D'Ovidio Bros. Limited Filleted accounts for Companies House (small and micro)

D'OVIDIO BROS. LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 01859144

D'Ovidio Bros. Limited

Filleted Unaudited Abridged Financial Statements

31 May 2021

D'Ovidio Bros. Limited

Abridged Financial Statements

Year ended 31 May 2021

Contents	Pages

Officers and professional advisers	1

Chartered accountant's report to the director on the preparation of the unaudited statutory abridged financial statements	2

Abridged statement of financial position	3 to 4

Notes to the abridged financial statements	5 to 10

D'Ovidio Bros. Limited

Officers and Professional Advisers

Director	T D'Ovidio

Company secretary	J R D'Ovidio

Registered office	Worth House
	Worth
	Nr Wells
	Somerset
	BA5 1LW

Accountants	Bishop Jones
	Chartered accountants
	Mill Street Business Centre
	55a High Street
	Wells
	Somerset
	BA5 2AE

D'Ovidio Bros. Limited

Chartered Accountant's Report to the Director on the Preparation of the Unaudited Statutory Abridged Financial Statements of D'Ovidio Bros. Limited

Year ended 31 May 2021

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the abridged financial statements of D'Ovidio Bros. Limited for the year ended 31 May 2021, which comprise the abridged statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us. As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at www.icaew.com/en/membership/regulations-standards-and-guidance. This report is made solely to the director of D'Ovidio Bros. Limited in accordance with the terms of our engagement letter dated 15 October 2015. Our work has been undertaken solely to prepare for your approval the abridged financial statements of D'Ovidio Bros. Limited and state those matters that we have agreed to state to you in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at www.icaew.com/compilation. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than D'Ovidio Bros. Limited and its director for our work or for this report.

It is your duty to ensure that D'Ovidio Bros. Limited has kept adequate accounting records and to prepare statutory abridged financial statements that give a true and fair view of the assets, liabilities, financial position and profit of D'Ovidio Bros. Limited. You consider that D'Ovidio Bros. Limited is exempt from the statutory audit requirement for the year. We have not been instructed to carry out an audit or a review of the abridged financial statements of D'Ovidio Bros. Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory abridged financial statements.

Bishop Jones Chartered accountants

Mill Street Business Centre 55a High Street Wells Somerset BA5 2AE

25 February 2022

D'Ovidio Bros. Limited

Abridged Statement of Financial Position

31 May 2021

	2021		2020
Note	£	£	£

Fixed assets

Tangible assets	5		1,247,529	1,243,820

Current assets

Stocks		57,083	1,077
Debtors		575,320	545,683
Investments	6	1,861	1,861
Cash at bank and in hand		495,349	237,608
		------------	---------
		1,129,613	786,229

Creditors: amounts falling due within one year	393,961		297,639
	------------		---------
Net current assets		735,652	488,590
		------------	------------
Total assets less current liabilities		1,983,181	1,732,410

Provisions

Taxation including deferred tax	6,493	5,788
	------------	------------
Net assets	1,976,688	1,726,622
	------------	------------

D'Ovidio Bros. Limited

Abridged Statement of Financial Position (continued)

31 May 2021

	2021		2020
Note	£	£	£

Capital and reserves

Called up share capital	400	400
Profit and loss account	1,976,288	1,726,222
	------------	------------
Shareholders funds	1,976,688	1,726,622
	------------	------------

These abridged financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the abridged statement of income and retained earnings has not been delivered.

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

Director's responsibilities:

- The members have not required the company to obtain an audit of its abridged financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of abridged financial statements .

All of the members have consented to the preparation of the abridged statement of income and retained earnings and the abridged statement of financial position for the year ending 31 May 2021 in accordance with Section 444(2A) of the Companies Act 2006.

These abridged financial statements were approved by the board of directors and authorised for issue on 25 February 2022 , and are signed on behalf of the board by:

T D'Ovidio
Director

Company registration number: 01859144

D'Ovidio Bros. Limited

Notes to the Abridged Financial Statements

Year ended 31 May 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Worth House, Worth, Nr Wells, Somerset, BA5 1LW.

2. Statement of compliance

These abridged financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The abridged financial statements are prepared in sterling, which is the functional currency of the entity.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Provision of Retention Expenditure is required at times for the rectification of work carried out for customers where defects have been identified which usually occurs during a two year period from completion of the contract. In making this judgement, management considered the detailed criteria for the recognition of revenue from the customers set out in FRS 102 Section 23. Following the Company's quantification of the historical liability in respect of rectification work the directors are satisfied that recognition of 1% of the revenue in the current year is appropriate, in conjunction with recognition of an appropriate provision for the rectification costs. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Stock and Work in Progress In determining the level of stock held and work in progress unbilled at the year end requires an estimation of the value due to no formal stock take or cost ledger maintained. The calculation requires the company to estimate the stock on hand at the balance sheet date and the contract work undertaken during the year and invoiced in the following period. The estimation is made by the company reviewing stock purchases around the year end and sales invoices in the month following the year end. The carrying amount at the balance sheet of stock was £6,020 (2020 - £1,077) and work in progress was £51,063 (2020 - £-).

Revenue recognition

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. Turnover is recognised when work has been completed.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant & Machinery	-	25% reducing balance
Motor Vehicles	-	25% reducing balance

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the abridged statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 17 (2020: 21 ).

5. Tangible assets

	£
Cost
At 1 June 2020	1,409,990
Additions	15,455
Disposals	( 10,477)
	------------
At 31 May 2021	1,414,968
	------------
Depreciation
At 1 June 2020	166,170
Charge for the year	11,391
Disposals	( 10,122)
	------------
At 31 May 2021	167,439
	------------
Carrying amount
At 31 May 2021	1,247,529
	------------
At 31 May 2020	1,243,820
	------------

6. Investments

	2021	2020
	£	£
Other investments	1,861	1,861
	-------	-------

7. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company:

	2021
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
T D'Ovidio	( 76,577)	( 39,207)	10,141	( 105,643)
	--------	--------	--------	---------

	2020
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
T D'Ovidio	( 101,387)	( 34,950)	59,760	( 76,577)
	---------	--------	--------	--------

8. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2021	2020	2021	2020
	£	£	£	£
Mr T D'Ovidio	29,066	( 24,810)	( 105,643)	( 76,577)
	--------	--------	---------	--------

During the year the director maintained a loan account with the company as noted above. The loan is interest free and has no fixed repayment date whilst funds remain owing to the director. Control The company was under the control of Mr T D'Ovidio throughout the current and previous year. Mr T D'Ovidio is the managing director and majority shareholder.