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Registered number: 00466774
C.E.Murch Limited
Unaudited
Financial statements
Information for filing with the registrar
For the Year Ended 5 April 2021
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C.E.Murch Limited
Chartered accountants' report to the board of directors on the preparation of the unaudited statutory financial statements of C.E.Murch Limited for the Year Ended 5 April 2021
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of C.E.Murch Limited for the year ended 5 April 2021 which comprise the Balance sheet and the related notes from the Company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com /regulation.
This report is made solely to the Board of directors of C.E.Murch Limited, as a body, in accordance with the terms of our engagement letter dated 18 December 2018. Our work has been undertaken solely to prepare for your approval the financial statements of C.E.Murch Limited and state those matters that we have agreed to state to the Board of directors of C.E.Murch Limited, as a body, in this report in accordance with ICAEW Technical Release TECH07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than C.E.Murch Limited and its Board of directors, as a body, for our work or for this report.
It is your duty to ensure that C.E.Murch Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of C.E.Murch Limited. You consider that C.E.Murch Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or review of the financial statements of C.E.Murch Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Kreston Reeves LLP
Chartered Accountants
Canterbury
11 March 2022
Page 1
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C.E.Murch Limited
Registered number: 00466774
Balance sheet
As at 5 April 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Investment property reserve
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
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.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
Page 2
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C.E.Murch Limited
Registered number: 00466774
Balance sheet (continued)
As at 5 April 2021
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 March 2022.
The notes on pages 4 to 14 form part of these financial statements.
Page 3
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
C.E.Murch Limited is a private company limited by shares which was incorporated in the UK and registered in England. Company number 00466774.
The company's registered office is 37 St Margaret's Street, Canterbury, Kent, CT1 2TU.
The financial statements have been presented in Sterling (£).
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company's working capital requirements are met by a bank overdraft facility and loans from the company's directors. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company will be able to operate within the level of its current facility. No matters have been drawn to the directors' attention to suggest that the bank facility will be withdrawn.
The impact of the COVID-19 virus has been assessed by the directors so far as reasonably possible. Due to its unprecedented impact on the wider economy is it difficult to evaluate the full extent of its impact. However, taking into consideration the UK Governments response and the company's planning, the directors have a reasonable expectation that the company will continue in operation for the foreseeable future. For this reason the accounts have been prepared on the going concern basis.
Page 4
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
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.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 5
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.
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Current and deferred taxation
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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 operates and generates 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; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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 6
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Freehold buildings and improvements
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not currently in operation
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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.
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Revaluation of tangible fixed assets
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Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Page 7
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
2.Accounting policies (continued)
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Associates and joint ventures
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Associates and Joint Ventures are held at cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
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.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company 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 Company 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.
Page 8
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
2.Accounting policies (continued)
The Company 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.
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The average monthly number of employees, including directors, during the year was 21 (2020 - 21).
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Basic Payment scheme entitlement
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Page 9
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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At 5 April 2021 the valuation of land and buildings totaling £4,860,000 comprises an historic cost element of £1,053,257 and a revaluation element of £3,806,743, together with additions in 2021 of £24,183.
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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Page 10
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
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Investments in subsidiary companies
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Investments in associates
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Other fixed asset investments
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The following was a subsidiary undertaking of the Company:
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The aggregate of the share capital and reserves as at 5 April 2021 and the profit or loss for the year ended on that date for the subsidiary undertaking was as follows:
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Capital accounts invested in associates
The company has a capital account invested in an LLP, being J G Palmer LLP of £2,800 (2020 - £2,800).
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Page 11
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
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Freehold investment property
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The 2021 valuations were made by the directors, on an open market value for existing use basis.
At 5 April 2021 the valuation of investment properties totaling £925,000 comprises an historic cost element of £320,028 and a revaluation element of £604,972.
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Amounts owed by joint ventures and associated undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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Page 12
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The provision for deferred taxation is made up as follows:
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Revaluation of freehold property
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Revaluation of investment property
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Page 13
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C.E.Murch Limited
Notes to the financial statements
For the Year Ended 5 April 2021
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Allotted, called up and fully paid
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219,600 (2020 - 219,600) ordinary shares of £1.00 each
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Revaluation reserve
The revaluation reserve relates to the accumulated revaluations surpluses in respect of freehold property and other fixed assets, less the associated deferred tax provision.
Investment property revaluation reserve
The investment property revaluation reserve relates to the revaluation surplus in respect of investment property, less the associated deferred tax provision.
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £24,000 (2020 - £24,000).
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Transactions with directors
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Within other debtors is a directors' loan account at the year end of £568 (2020 - £619). Interest is charged on the loan at a rate of 2.25%. The loan was repaid in full after the year end.
Within other creditors due within one year are directors' loan accounts at the year end of £1,291,167 (2020 - £2,006,690). All these loans are interest free.
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