Yorke Homes Limited - Period Ending 2017-03-31

Registration number: 03901640

Yorke Homes Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

Yorke Homes Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Yorke Homes Limited

Company Information

Directors

R Yorke F Yorke

Company secretary

F Yorke

Registered office

Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham Gloucestershire GL51 0UX

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Yorke Homes Limited

(Registration number: 03901640)
Balance Sheet as at 31 March 2017

	Note	2017  £	2016  £
Fixed assets
Tangible assets	5	43,344	57,792
Current assets
Stocks		1,403,789	1,159,453
Debtors	6	7,300	59,603
Cash at bank and in hand		2,225	1,607
		1,413,314	1,220,663
Creditors: Amounts falling due within one year	7	(1,279,620)	(1,272,966)
Net current assets/(liabilities)		133,694	(52,303)
Total assets less current liabilities		177,038	5,489
Deferred tax liabilities	4	(7,368)	(4,536)
Net assets		169,670	953
Capital and reserves
Called up share capital		2	2
Profit and loss account		169,668	951
Total equity		169,670	953

For the financial year ending 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' 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 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.

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 Board on 14 December 2017 and signed on its behalf by:
 

R Yorke

Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

1

General information

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

The address of its registered office is:
Staverton Court
Staverton
Cheltenham
Gloucestershire
GL51 0UX

The principal place of business is:
The Old Haulage Yard
Old Cirencester Road
Birdlip
Gloucester
GL4 8JL

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

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 and after eliminating sales within the company.

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.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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.

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

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 balance sheet 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 over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	25% reducing balance
Office equipment	25% reducing balance

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

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.

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2017  No.	2016  No.
Average number of employees	2	2

4

Taxation

Tax charged/(credited) in the profit and loss account

	2017  £	2016  £
Current taxation
UK corporation tax	46,246	-
UK corporation tax adjustment to prior periods	-	(1,451)
	46,246	(1,451)
Deferred taxation
Arising from origination and reversal of timing differences	2,832	4,536
Tax expense in the profit and loss account	49,078	3,085

Deferred tax

Deferred tax assets and liabilities

2017	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	7,368
Tax losses avaliable	-
	7,368

2016	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	10,403
Tax losses avaliable	(5,867)
	4,536

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

5

Tangible assets

	Plant and machinery  £	Office equipment  £	Total £
Cost
At 1 April 2016	61,000	2,000	63,000
At 31 March 2017	61,000	2,000	63,000
Depreciation
At 1 April 2016	5,083	125	5,208
Charge for the year	13,979	469	14,448
At 31 March 2017	19,062	594	19,656
Carrying amount
At 31 March 2017	41,938	1,406	43,344
At 31 March 2016	55,917	1,875	57,792

6

Debtors

	2017  £	2016  £
Trade debtors	-	24,157
Other debtors	7,300	33,995
Corporation tax asset	-	1,451
	7,300	59,603

7

Creditors

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	8	1,054,170	932,138
Trade creditors		122,734	320,042
Social security and other taxes		10,235	12,135
Other creditors		43,660	6,651
Accrued expenses		2,575	2,000
Corporation tax liability		46,246	-
		1,279,620	1,272,966

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Yorke Homes Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

8

Loans and borrowings

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	811,111	764,346
Bank overdrafts	19,964	20,282
Other borrowings	223,095	147,510
	1,054,170	932,138

Included with the above balances is £831,075 (2016 - £784,628) on which security has been provided by the company.

A director has provided a personal guarantee in connection with the bank borrowings of the company.

9

Related party transactions

Transactions with directors

At the balance sheet date the company owed £223,095 (2016 - £147,510) to the directors of the company. There are no fixed repayment conditions in respect of the outstanding balance.

Summary of transactions with other related parties

At the balance sheet date the company owed £12,600 (2016 - £nil) to family members of the directors. There are no fixed repayment conditions and no interest is charged in respect of the outstanding balance.
 

10

Transition to FRS 102

This is the first period that the company has presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The last financial statements under previous UK GAAP were for the period from 1 April 2015 to 31 March 2016 and the date of transition to FRS 102 was therefore 1 April 2015. There are no transitional adjustments as a result of adopting FRS 102 for the first time.

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