.	Share capital
		2021	2020
		£	£

Allotted, called up and fully paid

28,560 (2020 - 28,560) Ordinary shares of £1.00 each	28,560	28,560

25.

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

26.	Pension commitments

The Company operates a money purchase pension scheme for staff, employees and directors. The assets of the scheme are held separately in an independently administered fund. 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 £125,834 (2020: £131,536). Contributions totalling £17,849 (2020: £10,032) were payable to the scheme at the balance sheet date and are included in creditors.

Page 29

FB 53 LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

27.

Related party transactions

The Company has taken advantage of the exemption available within Financial Reporting Standard 102 not to disclose details of any transactions between itself and fellow group undertakings on the basis that it is a subsidiary undertaking where 100% of the voting rights are controlled within the Group whose consolidated accounts are publicly available.
The Directors consider there to be no employees that are regarded as key management personnel.

28.	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 30