WATERFORDS_(ESTATE_AGENTS - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

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.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

Waterfords (Estate Agents) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 90 Park Street, Camberley, Surrey, GU15 3NY.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

These financial statements for the year ended 31 March 2017 are the first financial statements of Waterfords (Estate Agents) Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 April 2015. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

Turnover represents amounts receivable for commission, rental income and services net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Going concern

The nature of the company's business is such that it is dependent on the residential property market. The directors have prepared projections for the next twelve months and have put in place plans to meet these budgets and drive the company forward. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

The average monthly number of persons (including directors) employed by the company during the year was 55 (2016 - 52).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2016 - 2).

The aggregate amount of creditors for which security has been given amounted to £130,329 (2016 - £147,500).

The bank loans and overdrafts are secured by a debenture holding a fixed and floating charge over the assets of the company.

The finance leases are secured over the assets concerned.

The aggregate amount of creditors for which security has been given amounted to £146,890 (2016 - £nil).

The bank loans and overdrafts are secured by a debenture holding a fixed and floating charge over the assets of the company.

The finance leases are secured over the assets concerned.

The 'B' Ordinary shares rank pari passu with the 'A' Shares save that on cessation employment with the company, the holders of the 'B' Ordinary shares must return their shares to the company for a consideration not exceeding par value.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

At the year end the company owed £228 (2016 - £99) to G M Brook, a director. The movement in the year relates to expenses paid on behalf of the company of £1,350 (2016 - £815) and expense claims paid by the company of £1,221 (2016 - £981). No interest has been charged on this loan during the year.

At the year end the company is owed £6,020 (2016 - £311 owed to) by B P Cox, a director. The movement in the year relates to a loan from the company of £7,000 (2016 - £nil), expenses paid on behalf of the company of £6,123 (2016 - £6,061), less personnel expenses paid by the company of £1,580 (2016 - £831), and amounts repaid of £3,874 (2016 - £4,869). The loan has been repaid in full since the year end. No interest has been charged on this loan.

At the year end the company owed £917 (2016 - £nil) to S M C Wickes, a director. The movement in the year relates to expenses paid on behalf of the company of £1,833 (2016 - £1,478) and amounts paid by the company of £916 (2016 - £3,778). No interest has been charged on this loan during the year.

Included within administrative expenses are payments totalling £30,000 (2016 - £30,000) made to Totally Mortgages Limited, a company connected by director S M C Wickes, a director and shareholder for consultancy services.

Interest free loans have been granted by the company to its directors as follows:

The company is controlled by B P Cox, a director and majority shareholder.

At 31 March 17 £705,686 (2016 - £697,923) was held in trust on behalf of their clients and has therefore not been included in these accounts.