S.R.K. Scaffolding Limited - Period Ending 2017-05-31
S.R.K. Scaffolding Limited - Period Ending 2017-05-31
Company registration number:
for the Year Ended
S.R.K. Scaffolding Limited
Contents
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
S.R.K. Scaffolding Limited
(Registration number: 04072540)
Balance Sheet as at 31 May 2017
Note |
2017 |
(As restated) |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
|||
Deferred tax liabilities |
(95,664) |
(165,061) |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Fair value reserve |
11,937 |
11,937 |
|
Profit and loss reserve |
|
|
|
Total equity |
|
|
Page 1
S.R.K. Scaffolding Limited
(Registration number: 04072540)
Balance Sheet as at 31 May 2017
For the financial year ending 31 May 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
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 and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
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Page 2
S.R.K. Scaffolding Limited
Statement of Changes in Equity
for the Year Ended 31 May 2017
Share capital |
Fair value reserve |
Profit and loss reserve |
Total |
|
At 1 June 2016 |
|
|
|
|
Movement in year : |
||||
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Total movement for the year |
- |
- |
570,021 |
570,021 |
At 31 May 2017 |
|
|
|
|
Share capital |
Fair value reserve |
Profit and loss reserve |
Total |
|
At 1 June 2015 |
|
- |
|
|
Movement in year : |
||||
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
Transfer of fair value adjustment |
- |
11,937 |
(11,937) |
- |
Total movement for the year |
- |
11,937 |
58,457 |
70,394 |
At 31 May 2016 |
|
|
|
|
Page 3
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
General information |
The company is a private company limited by share capital incorporated in England and Wales.
The address of its registered office is:
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. This is the first set of financial statements prepared under FRS 102 section 1A and the transitional adjustments made to the prior year as a result of this are shown within note 11.
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.
These financial statements are presented in Sterling (£).
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the supply of scaffolding services, 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.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 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.
Page 4
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Deferred tax is recognised on timing 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 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.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and 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 |
Improvements to leasehold |
10% on cost |
Plant and machinery |
10 - 25% on cost |
Fixtures and fittings |
20% on cost |
Motor vehicles |
25% on cost |
Computer equipment |
20% on cost |
Investment property
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.
Debtors
Trade debtors are amounts due from customers for 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.
Page 5
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
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 work in progress comprises all direct expenditure and an appropriate proportion of fixed and variable overheads that have been incurred in bringing the work in progress to its 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.
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.
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.
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.
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Page 6
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Long term contracts
Profit on long term contracts is reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Turnover is calculated as a proportion of total contract value based on costs incurred to date compared to the total expected costs for that contract. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit shall be recognised in the profit and loss account as the difference between the reported turnover and related costs for that contract. Income derived from variations on contracts is recognised only when the variation has been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first identified.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Page 7
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Tangible assets |
Improvements to leasehold |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Computer equipment |
Total |
|
Cost or valuation |
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At 1 June 2016 |
|
|
|
|
|
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Additions |
|
|
|
|
|
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Disposals |
- |
- |
- |
( |
- |
( |
At 31 May 2017 |
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|
|
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Depreciation |
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At 1 June 2016 |
|
|
|
|
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Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
- |
( |
At 31 May 2017 |
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|
|
|
|
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Carrying amount |
||||||
At 31 May 2017 |
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At 31 May 2016 |
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Page 8
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Investment properties |
2017 |
|
At 1 June 2016 |
|
The value of the investment property was assessed by the directors at 31 May 2017 as being equivalent to fair value. The basis of the valuation was open market value.
This class of asset has a current value of £250,000 (2016 - £250,000) and a carrying amount at historic cost of £238,063 (2016 - £238,063). The depreciation on this historical cost is £nil (2016 - £nil).
Deferred tax is accounted for on amounts credited and debited to the fair value reserve as detailed in the tax accounting policy.
Stocks |
2017 |
2016 |
|
Work in progress |
|
|
Other stocks |
|
|
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Debtors |
2017 |
2016 |
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Trade debtors |
|
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Other debtors |
|
|
|
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Page 9
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Creditors |
Note |
2017 |
2016 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts owed to group undertakings |
|
|
|
Taxation and social security |
|
|
|
Corporation tax |
181,771 |
68,424 |
|
Other creditors |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
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Loans and borrowings |
2017 |
2016 |
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Current loans and borrowings |
||
Bank borrowings |
|
|
Obligations under finance leases and hire purchase contracts |
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|
|
|
2017 |
2016 |
|
Non-current loans and borrowings |
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Bank borrowings |
|
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Obligations under finance leases and hire purchase contracts |
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|
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Page 10
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Related party transactions |
Transactions with directors |
2017 |
At 1 June 2016 |
Advances to directors |
Re- payments by director |
Other payments made to company by director |
Written off |
Waived |
At 31 May 2017 |
|
S R I Trott |
||||||||
|
94 |
|
( |
- |
- |
- |
|
|
R K Trott |
||||||||
|
11,383 |
|
( |
- |
- |
- |
- |
|
2016 |
At 1 June 2015 |
Advances to directors |
Re- payments by director |
Other payments made to company by director |
Written off |
Waived |
At 31 May 2016 |
|
S R I Trott |
||||||||
|
(2,350) |
|
( |
- |
- |
- |
|
|
R K Trott |
||||||||
|
(92,750) |
|
( |
- |
- |
- |
|
|
Directors' remuneration
The directors' remuneration for the year was as follows:
2017 |
2016 |
|
Remuneration |
|
|
Other transactions with directors |
S R I Trott is a director of the company. During the year the company paid S R I Trott dividends of £120,000 (2016 - £110,000). At the balance sheet date S R I Trott owed the company £32,129 (2016 - £94).
R K Trott is a director of the company. During the year the company paid R K Trott dividends of £nil (2016 - £110,000). At the balance sheet date R K Trott owed the company £nil (2016 - £11,383).
Page 11
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Summary of transactions with other related parties
S R I, R K & K T Trott are two directors of the company and a brother of the directors. In the year under review the company paid rent of £67,917 (2016 - £31,250) to the two directors and their brother for the use of a commercial property which was deemed to be at a market rate.
Page 12
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Transition to FRS 102 |
Under FRS 102 Section 1A the change in value of investment properties at fair value through the profit and loss is recognised within the profit and loss account. Under previous UK GAAP these financial assets were recognised at cost.
There was not tax implication on transition to FRS 102 Section 1A and the impact from the transition is as follows;
Balance Sheet at 1 June 2015
As originally reported |
Re- |
Re- |
As restated |
|
Fixed assets |
||||
Tangible assets |
934,804 |
- |
- |
934,804 |
Investment property |
242,395 |
- |
- |
242,395 |
1,177,199 |
- |
- |
1,177,199 |
|
Current assets |
||||
Stocks |
63,191 |
- |
- |
63,191 |
Debtors |
906,486 |
- |
- |
906,486 |
Cash at bank and in hand |
301,949 |
- |
- |
301,949 |
1,271,626 |
- |
- |
1,271,626 |
|
Creditors: Amounts falling due within one year |
(1,143,655) |
- |
- |
(1,143,655) |
Net current assets |
127,971 |
- |
- |
127,971 |
Total assets less current liabilities |
1,305,170 |
- |
- |
1,305,170 |
Creditors: Amounts falling due after more than one year |
(400,270) |
- |
- |
(400,270) |
Provisions for liabilities |
(109,085) |
- |
- |
(109,085) |
Net assets |
795,815 |
- |
- |
795,815 |
Capital and reserves |
||||
Called up share capital |
30,000 |
- |
- |
30,000 |
Profit and loss reserve |
765,815 |
- |
- |
765,815 |
Total equity |
795,815 |
- |
- |
795,815 |
Page 13
S.R.K. Scaffolding Limited
Notes to the Financial Statements
for the Year Ended 31 May 2017
Balance Sheet at 31 May 2016
As originally reported |
Re- |
Re- |
As restated |
|
Fixed assets |
||||
Tangible assets |
1,246,145 |
- |
- |
1,246,145 |
Investment property |
238,063 |
- |
11,937 |
250,000 |
1,484,208 |
- |
11,937 |
1,496,145 |
|
Current assets |
||||
Stocks |
24,558 |
- |
- |
24,558 |
Debtors |
861,354 |
- |
- |
861,354 |
Cash at bank and in hand |
85,494 |
- |
- |
85,494 |
971,406 |
- |
- |
971,406 |
|
Creditors: Amounts falling due within one year |
(1,058,479) |
- |
- |
(1,058,479) |
Net current liabilities |
(87,073) |
- |
- |
(87,073) |
Total assets less current liabilities |
1,397,135 |
- |
11,937 |
1,409,072 |
Creditors: Amounts falling due after more than one year |
(377,802) |
- |
- |
(377,802) |
Provisions for liabilities |
(165,061) |
- |
- |
(165,061) |
Net assets |
854,272 |
- |
11,937 |
866,209 |
Capital and reserves |
||||
Called up share capital |
30,000 |
- |
- |
30,000 |
Fair value reserve |
- |
- |
11,937 |
11,937 |
Profit and loss reserve |
824,272 |
- |
- |
824,272 |
Total equity |
854,272 |
- |
11,937 |
866,209 |
Page 14