Churchill Property Services Limited - Period Ending 2017-07-31
Churchill Property Services Limited - Period Ending 2017-07-31
Registration number:
for the Year Ended
Churchill Property Services Limited
Contents
Balance Sheet |
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Notes to the Financial Statements |
Churchill Property Services Limited
(Registration number: 03596485)
Balance Sheet as at 31 July 2017
Note |
2017 |
2016 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investment property |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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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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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Total equity |
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Page 1 |
Churchill Property Services Limited
(Registration number: 03596485)
Balance Sheet as at 31 July 2017
For the financial year ending 31 July 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Director's responsibilities:
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The director acknowledges his 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
...........................................
Mr M J Granville
Director
Page 2 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
General information |
The company is a private company limited by share capital, incorporated and domiciled 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. These are the first financial statements that the company has presented under FRS 102 Section 1A. The date of transition of this company was 1 August 2015. An explanation of how the transition to FRS 102 has affected the reported financial position and financial performance is given in note 13.
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.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the 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.
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;
- specific criteria have been met for each of the company's activities;
- the stage of completion of the transaction at the end of the reporting period can be measured reliably; and
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
Finance income and costs policy
Interest income is recognised on the receipts basis while interest expenses are recognised using the effective interest rate method.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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 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.
Page 3 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 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 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.
As at the transition date to FRS 102 1A, the Directors elected for the property to be measured at its fair value at the date of transition and for that fair value to be used as the deemed cost of the item going forward.
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 |
Plant and machinery |
15% reducing balance |
Motor vehicles |
25% reducing balance |
Freehold land and buildings |
no depreciation as considered immaterial |
Investment properties
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.
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 |
20% straight line |
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.
Page 4 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Trade 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.
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.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
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.
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 the director) during the year was
Page 5 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Intangible assets |
Goodwill |
Total |
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Cost or valuation |
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At 1 August 2016 |
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At 31 July 2017 |
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Amortisation |
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At 1 August 2016 |
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Amortisation charge |
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At 31 July 2017 |
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Carrying amount |
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At 31 July 2017 |
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At 31 July 2016 |
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Tangible assets |
Land and buildings |
Motor vehicles |
Plant and machinery |
Total |
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Cost or valuation |
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At 1 August 2016 |
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Additions |
- |
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At 31 July 2017 |
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Depreciation |
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At 1 August 2016 |
- |
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Charge for the year |
- |
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At 31 July 2017 |
- |
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Carrying amount |
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At 31 July 2017 |
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At 31 July 2016 |
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Included within the net book value of land and buildings above is £1,300,000 (2016 - £1,300,000) in respect of freehold land and buildings.
Had the freehold land and buildings been measured on a historical cost basis, their carrying amount would have been £291,844 (2016 - £291,844).
Page 6 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Investment properties |
2017 |
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At 1 August |
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Additions |
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At 31 July |
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The company's freehold investment properties are included at fair value and as determined by the director based on a valuation undertaken in 2012, which was performed using the open market basis.
Debtors |
2017 |
2016 |
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Trade debtors |
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Other debtors |
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Prepayments and accrued income |
21,842 |
20,367 |
Total current trade and other debtors |
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Creditors |
Creditors: amounts falling due within one year
2017 |
2016 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Accruals and deferred income |
5,000 |
4,802 |
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Page 7 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Dividends |
Interim dividends paid
2017 |
2016 |
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Interim dividend of £ |
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Related party transactions |
Key management personnel
The director
Directors' remuneration
The director's remuneration for the year was as follows:
2017 |
2016 |
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Remuneration |
- |
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Contributions paid to money purchase schemes |
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- |
90,000 |
34,406 |
Dividends paid to directors |
2017 |
2016 |
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Dividends paid |
56,610 |
29,768 |
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Page 8 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Loans to related parties
2017 |
Key management |
At start of period |
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Advanced |
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Repaid |
( |
At end of period |
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2016 |
Key management |
At start of period |
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Advanced |
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Repaid |
( |
At end of period |
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Terms of loans to related parties
Transition to FRS 102 |
Reconciliations and descriptions of the effect of the transition to FRS 102 on: (i) equity at the date of transition to FRS 102; and (ii) equity at the end of the comparative period under previous UK GAAP are given in the notes on the following pages.
Page 9 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Balance Sheet at 1 August 2015
Note |
As originally reported |
Reclassification |
Remeasurement |
As restated |
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Fixed assets |
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Intangible assets |
44,800 |
- |
- |
44,800 |
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Tangible assets |
1,607,292 |
(250,000) |
- |
1,357,292 |
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Investment property |
- |
250,000 |
- |
250,000 |
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1,652,092 |
- |
- |
1,652,092 |
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Current assets |
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Debtors |
4,580,500 |
- |
- |
4,580,500 |
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Cash at bank and in hand |
13,624 |
- |
- |
13,624 |
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4,594,124 |
- |
- |
4,594,124 |
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Creditors: Amounts falling due within one year |
(805,433) |
- |
- |
(805,433) |
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Net current assets |
3,788,691 |
- |
- |
3,788,691 |
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Total assets less current liabilities |
5,440,783 |
- |
- |
5,440,783 |
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Creditors: Amounts falling due after more than one year |
(1,946,229) |
- |
- |
(1,946,229) |
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Provisions for liabilities |
- |
- |
(186,371) |
(186,371) |
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Net assets/(liabilities) |
3,494,554 |
- |
(186,371) |
3,308,183 |
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Capital and reserves |
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Called up share capital |
(2) |
- |
- |
(2) |
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Revaluation reserve |
(1,172,674) |
196,121 |
- |
(976,553) |
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Profit and loss account |
(2,321,878) |
(196,121) |
186,371 |
(2,331,628) |
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Total equity |
(3,494,554) |
- |
186,371 |
(3,308,183) |
Page 10 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Balance Sheet at 31 July 2016
Note |
As originally reported |
Reclassification |
Remeasurement |
As restated |
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Fixed assets |
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Intangible assets |
33,600 |
- |
- |
33,600 |
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Tangible assets |
1,888,293 |
(510,136) |
- |
1,378,157 |
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Investment property |
- |
941,978 |
- |
941,978 |
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1,921,893 |
431,842 |
- |
2,353,735 |
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Current assets |
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Stocks |
431,842 |
(431,842) |
- |
- |
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Debtors |
326,853 |
- |
- |
326,853 |
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Cash at bank and in hand |
632,646 |
- |
- |
632,646 |
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1,391,341 |
(431,842) |
- |
959,499 |
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Creditors: Amounts falling due within one year |
(34,572) |
- |
- |
(34,572) |
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Net current assets/(liabilities) |
1,356,769 |
(431,842) |
- |
924,927 |
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Total assets less current liabilities |
3,278,662 |
- |
- |
3,278,662 |
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Provisions for liabilities |
(11,293) |
- |
(184,480) |
(195,773) |
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Net assets/(liabilities) |
3,267,369 |
- |
(184,480) |
3,082,889 |
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Capital and reserves |
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Called up share capital |
(2) |
- |
- |
(2) |
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Revaluation reserve |
(1,172,674) |
196,121 |
- |
(976,553) |
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Profit and loss account |
(2,094,693) |
(196,121) |
184,480 |
(2,106,334) |
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Total equity |
(3,267,369) |
- |
184,480 |
(3,082,889) |
Note 1 |
Under previous UK GAAP, amounts for investment properties were included within tangible fixed assets. Upon the transition to FRS 102, investment properties are now recognised separately on the face of the balance sheet.
The company has taken the transition option under S35 of FRS 102 to treat previous valuations of freehold property as its deemed cost at the date of transition and therefore the revaluation model is no longer applied to this asset group.
Page 11 |
Churchill Property Services Limited
Notes to the Financial Statements for the Year Ended 31 July 2017
Note 2 |
The company has historically revalued its freehold property and investment properties at the year-end, with any gain or loss on investment properties arising being taken to a revaluation reserve. Under FRS 102, revaluations for investment properties are credited or debited to the profit and loss account. The element of the revaluation reserve relating to investment properties, totalling £196,121 as at 1 August 2015, has therefore been reallocated to the profit and loss account as required.
Note 3 |
Under previous UK GAAP, an interest in land and building for future development had been treated as WIP. Upon the transition to FRS 102, this amount has been reclassified and is now recognised as investment property.
Note 4 |
Under previous UK GAAP, the company had appropriately opted not to provide for deferred tax on the revaluation of its freehold and investment properties on the basis that there was no intention to dispose of them. Under FRS 102, with the freehold property and investment property having been revalued, the company is required to account for deferred tax on all timing differences, at the prevailing rate of corporation tax even where there is no intention or expectation of disposal.
The deferred tax liability based on the revaluations as at 1 August 2015 was £186,371 for all properties. Due to the calculation of the chargeable gain, there was a total decrease of £1,891 for the deferred tax liability as at 31 July 2016 with the credit passing through the revised profit and loss account. The deferred tax liability on the revaluation was £184,480 as at 31 July 2016.
Page 12 |