Szerelmey Restoration Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05320139 (England and Wales)

Financial Statements

for the Year Ended 31 December 2020

for

SZERELMEY RESTORATION LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

P J Morris

Gordon C Verhoef

L J Matanle

REGISTERED OFFICE:

369 Kennington Lane

Vauxhall

London

SE11 5QY

REGISTERED NUMBER:

05320139 (England and Wales)

AUDITORS:

Trevor Jones & Partners Ltd

Statutory Auditor

Springfield House

99/101 Crossbrook Street

Cheshunt

Waltham Cross

Hertfordshire

EN8 8JR

CURRENT ASSETS

Debtors

4

1,950,242

4,117,266

Cash at bank

7,631,592

5,919,245

9,581,834

10,036,511

CREDITORS

Amounts falling due within one year

5

5,566,875

7,777,147

NET CURRENT ASSETS

4,014,959

2,259,364

TOTAL ASSETS LESS CURRENT LIABILITIES

4,014,959

2,259,364

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

4,014,859

2,259,264

SHAREHOLDERS' FUNDS

4,014,959

2,259,364

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2021 and were signed on its behalf by:

P J Morris - Director

1.	STATUTORY INFORMATION

Szerelmey Restoration Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

There are no key assumptions concerning the future, or other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover represents sales to external customers at invoiced amounts less value added tax, except in respect of service contracts where turnover is recognised when the company obtains the right to consideration. Turnover relating to long term contracts is based on the value of work carried out in the year.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities; such as trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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 Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Amounts recoverable on long term contracts

Long term contracts comprise contracts of expected duration in excess of one year, and in accordance with Statement of Standard Accounting Practice No.9(revised), material contracts of shorter duration straddling the balance sheet date. Attributable profit is taken with regard to the expected final profitability of the contracts and the proportion of each contract completed at the year end. The degree of completion at the balance sheet date is based on the costs incurred to date as compared to the expected final costs of each contract.

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.

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.

Going concern

The company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Director's Report on page 2.

The company's forecasts and projections, taking account of recent decreases and reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facility for a period of at least 12 months from the date of signing of the financial statements.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 22 (2019 - 23 ) .

4.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

866,749

1,686,218

Amounts owed by group undertakings

-

890,000

Other debtors

262,472

237,420

Amounts recoverable on long term contracts

818,688

1,301,772

Prepayments

2,333

1,856

1,950,242

4,117,266

Amounts recoverable on long term contracts include £720,539 (2019 - £1,015,678) of retentions.

5.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Payments on account

2,040,211

4,783,088

Trade creditors

1,047,079

1,652,091

Tax

264,605

-

Social security and other taxes

49,794

52,267

VAT

124,964

417,716

Other creditors

267,587

234,379

Accrued expenses

1,772,635

637,606

5,566,875

7,777,147

6.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2020

2019

£

£

In more than five years

45,000

45,000

7.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Christopher James Whale (Senior Statutory Auditor)

for and on behalf of Trevor Jones & Partners Ltd

8.	ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party.

9.	SUBSEQUENT EVENTS

The COVID-19 pandemic has developed rapidly in 2020, with a significant number of cases. Measures taken by various governments to contain the virus have affected economic activity. We have taken a number of measures to monitor and mitigate the effects of COVID-19, such as safety and health measures for our people (such as social distancing and working from home) and securing the supply of materials that are essential to our activities.

At this stage, the impact on our business and results has not been significant and based on our experience to date we expect this to remain the case. The COVID-19 pandemic closed construction sites for approximately 6 weeks and during this time the company was unable to operate. However when construction sites reopened the company was able to recommence operations immediately and the only effect was a delay to projects in progress and the start date of some projects.

We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our people.