ACCOUNTS - Final Accounts

KARL WATSON CONTRACTING LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2020-03-312020-03-31truetruetruetruetrue2019-04-01falsefalse11trueThe members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. 07210230 2019-04-01 2020-03-31 07210230 2018-04-01 2019-03-31 07210230 2020-03-31 07210230 2019-03-31 07210230 c:Exceptional 2019-04-01 2020-03-31 07210230 c:Exceptional 2018-04-01 2019-03-31 07210230 d:Director1 2019-04-01 2020-03-31 07210230 d:RegisteredOffice 2019-04-01 2020-03-31 07210230 c:PlantMachinery 2019-04-01 2020-03-31 07210230 c:PlantMachinery 2020-03-31 07210230 c:PlantMachinery 2019-03-31 07210230 c:MotorVehicles 2019-04-01 2020-03-31 07210230 c:MotorVehicles 2020-03-31 07210230 c:MotorVehicles 2019-03-31 07210230 c:FurnitureFittings 2019-04-01 2020-03-31 07210230 c:FurnitureFittings 2020-03-31 07210230 c:FurnitureFittings 2019-03-31 07210230 c:Goodwill 2019-04-01 2020-03-31 07210230 c:Goodwill 2020-03-31 07210230 c:Goodwill 2019-03-31 07210230 c:CurrentFinancialInstruments 2020-03-31 07210230 c:CurrentFinancialInstruments 2019-03-31 07210230 c:CurrentFinancialInstruments c:WithinOneYear 2020-03-31 07210230 c:CurrentFinancialInstruments c:WithinOneYear 2019-03-31 07210230 c:ShareCapital 2020-03-31 07210230 c:ShareCapital 2019-03-31 07210230 c:RetainedEarningsAccumulatedLosses 2019-04-01 2020-03-31 07210230 c:RetainedEarningsAccumulatedLosses 2020-03-31 07210230 c:RetainedEarningsAccumulatedLosses 2018-04-01 2019-03-31 07210230 c:RetainedEarningsAccumulatedLosses 2019-03-31 07210230 c:RetainedEarningsAccumulatedLosses 2018-04-01 07210230 d:FRS102 2019-04-01 2020-03-31 07210230 d:Audited 2019-04-01 2020-03-31 07210230 d:FullAccounts 2019-04-01 2020-03-31 07210230 d:PrivateLimitedCompanyLtd 2019-04-01 2020-03-31 07210230 4 2019-04-01 2020-03-31 iso4217:GBP xbrli:pure

Registered number: 07210230

KARL WATSON CONTRACTING LIMITED

DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

KARL WATSON CONTRACTING LIMITED

COMPANY INFORMATION

Director	Mr Phillip Owen Callington


Registered number	07210230


Registered office	Unit 5 Sheene Road
	Gorse Hill Industrial Estate
	Leicester
	Leicestershire
	LE4 1BF


Independent auditors	Torr Waterfield Limited
	Park House
	37 Clarence Street
	Leicester
	Leicestershire
	LE1 3RW

KARL WATSON CONTRACTING LIMITED

CONTENTS

	Page
Director's Report	1 - 2
Independent Auditors' Report	3 - 5
Statement of Income and Retained Earnings	6
Balance Sheet	7 - 8
Notes to the Financial Statements	9 - 17

KARL WATSON CONTRACTING LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 MARCH 2020

The director presents his report and the financial statements for the year ended 31 March 2020.

Principal activity

The principal activity of the Company was that of construction and groundworks. The trade of the Company was hived-up to its parent company, Callington's Construction Limited, on 1 June 2019.

Director

The director who served during the year was:

Mr Phillip Owen Callington

Director's responsibilities statement

The director is responsible for preparing the Director's Report and the 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 of the profit or loss of the Company for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Company'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 Company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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'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's auditors are aware of that information.

Auditors

The auditors, Torr Waterfield Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

KARL WATSON CONTRACTING LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2020

Small companies note

In preparing this report, the director has taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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

Mr Phillip Owen Callington

Director

Date: 30 June 2021

Page 2

KARL WATSON CONTRACTING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KARL WATSON CONTRACTING LIMITED

Opinion

We have audited the financial statements of Karl Watson Contracting Limited (the 'Company') for the year ended 31 March 2020, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 Company's affairs as at 31 March 2020 and of its loss 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 Company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

∙the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

∙the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Page 3

KARL WATSON CONTRACTING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KARL WATSON CONTRACTING LIMITED (CONTINUED)

Other information

The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Director's Report has 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in 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, or returns adequate for our audit have not been received from branches not visited by us; or

∙the 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; or

∙the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Director's Report and from the requirement to prepare a Strategic Report.

Page 4

KARL WATSON CONTRACTING LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF KARL WATSON CONTRACTING LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement set out on page 1, 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 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 Company or to cease operations, or have no realistic alternative but to do so.

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 financial statements.

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.

Other matters
In the prior year the director took advantage of section 477 of the Companies Act 2006 for the financial statements not to be audited. As a result the comparatives shown in these financial statements are not audited.

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.

Peter Morris FCA (Senior Statutory Auditor)

for and on behalf of Torr Waterfield Limited

Statutory Auditor

Park House

37 Clarence Street

Leicester

Leicestershire

LE1 3RW

30 June 2021

Page 5

KARL WATSON CONTRACTING LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 MARCH 2020

	2020	2019
	£	£


Turnover	27,326	1,543,857
Cost of sales	(855)	(1,338,657)
Gross profit	26,471	205,200
Administrative expenses	(56,951)	(187,385)
Exceptional administrative expenses	(100,000)	-
Other operating income	3,634	-
Operating (loss)/profit	(126,846)	17,815
Interest payable and similar expenses	(8)	-
(Loss)/profit before tax	(126,854)	17,815
Tax on (loss)/profit	(17,976)	(15,394)
(Loss)/profit after tax	(144,830)	2,421



Retained earnings at the beginning of the year	2,525,668	2,523,247
	2,525,668	2,523,247
(Loss)/profit for the year	(144,830)	2,421
Retained earnings at the end of the year	2,380,838	2,525,668

There were no recognised gains and losses for 2020 or 2019 other than those included in the statement of income and retained earnings.

The notes on pages 9 to 17 form part of these financial statements.

Page 6

KARL WATSON CONTRACTING LIMITED

REGISTERED NUMBER: 07210230

BALANCE SHEET

AS AT 31 MARCH 2020

		2020		2019 Restated
Note		£		£

Fixed assets
Intangible assets	5		-		100,000
Tangible assets	6		-		123,743
			-		223,743
Current assets
Debtors: amounts falling due within one year	7	2,399,008		2,296,200
Cash at bank and in hand		3,422		31,702
		2,402,430		2,327,902
Creditors: amounts falling due within one year	8	(21,492)		(25,877)
Net current assets			2,380,938		2,302,025
Total assets less current liabilities			2,380,938		2,525,768

Net assets			2,380,938		2,525,768

Capital and reserves
Called up share capital	100	100
Profit and loss account	2,380,838	2,525,668
	2,380,938	2,525,768

Page 7

KARL WATSON CONTRACTING LIMITED

REGISTERED NUMBER: 07210230

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2020

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.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

Mr Phillip Owen Callington

Director

Date: 30 June 2021

The notes on pages 9 to 17 form part of these financial statements.

Page 8

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

1.	General information

Karl Watson Contracting Limited is a private Company limited by shares incorporated in England and Wales within the United Kindom. The address of the registered office is Unit 5, Sheene Road Gorse Hill Industrial Estate, Leicester, Leicestershire, LE4 1BF.

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 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The Company's functional and presentational currency is pounds sterling.
The level of rounding is to the nearest £.

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Callington's Construction Limited as at 31 May 2020 and these financial statements may be obtained from Companies House.

2.3

Going concern

The company's financial statements have been prepared under the going concern basis. The director believes that the going concern basis is appropriate for the foreseeable future. Callington's Construction Limited, the parent company, has confirmed that it will provide financial support as and when required to allow the company to continue to trade. The financial support will allow the company to satisfy all obligations in full when they become due.
The director has considered the impact of the COVID-19 pandemic and does not believe it will adversely impact the going concern basis.

Page 9

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.4

Revenue

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.

2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.

2.6

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.

2.7

Pensions

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.

Page 10

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.8

Taxation

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.

2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.10

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 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 Statement of Income and Retained Earnings over its useful economic life.

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KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.11

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery	-	25%	reducing balance
Motor vehicles	-	25%	reducing balance
Fixtures and fittings	-	25%	reducing balance

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.

2.12

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

2.13

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.

2.14

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. 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.

2.15

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 12

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

2.Accounting policies (continued)

2.16

Financial instruments

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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.

Employees

The average monthly number of employees, including directors, during the year was 1 (2019 - 1).

4.	Exceptional items
		2020	2019
		£	£

Impairment of goodwill

100,000

Goodwill of £100,000 was written off to the profit and loss account given that the company's trade was hived-up to the parent company, Callington's Construction Limited, in previous years.

Page 13

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

5.	Intangible assets

		Goodwill
		£
	Cost
	At 1 April 2019	250,000
	At 31 March 2020	250,000
	Amortisation
	At 1 April 2019	150,000
	Impairment charge	100,000
	At 31 March 2020	250,000
	Net book value
	At 31 March 2020	-
	At 31 March 2019	100,000

Page 14

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

6.	Tangible fixed assets

	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£

At 1 April 2019	177,829	199,612	1,455	378,896
Transfers intra group	(177,829)	(129,294)	(1,455)	(308,578)
Disposals	-	(70,318)	-	(70,318)
At 31 March 2020	-	-	-	-

At 1 April 2019	131,368	122,590	1,195	255,153
Transfers intra group	(131,368)	(71,089)	(1,195)	(203,652)
Disposals	-	(51,501)	-	(51,501)
At 31 March 2020	-	-	-	-
Net book value
At 31 March 2020	-	-	-	-
At 31 March 2019	46,461	77,022	260	123,743

Page 15

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

Debtors

					2020	2019 Restated
					£	£


Trade debtors	4,118	28,983
Amounts owed by group undertakings	2,075,696	1,959,186
Other debtors	319,194	308,031
	2,399,008	2,296,200

The 2019 trade debtor balance of £1,440,686 owed from the parent company has been reclassified into 'amounts owed by group undertakings
The 2019 fixed asset investment of £518,500, which represented a loan debtor owed by the parent company, has been reclassified into 'amounts owed by group undertakings'

8.	Creditors: Amounts falling due within one year
		2020	2019
		£	£

Trade creditors	-	6,738
Corporation tax	17,976	15,972
Other taxation and social security	1,016	3,167
Accruals and deferred income	2,500	-
	21,492	25,877

9.	Pension commitments

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 £470 (2019 - £Nil). No contributions (2019 - £Nil) were payable to the fund at the balance sheet date.

10.

Related party transactions

The Group undertook transactions with companies in which the director holds an interest during the year consisting of sales of £3,028 (2019 - £Nil). Year end trading balances due to companies in which the director holds an interest were £3,028 (2019 - £Nil) which are interest free and repayable on demand. These are shown within trade debtors.
In addition, there were interest free and unsecured loans due from companies in which the director's family members hold an interest, amounting to £275,000 (2019 - £275,000). There were no advances made or repayments received with relation to this during the current or prior years.

Page 16

KARL WATSON CONTRACTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

11.	Controlling party

The company is a wholly owned subsidiary of Callington's Construction Limited, which is incorporated in the United Kingdom. The parent undertaking of the largest and smallest group of which consolidated financial statements are prepared is Callington's Construction Limited. The registered office address is Unit 5, Sheene Road, Gorse Hill Industrial Estate, Leicester, LE4 1BF. Callington's Construction Limited is controlled by Mr P O Callington.

Page 17