Kilo Construction Limited Company accounts

KILO CONSTRUCTION LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07884287

Kilo Construction Limited

Unaudited Financial Statements

31 December 2016

ERC ACCOUNTANTS & BUSINESS ADVISERS LIMITED

Chartered accountant

Hanover Buildings

11-13 Hanover Street

Liverpool

L1 3DN

Kilo Construction Limited

Financial Statements

Year ended 31 December 2016

Contents	Pages

Officers and professional advisers	1

Director's report	2

Chartered accountant's report to the director on the preparation of the unaudited statutory financial statements	3

Statement of income and retained earnings	4

Statement of financial position	5

Notes to the financial statements	6 to 11

The following pages do not form part of the financial statements

Detailed income statement	13

Notes to the detailed income statement	14

Kilo Construction Limited

Officers and Professional Advisers

Director	Mr K Loughrey

Registered office	30 Shetland Close
	Fearnhead
	Warrington
	Cheshire
	United Kingdom
	WA2 0UW

Accountants	ERC ACCOUNTANTS & BUSINESS ADVISERS LIMITED
	Chartered accountant
	Hanover Buildings
	11-13 Hanover Street
	Liverpool
	L1 3DN

Bankers	Lloyds
	Horsemarket Street
	Warrington
	Chester
	WA1 1TP

Kilo Construction Limited

Director's Report

Year ended 31 December 2016

The director presents his report and the unaudited financial statements of the company for the year ended 31 December 2016 .

Principal activities

The principal activity of the company during the year was that of construction.

Director

The director who served the company during the year was as follows:

Mr K Loughrey

Small company provisions

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

This report was approved by the board of directors on 4 April 2017 and signed on behalf of the board by:

Mr K Loughrey
Director

Registered office:

30 Shetland Close

Fearnhead

Warrington

Cheshire

United Kingdom

WA2 0UW

Kilo Construction Limited

Chartered Accountant's Report to the Director on the Preparation of the Unaudited Statutory Financial Statements of Kilo Construction Limited

Year ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Kilo Construction Limited for the year ended 31 December 2016, which comprise the statement of income and retained earnings, 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 Kilo Construction Limited in accordance with the terms of our engagement letter dated 19 October 2016. Our work has been undertaken solely to prepare for your approval the financial statements of Kilo Construction Limited and state those matters that we have agreed to state 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 Kilo Construction Limited and its director for our work or for this report.

It is your duty to ensure that Kilo Construction Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Kilo Construction Limited. You consider that Kilo Construction 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 financial statements of Kilo Construction 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 financial statements.

ERC ACCOUNTANTS & BUSINESS ADVISERS LIMITED Chartered accountant

Hanover Buildings 11-13 Hanover Street Liverpool L1 3DN

4 April 2017

Kilo Construction Limited

Statement of Income and Retained Earnings

Year ended 31 December 2016

	2016	2015
Note	£	£

Turnover	633,712	483,604

Cost of sales	461,979	396,641
	----------	----------
Gross profit	171,733	86,963

Administrative expenses	86,131	65,743
Other operating income	554	–
	----------	---------
Operating profit	86,156	21,220

Interest payable and similar expenses		1,250	652
		----------	---------
Profit before taxation	5	84,906	20,568

Tax on profit	19,744	388
	---------	---------
Profit for the financial year and total comprehensive income	65,162	20,180
	---------	---------

Dividends paid and payable	( 30,000)	( 30,000)

Retained earnings at the start of the year	100,619	110,439
	----------	----------
Retained earnings at the end of the year	135,781	100,619
	----------	----------

All the activities of the company are from continuing operations.

Kilo Construction Limited

Statement of Financial Position

31 December 2016

	2016		2015
Note	£	£	£

Fixed assets

Tangible assets	6		55,104	40,196

Current assets

Debtors	7	78,494	55,323
Cash at bank and in hand		159,324	107,087
		----------	----------
		237,818	162,410

Creditors: Amounts falling due within one year	8	136,126		90,518
		----------		----------
Net current assets			101,692	71,892
			----------	----------
Total assets less current liabilities			156,796	112,088

Creditors: Amounts falling due after more than one year	9	21,014	11,468
		----------	----------
Net assets		135,782	100,620
		----------	----------

Capital and reserves

Called up share capital	1	1
Profit and loss account	135,781	100,619
	----------	----------
Members funds	135,782	100,620
	----------	----------

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

For the year ending 31 December 2016 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 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 financial statements .

These financial statements were approved by the board of directors and authorised for issue on 4 April 2017 , and are signed on behalf of the board by:

Mr K Loughrey
Director

Company registration number: 07884287

Kilo Construction Limited

Notes to the Financial Statements

Year ended 31 December 2016

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 30 Shetland Close, Fearnhead, Warrington, Cheshire, United Kingdom, WA2 0UW.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

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

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 January 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 12.

Revenue recognition

The turnover shown in the profit and loss account represents amounts invoiced during the year, net of Value Added Tax and trade discounts, together with provisions in respect of services provided under contract. Contract revenue is recognised as contractual activity progresses.

Corporation 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. 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. Deferred tax is recognised in respect of all material timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

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 and machinery	-	25% reducing balance
Fixture and fittings	-	25% reducing balance
Motor vehicles	-	25% reducing balance
Equipment	-	25% reducing balance

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Financial instruments

A financial asset or a financial liability is recognised only when the company 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. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

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.

4. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to 1 (2015: 1).

5. Profit before taxation

Profit before taxation is stated after charging:

	2016	2015
	£	£

Depreciation of tangible assets	17,611	7,370
	---------	-------

6. Tangible assets

Plant and machinery	Fixtures and fittings	Motor vehicles	Equipment	Total
£	£	£	£	£

Cost
At 1 January 2016	39,430	3,523	14,618	925	58,496
Additions	5,339	–	27,180	–	32,519
	---------	-------	---------	----	---------
At 31 December 2016	44,769	3,523	41,798	925	91,015
	---------	-------	---------	----	---------
Depreciation
At 1 January 2016	8,723	1,313	7,860	404	18,300
Charge for the year	10,592	569	6,320	130	17,611
	---------	-------	---------	----	---------
At 31 December 2016	19,315	1,882	14,180	534	35,911
	---------	-------	---------	----	---------
Carrying amount
At 31 December 2016	25,454	1,641	27,618	391	55,104
	---------	-------	---------	----	---------
At 31 December 2015	30,707	2,210	6,758	521	40,196
	---------	-------	---------	----	---------

7. Debtors

	2016	2015
	£	£

Trade debtors	59,198	27,514
Other debtors	19,296	27,809
	---------	---------
	78,494	55,323
	---------	---------

8. Creditors: Amounts falling due within one year

	2016	2015
	£	£

Trade creditors	11,783	1,582
Corporation tax	19,744	–
Social security and other taxes	24,640	17,761
Other creditors	79,959	71,175
	----------	---------
	136,126	90,518
	----------	---------

9. Creditors: Amounts falling due after more than one year

	2016	2015
	£	£

Other creditors	21,014	11,468
	---------	---------

10. Director's advances, credits and guarantees

Mr K Loughrey received interest free advances during the year totalling £nil. All advances are repayable on demand. The advance carried forward is £nil.

11. Related party transactions

The following related party transactions were undertaken during the year: The company was under the control of Mr K Loughrey throughout the current and previous year. Mr K Loughrey is the managing director and sole shareholder. During the year, Mr K Loughrey withdrew amounts totalling £661 and paid amounts totalling £2,978 on behalf of the company. Dividends were paid to the directors in respect of their shareholders totalling £38,456 of which £30,000 were declared (2015: £30,000) and received an undrawn salary of £7,956. (2015: withdrew amounts totalling £53,715, received an undrawn salary of £8,619 and paid amounts totalling £22,326 on behalf of the company). At the balance sheet date the amount receivable was £60,137 (2015: receivable £58,321. The aggregate remuneration paid to key management personnel for the year was £7,956 (2015: £8,619). No further transactions with related parties were undertaken such that are required to be disclosed under the Financial Reporting Standards Applicable in the UK and Republic of Ireland. The following related party transactions were undertaken during the year: The company was under the control of Mr K Loughrey throughout the current and previous year. Mr K Loughrey is the managing director and sole shareholder. During the year, Mr K Loughrey withdrew amounts totalling £27,161, received an salary of £7,956 and paid amounts totalling £7,738 on behalf of the company (2015: withdrew amounts totalling £53,715, received an undrawn salary of £8,619 and paid amounts totalling £22,326 on behalf of the company). At the balance sheet date the amount receivable was £46,853 (2015: receivable £58,321. Dividends were paid to the directors in respect of their shareholders totalling £30,000 (2015: £30,000). The aggregate remuneration paid to key management personnel for the year was £7,956 (2015: £8,619). No further transactions with related parties were undertaken such that are required to be disclosed under the Financial Reporting Standards Applicable in the UK and Republic of Ireland.

12. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 January 2015.

No transitional adjustments were required in equity or profit or loss for the year.

Kilo Construction Limited

Management Information

Year ended 31 December 2016

The following pages do not form part of the financial statements.

Kilo Construction Limited

Detailed Income Statement

Year ended 31 December 2016

	2016	2015
	£	£

Turnover	633,712	483,604

Cost of sales

Purchases	71,472	38,692
Subcontractor costs	326,576	237,871
Hire costs (non-operating leases)	52,087	109,838
Consumables	11,844	10,240
	----------	----------
	461,979	396,641

	----------	----------
Gross profit	171,733	86,963

Overheads

Administrative expenses	86,131	65,743

Other operating income	554	–

	---------	---------
Operating profit	86,156	21,220

Interest payable and similar expenses	1,250	652

	---------	---------
Profit before taxation	84,906	20,568
	---------	---------

Kilo Construction Limited

Notes to the Detailed Income Statement

Year ended 31 December 2016

	2016	2015
	£	£

Administrative expenses

Directors salaries	7,956	8,619
Rent	1,120	1,470
Insurance	9,803	10,154
Repairs and maintenance (allowable)	2,320	2,156
Motor expenses	12,235	16,259
Telephone	2,115	2,245
Printing postage and stationery	565	1,594
Other staff related expenses	8,464	545
Sundry expenses	1,247	1,544
Use of home as office	208	156
Entertaining	3,574	1,619
Legal and professional fees (allowable)	16,164	8,324
Accountancy fees	2,620	2,359
Depreciation of plant and machinery	17,611	7,370
Bad debts written off	–	403
Bank charges	129	926
	---------	---------
	86,131	65,743
	---------	---------

Other operating income

Other operating income	554	–
	----	----

Interest payable and similar expenses

Interest on hire purchase and finance lease contracts	1,250	652
	-------	----