Edward Oatley and Son Limited - Period Ending 2017-06-30
Edward Oatley and Son Limited - Period Ending 2017-06-30
Registration number:
Edward Oatley and Son Limited
for the Year Ended 30 June 2017
41 St John's Street
Devizes
Wiltshire
SN10 1BL
Edward Oatley and Son Limited
Contents
Company Information |
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Accountants' Report |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Edward Oatley and Son Limited
Company Information
Directors |
Mr A J Oatley Mr M J Oatley Mr T B Oatley |
Registered office |
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Accountants |
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Page 1 |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Edward Oatley and Son Limited
for the Year Ended 30 June 2017
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Edward Oatley and Son Limited for the year ended 30 June 2017 as set out on pages 3 to 15 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 Edward Oatley and Son 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 Edward Oatley and Son Limited and state those matters that we have agreed to state to the Board of Directors of Edward Oatley and Son 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 Edward Oatley and Son Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Edward Oatley and Son 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 Edward Oatley and Son Limited. You consider that Edward Oatley and Son 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 Edward Oatley and Son 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.
......................................
Devizes
Wiltshire
SN10 1BL
Page 2 |
Edward Oatley and Son Limited
(Registration number: 00545947)
Balance Sheet as at 30 June 2017
Note |
2017 |
(As restated) |
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Fixed assets |
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Tangible assets |
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|
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Other financial assets |
1,095,633 |
788,149 |
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Current assets |
|||
Stocks |
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Debtors |
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|
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Cash at bank and in hand |
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|
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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|
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Creditors: Amounts falling due after more than one year |
- |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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|
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Capital and reserves |
|||
Called up share capital |
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|
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Other reserves |
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Profit and loss account |
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|
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Total equity |
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For the financial year ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Page 3 |
Edward Oatley and Son Limited
(Registration number: 00545947)
Balance Sheet as at 30 June 2017
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
.........................................
Mr A J Oatley
Director
Page 4 |
Edward Oatley and Son Limited
Statement of Changes in Equity for the Year Ended 30 June 2017
Share capital |
Non-distributable fair value reserve |
Profit and loss account |
Total |
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At 1 July 2016 |
|
|
|
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Profit for the year |
- |
- |
|
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Total comprehensive income |
- |
- |
|
|
Transfers |
- |
107,372 |
(107,372) |
- |
At 30 June 2017 |
|
|
|
|
Share capital |
Non-distributable fair value reserve |
Profit and loss account |
Total |
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At 1 July 2015 |
|
|
|
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Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
Transfers |
- |
12,718 |
(12,718) |
- |
At 30 June 2016 |
|
|
|
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Page 5 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 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:
These financial statements were authorised for issue by the
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.
Reclassification of comparative amounts
The transition has related to FRS102 Section 1A Small Entities has resulted in a small number of changes in accounting policies to those used previously.
The nature of these changes and their impact on opening equity and profit for the comparative year are explained in the notes to the financial statements.
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.
Page 6 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
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 |
Property improvements |
10% reducing balance |
Plant and machinery |
20% reducing balance |
Tractors |
25% reducing balance |
Motor vehicles |
25% reducing balance |
Investments
Fixed asset investments in listed shares and securities are included at fair value.
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.
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. 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.
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.
Page 7 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
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 subsequently measured at amortised cost using the effective interest method.
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.
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.
Page 8 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Page 9 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Tangible assets |
Freehold property |
Property improvements |
Tractors |
Motor vehicles |
Other property, plant and equipment |
Total |
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Cost or valuation |
||||||
At 1 July 2016 |
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|
|
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Additions |
- |
|
- |
- |
|
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Disposals |
- |
- |
( |
- |
( |
( |
At 30 June 2017 |
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|
|
|
|
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Depreciation |
||||||
At 1 July 2016 |
|
|
|
|
|
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Charge for the year |
- |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
( |
At 30 June 2017 |
|
|
|
|
|
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Carrying amount |
||||||
At 30 June 2017 |
|
|
|
|
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At 30 June 2016 |
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|
|
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Page 10 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Other financial assets (current and non-current) |
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 July 2016 |
788,150 |
788,150 |
Fair value adjustments |
132,558 |
132,558 |
Additions |
174,925 |
174,925 |
At 30 June 2017 |
1,095,633 |
1,095,633 |
Impairment |
||
Carrying amount |
||
At 30 June 2017 |
|
1,095,633 |
Stocks |
2017 |
2016 |
|
Stock |
|
|
Debtors |
2017 |
2016 |
|
Trade debtors |
|
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Other debtors |
|
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Total current trade and other debtors |
|
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Page 11 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Creditors |
Note |
2017 |
2016 |
|
Due within one year |
|||
Loans and borrowings |
- |
|
|
Trade creditors |
|
|
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Corporation tax |
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|
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Other taxation and social security |
|
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Other creditors |
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Due after one year |
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Other non-current financial liabilities |
- |
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Loans and borrowings |
2017 |
2016 |
|
Current loans and borrowings |
||
Obligations under hire purchase and finance lease contracts |
- |
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Financial instruments |
Categorisation of financial instruments
2017 |
2016 |
|
Financial assets measured at fair value through profit or loss |
|
|
|
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Financial assets measured at fair value
Listed investments
Listed investments are carried at the market value of the portfolio.
The fair value is £1,095,633 (2016 - £788,150) and the change in value included in profit or loss is £132,558 (2016 - £15,701).
Page 12 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Transition to FRS 102 |
Under FRS 102, fixed asset investments in listed securities are recognised as financial assets and carried at fair value through profit and loss.
In accordance with the change in accounting policy, the movement in fair value has been charged to the profit and loss account but is unrealised. Deferred tax has been reserved on the unrealised gain and charged to the profit and loss account. The unrealised profit on fair value movements net of deferred tax is transferred to a new non-distributable fair value reserve from retained profit.
Page 13 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Balance Sheet at 1 July 2015
Note |
As originally reported |
Reclassification |
Remeasurement |
As restated |
|
Fixed assets |
|||||
Tangible assets |
1,562,146 |
- |
- |
1,562,146 |
|
Investments |
675,699 |
- |
86,725 |
762,424 |
|
2,237,845 |
- |
86,725 |
2,324,570 |
||
Current assets |
|||||
Stocks |
139,065 |
- |
- |
139,065 |
|
Debtors |
123,083 |
- |
- |
123,083 |
|
Cash at bank and in hand |
172,345 |
- |
- |
172,345 |
|
434,493 |
- |
- |
434,493 |
||
Creditors: Amounts falling due within one year |
(157,043) |
- |
- |
(157,043) |
|
Net current assets |
277,450 |
- |
- |
277,450 |
|
Total assets less current liabilities |
2,515,295 |
- |
86,725 |
2,602,020 |
|
Creditors: Amounts falling due after more than one year |
(100,414) |
- |
- |
(100,414) |
|
Provisions for liabilities |
(51,202) |
- |
(16,478) |
(67,680) |
|
Net assets |
2,363,679 |
- |
70,247 |
2,433,926 |
|
Capital and reserves |
|||||
Called up share capital |
26,000 |
- |
- |
26,000 |
|
Other reserves |
- |
- |
70,247 |
70,247 |
|
Profit and loss account |
2,337,679 |
- |
- |
2,337,679 |
|
Total equity |
2,363,679 |
- |
70,247 |
2,433,926 |
Page 14 |
Edward Oatley and Son Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Balance Sheet at 30 June 2016
Note |
As originally reported |
Reclassification |
Remeasurement |
As restated |
|
Fixed assets |
|||||
Intangible assets |
1,576,136 |
- |
- |
1,576,136 |
|
Investments |
685,723 |
- |
102,427 |
788,150 |
|
2,261,859 |
- |
102,427 |
2,364,286 |
||
Current assets |
|||||
Stocks |
171,387 |
- |
- |
171,387 |
|
Debtors |
104,076 |
- |
- |
104,076 |
|
Cash at bank and in hand |
243,586 |
- |
- |
243,586 |
|
519,049 |
- |
- |
519,049 |
||
Creditors: Amounts falling due within one year |
(147,615) |
- |
- |
(147,615) |
|
Net current assets |
371,434 |
- |
- |
371,434 |
|
Total assets less current liabilities |
2,633,293 |
- |
102,427 |
2,735,720 |
|
Creditors: Amounts falling due after more than one year |
(94,356) |
- |
- |
(94,356) |
|
Provisions for liabilities |
(51,888) |
- |
(19,461) |
(71,349) |
|
Net assets |
2,487,049 |
- |
82,966 |
2,570,015 |
|
Capital and reserves |
|||||
Called up share capital |
26,000 |
- |
- |
26,000 |
|
Other reserves |
- |
- |
82,966 |
82,966 |
|
Profit and loss account |
2,461,049 |
- |
- |
2,461,049 |
|
Total equity |
2,487,049 |
- |
82,966 |
2,570,015 |
Page 15 |