G. Knights & Son (Lowestoft) Limited - Period Ending 2017-03-31

Registration number: 00841839

G. Knights & Son (Lowestoft) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

G. Knights & Son (Lowestoft) Limited

Contents

Company Information	1
Accountants' Report	2
Balance Sheet	3 to 4
Statement of Changes in Equity	5
Notes to the Financial Statements	6 to 14

G. Knights & Son (Lowestoft) Limited

Company Information

Directors

Mr K G D Hillier Mrs S A Hillier Mr C Hillier Mrs J Hillier

Company secretary

Mrs S A Hillier

Registered office

51 Wollaston Road Lowestoft Suffolk NR32 2PE

Accountants

Barnard Sampson LLP 3a Quay View Business Park Barnards Way Lowestoft Suffolk NR32 2HD

Page 1

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
G. Knights & Son (Lowestoft) Limited
for the Year Ended 31 March 2017

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of G. Knights & Son (Lowestoft) Limited for the year ended 31 March 2017 as set out on pages 3 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 G. Knights & Son (Lowestoft) 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 G. Knights & Son (Lowestoft) Limited and state those matters that we have agreed to state to the Board of Directors of G. Knights & Son (Lowestoft) 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 G. Knights & Son (Lowestoft) Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that G. Knights & Son (Lowestoft) 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 G. Knights & Son (Lowestoft) Limited. You consider that G. Knights & Son (Lowestoft) 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 G. Knights & Son (Lowestoft) 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.

Barnard Sampson LLP
3a Quay View Business Park
Barnards Way
Lowestoft
Suffolk
NR32 2HD

13 December 2017

Page 2

G. Knights & Son (Lowestoft) Limited

(Registration number: 00841839)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	4	124,067	138,112
Tangible assets	5	96,505	36,949
Investment property	6	2,885,000	2,822,423
		3,105,572	2,997,484
Current assets
Debtors	7	14,837	13,195
Cash at bank and in hand		9,531	29,653
Other prepayments		716	-
		25,084	42,848
Creditors: Amounts falling due within one year	8	(109,596)	(146,164)
Net current liabilities		(84,512)	(103,316)
Total assets less current liabilities		3,021,060	2,894,168
Creditors: Amounts falling due after more than one year	8	(196,757)	(142,833)
Provisions for liabilities		(180,162)	(175,079)
Net assets		2,644,141	2,576,256
Capital and reserves
Called up share capital		250	250
Profit and loss account		2,643,891	2,576,006
Total equity		2,644,141	2,576,256

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.

The notes on pages 6 to 14 form an integral part of these financial statements.

Page 3

G. Knights & Son (Lowestoft) Limited

(Registration number: 00841839)
Balance Sheet as at 31 March 2017

Approved and authorised by the Board on 13 December 2017 and signed on its behalf by:
 

Mr K G D Hillier

Director

The notes on pages 6 to 14 form an integral part of these financial statements.

Page 4

G. Knights & Son (Lowestoft) Limited

Statement of Changes in Equity for the Year Ended 31 March 2017

	Share capital £	Profit and loss account £	Total £
At 1 April 2016	250	2,576,006	2,576,256
Profit for the year	-	67,885	67,885
Total comprehensive income	-	67,885	67,885
At 31 March 2017	250	2,643,891	2,644,141

	Share capital £	Profit and loss account £	Total £
At 1 April 2015	250	2,434,803	2,435,053
Profit for the year	-	141,203	141,203
Total comprehensive income	-	141,203	141,203
At 31 March 2016	250	2,576,006	2,576,256

The notes on pages 6 to 14 form an integral part of these financial statements.

Page 5

G. Knights & Son (Lowestoft) 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.

The address of its registered office is:
51 Wollaston Road
Lowestoft
Suffolk
NR32 2PE

These financial statements were authorised for issue by the Board on 13 December 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
Office fittings and furniture	reducing balance 10%
Motor vehicles	reducing balance 20%
Office equipment	reducing balance 25%
Computer equipment	reducing balance 33%
Leasehold improvements	straight line 10%

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. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Page 6

G. Knights & Son (Lowestoft) Limited

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

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	straight line 10%

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.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 9 (2016 - 9).

Page 7

G. Knights & Son (Lowestoft) Limited

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

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 April 2016	140,453	140,453
At 31 March 2017	140,453	140,453
Amortisation
At 1 April 2016	2,341	2,341
Amortisation charge	14,045	14,045
At 31 March 2017	16,386	16,386
Carrying amount
At 31 March 2017	124,067	124,067
At 31 March 2016	138,112	138,112

5	Tangible assets

	Short leasehold £	Plant and machinery etc  £	Total £
Cost or valuation
At 1 April 2016	4,331	84,951	89,282
Additions	44,594	41,745	86,339
Disposals	-	(31,051)	(31,051)
At 31 March 2017	48,925	95,645	144,570
Depreciation
At 1 April 2016	-	52,334	52,334
Charge for the year	1,631	4,228	5,859
Eliminated on disposal	-	(10,128)	(10,128)
At 31 March 2017	1,631	46,434	48,065
Carrying amount
At 31 March 2017	47,294	49,211	96,505
At 31 March 2016	4,331	32,618	36,949

Page 8

G. Knights & Son (Lowestoft) Limited

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

6	Investment properties

	2017 £
At 1 April	2,822,423
Change in valuation in the year	62,577
At 31 March	2,885,000

The investment property has been valued by the directors on an open market value basis.

Page 9

G. Knights & Son (Lowestoft) Limited

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

7

Debtors

	2017 £	2016 £
Trade debtors	4,078	3,822
Other debtors	11,475	9,373
Total current trade and other debtors	15,553	13,195

8

Creditors

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	9	36,889	17,880
Trade creditors		11,781	17,637
Social security and other taxes		8,450	3,169
Other creditors		44,477	97,822
Accrued expenses		7,999	-
Corporation tax liability		-	9,656
		109,596	146,164
Due after one year
Loans and borrowings	9	196,757	142,833

Page 10

G. Knights & Son (Lowestoft) Limited

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

9	Loans and borrowings

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	170,928	142,833
Finance lease liabilities	25,829	-
	196,757	142,833

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	24,000	16,000
Bank overdrafts	5,074	1,880
Finance lease liabilities	7,815	-
	36,889	17,880

Bank borrowings

The amount due within 5 years is £89,553 and the amount due after five years is £105,375.

Bank borrowings are secured by fixed charges over freehold properties.

10	Related party transactions

Included in other creditors are balances of £23,773 (2016 - £64,783) due to the directors and their family members. Mr K Hillier and Mrs J Hillier received £12,000 (2016 - £12,000) from the company in respect of rents.

11	Transition to FRS 102

The comparative amounts in receipt of the year ended 31 March 2015 and 31 March 2016 have been restated as FRS 102 prohibits the revaluation of investment properties being shown in a Revaluation Reserve account and instead the gain is now shown in the profit and loss account.

The comparative amounts in receipt of the year ended 31 March 2015 and 31 March 2016 have been restated as FRS 102 recognises the deferred tax on investment property that is measured at fair value irrespective of whether the company is likely to sell.

Page 11

G. Knights & Son (Lowestoft) Limited

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

Balance Sheet at 1 April 2015
 

	Note	As originally reported £	Reclassification £	As restated £
Fixed assets
Tangible assets		42,833	-	42,833
Investment property		2,659,387	-	2,659,387
		2,702,220	-	2,702,220
Current assets
Debtors		21,834	-	21,834
Cash at bank and in hand		6,927	-	6,927
		28,761	-	28,761
Creditors: Amounts falling due within one year		(155,151)	-	(155,151)
Net current liabilities		(126,390)	-	(126,390)
Total assets less current liabilities		2,575,830	-	2,575,830
Provisions for liabilities		-	(140,776)	(140,776)
Net assets/(liabilities)		2,575,830	(140,776)	2,435,054
Capital and reserves
Called up share capital		(250)	-	(250)
Revaluation reserve		(1,709,832)	1,709,832	-
Profit and loss account		(865,748)	(1,569,056)	(2,434,804)
Total equity		(2,575,830)	140,776	(2,435,054)

Page 12

G. Knights & Son (Lowestoft) Limited

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

Balance Sheet at 31 March 2016
 

	Note	As originally reported £	Reclassification £	As restated £
Fixed assets
Intangible assets		138,112	-	138,112
Tangible assets		36,949	-	36,949
Investment property		2,822,423	-	2,822,423
		2,997,484	-	2,997,484
Current assets
Debtors		13,195	-	13,195
Cash at bank and in hand		29,653	-	29,653
		42,848	-	42,848
Creditors: Amounts falling due within one year		(146,164)	-	(146,164)
Net current liabilities		(103,316)	-	(103,316)
Total assets less current liabilities		2,894,168	-	2,894,168
Creditors: Amounts falling due after more than one year		(142,833)	-	(142,833)
Provisions for liabilities		-	(175,079)	(175,079)
Net assets/(liabilities)		2,751,335	(175,079)	2,576,256
Capital and reserves
Called up share capital		(250)	-	(250)
Revaluation reserve		(1,856,997)	1,856,997	-
Profit and loss account		(894,090)	(1,681,916)	(2,576,006)
Total equity		(2,751,337)	175,081	(2,576,256)

Page 13

G. Knights & Son (Lowestoft) Limited

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

Profit and Loss Account for the year ended 31 March 2016
 

	Note	As originally reported £	Reclassification £	As restated £
Turnover		285,695	147,165	432,860
Cost of sales		(57,928)	-	(57,928)
Gross profit		227,767	147,165	374,932
Administrative expenses		(190,503)	-	(190,503)
Other operating income		1,287	-	1,287
Operating profit		38,551	147,165	185,716
Other interest receivable and similar income		(554)	-	(554)
		(554)	-	(554)
Profit before tax		37,997	147,165	185,162
Taxation		(9,656)	-	(9,656)
Profit for the financial year		28,341	147,165	175,506

Page 14