COLLINS_&_CURTIS_MASONRY_ - Accounts

The directors of the company have taken advantage of the option under section 444 of Companies Act 2006 not to include a copy of the Directors' report and profit and loss account within the financial statements.true

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

Collins & Curtis Masonry Limited is a private company limited by shares incorporated in England and Wales. The registered office is Eves Corner, Danbury, Chelmsford, Essex, CM3 4QB.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements have been prepared on the going concern basis. At the period end, the company had nettrue liabilities of £181,838 (2019: £222,829 net liabilities). The company meets its day to day working capital requirements through financial support provided from it's parent company. The directors of Collins & Curtis Masonry Ltd have been assured that financial support from the parent company will continue to be made available for at least the next twelve months from the date of approval of the financial statements and that it will provide support for the foreseeable future. Collins and Curtis Limited is of significant strategic importance to the Group, in particular Bakers Funeral Services Ltd and Bakers of Danbury Heritage Limited and therefore the directors of the group are prepared to continue to support this company on that basis. It is on this basis that the directors consider it appropriate to prepare the financial statements on the going concern basis.

The financial reporting period of these financial statements covers a period of eighteen months. This is as a result of aligning group company period end dates. As a result of a group reconstruction, the period end date was changed to be coterminous with all group companies. The comparative amounts are therefore not entirely comparable.

Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total expected costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the period the company took advantage of the government job retention scheme. Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Management charges

Management charges represents the cost for managing the day to day running of the company, the internal accounting function and the cost of managing any strategic business matters.

Management charges are charged from the parent company (Bakers of Danbury Limited) and are recognised as a cost within these financial statements. The cost is calculated on the basis of the time and relative difficulty of managing the business within the period.

Exceptional items

Exceptional items are recognised when material items which derive from uncommon events or transactions that fall within the ordinary activities of the reporting entity and which individually or, if of a similar type, in aggregate, need to be disclosed by virtue of their size and incidence if the financial statements are to give a true and fair view.

Disclosure of such exceptional items eg restructuring provisions,write backs and impairments etc. Are made on the face of the profit and loss account by means of additional line items or headings.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue from amounts recoverable on contracts is based on the completion stage of those contracts which is based on the costs incurred to date. The stage of completion is judged by reviewing the costs to date incurred as a percentage of the final expected contract costs. Using this percentage of completion, an adjustment is made for to recognise the appropriate revenue.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company has an intercompany loan balance its parent company. The loan does not carry a commercial rate of interest and is due after more than one year and therefore has been accounted for on an amortised cost basis. The rate used to discount the loan amount balance is 5.50% and has been based on a rate as discussed with the bank manager of the company for an unsecured loan.

In the period, the company's previous parent company (Bakers of Danbury Limited) waived the debt Collins and Curtis owed to it totaling £344,676. In addition Collins and Curtis had recognised in previous financial statements an Other reserve which related to the difference between the debt owed and the discounted amount back to net present value amount of it owed to Bakers of Danbury Limited.

As the total debt was waived in the period, the associated reserve was eliminated. The impact of this was a credit to the profit and loss with £117,432 with the corresponding debit eliminating the previously recognised reserve. The overall effect of these two adjustments was a £468,108 credit to the profit and loss which has been recognised as exceptional due to its size and nature.

The average monthly number of persons (including directors) employed by the company during the period was:

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The company is a 100% owned subsidiary of Bakers of Danbury Limited which is both the immediate and ultimate parent company and is incorporated in England and Wales.

The financial statements of all group companies, and consolidated financial statements, are filed at Companies House.

Registered address : Eves Corner, Little Baddow Road, Danbury, Chelmsford, Essex, England, CM3 4QB