CHARLES EDWARD LIMITED 31/07/2017 iXBRL

CHARLES EDWARD LIMITED - Company Information

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CHARLES EDWARD LIMITED

Financial statements

31 July 2017

Company registration number 08088422

CHARLES EDWARD LIMITED

Contents

Directors and other information

Strategic report

Director's report

Independent auditor's report to the member

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

CHARLES EDWARD LIMITED

Directors and other information


	Director	D T Hardwick


	Company number	08088422


	Registered office	Grove House
		1 Sheldon Way
		Larkfield
		Kent


	Business address	Grove House
		1 Sheldon Way
		Larkfield
		Kent


	Auditor	JADAudit Limited
		4 Bloors Lane
		Rainham
		Kent


	Accountants	J.A.D. Associates Limited
		4 Bloors Lane
		Rainham
		Gillingham
		Kent

CHARLES EDWARD LIMITED

Strategic report

Year ended 31 July 2017

Key performance indicators

The key financial highlights are as follows:

2017 2016 2015

£ £ £

Turnover (£000) 27,341 14,893 7,891

Gross Profit (£000) 2,225 1,970 903

Gross profit (%) 8.1 13.2 11.4

Profit before tax (£000) 929 1,359 543

Review of business and prospects

The Company has seen significant growth over the last three years.The Company's plan to secure further controlled growth is under way with strategic appointments of additional senior management and staff and improvements to management systems, tools and processes. We have also created a specialist fit out division that is now operating from new offices based in the City of London where they will be perfectly situated to service our clients' fast track requirements.Our head office in Kent is currently being extended and refurbished to suit the expanding business operations. The pipeline for opportunities is evidently strong in the Commercial, Residential, Data Centre and Hotel & Leisure sectors. The Company is focusing its sights on expanding in these markets by continued investment in resources and supply chain to both secure and deliver these opportunities.The Company has secured a further £50m of work for the Financial Years ending 2018 and 2019 and a further £100m of new project work is either at final negotiations or at the post tender stage and we remain confident of securing a good proportion of that sum.The Company remains committed to retaining its client base: the continued high percentage of repeat business provides a constant reminder of the Company's ability to satisfy clients' requirements whilst recognising the need to offer added value and reduced costs to maintain its competitive edge.The Company remains committed to its policy of managing its exposure to risk. Continuous monitoring of sales income, costs and overheads together with robust cash management is a significant factor in its ability to make informed decisions about its future.The Company continues to enjoy a good reputation in the industry for prompt payment of its supply chain and remains committed to ensuring that its creditors are all discharged within terms.The director is confident that the Company will achieve its performance targets in the years ahead and acknowledges that delivery of projects that as a minimum meet, or as a rule exceed expectations is necessary to remain efficient and fit for purpose when clients select those companies with which they wish to work. The director remains mindful of the challenges the Company faces in the industry that it operates in and is committed to meeting them.

Health and Safety

The Company continues with its accreditation to OHSAS 18001

Improvements in the Company's processes and systems and Key Performance dashboards and the employment of Health and Safety professionals have assisted the Company and the director in understanding the key risks and areas for improvement. The Company remains committed to the continued reduction of accidents in its workplaces.

Environment

The Company continues with its accreditation to ISO 14001

The Company recognises the environmental implications of its operations and is committed to reducing its environmental impact, waste to landfill and carbon emissions

Quality management

The Company continues to be accredited to ISO 9001.

Investment in new technology and documentation continues to facilitate improved information flow internally and externally.

Accreditations and memberships held by the Company include CHAS, Constructionline, SMAS, Exor and Achilles Building Confidence.

This report was approved by the board of directors on 19 July 2018 and signed on behalf of the board by:

D T Hardwick

Director

CHARLES EDWARD LIMITED

Director's report

Year ended 31 July 2017

The director presents his report and the financial statements of the company for the year ended 31 July 2017.

Director

The director who served the company during the year was as follows:

D T Hardwick

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Financial instruments

There are no material exposures to price risk, credit risk, liquidity risk or cash flow risk not covered in the strategic report.

Director's responsibilities statement

the director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 19 July 2018 and signed on behalf of the board by:

D T Hardwick

Director

CHARLES EDWARD LIMITED

Independent auditor's report to the member of

Charles Edward Limited

Year ended 31 July 2017

Opinion

We have audited the financial statements of Charles Edward Limited for the year ended 31 July 2017 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the company's member, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to him in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member as a body, for our audit work, for this report, or for the opinions we have formed. In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 July 2017 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

- the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

- the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Wendy Draper BSc FCA (Senior Statutory Auditor)

For and on behalf of

JADAudit Limited

Chartered Accountants and Registered Auditor

4 Bloors Lane

Rainham

Kent

19 July 2018

CHARLES EDWARD LIMITED

Statement of comprehensive income

Year ended 31 July 2017

		2017	2016
	Note	£	£


Turnover	4	27,341,259	14,893,120
Cost of sales		( 25,116,004)	( 12,922,814)
		_______	_______
Gross profit		2,225,255	1,970,306

Administrative expenses		( 1,196,686)	( 610,462)
		_______	_______
Operating profit	5	1,028,569	1,359,844

Other interest receivable and similar income	8	823	-
Amounts written off investments	9	( 100,000)	-
		_______	_______
Profit before taxation		929,392	1,359,844

Tax on profit	10	( 204,978)	( 274,087)
		_______	_______
Profit for the financial year and total comprehensive income		724,414	1,085,757
		_______	_______

All the activities of the company are from continuing operations.

CHARLES EDWARD LIMITED

Statement of financial position

31 July 2017

		2017		2016
	Note	£	£	£	£

Fixed assets
Tangible assets	13	26,789		26,964
Investments	14	100,000		-
		_______		_______
			126,789		26,964

Current assets
Stocks	15	301,793		361,224
Debtors	16	7,940,633		1,778,363
Cash at bank and in hand		2,619,693		3,192,416
		_______		_______
		10,862,119		5,332,003
Creditors: amounts falling due
within one year	17	( 8,631,731)		( 3,727,022)
		_______		_______
Net current assets			2,230,388		1,604,981
			_______		_______
Total assets less current liabilities			2,357,177		1,631,945


Provisions for liabilities	18		( 1,134)		( 315)

			_______		_______
Net assets			2,356,043		1,631,630
			_______		_______

Capital and reserves
Called up share capital	22		5		5
Profit and loss account			2,356,038		1,631,625
			_______		_______
Shareholder funds			2,356,043		1,631,630
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 19 July 2018 , and are signed on behalf of the board by:

D T Hardwick

Director

Company registration number: 08088422

CHARLES EDWARD LIMITED

Statement of changes in equity

Year ended 31 July 2017

	Called up share capital	Profit and loss account	Total
	£	£	£


At 1 August 2015	5	609,868	609,873

Profit for the year	-	1,085,757	1,085,757
	_______	_______	_______
Total comprehensive income for the year	-	1,085,757	1,085,757

Dividends paid and payable	-	( 64,000)	( 64,000)
	_______	_______	_______
Total investments by and distributions to owners	-	( 64,000)	( 64,000)

	_______	_______	_______
At 31 July 2016 and 1 August 2016	5	1,631,624	1,631,629

Profit for the year	-	724,414	724,414
	_______	_______	_______
Total comprehensive income for the year	-	724,414	724,414

	_______	_______	_______
At 31 July 2017	5	2,356,038	2,356,043
	_______	_______	_______

CHARLES EDWARD LIMITED

Statement of cash flows

Year ended 31 July 2017

	2017	2016
	£	£

Cash flows from operating activities
Profit for the financial year	724,414	1,085,757

Adjustments for:
Depreciation of tangible assets	7,958	5,920
Amounts written off investments	100,000	-
Other interest receivable and similar income	( 823)	-
Gain/(loss) on disposal of tangible assets	-	2,930
Tax on profit	204,978	274,087
Accrued expenses/(income)	920,498	( 75,882)

Changes in:
Stocks	59,431	( 357,059)
Trade and other debtors	( 4,283,298)	( 615,217)
Trade and other creditors	1,168,171	2,652,369
	_______	_______
Cash generated from operations	( 1,098,671)	2,972,905

Interest received	823	-
Tax paid	( 273,772)	( 114,299)
	_______	_______
Net cash (used in)/from operating activities	( 1,371,620)	2,858,606
	_______	_______

Cash flows from investing activities
Purchase of tangible assets	( 7,783)	( 30,960)
Acquisition of interests in associates and joint ventures	( 200,000)	-
	_______	_______
Net cash used in investing activities	( 207,783)	( 30,960)
	_______	_______

Cash flows from financing activities
Proceeds from borrowings	1,006,681	( 25,496)
Equity dividends paid	-	( 64,000)
	_______	_______
Net cash from/(used in) financing activities	1,006,681	( 89,496)
	_______	_______

Net increase/(decrease) in cash and cash equivalents	( 572,722)	2,738,150
Cash and cash equivalents at beginning of year	3,192,416	454,265
	_______	_______
Cash and cash equivalents at end of year	2,619,694	3,192,415
	_______	_______

CHARLES EDWARD LIMITED

Notes to the financial statements

Year ended 31 July 2017

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Grove House, 1 Sheldon Way, Larkfield, Kent.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Transition to FRS 102

The entity transitioned from previous UK GAAP to FRS 102 as at 1 August 2015. Details of how FRS 102 has affected the reported financial position and financial performance is given in note 26.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

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

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Fittings fixtures and equipment	-	20 %	straight line
Motor vehicles	-	25 %	reducing balance

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Fixed asset investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2017	2016
	£	£
Construction contracts	27,341,259	14,893,120
	_______	_______

The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:

	2017	2016
	£	£
United Kingdom	24,631,563	14,893,120
Rest of Europe	2,709,696	-
	_______	_______
	27,341,259	14,893,120
	_______	_______

5. Operating profit

Operating profit is stated after charging/(crediting):

	2017	2016
	£	£
Depreciation of tangible assets	7,958	5,920
(Gain)/loss on disposal of tangible assets	-	2,930
Cost of stocks recognised as an expense	8,655,035	1,635,801
Impairment of trade debtors	91,018	112,299
Operating lease rentals	10,867	4,030
Foreign exchange differences	853	-
Fees payable for the audit of the financial statements	10,000	-
	_______	_______

6. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to:

	2017	2016
Directors	1	1
Employees	3	3
	_______	_______
	4	4
	_______	_______

The aggregate payroll costs incurred during the year were:

	2017	2016
	£	£
Wages and salaries	249,544	179,999
Social security costs	28,626	21,853
Other pension costs	170,000	-
	_______	_______
	448,170	201,852
	_______	_______

7. Directors remuneration

The director's aggregate remuneration in respect of qualifying services was:

	2017	2016
	£	£
Remuneration	72,400	-
Company contributions to pension schemes in respect of qualifying services	170,000	-
	_______	_______
	242,400	-
	_______	_______

8. Other interest receivable and similar income

	2017	2016
	£	£
Bank deposits	823	-
	_______	_______

9. Amounts written off investments

	2017	2016
	£	£
Impairment of investments in associates	100,000	-
	_______	_______

10. Tax on profit

Major components of tax expense

	2017	2016
	£	£
Current tax:
UK current tax expense	204,159	273,772
	_______	_______

Deferred tax:
Origination and reversal of timing differences	819	315
	_______	_______
Tax on profit	204,978	274,087
	_______	_______

Reconciliation of tax expense

The tax assessed on the profit for the year is higher than (2016: higher than) the standard rate of corporation tax in the UK of 19.67 % (2016: 20.00%).

	2017	2016
	£	£
Profit before taxation	929,392	1,359,844
	_______	_______

Profit multiplied by rate of tax	182,811	271,969
Effect of expenses not deductible for tax purposes	22,256	1,148
Effect of capital allowances and depreciation	( 865)	655
Rounding on tax charge	( 43)	-
	_______	_______
Tax on profit	204,159	273,772
	_______	_______

11. Earnings per share

Basic earnings/(loss) per share

The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:

	2017	2016
	£	£
Profit for the year attributable to the owners of the company	724,414	1,085,757
	_______	_______

Diluted earnings/(loss) per share

The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:

	2017	2016
	£	£
Earnings/(loss) used in calculation of basic earnings/(loss) per share	724,414	1,085,757
	_______	_______

12. Dividends

Equity dividends

	2017	2016
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year)	-	64,000
	_______	_______

13. Tangible assets

	Fixtures, fittings and equipment	Motor vehicles	Total
	£	£	£
Cost
At 1 August 2016	3,549	30,960	34,509
Additions	-	7,783	7,783
	_______	_______	_______
At 31 July 2017	3,549	38,743	42,292
	_______	_______	_______
Depreciation
At 1 August 2016	2,335	5,210	7,545
Charge for the year	710	7,248	7,958
	_______	_______	_______
At 31 July 2017	3,045	12,458	15,503
	_______	_______	_______
Carrying amount
At 31 July 2017	504	26,285	26,789
	_______	_______	_______
At 31 July 2016	1,214	25,750	26,964
	_______	_______	_______

14. Investments

	Participating interests	Total
	£	£
Cost
At 1 August 2016	-	-
Additions	200,000	200,000
Fair value adjustment	(100,000)	(100,000)
	_______	_______
At 31 July 2017	100,000	100,000
	_______	_______
Impairment
At 1 August 2016 and 31 July 2017	-	-
	_______	_______
Carrying amount
At 31 July 2017	100,000	100,000
	_______	_______
At 31 July 2016	-	-
	_______	_______

Investments in group undertakings
	Registered office	Class of share	Percentage of shares held

Participating interest
JW Smart Services Limited	Smart House, Brielle Way, Sheerness, Kent. ME12 1YW	Ordinary	30

15. Stocks

	2017	2016
	£	£
Work in progress	301,793	361,224
	_______	_______

16. Debtors

	2017	2016
	£	£
Trade debtors	1,837,573	1,501,952
Prepayments and accrued income	1,945,674	2,092
Other debtors	4,157,386	274,319
	_______	_______
	7,940,633	1,778,363
	_______	_______

The debtors above include the following amounts falling due after more than one year:

	2017	2016
	£	£
Other debtors	100,000	-
	_______	_______

17. Creditors: amounts falling due within one year

	2017	2016
	£	£
Other loans	1,060,000	60,000
Payments received on account	-	400,000
Trade creditors	2,987,072	2,690,283
Accruals and deferred income	2,831,970	32,500
Corporation tax	204,159	273,772
Social security and other taxes	41,849	270,323
Director loan accounts	6,681	-
Other creditors	1,500,000	144
	_______	_______
	8,631,731	3,727,022
	_______	_______

18. Provisions

	Deferred tax (note 19)	Total
	£	£
At 1 August 2016	315	315
Additions	819	819
	_______	_______
At 31 July 2017	1,134	1,134
	_______	_______

19. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2017	2016
	£	£
Included in provisions (note 18)	1,134	315
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2017	2016
	£	£
Accelerated capital allowances	1,134	315
	_______	_______

20. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 170,000 (2016: £- ).

21. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	2017	2016
	£	£
Financial assets that are equity instruments measured at cost less impairment
Unlisted investments	100,000	-
	_______	_______

22. Called up share capital

Issued, called up and fully paid

	2017		2016
	No	£	No	£
Ordinary shares shares of £ 1.00 each	5	5	5	5
	_______	_______	_______	_______

23. Directors advances, credits and guarantees

	During the year the director entered into the following advances and credits with the company:

2017
		Balance brought forward	Advances /(credits) to the director	Amounts repaid	Balance o/standing
		£	£	£	£
	D T Hardwick	94,319	( 200,000)	99,000	( 6,681)
		_______	_______	_______	_______

2016
		Balance brought forward	Advances /(credits) to the director	Amounts repaid	Balance o/standing
		£	£	£	£
	D T Hardwick	( 25,496)	( 64,000)	183,815	94,319
		_______	_______	_______	_______

24. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2017	2016	2017	2016
	£	£	£	£
Charles J Baxter Limited	63,658	-	63,658	-
Charles Edward (Joy Lane) Limited	598,362	-	598,362	-
Charles Edward (Nelmes Way) Limited	141,501	-	141,501	-
Charles Holden Limited	85,000	-	85,000	-
Charles Edward Developments Limited	25,132	-	25,132	-
Smart Fire & Security Solutions Limited	133,584	-	133,584	-
Charles Winter Interiors Limited	60,000	-	60,000	-
Charles Edward (Station Road) Limited	197,535	-	197,535	-
Construction Management Services (Kent) Limited	100,000	10,000	10,000	10,000
TPS Clapham Limited	30,000	100,000	102,000	100,000
	_______	_______	_______	_______

Mr D T Hardwick , the director of this company, is a director of the above companies. The above transactions have been carried out at market rate and any balances outstanding are interest free, unsecured and have no fixed repayment schedule.

25. Controlling party

The company is controlled by Mr D T Hardwick, the sole director and shareholder.

26. Transition to FRS 102

These are the first financial statements that comply with FRS 102. The company transitioned to FRS 102 on 1 August 2015.

Reconciliation of equity

No transitional adjustments were required.

Reconciliation of profit or loss for the year

No transitional adjustments were required.