Avonfinch Limited - Period Ending 2023-05-31
Avonfinch Limited - Period Ending 2023-05-31
Registration number:
Avonfinch Limited
for the Year Ended 31 May 2023
Avonfinch Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Avonfinch Limited
Company Information
Directors |
Mr AJ Heath Mrs SD Heath |
Company secretary |
Mr AJ Heath |
Registered office |
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Accountants |
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Avonfinch Limited
(Registration number: 03354056)
Balance Sheet as at 31 May 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets/(liabilities) |
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( |
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Capital and reserves |
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Called up share capital |
100,000 |
100,000 |
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Revaluation reserve |
1,138,433 |
608,433 |
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Retained earnings |
(1,100,278) |
(995,783) |
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Shareholders' funds/(deficit) |
138,155 |
(287,350) |
For the financial year ending 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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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.
Avonfinch Limited
(Registration number: 03354056)
Balance Sheet as at 31 May 2023
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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 that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis.
The company is persuing a claim against a supplier for the installation of defective equipment, which has had a significant impact on the business and its trade since 2014. The company continues to be supported by the directors, its long term creditors and suppliers to ensure liabilities are met as they fall due.
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.
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.
Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Except for land and buildings which are recognised according to the alternative accounting rules in the Companies Act 2006 and reported at fair value based on market valuations. These are updated on a regular basis and where there has been a material change in value. The profit or loss on revaluation is recorded in the revaluation reserve.
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 |
Land and buildings |
Fair value |
Plant and machinery |
15% straight line |
Motor vehicles |
25% reducing balance |
Office equipment |
25% straight line |
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 subsequently measured at amortised cost using the effective interest method.
Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
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 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.
Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Tangible assets |
Land and buildings |
Motor vehicles |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 June 2022 |
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Revaluations |
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- |
- |
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Additions |
- |
- |
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Disposals |
- |
- |
( |
( |
At 31 May 2023 |
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Depreciation |
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At 1 June 2022 |
- |
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Charge for the year |
- |
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Eliminated on disposal |
- |
- |
( |
( |
At 31 May 2023 |
- |
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Carrying amount |
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At 31 May 2023 |
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At 31 May 2022 |
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Land and buildings includes freehold land with a cost of £419,004 (2022 - £419,004) which is not depreciated.
Included within the net book value of £2,078,133 is £19,173 (2022 - £76,139) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £5,065 (2022 - £31,501).
Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Revaluation
The fair value of the company's land and buildings were revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Stocks |
2023 |
2022 |
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Other inventories |
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Debtors |
Current |
2023 |
2022 |
Trade debtors |
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Prepayments |
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Other debtors |
- |
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Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
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Due within one year |
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Bank loans and overdrafts |
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Trade creditors |
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Other creditors |
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Taxation and social security |
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Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £487,683 (2022 - £652,301).
Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Other non-current financial liabilities |
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997,796 |
1,232,540 |
2023 |
2022 |
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Due after more than five years |
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After more than five years by instalments |
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Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £700,942 (2022 - £922,265).
Avonfinch Limited
Notes to the Financial Statements for the Year Ended 31 May 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
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10,000 |
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10,000 |
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24,000 |
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24,000 |
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16,000 |
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16,000 |
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50,000 |
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50,000 |
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Related party transactions |
At the balance sheet date there was a balance due to Heath Pension Scheme, a small self administered scheme in which certain directors are beneficiaries, of £70,471 (2022 - £69,444), which is included in Other creditors. During the year interest was paid on the loan totalling £1,026 (2022 - £1,026).
At the balance sheet date the company owed the directors a balance of £268,791 (2022 - (£78,177)), which is included in Other creditors (2022 - Other debtors).