John A. Bates & Sons Limited - Period Ending 2018-03-31

Registration number: 00411334

John A. Bates & Sons Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

Bissell & Brown Limited
Chartered Accountants
Charter House
56 High Street
Sutton Coldfield
West Midlands
B72 1UJ

John A. Bates & Sons Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

John A. Bates & Sons Limited

Company Information

Directors	Mr F D Bates Mrs J A Bates

Registered office

Tracy Farm Redditch Road Ullenhall Henley in Arden West Midlands B95 5NY

Accountants

Bissell & Brown Limited Chartered Accountants Charter House 56 High Street Sutton Coldfield West Midlands B72 1UJ

Page 1

John A. Bates & Sons Limited

(Registration number: 00411334)
Balance Sheet as at 31 March 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	270,000	270,000
Investment property	5	145,000	80,000
		415,000	350,000
Current assets
Debtors	6	402	438
Cash at bank and in hand		38,619	38,204
		39,021	38,642
Creditors: Amounts falling due within one year	7	(19,505)	(18,714)
Net current assets		19,516	19,928
Total assets less current liabilities		434,516	369,928
Provisions for liabilities		(10,992)	(10,992)
Net assets		423,524	358,936
Capital and reserves
Called up share capital	8	2,000	2,000
Revaluation reserve		397,069	332,069
Other reserves		4,000	4,000
Profit and loss account		20,455	20,867
Total equity		423,524	358,936

For the financial year ending 31 March 2018 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 Directors' Report or the Profit and Loss Account has been taken.

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 2

John A. Bates & Sons Limited

(Registration number: 00411334)
Balance Sheet as at 31 March 2018 (continued)

Approved and authorised by the Board on 3 September 2018 and signed on its behalf by:
 

......................................... Mr F D Bates Director

......................................... Mrs J A Bates Director

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 3

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

1	General information

The company is a private company limited by share capital, incorporated in England & Wales. The company's registration number is 00411334.

The address of its registered office is:
Tracy Farm
Redditch Road
Ullenhall
Henley in Arden
West Midlands
B95 5NY

These financial statements were authorised for issue by the Board on 3 September 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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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 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 4

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet 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
Freehold Property	2% straight line

Investment property

Investment properties are held for long term rental yields and for capital appreciation.

Investment properties are measured initially at cost. After initial recognition, investment properties are measured and carried at fair value.

Fair value is based on valuation performed by the directors. The fair value of the investment properties reflects the market conditions at the balance sheet date. Changes in fair values are recorded in the profit and loss account as investment properties fair value adjustment.

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.

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.

Page 5

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

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.

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.

Financial instruments

Trade debtors

Trade debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Where the arrangement with a trade debtor constitutes a financing transaction, the debtor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

Financial liabilities and equity

Financial instruments are classified as liabilities and equity instruments according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Trade creditors

Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Page 6

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

2	Accounting policies (continued)

Where the arrangement with a trade creditor constitutes a financing transaction, the creditor is initially and subsequently measured at the present value of future payments discounted at a market rate of interest for a similar instrument.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

Commitments to receive a loan are measured at cost less impairment.

Derecognition of financial assets and liabilities

A financial asset is derecognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

3	Staff numbers

The average number of persons employed (including directors) during the year, was 2 (2017 - 2). Both of the employees are directors of the company and neither of them were paid by the company during the year (2017 - £nil in total).

4	Tangible assets

	Land and buildings £	Total £
Cost or valuation
At 1 April 2017	270,000	270,000
At 31 March 2018	270,000	270,000
Depreciation
Carrying amount
At 31 March 2018	270,000	270,000
At 31 March 2017	270,000	270,000

During the previous year, the property at Stratford Road, Birmingham, included in the freehold land and buildings, was reclassified as investment property.

The remaining property relating to the land at Tracy Farm was revalued at £270,000 in April 2016. The directors consider that the value has not changed in the last year.

Page 7

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

4	Tangible assets (continued)

Included within the net book value of land and buildings above is £270,000 (2017 - £270,000) in respect of freehold land and buildings.
 

Page 8

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

5	Investment properties

	2018 £
At 1 April 2017	80,000
Fair value adjustments	65,000
At 31 March 2018	145,000

The property was valued by the directors at 31st March 2018 at £145,000 with no material variation since that date.

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

6

Debtors

	2018 £	2017 £
Prepayments	402	438
Total current trade and other debtors	402	438

7

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Loans and borrowings	7.1	11,392	11,129
Trade creditors		2,500	2,500
Other creditors		2,500	2,499
Accrued expenses		1,975	1,976
Corporation tax liability		1,138	610
		19,505	18,714

7.1	Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Loans from directors	11,392	11,129

Page 9

John A. Bates & Sons Limited

Notes to the Financial Statements for the Year Ended 31 March 2018 (continued)

8	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary share of £1 each	2,000	2,000	2,000	2,000

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions: Holders of the ordinary share capital have a right to vote and receive dividends.

9

Dividends

Final dividends paid

		2018 £		2017 £
Final dividend of £2.6316 per each Ordinary share		5,263		5,263

Page 10