GB Contracts Limited - Period Ending 2016-12-31

Registration number: 03689012

GB Contracts Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Philip Nickson & Co Ltd
Chartered Accountants
Paradise Farm
High Street
Kempsford
Fairford
Gloucestershire
GL7 4EU

GB Contracts Limited

Contents

Company Information	1
Director's Report	2
Accountants' Report	3
Profit and Loss Account	4
Statement of Comprehensive Income	5
Balance Sheet	6 to 7
Statement of Changes in Equity	8 to 9
Notes to the Financial Statements	10 to 18

GB Contracts Limited

Company Information

Director

G Brooks

Registered office

Chelworth Industrial Estate Cricklade Swindon SN6 6HQ

Accountants

Philip Nickson & Co Ltd Chartered Accountants Paradise Farm High Street Kempsford Fairford Gloucestershire GL7 4EU

Page 1

GB Contracts Limited

Director's Report for the Year Ended 31 December 2016

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

Director of the company

The director who held office during the year was as follows:

G Brooks

Principal activity

The principal activity of the company is property development for rental purposes

Small companies provision statement

This report has 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.

Approved by the Board on 31 July 2017 and signed on its behalf by:

.........................................
G Brooks
Director

Page 2

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
GB Contracts Limited
for the 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 accounts of GB Contracts Limited for the year ended 31 December 2016 as set out on pages 4 to 18 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
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of GB Contracts Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of GB Contracts Limited and state those matters that we have agreed to state to the Board of Directors of GB Contracts Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than GB Contracts Limited and its Board of Directors as a body for our work or for this report.

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

......................................

Philip Nickson & Co Ltd
Chartered Accountants
Paradise Farm
High Street
Kempsford
Fairford
Gloucestershire
GL7 4EU

31 July 2017

Page 3

GB Contracts Limited

Profit and Loss Account for the Year Ended 31 December 2016

	Note	Total 31 December 2016 £	Total 31 December 2015 £
Turnover		229,024	407,672
Cost of sales		(66,443)	(106,743)
Gross profit		162,581	300,929
Administrative expenses		(81,439)	(79,797)
Other operating income		4,156	51,729
Operating profit		85,298	272,861
Interest payable and similar expenses		(28,084)	(21,136)
		(28,084)	(21,136)
Profit before tax		57,214	251,725
Taxation		(10,644)	(50,873)
Profit for the financial year		46,570	200,852

The above results were derived from continuing operations.

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 4

GB Contracts Limited

Statement of Comprehensive Income for the Year Ended 31 December 2016

	Note	2016 £	2015 £
Profit for the year		46,570	200,852
Surplus/(deficit) on property, plant and equipment revaluation		5,654	(1,565)
Total comprehensive income for the year		52,224	199,287

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 5

GB Contracts Limited

(Registration number: 03689012)
Balance Sheet as at 31 December 2016

	Note	2016 £	2015 £
Fixed assets
Tangible assets	4	299,216	288,058
Investment property	5	3,408,675	2,479,171
Investments	6	1	1
		3,707,892	2,767,230
Current assets
Stocks	7	271,209	272,819
Debtors	8	683,709	1,240,185
Cash at bank and in hand		22,705	22,238
		977,623	1,535,242
Creditors: Amounts falling due within one year	9	(363,262)	(180,725)
Net current assets		614,361	1,354,517
Total assets less current liabilities		4,322,253	4,121,747
Creditors: Amounts falling due after more than one year	9	(1,077,234)	(924,715)
Provisions for liabilities		(236,195)	(240,432)
Net assets		3,008,824	2,956,600
Capital and reserves
Called up share capital		100	100
Profit and loss account		3,008,724	2,956,500
Total equity		3,008,824	2,956,600

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 6

GB Contracts Limited

(Registration number: 03689012)
Balance Sheet as at 31 December 2016

For the financial 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 accounts for the year in question in accordance with section 476; and
•	The director acknowledges his 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 director on 31 July 2017
 

.........................................

G Brooks

Director

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 7

GB Contracts Limited

Statement of Changes in Equity for the Year Ended 31 December 2016

	Share capital £	Profit and loss account £	Total £
At 1 January 2016	100	2,956,500	2,956,600
Profit for the year	-	46,570	46,570
Other comprehensive income	-	5,654	5,654
Total comprehensive income	-	52,224	52,224
At 31 December 2016	100	3,008,724	3,008,824

	Share capital £	Profit and loss account £	Total £
At 1 January 2015	100	2,757,213	2,757,313
Profit for the year	-	200,852	200,852
Other comprehensive income	-	(1,565)	(1,565)
Total comprehensive income	-	199,287	199,287
At 31 December 2015	100	2,956,500	2,956,600

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 8

GB Contracts Limited

Statement of Changes in Equity for the Year Ended 31 December 2016

Profit and loss account

Of the balance of profit and loss account, £801,332 (2015 - £785,053) is not distributable.

The notes on pages 10 to 18 form an integral part of these financial statements.

Page 9

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
Chelworth Industrial Estate
Cricklade
Swindon
SN6 6HQ

These financial statements were authorised for issue by the director on 31 July 2017.

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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Tangible assets

Tangible assets are stated in the statement of financial position 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, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	10% straight line basis
Fixtures and fittings	25% straight line basis
Motor vehicles	25% straight line basis
Office equipment	25% straight line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Page 10

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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.

Page 11

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

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.

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.

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2015 - 1).

Page 12

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Tangible assets

	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 January 2016	16,585	11,000	468,734	496,319
Additions	666	-	73,893	74,559
Disposals	-	-	(18,750)	(18,750)
At 31 December 2016	17,251	11,000	523,877	552,128
Depreciation
At 1 January 2016	12,226	5,500	190,535	208,261
Charge for the year	2,592	2,750	46,283	51,625
Eliminated on disposal	-	-	(6,974)	(6,974)
At 31 December 2016	14,818	8,250	229,844	252,912
Carrying amount
At 31 December 2016	2,433	2,750	294,033	299,216
At 31 December 2015	4,359	5,500	278,199	288,058

5	Investment properties

	2016 £
At 1 January	2,479,171
Additions	1,129,504
Disposals	(200,000)
At 31 December	3,408,675

The basis of the valuation of investment property was sales value in an open market, assuming that not all properties would be sold at once.

There has been no valuation of investment property by an independent valuer.

Page 13

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

6	Investments

	2016 £	2015 £
Investments in subsidiaries	1	1

Subsidiaries	£
Cost or valuation
At 1 January 2016	1
Provision
Carrying amount
At 31 December 2016	1
At 31 December 2015	1

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2016	2015
Subsidiary undertakings
GB Contracts (Drake House) Limited	Chelworth Industrial Estate Cricklade Swindon SN6 6HQ	Ordinary shares	100%	100%
	England

The principal activity of GB Contracts (Drake House) Limited is property investment

The profit for the financial period of GB Contracts (Drake House) Limited was £11,644 and the aggregate amount of capital and reserves at the end of the period was £55,992.

7

Stocks

	2016 £	2015 £
Other inventories	271,209	272,819

Page 14

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

8

Debtors

	Note	2016 £	2015 £
Trade debtors		37,114	571,188
Amounts owed by group undertakings and undertakings in which the company has a participating interest		485,184	497,495
Other debtors		161,411	171,502
Total current trade and other debtors		683,709	1,240,185

9

Creditors

	Note	2016 £	2015 £
Due within one year
Bank loans and overdrafts	10	100,288	49,835
Trade creditors		6,119	54,838
Taxation and social security		9,227	50,379
Other creditors		247,628	25,673
		363,262	180,725
Due after one year
Loans and borrowings	10	1,077,234	924,715

10	Loans and borrowings

	2016 £	2015 £
Non-current loans and borrowings
Bank borrowings	1,077,234	924,715

	2016 £	2015 £
Current loans and borrowings
Bank borrowings	100,288	49,835

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

	2016 £	2015 £
After more than five years by instalments	535,848	603,520
After more than five years not by instalments	-	107,960
	535,848	711,480

Page 15

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

11	Transition to FRS 102

The impact of recognising deferred taxation on the revaluatiion of investment property

Balance Sheet at 1 January 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets		2,729,569	(2,476,488)	-	253,081
Investment property		-	2,476,488	-	2,476,488
Investments		1	-	-	1
		2,729,570	-	-	2,729,570
Current assets
Stocks		318,163	-	-	318,163
Debtors		803,067	-	-	803,067
Cash at bank and in hand		30,926	-	-	30,926
		1,152,156	-	-	1,152,156
Creditors: Amounts falling due within one year		(119,102)	-	-	(119,102)
Net current assets		1,033,054	-	-	1,033,054
Total assets less current liabilities		3,762,624	-	-	3,762,624
Creditors: Amounts falling due after more than one year		(778,094)	-	-	(778,094)
Provisions for liabilities		(41,430)	-	(185,787)	(227,217)
Net assets/(liabilities)		2,943,100	-	(185,787)	2,757,313
Capital and reserves
Called up share capital		100	-	-	100
Revaluation reserve		972,406	(972,406)	-	-
Profit and loss account		1,970,594	972,406	(185,787)	2,757,213
Total equity		2,943,100	-	(185,787)	2,757,313

Page 16

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Balance Sheet at 31 December 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets		2,767,229	(2,479,171)	-	288,058
Investment property		-	2,479,171	-	2,479,171
Investments		1	-	-	1
		2,767,230	-	-	2,767,230
Current assets
Stocks		272,819	-	-	272,819
Debtors		1,240,185	-	-	1,240,185
Cash at bank and in hand		22,238	-	-	22,238
		1,535,242	-	-	1,535,242
Creditors: Amounts falling due within one year		(180,725)	-	-	(180,725)
Net current assets		1,354,517	-	-	1,354,517
Total assets less current liabilities		4,121,747	-	-	4,121,747
Creditors: Amounts falling due after more than one year		(924,715)	-	-	(924,715)
Provisions for liabilities		(53,080)	-	(187,352)	(240,432)
Net assets/(liabilities)		3,143,952	-	(187,352)	2,956,600
Capital and reserves
Called up share capital		100	-	-	100
Revaluation reserve		972,406	(972,406)	-	-
Profit and loss account		2,171,446	972,406	(187,352)	2,956,500
Total equity		3,143,952	-	(187,352)	2,956,600

Page 17

GB Contracts Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Profit and Loss Account for the year ended 31 December 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Turnover		150,511	257,161	-	407,672
Cost of sales		(106,744)	1	-	(106,743)
Gross profit		43,767	257,162	-	300,929
Administrative expenses		(79,797)	-	-	(79,797)
Other operating income		308,890	(257,161)	-	51,729
Operating profit		272,860	1	-	272,861
Interest payable and similar expenses		(21,135)	(1)	-	(21,136)
		(21,135)	(1)	-	(21,136)
Profit before tax		251,725	-	-	251,725
Taxation		(50,873)	-	-	(50,873)
Profit for the financial year		200,852	-	-	200,852

Page 18