Correct Contract Services Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06368614 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR

CORRECT CONTRACT SERVICES LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr D L Gladwyn

Mr T S Dempsey

Mr A L Denney

Mr M G Fray

SECRETARY:

Mr D L Gladwyn

REGISTERED OFFICE:

Fleming Court

Leigh Road

Eastleigh

Southampton

Hampshire

SO50 9PD

BUSINESS ADDRESS:

21b Hopkinson Way

West Portway Industrial Estate

Andover

Hampshire

SP10 3ZE

REGISTERED NUMBER:

06368614 (England and Wales)

FIXED ASSETS

Tangible assets

5

387,734

292,339

CURRENT ASSETS

Stocks

552,250

331,021

Debtors

6

940,674

1,609,502

Cash at bank and in hand

461,483

58,707

1,954,407

1,999,230

CREDITORS

Amounts falling due within one year

7

1,463,891

1,843,041

NET CURRENT ASSETS

490,516

156,189

TOTAL ASSETS LESS CURRENT LIABILITIES

878,250

448,528

CREDITORS

Amounts falling due after more than one year

8

(257,944

)

(49,107

)

PROVISIONS FOR LIABILITIES

(64,836

)

(50,226

)

NET ASSETS

555,470

349,195

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

554,470

348,195

SHAREHOLDERS' FUNDS

555,470

349,195

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 9 September 2021 and were signed on its behalf by:

Mr D L Gladwyn - Director

1.	STATUTORY INFORMATION

Correct Contract Services 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	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 the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

20% straight line

Plant and machinery

-

20% straight line

Fixtures and fittings

-

20% straight line

Motor vehicles

-

20% straight line

Equipment

-

Straight line over 3 years

All fixed assets are initially recorded at cost.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

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

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in administrative expenses.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 61 (2020 - 51 ) .

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 April 2020

24,217

11,339

16,357

Additions

-

-

1,235

Disposals

-

-

-

At 31 March 2021

24,217

11,339

17,592

DEPRECIATION

At 1 April 2020

13,745

7,322

8,525

Charge for year

4,579

1,965

3,762

Eliminated on disposal

-

-

-

At 31 March 2021

18,324

9,287

12,287

NET BOOK VALUE

At 31 March 2021

5,893

2,052

5,305

At 31 March 2020

10,472

4,017

7,832

Motor

vehicles

Equipment

Totals

£

£

£

COST

At 1 April 2020

330,043

81,517

463,473

Additions

186,550

43,349

231,134

Disposals

(28,850

)

-

(28,850

)

At 31 March 2021

487,743

124,866

665,757

DEPRECIATION

At 1 April 2020

103,121

38,421

171,134

Charge for year

86,481

28,096

124,883

Eliminated on disposal

(17,994

)

-

(17,994

)

At 31 March 2021

171,608

66,517

278,023

NET BOOK VALUE

At 31 March 2021

316,135

58,349

387,734

At 31 March 2020

226,922

43,096

292,339

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

753,042

1,563,242

Amounts owed by group undertakings

12,625

-

Other debtors

175,007

46,260

940,674

1,609,502

Included in other debtors is £66,155 (2020: £43,915) in respect of prepayments and accrued income.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

29,167

-

Hire purchase contracts

91,392

44,560

Trade creditors

768,929

586,495

Amounts owed to group undertakings

-

17,375

Taxation and social security

275,282

334,725

Other creditors

299,121

859,886

1,463,891

1,843,041

Included in other creditors is £243,392 (2020: £515,003) in respect of accruals and deferred income.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

220,833

-

Hire purchase contracts

37,111

49,107

257,944

49,107

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

20,833

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

250,000

-

Hire purchase contracts

128,503

93,667

Other creditors

-

108,314

378,503

201,981

Hire purchase contracts are secured over the assets acquired under the agreements.

Other creditors are secured by way of an all assets debenture.

80% of the bank loans are secured by the Government (being part of the Coronavirus Business Interruption Loan Scheme).

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.	OTHER FINANCIAL COMMITMENTS

Total future financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £103,450 (2020: £93,250).

This amount is in relation to operating lease commitments which are payable over the next 9 years (2020: 10 years).

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2021 and 31 March 2020:

2021

2020

£

£

Mr D L Gladwyn

Balance outstanding at start of year

-

5,404

Amounts advanced

1,649

-

Amounts repaid

(1,649

)

(5,404

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

Mr A L Denney

Balance outstanding at start of year

-

-

Amounts advanced

2,333

2,400

Amounts repaid

(2,333

)

(2,400

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

-

The loans were unsecured with interest charged at HMRC approved rates and were repaid prior to the year end.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group companies where any subsidiary that is a party to the transaction is wholly owned within the group or where transactions have been undertaken under normal market conditions.