Cover Construction Company Limited - Period Ending 2021-03-31

Cover Construction Company Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Unaudited Financial Statements	4 to 10

Cover Construction Company Limited

Company Information

Directors	Mr J A M Cover Mrs M J Cover Mrs G M Goldsmith Mrs F J Tweedie Mr S J Cover

Company secretary

Mrs M J Cover

Registered office

Filkins Mill Filkins Lechlade Gloucestershire GL7 3RF

Accountants

UHY Ross Brooke Chartered Accountants 16 Dorcan Business Village Murdock Road, Dorcan Swindon Wiltshire SN3 5HY

Cover Construction Company Limited

(Registration number: 00831440)
Balance Sheet as at 31 March 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	44,116	45,722
Investment property	5	19,022,000	19,370,000
		19,066,116	19,415,722
Current assets
Stocks	6	-	2,711,081
Debtors	7	1,274,775	196,929
Cash at bank and in hand		4,391,384	463,872
		5,666,159	3,371,882
Creditors: Amounts falling due within one year	8	(5,177,875)	(2,165,774)
Net current assets		488,284	1,206,108
Total assets less current liabilities		19,554,400	20,621,830
Creditors: Amounts falling due after more than one year	8	(1,732,662)	(4,655,762)
Provisions for liabilities - Deferred Tax		(1,794,214)	(1,778,023)
Net assets		16,027,524	14,188,045
Capital and reserves
Called up share capital		900	900
Capital redemption reserve		550	550
Other reserves		9,429,801	9,444,112
Profit and loss account		6,596,273	4,742,483
Shareholders' funds		16,027,524	14,188,045

Cover Construction Company Limited

(Registration number: 00831440)
Balance Sheet as at 31 March 2021

For the financial year ending 31 March 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

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 Board on 27 October 2021 and signed on its behalf by:
 

.........................................

Mr S J Cover
Director

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Filkins Mill
Filkins
Lechlade
Gloucestershire
GL7 3RF

2	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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value 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.

Investment properties: These are valued by the director Mr S Cover based on his estimate of the open market value at the balance sheet date.

Work in progress: 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.

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. Turnover also includes rental income from investment properties net of VAT.

Revenue from the sale of goods, including property, is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods, or in the case of property, exchange of contracts, the amount of revenue can be measured relaibly, 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.

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

Contract revenue recognition

Revenue from construction contracts 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, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

Government grants

Government grants are accounted for as revenue based grants under the accrual model in the period in which they are receivable.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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 balance sheet 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
Plant and machinery	20% straight line basis
Computer and office equipment	10% to 20% straight line basis
Motor vehicles	20% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

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

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

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.

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.

Employee benefits

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2020 - 7).

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

4	Tangible assets

	Plant and machinery £	Office equipment £	Motor vehicles  £	Total £
Cost or valuation
At 1 April 2020	134,214	5,943	51,072	191,229
Additions	13,400	-	-	13,400
Disposals	(5,405)	(1,790)	-	(7,195)
At 31 March 2021	142,209	4,153	51,072	197,434
Depreciation
At 1 April 2020	104,072	5,565	35,870	145,507
Charge for the year	7,587	207	7,212	15,006
Eliminated on disposal	(5,405)	(1,790)	-	(7,195)
At 31 March 2021	106,254	3,982	43,082	153,318
Carrying amount
At 31 March 2021	35,955	171	7,990	44,116
At 31 March 2020	30,142	378	15,202	45,722

5	Investment properties

	2021 £
At 1 April	19,370,000
Additions	77,976
Disposals	(1,262,791)
Fair value adjustments	836,815
At 31 March	19,022,000

Investment property comprises commercial properties at a business park in West Oxfordshire. The fair value has been arrived at on the basis of a valuation carried out by the director Mr S Cover and was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

6

Stocks

	2021 £	2020 £
Work in progress	-	2,711,081

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

7

Debtors

	Note	2021 £	2020 £
Trade debtors		1,054,626	126,111
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	124,954	-
Prepayments		79,734	52,278
Other debtors		15,461	18,540
		1,274,775	196,929

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

8

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Loans and borrowings	2,923,100	234,680
Trade creditors	74,281	73,906
Taxation and social security	483,366	167,257
Other creditors	1,697,128	1,689,931
	5,177,875	2,165,774

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	9	1,732,662	4,655,762

9	Loans and borrowings

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	2,923,100	234,680

	2021 £	2020 £
Non-current loans and borrowings
Bank borrowings	1,732,662	4,655,762

Bank borrowings
The loans are secured on freehold property at the West Oxfordshire Business Park, Brize Norton Road, Carterton

Cover Construction Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2021

10	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £2,539,677 (2020 - £2,560,677).
Operating lease commitments
The Company has an operating lease expiring on 8th March 2142 at an annual rental of £21,000.
At the reporting year end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £2,539,677 (2020 £2,560,677)

11	Related party transactions

Summary of transactions with other related parties

 At the balance sheet date, debtors included an amount due from Cover Property Holdings Limited of £124,954 in which the director Mr S J Cover has an interest.

At the balance sheet date, Creditors falling due within one year included the following related party balances for which there are no formal repayment terms.

Amounts due to the director Mr J A Cover totalled £799,068 (2020 £838,319).

The directors have an interest in J A Cover Limited.
Amounts due to J A Cover Limited totalled £518,159 (2020 £518,159).