The Cutting Station Ltd - Period Ending 2017-11-30

Registration number: 4949465

The Cutting Station Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 30 November 2017

Aleathia Mann Ltd
Chartered Accountants
14 Townsend Court
Reepham
Norfolk
NR10 4LD

The Cutting Station Ltd

Contents

Company Information	1
Profit and Loss Account and Statement of Retained Earnings	2
Balance Sheet	3 to 4
Statement of Changes in Equity	5
Notes to the Financial Statements	6 to 12

The Cutting Station Ltd

Company Information

Directors

Mr M Wilkinson Mrs M J Raine Mr M Wilkinson Mrs M L Ellis Mrs M G Wilkinson

Registered office

Rear Office The Cutting Station Station Road Reepham Norfolk NR10 4LF

Accountants

Aleathia Mann Ltd Chartered Accountants 14 Townsend Court Reepham Norfolk NR10 4LD

Page 1

The Cutting Station Ltd

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 November 2017

	Note	2017 £	2016 £
Turnover		125,117	119,014
Cost of sales		(17,727)	(18,243)
Gross profit		107,390	100,771
Administrative expenses		(90,734)	(89,850)
Other operating income		9,306	11,661
Operating profit		25,962	22,582
Other interest receivable and similar income		102	102
Interest payable and similar charges		(1,229)	(605)
		(1,127)	(503)
Profit before tax		24,835	22,079
Taxation		(8,654)	(13,354)
Profit for the financial year		16,181	8,725
Retained earnings brought forward		69,735	64,510
Dividends paid		(7,000)	(3,500)
Retained earnings carried forward		78,916	69,735

The notes on pages 6 to 12 form an integral part of these financial statements.

Page 2

The Cutting Station Ltd

(Registration number: 4949465)
Balance Sheet as at 30 November 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	4	645	918
Investment property	5	225,000	205,000
		225,645	205,918
Current assets
Stocks	6	8,500	8,500
Debtors	7	-	4,000
Cash at bank and in hand		10,169	7,196
		18,669	19,696
Creditors: Amounts falling due within one year	8	(21,781)	(24,228)
Net current liabilities		(3,112)	(4,532)
Total assets less current liabilities		222,533	201,386
Creditors: Amounts falling due after more than one year	8	(61,871)	(73,705)
Provisions for liabilities		(13,036)	(9,236)
Net assets		147,626	118,445
Capital and reserves
Called up share capital	9	100	100
Other reserves		68,610	48,610
Profit and loss account		78,916	69,735
Total equity		147,626	118,445

For the financial year ending 30 November 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 6 to 12 form an integral part of these financial statements.

Page 3

The Cutting Station Ltd

(Registration number: 4949465)
Balance Sheet as at 30 November 2017

Approved and authorised by the Board on 1 June 2018 and signed on its behalf by:
 

.........................................

Mrs M J Raine
Director

The notes on pages 6 to 12 form an integral part of these financial statements.

Page 4

The Cutting Station Ltd

Statement of Changes in Equity for the Year Ended 30 November 2017

	Share capital £	Other reserves £	Profit and loss account £	Total £
At 1 December 2016	100	48,610	69,735	118,445
Profit for the year	-	-	16,181	16,181
Other comprehensive income	-	20,000	-	20,000
Total comprehensive income	-	20,000	16,181	36,181
Dividends	-	-	(7,000)	(7,000)
At 30 November 2017	100	68,610	78,916	147,626

	Share capital £	Other reserves £	Profit and loss account £	Total £
At 1 December 2015	100	28,610	64,510	93,220
Profit for the year	-	-	8,725	8,725
Other comprehensive income	-	20,000	-	20,000
Total comprehensive income	-	20,000	8,725	28,725
Dividends	-	-	(3,500)	(3,500)
At 30 November 2016	100	48,610	69,735	118,445

The notes on pages 6 to 12 form an integral part of these financial statements.

Page 5

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Rear Office
The Cutting Station
Station Road
Reepham
Norfolk
NR10 4LF

These financial statements were authorised for issue by the Board on 1 June 2018.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and 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;
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 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Page 6

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and equipment	25% per annum reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the Directors. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

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.

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 at the transaction price.

Borrowings

Interest-bearing borrowings are recorded at transaction value.

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.

Share capital

Ordinary shares are classified as equity.

Page 7

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

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.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 8 (2016 - 8).

4	Tangible assets

	Other tangible assets £	Total £
Cost or valuation
At 1 December 2016	14,481	14,481
At 30 November 2017	14,481	14,481
Depreciation
At 1 December 2016	13,563	13,563
Charge for the year	273	273
At 30 November 2017	13,836	13,836
Carrying amount
At 30 November 2017	645	645
At 30 November 2016	918	918

5	Investment properties

	2017 £
At 1 December	205,000
Fair value adjustments	20,000
At 30 November	225,000

Investment properties have been valued by the Directors

There has been no valuation of investment property by an independent valuer.

6

Stocks

	2017 £	2016 £
Other inventories	8,500	8,500

Page 8

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

7

Debtors

	2017 £	2016 £
Other debtors	-	4,000
	-	4,000

8

Creditors

Creditors: amounts falling due within one year

	Note	2017 £	2016 £
Due within one year
Bank loans and overdrafts	10	6,966	6,045
Trade creditors		4,576	4,170
Taxation and social security		5,386	6,762
Other creditors		4,853	7,251
		21,781	24,228

Creditors: amounts falling due after more than one year

	Note	2017 £	2016 £
Due after one year
Loans and borrowings	10	61,871	73,705

9	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary of £1 each	100	100	100	100

10	Loans and borrowings

Page 9

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	42,916	50,796
Other borrowings	18,955	22,909
	61,871	73,705

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	6,966	6,045

11	Transition to FRS 102

Balance Sheet at 1 December 2015
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets	125,157	(124,247)	-	910
Investment property	-	156,390	28,610	185,000
	125,157	32,143	28,610	185,910
Provisions for liabilities	-	-	(5,435)	(5,435)
Net assets	125,157	32,143	23,175	180,475
Capital and reserves
Other reserves	-	-	(28,610)	(28,610)
Profit and loss account	(33,871)	(32,143)	5,435	(60,579)
Total equity	(33,871)	(32,143)	(23,175)	(89,189)

Page 10

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

Balance Sheet at 30 November 2016
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Tangible assets	122,038	(121,120)	-	918
Investment property	-	156,390	48,610	205,000
	122,038	35,270	48,610	205,918
Provisions for liabilities	-	-	(9,236)	(9,236)
Net assets	122,038	35,270	39,374	196,682
Capital and reserves
Other reserves	-	-	(48,610)	(48,610)
Profit and loss account	(43,701)	(35,270)	9,236	(69,735)
Total equity	(43,701)	(35,270)	(39,374)	(118,345)

Page 11

The Cutting Station Ltd

Notes to the Financial Statements for the Year Ended 30 November 2017

Profit and Loss Account for the year ended 30 November 2016
 

	As originally reported £	Reclassification £	Remeasurement £	As restated £
Turnover	-	-	-	-
Administrative expenses	(35,270)	35,270	-	-
Operating (loss)/profit	(35,270)	35,270	-	-
(Loss)/profit before tax	(35,270)	35,270	-	-
Taxation	-	-	9,236	9,236
(Loss)/profit for the financial year	(35,270)	35,270	9,236	9,236

Page 12