Grantham Bros. Limited - Period Ending 2017-05-31

Registration number: 01372008

Grantham Bros. Limited

Unaudited Abbreviated Accounts

FOR THE Year Ended 30 November 2016
 

Grantham Bros. Limited
Contents

			Page

Abbreviated Balance Sheet 1

Notes to the Abbreviated Accounts 2 to 5

Grantham Bros. Limited
(Registration number: 01372008)
Abbreviated Balance Sheet at 30 November 2016

		Note			2016 £			2015 £
Fixed assets
Intangible fixed assets					19,095			24,118
Tangible fixed assets					6,474,368			6,483,727
Investments					675			675
					6,494,138			6,508,520
Current assets
Stocks					2,419,291			3,141,584
Debtors					150,284			1,352,086
Cash at bank and in hand					81,292			36,799
					2,650,867			4,530,469
Creditors: Amounts falling due within one year					(264,462)			(2,070,489)
Net current assets					2,386,405			2,459,980
Total assets less current liabilities					8,880,543			8,968,500
Creditors: Amounts falling due after more than one year					(119,766)			(363,437)
Provisions for liabilities					(19,724)			(15,661)
Net assets					8,741,053			8,589,402
Capital and reserves
Called up share capital		4			170,100			170,100
Revaluation reserve					2,935,309			2,935,309
Profit and loss account					5,635,644			5,483,993
Shareholders' funds					8,741,053			8,589,402

For the year ending 30 November 2016 the company was entitled to exemption 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 Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the Financial Reporting Standard for Smaller Entities (effective 2015).

Approved by the Board on 10 July 2017 and signed on its behalf by:

.........................................
D H Grantham
Director

The notes on pages 2 to 5 form an integral part of these financial statements.
Page 1

Grantham Bros. Limited
Notes to the Abbreviated Accounts for the Year Ended 30 November 2016
......... continued

1	Accounting policies

Basis of preparation

The full financial statements, from which these abbreviated accounts have been extracted, have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (Effective January 2015).

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers and rent receivable.

Government grants

Single Farm Payment is received in repect of calendar years. Receipt is contingent upon meeting certain eligibility criteria on 15 May. Once the criteria have been met, the income is recognised on a time apportioned basis over the calendar year to which it relates.

Goodwill

Goodwill is the difference between the fair value of consideration paid for an acquired entity and the aggregate of the fair value of that entity's identifiable assets and liabilities.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

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

Asset class	Amortisation method and rate
Goodwill	20 years straight line basis
Single farm payment entitlements	7 years straight line basis

Depreciation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as detailed below. Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. Where buildings are maintained to such a standard that their residual value in not less than their cost, no depreciation is charged as it is not material.

Asset class	Depreciation method and rate
Land and buildings	No depreciation charged
Plant and machinery	15% - 33% straight line basis
Motor vehicles	20% straight line basis

Freehold buildings and tenants improvements are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. However, as buildings are maintained to such a standard that their residual value is not less than their cost or valuation, no depreciation is charged as it is not material.

Page 2

Grantham Bros. Limited
Notes to the Abbreviated Accounts for the Year Ended 30 November 2016
......... continued

Investment properties

Certain of the company's properties are held for long-term investment. Investment properties are accounted for in accordance with the FRSSE. No depreciation is provided in respect of investment properties and they are revalued annually. The surplus or deficit on revaluation is transferred to the revaluation reserve unless a deficit below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the profit and loss account for the year. This treatment as regards the company's investment properties may be a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. However, these properties are not held for consumption but for investment and the directors consider that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount which might otherwise have been shown cannot be separately identified or quantified.

Fixed asset investments

Fixed asset investments are stated at historical cost less provision for any diminution in value.

Stock and work in progress

Stock and work in progress are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs.

Deferred tax

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date, except as required by the FRSSE. Deferred tax is measured at the rates that are expected to apply in the periods when the timing differences are expected to reverse, based on the tax rates and law enacted at the balance sheet date.

Operating leasing

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.

Assets held for use in operating leases are included as a separate category in fixed assets at cost and depreciated over their useful life.

Page 3

Grantham Bros. Limited
Notes to the Abbreviated Accounts for the Year Ended 30 November 2016
......... continued

2	Fixed assets

		Intangible assets £			Tangible assets £			Investments £			Total £
Cost
At 1 December 2015		87,164			6,689,999			675			6,777,838
Additions		-			263,422			-			263,422
Disposals		-			(273,148)			-			(273,148)
At 30 November 2016		87,164			6,680,273			675			6,768,112
Depreciation
At 1 December 2015		63,046			206,272			-			269,318
Charge for the year		5,023			3,742			-			8,765
Eliminated on disposals		-			(4,109)			-			(4,109)
At 30 November 2016		68,069			205,905			-			273,974
Net book value
At 30 November 2016		19,095			6,474,368			675			6,494,138
At 30 November 2015		24,118			6,483,727			675			6,508,520

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Country of incorporation	Holding	Proportion of voting rights and shares held	Principal activity
Significant holdings
Streets Warehouse Limited		Ordinary A	20%	Maintenance of rental property

The financial period end of Streets Warehouse Limited is 31 August 2016. The profit for the financial period of Streets Warehouse Limited was £454 and the aggregate amount of capital and reserves at the end of the period was £3,827.

3

Creditors

Creditors includes the following liabilities, on which security has been given by the company:

		2016 £			2015 £
Amounts falling due within one year		126,724			593,767
Amounts falling due after more than one year		119,766			363,437
Total secured creditors		246,490			957,204

Page 4

Grantham Bros. Limited
Notes to the Abbreviated Accounts for the Year Ended 30 November 2016
......... continued

Included in the creditors are the following amounts due after more than five years:

		2016 £			2015 £
After more than five years by instalments		-			251,003

4	Share capital

Allotted, called up and fully paid shares

	2016						2015
		No.			£			No.			£
Ordinary A of £1 each		170,000			170,000			170,000			170,000
Ordinary B of £1 each		100			100			100			100
		170,100			170,100			170,100			170,100

5	Related party transactions

Directors' advances and credits

	2016 Advance/ Credit £	2016 Repaid £	2015 Advance/ Credit £	2015 Repaid £
P C Grantham
Interest free loan with no formal repayment terms	419,316	195,000	-	-

Page 5