Challenge Fencing Limited - Period Ending 2020-11-30
Challenge Fencing Limited - Period Ending 2020-11-30
Registration number:
Challenge Fencing Limited
for the year ended 30 November 2020
Challenge Fencing Limited
Contents
Statement of Financial Position |
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Notes to the Financial Statements |
Challenge Fencing Limited
(Registration number: 02147081)
Statement of Financial Position
30 November 2020
Note |
2020 |
2019 |
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Fixed assets |
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Tangible assets |
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Investment property |
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- |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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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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Net assets |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Profit and loss account |
3,455,943 |
3,139,040 |
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Shareholders' funds |
3,456,043 |
3,139,140 |
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.
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.
Approved and authorised by the
.........................................
Company secretary and director
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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.
Audit report
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 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 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.
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
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 |
Freehold property |
over 50 years |
Short leasehold property |
over 14 years |
Plant and machinery |
20% reducing balance |
Fixtures, fittings and equipment |
33% reducing balance |
Motor vehicles |
25% reducing balance |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
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.
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 December 2019 |
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Additions |
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- |
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Disposals |
- |
( |
( |
( |
( |
At 30 November 2020 |
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Depreciation |
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At 1 December 2019 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
( |
( |
At 30 November 2020 |
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Carrying amount |
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At 30 November 2020 |
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At 30 November 2019 |
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Included within the net book value of land and buildings above is £878,632 (2019 - £875,528) in respect of freehold land and buildings and £Nil (2019 - £19,316) in respect of short leasehold land and buildings.
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Investment properties |
2020 |
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Additions |
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At 30 November |
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On 28 August 2020 A Stewart-Clark (Director) transferred commmercial property valued at £1,360,292 to the company.
Investments |
2020 |
2019 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost or valuation |
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At 1 December 2019 |
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Provision |
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Carrying amount |
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At 30 November 2020 |
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At 30 November 2019 |
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Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2020 |
2019 |
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Subsidiary undertakings |
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The Sawyard
England |
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Humbie Farm
Scotland |
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Subsidiary undertakings |
Titan Garden Buildings Limited The principal activity of Titan Garden Buildings Limited is |
Humbie Farm Limited The principal activity of Humbie Farm Limited is |
Stocks |
2020 |
2019 |
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Other inventories |
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Debtors |
Note |
2020 |
2019 |
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Trade debtors |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Prepayments |
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Other debtors |
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Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Included in debtors is a deposit of £5,000. This deposit is subject to a charge in favour of the landlord.
Creditors |
Creditors: amounts falling due within one year
Note |
2020 |
2019 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors include bank loans and overdrafts which are secured of £41,750 (2019 - £63,715)
The National Westminster Bank has a charge over the property 217-223 Sutton Road, Maidstone. The charge is dated 13 November 2007.
The National Westminster Bank has a legal charge over the property, The Shed Factory, Portsmouth Road, Ripley, Surrey. The charge is dated 9 August 2010.
Creditors: amounts falling due after more than one year
Note |
2020 |
2019 |
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Due after one year |
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Loans and borrowings |
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2020 |
2019 |
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Due after more than five years |
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After more than five years by instalments |
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- |
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Creditors include bank loans and overdrafts which are secured of £1,062,766 (2019 - £1,113,051).
Creditors include bank loans repayable by instalments of £910,049 (2019 - £951,799) due after more than five years.
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
Loans and borrowings |
2020 |
2019 |
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Non-current loans and borrowings |
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Bank borrowings |
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2020 |
2019 |
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Current loans and borrowings |
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Bank borrowings |
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Bank overdrafts |
- |
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Included in the loans and borrowings are the following amounts due after more than five years:
Bank loans and overdrafts after five years
NatWest bank loan of £1,160,000. The bank loan is repayable over 120 months from October 2019. Interest is charged at 2.61% over base. At 30 November 2020 £41,750 (2019: £40,313) is due in less than 1 year and £1,062,766 (2019: £1,113,051) is due after more than 1 year.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of guarantees not included in the balance sheet is £Nil (2019 - £100,000). Mr A Stewart-Clark (Director) has provided a personal guarantee of £nil (2019:£100,000) to NatWest Bank in connection with the company's borrowings.
Related party transactions |
Transactions with directors |
2020 |
At 1 December 2019 |
Repayments by director |
At 30 November 2020 |
A Stewart-Clark |
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( |
( |
Challenge Fencing Limited
Notes to the Financial Statements
for the year ended 30 November 2020
2019 |
At 1 December 2018 |
Advances to directors |
At 30 November 2019 |
A Stewart-Clark |
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Summary of transactions with all subsidiaries
Loans to related parties
2020 |
Subsidiary |
Total |
At start of period |
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At end of period |
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2019 |
Subsidiary |
Total |
At start of period |
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At end of period |
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