Birch Utility Services Limited - Period Ending 2020-09-30

Birch Utility Services Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 8

Birch Utility Services Limited

Company Information

Directors

J Birch K Ricketts

Company secretary

K Ricketts

Registered office

Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

Auditors

PKF Francis Clark Statutory Auditor Centenary House Peninsula Park Rydon Lane Exeter EX2 7XE

Birch Utility Services Limited

Balance Sheet

30 September 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	4	1,500,172	816,749
Current assets
Debtors	5	1,030,401	871,888
Cash at bank and in hand		666,927	359,094
		1,697,328	1,230,982
Creditors: Amounts falling due within one year	6	(1,136,007)	(556,052)
Net current assets		561,321	674,930
Total assets less current liabilities		2,061,493	1,491,679
Creditors: Amounts falling due after more than one year	6	(642,273)	(140,711)
Provisions for liabilities		(601,630)	(486,820)
Net assets		817,590	864,148
Capital and reserves
Called up share capital	8	100	100
Profit and loss account		817,490	864,048
Shareholders' funds		817,590	864,148

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 29 June 2021 and signed on its behalf by:
 

......................................... K Ricketts Director

Company Registration Number: 06996561

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 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:
Centenary House
Peninsula Park
Rydon Lane
Exeter
EX2 7XE

The principal place of business is:
Unit A
1 Battle Road
Heathfield
Newton Abbot
Devon
TQ12 6RY

These financial statements were authorised for issue by the Board on 29 June 2021.

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.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' including Section 1A, and the Companies Act 2006. There are no material departures from FRS 102.

Going concern

Due to the nature of the company’s operations, the Covid-19 pandemic and any wider implications for the UK economy are not expected to have a significant impact. Nevertheless, the directors have reviewed budgets and cash flow forecasts and are satisfied that, based on the information available to date, the company is able to operate within available resources for a period of at least 12 months from the date of approval of these financial statements. Accordingly the directors continue to adopt the going concern basis of preparation.

Revenue recognition

Turnover represents the fair value of the consideration receivable for the provision of services in the ordinary course of the company’s activities exclusive of value added tax. Revenue is recognised upon completion of work.

Government grants

During the year the company recognised Coronavirus Job Retention Scheme ("CJRS") grant income from the government designed to mitigate the impact of Covid-19. The company has elected to account for such grants under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in "other income" within profit or loss in the same period as the related expenditure.

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 2020

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.

The current corporation 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 on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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
Leasehold improvements	Over the term of the lease
Plant and machinery	20% straight line
Fixtures and equipment	20% - 33% straight line
Motor vehicles	20% straight line

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 2020

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• 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.

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.

 

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 2020

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 90 (2019 - 78).

4	Tangible assets

	Leasehold improvements £	Plant and machinery  £	Fixtures and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 October 2019	19,019	713,164	65,106	1,159,082	1,956,371
Additions	-	549,522	11,245	550,574	1,111,341
Disposals	-	(74,628)	-	(73,649)	(148,277)
At 30 September 2020	19,019	1,188,058	76,351	1,636,007	2,919,435
Depreciation
At 1 October 2019	9,510	451,544	47,430	631,138	1,139,622
Charge for the year	3,804	115,171	10,050	251,955	380,980
Eliminated on disposal	-	(41,593)	-	(59,746)	(101,339)
At 30 September 2020	13,314	525,122	57,480	823,347	1,419,263
Carrying amount
At 30 September 2020	5,705	662,936	18,871	812,660	1,500,172
At 30 September 2019	9,509	261,620	17,676	527,944	816,749

5

Debtors

	2020  £	2019  £
Trade debtors	558,793	502,416
Other debtors	209,885	223,163
Prepayments and accrued income	261,723	146,309
	1,030,401	871,888

Included in trade debtors as at 30 September 2020 are net debts that have been factored amounting to £555,049 (2019: £502,416).

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 2020

6

Creditors

	Note	2020 £	2019 £
Due within one year
Loans and borrowings	7	360,531	217,466
Trade creditors		231,739	64,541
Taxation and social security		310,610	221,493
Accruals and deferred income		83,699	24,188
Other creditors		149,428	28,364
		1,136,007	556,052

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	7	642,273	140,711

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

7	Loans and borrowings

	2020 £	2019 £
Loans and borrowings due after one year
Finance lease and hire purchase contract liabilities	642,273	140,711

	2020 £	2019 £
Current loans and borrowings
Hire purchase contracts	360,531	217,466

Birch Utility Services Limited

Notes to the Financial Statements

Year Ended 30 September 2020

8	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary A Shares of £1 each	50	50	50	50
Ordinary B Shares of £1 each	50	50	50	50
	100	100	100	100

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments, relating to property operating leases, not included in the balance sheet is £26,686 (2019: £45,688).

10	Related party transactions

Advances to directors

2020	At 1 October 2019 £	Advances to director £	Repayments by director £	At 30 September 2020 £
K Ricketts
Director's current account	198	(83,474)	179,859	96,583
J Birch
Director's current account	(163,198)	(157,320)	223,730	(96,788)

2019	At 1 October 2018 £	Advances to director £	Repayments by director £	At 30 September 2019 £
K Ricketts
Director's current account	13,251	(171,853)	158,800	198
J Birch
Director's current account	(181,899)	(184,201)	202,902	(163,198)

11	Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was AMY EDWARDS, who signed for and on behalf of PKF Francis Clark on 29 June 2021.