NGB (Cheltenham) Limited - Period Ending 2022-09-30

NGB (Cheltenham) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

NGB (Cheltenham) Limited

Company Information

Directors

J A Bermingham N A P Bermingham S A J G Bermingham

Company secretary

J A Bermingham

Registered office

Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

NGB (Cheltenham) Limited

(Registration number: 05357907)
Balance Sheet as at 30 September 2022

	Note	2022  £	2021  £
Fixed assets
Tangible assets	5	456,806	448,278
Current assets
Debtors	6	1,018,641	752,647
Cash at bank and in hand		541,646	416,473
		1,560,287	1,169,120
Creditors: Amounts falling due within one year	7	(806,693)	(324,737)
Net current assets		753,594	844,383
Total assets less current liabilities		1,210,400	1,292,661
Creditors: Amounts falling due after more than one year	7	-	(342,897)
Deferred tax liabilities		(113,979)	(111,903)
Net assets		1,096,421	837,861
Capital and reserves
Called up share capital	10	301,000	301,000
Profit and loss account		795,421	536,861
Total equity		1,096,421	837,861

For the financial year ending 30 September 2022 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 29 June 2023 and signed on its behalf by:
 

N A P Bermingham
Director

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

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:
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

The principal place of business is:
Morringham Yard
104 Prestbury Road
Cheltenham
Gloucestershire
GL52 2DJ

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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 as follows:

Asset class	Depreciation method and rate
Leasehold improvements	15% reducing balance
Plant and machinery	15% reducing balance
Fixtures and fittings	15% reducing balance
Motor vehicles	25% reducing balance

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	10 years straight line

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2022  No.	2021  No.
Average number of employees	13	18

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

4

Intangible assets

	Goodwill  £
Cost
At 1 October 2021	650,000
At 30 September 2022	650,000
Amortisation
At 1 October 2021	650,000
At 30 September 2022	650,000
Carrying amount
At 30 September 2022	-
At 30 September 2021	-

5

Tangible assets

	Leasehold improvements £	Plant and machinery  £	Fixtures and fittings  £	Motor vehicles  £	Total £
Cost
At 1 October 2021	13,178	886,153	8,453	99,188	1,006,972
Additions	-	55,550	2,669	25,743	83,962
At 30 September 2022	13,178	941,703	11,122	124,931	1,090,934
Depreciation
At 1 October 2021	7,802	476,100	3,042	71,750	558,694
Charge for the year	816	62,909	758	10,951	75,434
At 30 September 2022	8,618	539,009	3,800	82,701	634,128
Carrying amount
At 30 September 2022	4,560	402,694	7,322	42,230	456,806
At 30 September 2021	5,376	410,053	5,411	27,438	448,278

6

Debtors

	Note	2022  £	2021  £
Trade debtors		881,375	601,208
Amounts owed by related parties	11	-	127,362
Other debtors		113,557	-
Prepayments		23,709	24,077
		1,018,641	752,647

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

7

Creditors

	Note	2022  £	2021  £
Due within one year
Loans and borrowings	8	31,201	115,288
Trade creditors		271,513	140,643
Amounts due to related parties	11	420,629	-
Social security and other taxes		14,070	17,916
Outstanding defined contribution pension costs		2,475	1,944
Other creditors		585	250
Accrued expenses		6,773	6,163
Corporation tax liability		59,447	42,533
		806,693	324,737

	Note	2022 £	2021 £
Due after one year
Loans and borrowings	8	-	342,897

	2022 £	2021 £
After more than five years by instalments	-	57,433

	-	-

8

Loans and borrowings

	Note	2022 £	2021 £
Current loans and borrowings
Bank borrowings		-	18,260
HP and finance lease liabilities		11,157	51,964
Other borrowings	11	20,044	45,064
		31,201	115,288

	2022 £	2021 £
Non-current loans and borrowings
Bank borrowings	-	331,740
HP and finance lease liabilities	-	11,157
	-	342,897

Finance lease liabilities
The finance lease liabilities of the company are secured against the assets to which they relate.

Included in the loans and borrowings are the following amounts due after more than five years:

	2022 £	2021 £
After more than five years by instalments	-	57,433
	-	57,433

NGB (Cheltenham) Limited

Notes to the Financial Statements for the Year Ended 30 September 2022

9

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Differences between accumulated depreciation and amortisation and capital allowances	114,202
Short term timing differences	(223)
	113,979

2021	Liability £
Differences between accumulated depreciation and amortisation and capital allowances	112,070
Short term timing differences	(167)
	111,903

10

Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary A shares of £1 each	800	800	800	800
Ordinary B shares of £1 each	100	100	100	100
Ordinary C shares of £1 each	100	100	100	100
Redeemable preference shares of £1 each	300,000	300,000	300,000	300,000
	301,000	301,000	301,000	301,000

Ordinary shares
The different classes of ordinary shares referred to above carry separate rights to dividends but, in all other significant aspects, rank pari passu.

Redeemable preference shares

The redeemable preference shares are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights.

11

Related party transactions

Summary of transactions with parent

At the balance sheet date the company owed £420,629 to its parent company (2021 - £127,362 was owed from the parent company). There are no fixed repayment terms and no interest is charged on these amounts.

Other transactions with directors

At the balance sheet date the company owed £20,044 (2021 - £45,064) to the directors of the company. There are no fixed repayment terms and no interest is charged on these amounts.