Ian Churcher Ltd - Period Ending 2016-12-31

Registration number: 04935096

Ian Churcher Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Harland Accountants
1a Berkeley Court
Berkeley Vale
Falmouth
Cornwall
TR11 3PB

Ian Churcher Ltd

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
Notes to the Financial Statements	9 to 14

Ian Churcher Ltd

Company Information

Director

Mr Ian Churcher

Company secretary

Mrs Catherine J Churcher

Registered office

1a Berkeley Court Berkeley Vale Falmouth Cornwall TR11 3PB

Accountants

Harland Accountants 1a Berkeley Court Berkeley Vale Falmouth Cornwall TR11 3PB

Page 1

Ian Churcher Ltd

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:

Mr Ian Churcher

Principal activity

The principal activity of the company is that of carpenters and joiners.

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 19 September 2017 and signed on its behalf by:

.........................................
Mr Ian Churcher
Director

Page 2

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Ian Churcher Ltd
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 Ian Churcher Ltd for the year ended 31 December 2016 as set out on pages 4 to 14 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 Ian Churcher Ltd, 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 Ian Churcher Ltd and state those matters that we have agreed to state to the Board of Directors of Ian Churcher Ltd, 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 Ian Churcher Ltd and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Ian Churcher Ltd 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 Ian Churcher Ltd. You consider that Ian Churcher Ltd 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 Ian Churcher Ltd. 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.

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

Harland Accountants
1a Berkeley Court
Berkeley Vale
Falmouth
Cornwall
TR11 3PB

19 September 2017

Page 3

Ian Churcher Ltd

Profit and Loss Account for the Year Ended 31 December 2016

	Note	2016 £	(As restated) 2015 £
Turnover		39,539	50,074
Cost of sales		(13,270)	(10,790)
Gross profit		26,269	39,284
Administrative expenses		(15,146)	(16,119)
Operating profit		11,123	23,165
Other interest receivable and similar income		40	16
		40	16
Profit before tax	4	11,163	23,181
Taxation		(2,393)	(4,733)
Profit for the financial year		8,770	18,448

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 4

Ian Churcher Ltd

Statement of Comprehensive Income for the Year Ended 31 December 2016

	Note	2016 £	(As restated) 2015 £
Profit for the year		8,770	18,448
Total comprehensive income for the year		8,770	18,448

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 5

Ian Churcher Ltd

(Registration number: 04935096)
Balance Sheet as at 31 December 2016

	Note	2016 £	(As restated) 2015 £
Fixed assets
Intangible assets	5	2,800	3,500
Tangible assets	6	-	100
		2,800	3,600
Current assets
Stocks	7	150	225
Cash at bank and in hand		5,808	11,720
		5,958	11,945
Creditors: Amounts falling due within one year	8	(7,540)	(14,097)
Net current liabilities		(1,582)	(2,152)
Net assets		1,218	1,448
Capital and reserves
Called up share capital		100	100
Profit and loss account		1,118	1,348
Total equity		1,218	1,448

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.

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 6

Ian Churcher Ltd

(Registration number: 04935096)
Balance Sheet as at 31 December 2016

Approved and authorised by the director on 19 September 2017
 

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

Mr Ian Churcher

Director

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 7

Ian Churcher Ltd

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

	Share capital £	Profit and loss account £	Total £
At 1 January 2016	100	1,348	1,448
Profit for the year	-	8,770	8,770
Total comprehensive income	-	8,770	8,770
Dividends	-	(9,000)	(9,000)
At 31 December 2016	100	1,118	1,218

	Share capital £	Profit and loss account £	Total £
At 1 January 2015	100	1,400	1,500
Profit for the year	-	18,448	18,448
Total comprehensive income	-	18,448	18,448
Dividends	-	(18,500)	(18,500)
At 31 December 2015	100	1,348	1,448

The notes on pages 9 to 14 form an integral part of these financial statements.

Page 8

Ian Churcher Ltd

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 United Kingdom.

The address of its registered office is:
1a Berkeley Court
Berkeley Vale
Falmouth
Cornwall
TR11 3PB

These financial statements were authorised for issue by the director on 19 September 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.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in existence for the foreseeable future. The validity of this assumption depends upon the continued support of the director, who has loaned the company money. The director has confirmed that he will continue to support the company and will not request repayment of his loan unless the company has funds available to meet this request.

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.

Page 9

Ian Churcher Ltd

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

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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	25% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

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

Asset class	Amortisation method and rate
Goodwill	Over 5 years

Page 10

Ian Churcher Ltd

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

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.

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).

4	Profit before tax

Arrived at after charging/(crediting)

	2016 £	2015 £
Depreciation expense	100	34
Amortisation expense	700	250

Page 11

Ian Churcher Ltd

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

5	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 January 2016	5,000	5,000
At 31 December 2016	5,000	5,000
Amortisation
At 1 January 2016	1,500	1,500
Amortisation charge	700	700
At 31 December 2016	2,200	2,200
Carrying amount
At 31 December 2016	2,800	2,800
At 31 December 2015	3,500	3,500

The aggregate amount of research and development expenditure recognised as an expense during the period is £Nil (2015 - £Nil).
 

Page 12

Ian Churcher Ltd

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

6	Tangible assets

	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 January 2016	1,520	1,520
At 31 December 2016	1,520	1,520
Depreciation
At 1 January 2016	1,420	1,420
Charge for the year	100	100
At 31 December 2016	1,520	1,520
Carrying amount
At 31 December 2016	-	-
At 31 December 2015	100	100

7

Stocks

	2016 £	2015 £
Finished goods and goods for resale	150	225

8

Creditors

	Note	2016 £	(As restated) 2015 £
Due within one year
Trade creditors		-	540
Director's current account		4,338	8,062
Other creditors		3,202	5,495
		7,540	14,097

Page 13

Ian Churcher Ltd

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

9

Reserves

10

Dividends

Final dividends paid

	2016 £	2015 £
Final dividend of £900 (2015 - £1,850) per each Ordinary share	9,000	18,500

Page 14

Ian Churcher Ltd

Detailed Profit and Loss Account for the Year Ended 31 December 2016

	2016 £	(As restated) 2015 £
Turnover	39,539	50,074
Cost of sales
Opening finished goods	225	220
Purchases	13,195	10,795
Closing finished goods	(150)	(225)
Cost of sales	13,270	10,790
Gross profit	26,269	39,284
Gross profit (%)	66.44%	78.45%
Administrative expenses
Directors remuneration	8,052	8,028
Insurance	-	200
Use of home as office	316	316
Telephone and fax	802	842
Printing, postage and stationery	-	63
Motor expenses	3,195	4,453
Car hire (Operating leases)	120	120
Advertising	743	742
Accountancy fees	960	914
Bank charges	158	157
Amortisation of goodwill	700	250
Depreciation of other tangible (owned)	100	34
	15,146	16,119
Operating profit	11,123	23,165
Other interest receivable and similar income	40	16
Profit before tax	11,163	23,181

This page does not form part of the statutory financial statements.

Page 15