Garton Limited - Period Ending 2020-07-31

Garton Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

Garton Limited

Company Information

Directors

Mr T A Garton Mrs N P Garton

Company secretary

Mrs N P Garton

Registered office

Swan Works Swan Lane Hindley Green Wigan Greater Manchester WN2 4AT

Accountants

Howsons Chartered Accountants Winton House Stoke Road Stoke on Trent Staffordshire ST4 2RW

Garton Limited

(Registration number: 04153036)
Balance Sheet as at 31 July 2020

	Note	2020 £	2019 £
Fixed assets
Intangible assets	5	109,178	128,813
Tangible assets	6	965,512	942,134
Investments	7	203	203
		1,074,893	1,071,150
Current assets
Stocks	8	489,603	517,826
Debtors	9	577,474	663,894
Cash at bank and in hand		1,710,867	1,598,768
		2,777,944	2,780,488
Creditors: Amounts falling due within one year	10	(392,076)	(388,893)
Net current assets		2,385,868	2,391,595
Total assets less current liabilities		3,460,761	3,462,745
Provisions for liabilities		(29,020)	(42,978)
Net assets		3,431,741	3,419,767
Capital and reserves
Called up share capital		145,000	145,000
Profit and loss account		3,286,741	3,274,767
Total equity		3,431,741	3,419,767

For the financial year ending 31 July 2020 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with the provisions of Financial Reporting Standard 102 (FRS 102) Section 1A - small entities.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Garton Limited

(Registration number: 04153036)
Balance Sheet as at 31 July 2020

Approved and authorised by the Board on 28 July 2021 and signed on its behalf by:
 

.........................................

Mr T A Garton
Director

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Swan Works
Swan Lane
Hindley Green
Wigan
Greater Manchester
WN2 4AT

The principal place of business is:
Swan Works
Swan Lane
Hindley Green
Wigan
Greater Manchester
WN2 4AT

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company's presentational currency is pound sterling (£). The accounts are rounded to the nearest whole pound.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	2% straight line
Plant and machinery	10% reducing balance
Motor vehicles	25% reducing balance
Office equipment	15% reducing balance
Computers	33% reducing balance
Solar panels	33% straight line method

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by internal valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10% straight line

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Financial instruments

Classification
Basic financial assets, including trade and other debtors, cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
Basic financial liabilities, including trade and other trade creditors, bank and other loans, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

 Recognition and measurement
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit and loss.

 Impairment
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised in the profit or loss.

Financial assets are derecognised when a) the contractual rights to the cash flows from the asset expire or are settled, or b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 44 (2019 - 46).

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

4

Taxation

Tax charged/(credited) in the income statement

	2020 £	2019 £
Current taxation
UK corporation tax	-	3,255
UK corporation tax adjustment to prior periods	-	(9,474)
	-	(6,219)
Deferred taxation
Arising from origination and reversal of timing differences	(13,957)	8,714
Tax (receipt)/expense in the income statement	(13,957)	2,495

The company has tax losses of £123,677 available to carry forward and offset against future profits.

5	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 August 2019	575,727	575,727
At 31 July 2020	575,727	575,727
Amortisation
At 1 August 2019	446,914	446,914
Amortisation charge	19,635	19,635
At 31 July 2020	466,549	466,549
Carrying amount
At 31 July 2020	109,178	109,178
At 31 July 2019	128,813	128,813

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

7	Investments

	2020 £	2019 £
Investments in subsidiaries	203	203

Subsidiaries	£
Cost or valuation
At 1 August 2019 and 31 July 2020	203
Provision
Carrying amount
At 31 July 2020	203
At 31 July 2019	203

8

Stocks

	2020 £	2019 £
Other inventories	489,603	517,826

9

Debtors

	2020 £	2019 £
Trade debtors	454,745	573,228
Prepayments	98,685	35,168
Other debtors	24,044	55,498
	577,474	663,894

10

Creditors

	Note	2020 £	2019 £
Due within one year
Trade creditors		219,409	236,356
Amounts owed to group undertakings and undertakings in which the company has a participating interest	11	1	1
Taxation and social security		120,925	66,229
Other creditors		51,741	86,307
		392,076	388,893

Garton Limited

Notes to the Financial Statements for the Year Ended 31 July 2020

11	Related party transactions

Loans to related parties

2020	Key management £
At start of period	12,692
Repaid	(12,257)
At end of period	435

2019
At start of period	22,462
Advanced	16,242
Repaid	(26,446)
Interest transactions	434
At end of period	12,692

12	Going Concern

At the date of approving these accounts, the directors consider that the company is a going concern. Although the Covid 19 pandemic has impacted the activity of the company, the directors have implemented measures to limit its effect and the company has the reserves to support the company through this period.