Hawthorne Contract Services Ltd Accounts

HAWTHORNE CONTRACT SERVICES LIMITED - Company Information






Hawthorne Contract Services Ltd

	Company No. 05692085
		Information for Filing with The Registrar
		31 January 2023

The Directors present their report and the accounts for the year ended 31 January 2023.

Principal activities
The principal activity of the company during the year under review was rail communications.




Directors

The Directors who served at any time during the year were as follows:

G. Hawthorne
G.B. Hawthorne






































































The above report has been prepared in accordance with the provisions applicable to companies subject to the small companies regime as set out in Part 15 of the Companies Act 2006.

Signed on behalf of the board

G.B. Hawthorne
Director
25 July 2023

at	31 January 2023
Company No.		05692085	Notes	2023	2022
				£	£
Fixed assets
	Intangible assets		4	9,157	13,353
	Tangible assets		5	162,888	203,670
	Investment property		6	246,952	-

				418,997	217,023
Current assets
	Stocks		7	346,878	169,083
	Debtors		8	80,589	650,736

	Cash at bank and in hand			371,883	65,791
				799,350	885,610
Creditors: Amount falling due within one year			9	(419,052)	(504,582)
Net current assets				380,298	381,028
Total assets less current liabilities				799,295	598,051
Creditors: Amounts falling due after more than one year			10	(102,482)	(238,559)
Provisions for liabilities
	Deferred taxation			(30,949)	-

Net assets				665,864	359,492

Capital and reserves
	Called up share capital			100	100



	Profit and loss account		12	665,764	359,392

Total equity				665,864	359,492



These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime of the Companies Act 2006.

For the year ended 31 January 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.



As permitted by section 444 (5A)of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company's profit and loss account.

Approved by the board on 25 July 2023
And signed on its behalf by:
G.B. Hawthorne
Director
25 July 2023

for the year ended 31 January 2023

General information

Its registered number is: 05692085

Its registered office is:

Its trading address is:

c/o Swallow House

3 Horizon Court

Brownmoor Lane

Clifton Moor

York

YO61 1HE

YO30 4US

The accounts have been prepared in accordance with FRS 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland (March 2018) and the Companies Act 2006.

Accounting policies

Turnover

Turnover is measured at the fair value of the consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• the Company has transferred to the buyer the significant risks and rewards of ownership of the
goods;
• the Company retains neither continuing managerial involvement to the degree usually associated
with ownership nor effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits associated with the transaction will flow to the Company;
and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed.

Intangible fixed assets

Intangible fixed assets are carried at cost less accumulated amortisation and impairment losses.

Tangible fixed assets and depreciation

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss.

Depreciation is provided at the following annual rates in order to write off the cost or valuation less the estimated residual value of each asset over its estimated useful life:

Plant and machinery

15% Reducing Balance

Motor vehicles

25% Reducing Balance

Furniture, fittings and equipment

25% Reducing Balance

Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Freehold investment property

Investment properties are revalued annually and any surplus or deficit is dealt with through the profit and loss account.

No depreciation is provided in respect of investment properties.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Work in progress is reflected in the accounts on a contract by contract basis by recording revenue and related costs as contract activity progresses.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts.

Trade and other creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Foreign currencies

The functional and presentational currency of the company is Sterling. The accounts are rounded to the nearest pound.

Transactions in currencies, other than the functional currency of the Company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. all differences are taken to the profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Defined contribution pensions

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

3	Employees
			2023	2022
			Number	Number
		The average monthly number of employees (including directors) during the year was:	14	14

4	Intangible fixed assets
			Other	Total
			£	£
		Cost
		At 1 February 2022	20,982	20,982


		At 31 January 2023	20,982	20,982
		Amortisation and impairment
		At 1 February 2022	7,629	7,629
		Charge for the year	4,196	4,196


		At 31 January 2023	11,825	11,825
		Net book values
		At 31 January 2023	9,157	9,157
		At 31 January 2022	13,353	13,353

		Intangible Assets amortised over 5 years

5	Tangible fixed assets
			Plant and machinery	Motor vehicles	Fixtures, fittings and equipment	Total
			£	£	£	£
		Cost or revaluation
		At 1 February 2022	69,712	275,591	55,614	400,917
		Additions	-	990	6,291	7,281



		At 31 January 2023	69,712	276,581	61,905	408,198
		Depreciation
		At 1 February 2022	36,603	123,814	36,830	197,247
		Charge for the year	4,966	38,192	4,905	48,063



		At 31 January 2023	41,569	162,006	41,735	245,310
		Net book values
		At 31 January 2023	28,143	114,575	20,170	162,888
		At 31 January 2022	33,109	151,777	18,784	203,670

6	Investment property
			Freehold Investment Property
			£
		Valuation

		Additions	246,952


		At 31 January 2023	246,952

7	Stocks
			2023	2022
			£	£

		Work in progress	321,878	144,083
		Finished goods	25,000	25,000
			346,878	169,083

8	Debtors
			2023	2022
			£	£
		Trade debtors	5,521	555,687



		VAT recoverable	6,974	44,695

		Other debtors	36,193	41,321
		Prepayments and accrued income	31,901	9,033
			80,589	650,736

9	Creditors:
		amounts falling due within one year
			2023	2022
			£	£

		Bank loans and overdrafts	-	1,072
		Other loans	105,514	156,113
		Obligations under finance lease and hire purchase contracts	30,563	39,057
		Trade creditors	118,075	151,122

		Taxes and social security	112,987	120,423
		Loans from directors	286	309
		Other creditors	1,914	1,654
		Accruals and deferred income	49,713	34,832
			419,052	504,582

10	Creditors:
		amounts falling due after more than one year
			2023	2022
			£	£


		Other loans	84,501	190,015
		Obligations under finance lease and hire purchase contracts	17,981	48,544




			102,482	238,559

Share Capital

Share capital is made up of 50 A Ordinary Shares and 50 B Ordinary Shares allocated and fully paid up.

Reserves

Profit and loss account - includes all current and prior period retained profits and losses.

13	Guarantees and commitments
			2023	2022
			£	£




		Pension commitments, included in above total	1,920	1,654

14	Dividends
			2023	2022
			£	£
		Dividends for the period:
		Dividends paid in the period	88,234	166,100

			88,234	166,100

		Dividends by type:

		Equity dividends	88,234	166,100
			88,234	166,100